diff --git a/google/resource_sql_database_instance.go b/google/resource_sql_database_instance.go
index 2b4bb5b9..f92e3a8c 100644
--- a/google/resource_sql_database_instance.go
+++ b/google/resource_sql_database_instance.go
@@ -230,6 +230,12 @@ func resourceSqlDatabaseInstance() *schema.Resource {
 							Optional: true,
 							Default:  "SYNCHRONOUS",
 						},
+						"user_labels": &schema.Schema{
+							Type:     schema.TypeMap,
+							Optional: true,
+							Elem:     &schema.Schema{Type: schema.TypeString},
+							Set:      schema.HashString,
+						},
 					},
 				},
 			},
@@ -599,6 +605,10 @@ func resourceSqlDatabaseInstanceCreate(d *schema.ResourceData, meta interface{})
 		settings.ReplicationType = v.(string)
 	}
 
+	if v, ok := _settings["user_labels"]; ok {
+		settings.UserLabels = convertStringMap(v.(map[string]interface{}))
+	}
+
 	instance := &sqladmin.DatabaseInstance{
 		Region:          region,
 		Settings:        settings,
@@ -1031,6 +1041,10 @@ func resourceSqlDatabaseInstanceUpdate(d *schema.ResourceData, meta interface{})
 			settings.ReplicationType = v.(string)
 		}
 
+		if v, ok := _settings["user_labels"]; ok {
+			settings.UserLabels = convertStringMap(v.(map[string]interface{}))
+		}
+
 		instance.Settings = settings
 	}
 
@@ -1083,6 +1097,7 @@ func flattenSettings(settings *sqladmin.Settings) []map[string]interface{} {
 		"disk_size":                   settings.DataDiskSizeGb,
 		"pricing_plan":                settings.PricingPlan,
 		"replication_type":            settings.ReplicationType,
+		"user_labels":                 settings.UserLabels,
 	}
 
 	if settings.BackupConfiguration != nil {
@@ -1109,6 +1124,10 @@ func flattenSettings(settings *sqladmin.Settings) []map[string]interface{} {
 		data["disk_autoresize"] = *settings.StorageAutoResize
 	}
 
+	if settings.UserLabels != nil {
+		data["user_labels"] = settings.UserLabels
+	}
+
 	return []map[string]interface{}{data}
 }
 
diff --git a/google/resource_sql_database_instance_test.go b/google/resource_sql_database_instance_test.go
index b1e3ae06..a15e2b13 100644
--- a/google/resource_sql_database_instance_test.go
+++ b/google/resource_sql_database_instance_test.go
@@ -521,6 +521,43 @@ func TestAccSqlDatabaseInstance_multipleOperations(t *testing.T) {
 	})
 }
 
+func TestAccSqlDatabaseInstance_basic_with_user_labels(t *testing.T) {
+	t.Parallel()
+
+	var instance sqladmin.DatabaseInstance
+	databaseID := acctest.RandInt()
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testAccSqlDatabaseInstanceDestroy,
+		Steps: []resource.TestStep{
+			resource.TestStep{
+				Config: fmt.Sprintf(
+					testGoogleSqlDatabaseInstance_basic_with_user_labels, databaseID),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckGoogleSqlDatabaseInstanceExists(
+						"google_sql_database_instance.instance", &instance),
+					testAccCheckGoogleSqlDatabaseInstanceEquals(
+						"google_sql_database_instance.instance", &instance),
+					testAccCheckGoogleSqlDatabaseRootUserDoesNotExist(
+						&instance),
+				),
+			},
+			resource.TestStep{
+				Config: fmt.Sprintf(
+					testGoogleSqlDatabaseInstance_basic_with_user_labels_update, databaseID),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckGoogleSqlDatabaseInstanceExists(
+						"google_sql_database_instance.instance", &instance),
+					testAccCheckGoogleSqlDatabaseInstanceEquals(
+						"google_sql_database_instance.instance", &instance),
+				),
+			},
+		},
+	})
+}
+
 func testAccCheckGoogleSqlDatabaseInstanceEquals(n string,
 	instance *sqladmin.DatabaseInstance) resource.TestCheckFunc {
 	return func(s *terraform.State) error {
@@ -693,6 +730,22 @@ func testAccCheckGoogleSqlDatabaseInstanceEquals(n string,
 			return fmt.Errorf("Error settings.pricing_plan mismatch, (%s, %s)", server, local)
 		}
 
+		if instance.Settings.UserLabels != nil {
+			server := instance.Settings.UserLabels["location"]
+			local = attributes["settings.0.user_labels.location"]
+
+			if server != local {
+				return fmt.Errorf("Error settings.user_labels.location mismatch, (%s, %s)", server, local)
+			}
+
+			server = instance.Settings.UserLabels["track"]
+			local = attributes["settings.0.user_labels.track"]
+
+			if server != local {
+				return fmt.Errorf("Error settings.user_labels.track mismatch, (%s, %s)", server, local)
+			}
+		}
+
 		if instance.ReplicaConfiguration != nil {
 			server = strconv.FormatBool(instance.ReplicaConfiguration.FailoverTarget)
 			local = attributes["replica_configuration.0.failover_target"]
@@ -1064,3 +1117,29 @@ resource "google_sql_user" "user" {
 	password = "hunter2"
 }
 `
+
+var testGoogleSqlDatabaseInstance_basic_with_user_labels = `
+resource "google_sql_database_instance" "instance" {
+	name = "tf-lw-%d"
+	region = "us-central1"
+	settings {
+		tier = "db-f1-micro"
+		user_labels {
+		    track = "production"
+		    location = "western-division"
+		}
+	}
+}
+`
+var testGoogleSqlDatabaseInstance_basic_with_user_labels_update = `
+resource "google_sql_database_instance" "instance" {
+	name = "tf-lw-%d"
+	region = "us-central1"
+	settings {
+		tier = "db-f1-micro"
+		user_labels {
+		    track = "production"
+		}
+	}
+}
+`
diff --git a/website/docs/r/sql_database_instance.html.markdown b/website/docs/r/sql_database_instance.html.markdown
index 6c9c18b9..b18f9dbc 100644
--- a/website/docs/r/sql_database_instance.html.markdown
+++ b/website/docs/r/sql_database_instance.html.markdown
@@ -124,6 +124,8 @@ The required `settings` block supports:
 * `replication_type` - (Optional) Replication type for this instance, can be one
     of `ASYNCHRONOUS` or `SYNCHRONOUS`.
 
+* `user_labels` - (Optional) A set of key/value user label pairs to assign to the instance.
+
 The optional `settings.database_flags` sublist supports:
 
 * `name` - (Optional) Name of the flag.