diff --git a/aws/resource_aws_launch_template.go b/aws/resource_aws_launch_template.go
index 1ab156c58af..ca1fb2d662b 100644
--- a/aws/resource_aws_launch_template.go
+++ b/aws/resource_aws_launch_template.go
@@ -159,8 +159,14 @@ func resourceAwsLaunchTemplate() *schema.Resource {
 			},
 
 			"ebs_optimized": {
-				Type:     schema.TypeBool,
-				Optional: true,
+				// Use TypeString to allow an "unspecified" value,
+				// since TypeBool only has true/false with false default.
+				// The conversion from bare true/false values in
+				// configurations to TypeString value is currently safe.
+				Type:             schema.TypeString,
+				Optional:         true,
+				DiffSuppressFunc: suppressEquivalentTypeStringBoolean,
+				ValidateFunc:     validateTypeStringNullableBoolean,
 			},
 
 			"elastic_gpu_specifications": {
@@ -538,7 +544,6 @@ func resourceAwsLaunchTemplateRead(d *schema.ResourceData, meta interface{}) err
 	ltData := dltv.LaunchTemplateVersions[0].LaunchTemplateData
 
 	d.Set("disable_api_termination", ltData.DisableApiTermination)
-	d.Set("ebs_optimized", ltData.EbsOptimized)
 	d.Set("image_id", ltData.ImageId)
 	d.Set("instance_initiated_shutdown_behavior", ltData.InstanceInitiatedShutdownBehavior)
 	d.Set("instance_type", ltData.InstanceType)
@@ -548,6 +553,11 @@ func resourceAwsLaunchTemplateRead(d *schema.ResourceData, meta interface{}) err
 	d.Set("security_group_names", aws.StringValueSlice(ltData.SecurityGroups))
 	d.Set("user_data", ltData.UserData)
 	d.Set("vpc_security_group_ids", aws.StringValueSlice(ltData.SecurityGroupIds))
+	d.Set("ebs_optimized", "")
+
+	if ltData.EbsOptimized != nil {
+		d.Set("ebs_optimized", strconv.FormatBool(aws.BoolValue(ltData.EbsOptimized)))
+	}
 
 	if err := d.Set("block_device_mappings", getBlockDeviceMappings(ltData.BlockDeviceMappings)); err != nil {
 		return err
@@ -856,8 +866,12 @@ func buildLaunchTemplateData(d *schema.ResourceData, meta interface{}) (*ec2.Req
 		opts.DisableApiTermination = aws.Bool(v.(bool))
 	}
 
-	if v, ok := d.GetOk("ebs_optimized"); ok {
-		opts.EbsOptimized = aws.Bool(v.(bool))
+	if v, ok := d.GetOk("ebs_optimized"); ok && v.(string) != "" {
+		vBool, err := strconv.ParseBool(v.(string))
+		if err != nil {
+			return nil, fmt.Errorf("error converting ebs_optimized %q from string to boolean: %s", v.(string), err)
+		}
+		opts.EbsOptimized = aws.Bool(vBool)
 	}
 
 	if v, ok := d.GetOk("security_group_names"); ok {
diff --git a/aws/resource_aws_launch_template_test.go b/aws/resource_aws_launch_template_test.go
index bb9c6bc4c3e..c151c15e709 100644
--- a/aws/resource_aws_launch_template_test.go
+++ b/aws/resource_aws_launch_template_test.go
@@ -29,6 +29,7 @@ func TestAccAWSLaunchTemplate_basic(t *testing.T) {
 					resource.TestCheckResourceAttr(resName, "default_version", "1"),
 					resource.TestCheckResourceAttr(resName, "latest_version", "1"),
 					resource.TestCheckResourceAttrSet(resName, "arn"),
+					resource.TestCheckResourceAttr(resName, "ebs_optimized", ""),
 				),
 			},
 		},
@@ -122,6 +123,7 @@ func TestAccAWSLaunchTemplate_data(t *testing.T) {
 					resource.TestCheckResourceAttr(resName, "block_device_mappings.#", "1"),
 					resource.TestCheckResourceAttr(resName, "credit_specification.#", "1"),
 					resource.TestCheckResourceAttrSet(resName, "disable_api_termination"),
+					resource.TestCheckResourceAttr(resName, "ebs_optimized", "false"),
 					resource.TestCheckResourceAttr(resName, "elastic_gpu_specifications.#", "1"),
 					resource.TestCheckResourceAttr(resName, "iam_instance_profile.#", "1"),
 					resource.TestCheckResourceAttrSet(resName, "image_id"),
@@ -431,7 +433,7 @@ resource "aws_launch_template" "foo" {
 
   disable_api_termination = true
 
-  ebs_optimized = true
+  ebs_optimized = false
 
   elastic_gpu_specifications {
     type = "test"