diff --git a/changelogs/fragments/1150-ec2_instance-fix-instance-creation-in-az.yml b/changelogs/fragments/1150-ec2_instance-fix-instance-creation-in-az.yml
new file mode 100644
index 00000000000..119d1b25209
--- /dev/null
+++ b/changelogs/fragments/1150-ec2_instance-fix-instance-creation-in-az.yml
@@ -0,0 +1,2 @@
+minor_changes:
+- ec2_instance - minor fix for launching an instance in specified AZ when `vpc_subnet_id` is not provided (https://github.com/ansible-collections/amazon.aws/pull/1150).
diff --git a/plugins/modules/ec2_instance.py b/plugins/modules/ec2_instance.py
index 65440a20885..4c0982b9853 100644
--- a/plugins/modules/ec2_instance.py
+++ b/plugins/modules/ec2_instance.py
@@ -1126,7 +1126,7 @@ def build_network_spec(params):
                 module.fail_json(
                     msg="No default subnet could be found - you must include a VPC subnet ID (vpc_subnet_id parameter) to create an instance")
             else:
-                sub = get_default_subnet(default_vpc)
+                sub = get_default_subnet(default_vpc, availability_zone=module.params.get('availability_zone'))
                 spec['SubnetId'] = sub['SubnetId']
 
         if network.get('private_ip_address'):
diff --git a/tests/integration/targets/ec2_instance_instance_minimal/tasks/main.yml b/tests/integration/targets/ec2_instance_instance_minimal/tasks/main.yml
index f96829b9da0..8dcfca43787 100644
--- a/tests/integration/targets/ec2_instance_instance_minimal/tasks/main.yml
+++ b/tests/integration/targets/ec2_instance_instance_minimal/tasks/main.yml
@@ -264,6 +264,74 @@
       - create_instance_tag.instance_ids | length == 1
       - create_instance_tag.instance_ids[0] == create_instance_id_tag
 
+###############################################################
+
+  - name: "Create a new instance in AZ {{ aws_region }}a"
+    ec2_instance:
+      state: present
+      name: "{{ resource_prefix }}-test-basic-{{ aws_region }}a"
+      instance_type: "{{ ec2_instance_type }}"
+      image_id: "{{ ec2_ami_id }}"
+      region: "{{ aws_region }}"
+      availability_zone: "{{ aws_region }}a"
+      tags:
+        TestId: "{{ ec2_instance_tag_TestId }}"
+      wait: true
+    register: create_instance
+
+  - name: "Save instance ID"
+    set_fact:
+      create_instance_id_3: "{{ create_instance.instance_ids[0] }}"
+
+  - name: Get instance info
+    ec2_instance_info:
+      instance_ids:
+        - "{{ create_instance_id_3 }}"
+    register: info_result
+
+  - assert:
+      that:
+      - create_instance is not failed
+      - create_instance is changed
+      - '"ec2:RunInstances" in create_instance.resource_actions'
+      - '"instance_ids" in create_instance'
+      - create_instance.instance_ids | length == 1
+      - create_instance.instance_ids[0].startswith("i-")
+      - info_result.instances[0].placement.availability_zone == '{{ aws_region }}a'
+
+  - name: "Create a new instance in AZ {{ aws_region }}b"
+    ec2_instance:
+      state: present
+      name: "{{ resource_prefix }}-test-basic-{{ aws_region }}b"
+      instance_type: "{{ ec2_instance_type }}"
+      image_id: "{{ ec2_ami_id }}"
+      region: "{{ aws_region }}"
+      availability_zone: "{{ aws_region }}b"
+      tags:
+        TestId: "{{ ec2_instance_tag_TestId }}"
+      wait: true
+    register: create_instance
+
+  - name: "Save instance ID"
+    set_fact:
+      create_instance_id_4: "{{ create_instance.instance_ids[0] }}"
+
+  - name: Get instance info
+    ec2_instance_info:
+      instance_ids:
+        - "{{ create_instance_id_4 }}"
+    register: info_result
+
+  - assert:
+      that:
+      - create_instance is not failed
+      - create_instance is changed
+      - '"ec2:RunInstances" in create_instance.resource_actions'
+      - '"instance_ids" in create_instance'
+      - create_instance.instance_ids | length == 1
+      - create_instance.instance_ids[0].startswith("i-")
+      - info_result.instances[0].placement.availability_zone == '{{ aws_region }}b'
+
 ################################################################
 
   - name: "Terminate instance based on name parameter (check_mode)"
@@ -481,3 +549,151 @@
       - '"ec2:TerminateInstances" not in terminate_id.resource_actions'
       - '"terminate_failed" not in terminate_id'
       - '"terminate_success" not in terminate_id'
+
+################################################################
+
+  - name: "Terminate instance based on id (check_mode)"
+    ec2_instance:
+      state: absent
+      instance_ids:
+      - "{{ create_instance_id_3 }}"
+      wait: true
+    register: terminate_id
+    check_mode: true
+
+  - assert:
+      that:
+      - terminate_id is not failed
+      - terminate_id is changed
+      - '"ec2:TerminateInstances" not in terminate_id.resource_actions'
+      - '"terminate_failed" in terminate_id'
+      - '"terminate_success" in terminate_id'
+      - terminate_id.terminate_failed | length == 0
+      - terminate_id.terminate_success | length == 1
+      - terminate_id.terminate_success[0] == create_instance_id_3
+
+  - name: "Terminate instance based on id"
+    ec2_instance:
+      state: absent
+      instance_ids:
+      - "{{ create_instance_id_3 }}"
+      wait: true
+    register: terminate_id
+
+  - assert:
+      that:
+      - terminate_id is not failed
+      - terminate_id is changed
+      - '"ec2:TerminateInstances" in terminate_id.resource_actions'
+      - '"terminate_failed" in terminate_id'
+      - '"terminate_success" in terminate_id'
+      - terminate_id.terminate_failed | length == 0
+      - terminate_id.terminate_success | length == 1
+      - terminate_id.terminate_success[0] == create_instance_id_3
+
+  - name: "Terminate instance based on id - idempotency (check_mode)"
+    ec2_instance:
+      state: absent
+      instance_ids:
+      - "{{ create_instance_id_3 }}"
+      wait: true
+    register: terminate_id
+    check_mode: true
+
+  - assert:
+      that:
+      - terminate_id is not failed
+      - terminate_id is not changed
+      - '"ec2:TerminateInstances" not in terminate_id.resource_actions'
+      - '"terminate_failed" not in terminate_id'
+      - '"terminate_success" not in terminate_id'
+
+  - name: "Terminate instance based on id - idempotency"
+    ec2_instance:
+      state: absent
+      instance_ids:
+      - "{{ create_instance_id_3 }}"
+      wait: true
+    register: terminate_id
+
+  - assert:
+      that:
+      - terminate_id is not failed
+      - terminate_id is not changed
+      - '"ec2:TerminateInstances" not in terminate_id.resource_actions'
+      - '"terminate_failed" not in terminate_id'
+      - '"terminate_success" not in terminate_id'
+
+################################################################
+
+  - name: "Terminate instance based on id (check_mode)"
+    ec2_instance:
+      state: absent
+      instance_ids:
+      - "{{ create_instance_id_4 }}"
+      wait: true
+    register: terminate_id
+    check_mode: true
+
+  - assert:
+      that:
+      - terminate_id is not failed
+      - terminate_id is changed
+      - '"ec2:TerminateInstances" not in terminate_id.resource_actions'
+      - '"terminate_failed" in terminate_id'
+      - '"terminate_success" in terminate_id'
+      - terminate_id.terminate_failed | length == 0
+      - terminate_id.terminate_success | length == 1
+      - terminate_id.terminate_success[0] == create_instance_id_4
+
+  - name: "Terminate instance based on id"
+    ec2_instance:
+      state: absent
+      instance_ids:
+      - "{{ create_instance_id_4 }}"
+      wait: true
+    register: terminate_id
+
+  - assert:
+      that:
+      - terminate_id is not failed
+      - terminate_id is changed
+      - '"ec2:TerminateInstances" in terminate_id.resource_actions'
+      - '"terminate_failed" in terminate_id'
+      - '"terminate_success" in terminate_id'
+      - terminate_id.terminate_failed | length == 0
+      - terminate_id.terminate_success | length == 1
+      - terminate_id.terminate_success[0] == create_instance_id_4
+
+  - name: "Terminate instance based on id - idempotency (check_mode)"
+    ec2_instance:
+      state: absent
+      instance_ids:
+      - "{{ create_instance_id_4 }}"
+      wait: true
+    register: terminate_id
+    check_mode: true
+
+  - assert:
+      that:
+      - terminate_id is not failed
+      - terminate_id is not changed
+      - '"ec2:TerminateInstances" not in terminate_id.resource_actions'
+      - '"terminate_failed" not in terminate_id'
+      - '"terminate_success" not in terminate_id'
+
+  - name: "Terminate instance based on id - idempotency"
+    ec2_instance:
+      state: absent
+      instance_ids:
+      - "{{ create_instance_id_4 }}"
+      wait: true
+    register: terminate_id
+
+  - assert:
+      that:
+      - terminate_id is not failed
+      - terminate_id is not changed
+      - '"ec2:TerminateInstances" not in terminate_id.resource_actions'
+      - '"terminate_failed" not in terminate_id'
+      - '"terminate_success" not in terminate_id'