diff --git a/api/src/com/cloud/api/commands/UpdateHostCmd.java b/api/src/com/cloud/api/commands/UpdateHostCmd.java
index 0b8b6c3385d..eec36ccafe3 100644
--- a/api/src/com/cloud/api/commands/UpdateHostCmd.java
+++ b/api/src/com/cloud/api/commands/UpdateHostCmd.java
@@ -18,6 +18,8 @@
 
 package com.cloud.api.commands;
 
+import java.util.List;
+
 import org.apache.log4j.Logger;
 
 import com.cloud.api.ApiConstants;
@@ -44,10 +46,13 @@ public class UpdateHostCmd extends BaseCmd {
 
     @Parameter(name=ApiConstants.OS_CATEGORY_ID, type=CommandType.LONG, description="the id of Os category to update the host with")
     private Long osCategoryId;
-    
+
     @Parameter(name=ApiConstants.ALLOCATION_STATE, type=CommandType.STRING, description="Allocation state of this Host for allocation of new resources")
     private String allocationState;
 
+    @Parameter(name=ApiConstants.HOST_TAGS, type=CommandType.LIST, collectionType=CommandType.STRING, description="list of tags to be added to the host")
+    private List<String> hostTags;
+
     /////////////////////////////////////////////////////
     /////////////////// Accessors ///////////////////////
     /////////////////////////////////////////////////////
@@ -59,29 +64,33 @@ public class UpdateHostCmd extends BaseCmd {
     public Long getOsCategoryId() {
         return osCategoryId;
     }
-    
+
     public String getAllocationState() {
-    	return allocationState;
-    }     
+        return allocationState;
+    }
+
+    public List<String> getHostTags() {
+        return hostTags;
+    }    
 
     /////////////////////////////////////////////////////
     /////////////// API Implementation///////////////////
     /////////////////////////////////////////////////////
-    
+
     @Override
     public String getCommandName() {
         return s_name;
     }
-   
+
     public static String getResultObjectName() {
-    	return "updatehost";
+        return "updatehost";
     }
-    
+
     @Override
     public long getEntityOwnerId() {
         return Account.ACCOUNT_ID_SYSTEM;
     }
-    
+
     @Override
     public void execute(){
         Host result = _resourceService.updateHost(this);
diff --git a/server/src/com/cloud/host/dao/HostTagsDaoImpl.java b/server/src/com/cloud/host/dao/HostTagsDaoImpl.java
index 4d1738c6f31..bc0eaceb40f 100644
--- a/server/src/com/cloud/host/dao/HostTagsDaoImpl.java
+++ b/server/src/com/cloud/host/dao/HostTagsDaoImpl.java
@@ -19,7 +19,9 @@ package com.cloud.host.dao;
 
 import java.util.ArrayList;
 import java.util.List;
+
 import javax.ejb.Local;
+
 import com.cloud.host.HostTagVO;
 import com.cloud.utils.db.GenericDaoBase;
 import com.cloud.utils.db.SearchBuilder;
@@ -39,7 +41,7 @@ public class HostTagsDaoImpl extends GenericDaoBase<HostTagVO, Long> implements
 
     @Override
     public List<String> gethostTags(long hostId) {
-        SearchCriteria sc = HostSearch.create();
+        SearchCriteria<HostTagVO> sc = HostSearch.create();
         sc.setParameters("hostId", hostId);
         
         List<HostTagVO> results = search(sc, null);
@@ -56,6 +58,10 @@ public class HostTagsDaoImpl extends GenericDaoBase<HostTagVO, Long> implements
         Transaction txn = Transaction.currentTxn();
 
         txn.start();
+        SearchCriteria<HostTagVO> sc = HostSearch.create();
+        sc.setParameters("hostId", hostId);
+        expunge(sc);
+        
         for (String tag : hostTags) {
         	HostTagVO vo = new HostTagVO(hostId, tag);
             persist(vo);
diff --git a/server/src/com/cloud/resource/ResourceManagerImpl.java b/server/src/com/cloud/resource/ResourceManagerImpl.java
index 7700721403a..f087933d57e 100755
--- a/server/src/com/cloud/resource/ResourceManagerImpl.java
+++ b/server/src/com/cloud/resource/ResourceManagerImpl.java
@@ -26,6 +26,7 @@ import java.util.HashMap;
 import java.util.Iterator;
 import java.util.List;
 import java.util.Map;
+
 import javax.ejb.Local;
 import javax.naming.ConfigurationException;
 
@@ -51,7 +52,6 @@ import com.cloud.dc.dao.ClusterDao;
 import com.cloud.dc.dao.DataCenterDao;
 import com.cloud.dc.dao.HostPodDao;
 import com.cloud.exception.AgentUnavailableException;
-import com.cloud.exception.DiscoveredWithErrorException;
 import com.cloud.exception.DiscoveryException;
 import com.cloud.exception.InvalidParameterValueException;
 import com.cloud.exception.PermissionDeniedException;
@@ -59,9 +59,9 @@ import com.cloud.host.Host;
 import com.cloud.host.Host.HostAllocationState;
 import com.cloud.host.HostVO;
 import com.cloud.host.Status;
-import com.cloud.host.Status.Event;
 import com.cloud.host.dao.HostDao;
 import com.cloud.host.dao.HostDetailsDao;
+import com.cloud.host.dao.HostTagsDao;
 import com.cloud.hypervisor.Hypervisor;
 import com.cloud.hypervisor.Hypervisor.HypervisorType;
 import com.cloud.hypervisor.kvm.resource.KvmDummyResourceBase;
@@ -112,6 +112,8 @@ public class ResourceManagerImpl implements ResourceManager, ResourceService, Ma
     @Inject
     protected HostDetailsDao                 _hostDetailsDao;
     @Inject
+    protected HostTagsDao                    _hostTagsDao;    
+    @Inject
     protected GuestOSCategoryDao             _guestOSCategoryDao;
 
     @Inject(adapter = Discoverer.class)
@@ -921,6 +923,19 @@ public class ResourceManagerImpl implements ResourceManager, ResourceService, Ma
 
             _hostDao.update(hostId, host);
         }
+        
+        List<String> hostTags = cmd.getHostTags();
+        if (hostTags != null) {
+            // Verify that the host exists
+            HostVO host = _hostDao.findById(hostId);
+            if (host == null) {
+                throw new InvalidParameterValueException("Host with id " + hostId + " doesn't exist");
+            }
+            if(s_logger.isDebugEnabled()){
+                s_logger.debug("Updating Host Tags to :"+hostTags);
+            }
+            _hostTagsDao.persist(hostId, hostTags);
+        }
 
         HostVO updatedHost = _hostDao.findById(hostId);
         return updatedHost;