diff --git a/app/models/manageiq/providers/amazon/cloud_manager/orchestration_service_option_converter.rb b/app/models/manageiq/providers/amazon/cloud_manager/orchestration_service_option_converter.rb
index 025a1cfd7..9d29a58b2 100644
--- a/app/models/manageiq/providers/amazon/cloud_manager/orchestration_service_option_converter.rb
+++ b/app/models/manageiq/providers/amazon/cloud_manager/orchestration_service_option_converter.rb
@@ -1,10 +1,58 @@
 class ManageIQ::Providers::Amazon::CloudManager::OrchestrationServiceOptionConverter < ::ServiceOrchestration::OptionConverter
+  REGEX_TAGS = /([^(=>)\n ]+)[(=>) ]+([^(=>)\n ]+)[ \n]*/
+  private_constant :REGEX_TAGS, :REGEX_TAGS
+
   def stack_create_options
-    on_failure = @dialog_options['dialog_stack_onfailure']
     timeout = @dialog_options['dialog_stack_timeout']
-    stack_options = {:parameters => stack_parameters, :disable_rollback => on_failure != 'ROLLBACK'}
-    stack_options[:timeout_in_minutes] = timeout.to_i unless timeout.blank?
+    policy_body, policy_url = parse_policy(@dialog_options['dialog_stack_policy'])
+
+    stack_options = {
+      :parameters         => stack_parameters,
+      :on_failure         => @dialog_options['dialog_stack_onfailure'],
+      :timeout_in_minutes => timeout.blank? ? nil : timeout.to_i,
+      :notification_arns  => parse_multiple_lines(@dialog_options['dialog_stack_notifications']),
+      :capabilities       => parse_capacities(@dialog_options['dialog_stack_capabilities']),
+      :resource_types     => parse_multiple_lines(@dialog_options['dialog_stack_resource_types']),
+      :role_arn           => @dialog_options['dialog_stack_role'],
+      :stack_policy_body  => policy_body,
+      :stack_policy_url   => policy_url,
+      :tags               => parse_tags(@dialog_options['dialog_stack_tags'])
+    }
+
+    stack_options.select { |_k, v| v.present? }
+  end
+
+  private
+
+  def parse_capacities(input)
+    return input if input.blank? || input.kind_of?(Array)
+
+    # currently the dropdown cannot be multi-selected, but it will be enabled soon
+    [input]
+  end
+
+  def parse_multiple_lines(input)
+    return if input.blank?
+
+    input.split("\n").collect(&:strip).select(&:present?)
+  end
+
+  def parse_tags(input)
+    return if input.blank?
+
+    # input example: "tag_key1 => tag_val1\n tag_key2 => tag_val2"
+    input.scan(REGEX_TAGS).each_with_object([]) { |tag, arr| arr.push({:key => tag.first, :value => tag.last}) }
+  end
+
+  def parse_policy(input)
+    return unless input
 
-    stack_options
+    begin
+      JSON.parse(input)
+      policy_body = input
+    rescue JSON::ParserError
+      policy_url = input
+    end
+    [policy_body, policy_url]
   end
 end
diff --git a/spec/models/manageiq/providers/amazon/cloud_manager/orchestration_service_option_converter_spec.rb b/spec/models/manageiq/providers/amazon/cloud_manager/orchestration_service_option_converter_spec.rb
new file mode 100644
index 000000000..f623278a0
--- /dev/null
+++ b/spec/models/manageiq/providers/amazon/cloud_manager/orchestration_service_option_converter_spec.rb
@@ -0,0 +1,93 @@
+describe ManageIQ::Providers::Amazon::CloudManager::OrchestrationServiceOptionConverter do
+  subject { described_class.new(options) }
+
+  describe '#stack_create_options' do
+    context 'no option is set' do
+      let(:options) { {} }
+
+      it 'returns an empty option hash for stack creation' do
+        expect(subject.stack_create_options).to be_empty
+      end
+    end
+
+    context 'all options are empty' do
+      let(:options) do
+        {
+          "dialog_stack_timeout"        => "",
+          "dialog_stack_onfailure"      => "",
+          "dialog_stack_notifications"  => "",
+          "dialog_stack_capabilities"   => "",
+          "dialog_stack_resource_types" => "",
+          "dialog_stack_policy"         => "",
+          "dialog_stack_role"           => "",
+          "dialog_stack_tags"           => ""
+        }
+      end
+
+      it 'returns an empty option hash for stack creation' do
+        expect(subject.stack_create_options).to be_empty
+      end
+    end
+  end
+
+  context 'timeout option' do
+    let(:options) { {'dialog_stack_timeout' => '30'} }
+
+    it { expect(subject.stack_create_options[:timeout_in_minutes]).to eq(30) }
+  end
+
+  context 'on_failure option' do
+    let(:options) { {'dialog_stack_onfailure' => 'ROLLBACK'} }
+
+    it { expect(subject.stack_create_options[:on_failure]).to eq('ROLLBACK') }
+  end
+
+  context 'notification arn option' do
+    let(:options) { {'dialog_stack_notifications' => "ARN1\n ARN2\n\n"} }
+
+    it { expect(subject.stack_create_options[:notification_arns]).to eq(%w(ARN1 ARN2)) }
+  end
+
+  context 'capabilities option' do
+    let(:options) { {'dialog_stack_capabilities' => %w(CAPABILITY_IAM CAPABILITY_NAMED_IAM)} }
+
+    it { expect(subject.stack_create_options[:capabilities]).to eq(%w(CAPABILITY_IAM CAPABILITY_NAMED_IAM)) }
+  end
+
+  context 'capabilities option with single value' do
+    let(:options) { {'dialog_stack_capabilities' => 'CAPABILITY_IAM'} }
+
+    it { expect(subject.stack_create_options[:capabilities]).to eq(['CAPABILITY_IAM']) }
+  end
+
+  context 'resource types option' do
+    let(:options) { {'dialog_stack_resource_types' => "AWS::EC2::Instance \nAWS::EC2::*"} }
+
+    it { expect(subject.stack_create_options[:resource_types]).to eq(%w(AWS::EC2::Instance AWS::EC2::*)) }
+  end
+
+  context 'role arn option' do
+    let(:options) { {'dialog_stack_role' => 'RoleARN'} }
+
+    it { expect(subject.stack_create_options[:role_arn]).to eq('RoleARN') }
+  end
+
+  context 'policy body option' do
+    let(:options) { {'dialog_stack_policy' => '{"valid":"JSON string"}'} }
+
+    it { expect(subject.stack_create_options[:stack_policy_body]).to eq('{"valid":"JSON string"}') }
+  end
+
+  context 'policy url option' do
+    let(:options) { {'dialog_stack_policy' => 'http://url'} }
+
+    it { expect(subject.stack_create_options[:stack_policy_url]).to eq('http://url') }
+  end
+
+  context 'tags option' do
+    let(:options) { {'dialog_stack_tags' => "tag_key1 => tag_val1 \ntag_key2=>tag_val2\n\n"} }
+
+    it { expect(subject.stack_create_options[:tags]).to eq(
+      [{:key => 'tag_key1', :value => 'tag_val1'}, {:key => 'tag_key2', :value => 'tag_val2'}]) }
+  end
+end