diff --git a/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/ConsulDiscoveryClient.java b/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/ConsulDiscoveryClient.java
index ccfc54cd7..b83c70b85 100644
--- a/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/ConsulDiscoveryClient.java
+++ b/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/ConsulDiscoveryClient.java
@@ -77,7 +77,8 @@ private void addInstancesToList(List<ServiceInstance> instances, String serviceI
 		Response<List<HealthService>> services = this.client.getHealthServices(serviceId, request);
 
 		for (HealthService service : services.getValue()) {
-			instances.add(new ConsulServiceInstance(service, serviceId));
+			instances
+					.add(new ConsulServiceInstance(service, serviceId, this.properties.isMergeTagsEnabled()));
 		}
 	}
 
diff --git a/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/ConsulDiscoveryProperties.java b/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/ConsulDiscoveryProperties.java
index bdb3092c0..1a5e8f8dd 100644
--- a/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/ConsulDiscoveryProperties.java
+++ b/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/ConsulDiscoveryProperties.java
@@ -205,6 +205,12 @@ public class ConsulDiscoveryProperties {
 	 */
 	private int order = 0;
 
+	/**
+	 * Enable merge consul tag data with metadata to create service instance (defaults
+	 * to false).
+	 */
+	private boolean mergeTagsEnabled = false;
+
 	@SuppressWarnings("unused")
 	private ConsulDiscoveryProperties() {
 		this.managementTags.add(MANAGEMENT);
@@ -580,6 +586,14 @@ public void setManagementEnableTagOverride(Boolean managementEnableTagOverride)
 		this.managementEnableTagOverride = managementEnableTagOverride;
 	}
 
+	public boolean isMergeTagsEnabled() {
+		return this.mergeTagsEnabled;
+	}
+
+	public void setMergeTagsEnabled(boolean mergeTagsEnabled) {
+		this.mergeTagsEnabled = mergeTagsEnabled;
+	}
+
 	@Override
 	public String toString() {
 		return new ToStringCreator(this).append("aclToken", this.aclToken)
@@ -591,6 +605,7 @@ public String toString() {
 				.append("enabled", this.enabled).append("enableTagOverride", this.enableTagOverride)
 				.append("failFast", this.failFast).append("hostInfo", this.hostInfo)
 				.append("healthCheckCriticalTimeout", this.healthCheckCriticalTimeout)
+				.append("mergeTagsEnabled", this.mergeTagsEnabled)
 				.append("healthCheckHeaders", this.healthCheckHeaders)
 				.append("healthCheckInterval", this.healthCheckInterval).append("healthCheckPath", this.healthCheckPath)
 				.append("healthCheckTimeout", this.healthCheckTimeout)
diff --git a/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/ConsulServiceInstance.java b/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/ConsulServiceInstance.java
index 240422c80..186618a2b 100644
--- a/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/ConsulServiceInstance.java
+++ b/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/ConsulServiceInstance.java
@@ -16,6 +16,7 @@
 
 package org.springframework.cloud.consul.discovery;
 
+import java.util.Arrays;
 import java.util.Collections;
 import java.util.LinkedHashMap;
 import java.util.List;
@@ -25,6 +26,7 @@
 
 import org.springframework.cloud.client.DefaultServiceInstance;
 import org.springframework.core.style.ToStringCreator;
+import org.springframework.util.StringUtils;
 
 import static org.springframework.cloud.consul.discovery.ConsulServerUtils.findHost;
 
@@ -32,16 +34,21 @@ public class ConsulServiceInstance extends DefaultServiceInstance {
 
 	private HealthService healthService;
 
-	public ConsulServiceInstance(HealthService healthService, String serviceId) {
+	public ConsulServiceInstance(String instanceId, String serviceId, String host, int port, boolean secure,
+			Map<String, String> metadata, List<String> tags) {
+		this(instanceId, serviceId, host, port, secure, metadata, tags, false);
+	}
+
+	public ConsulServiceInstance(HealthService healthService, String serviceId, boolean mergeTags) {
 		this(healthService.getService().getId(), serviceId, findHost(healthService),
-				healthService.getService().getPort(), getSecure(healthService), getMetadata(healthService),
-				healthService.getService().getTags());
+			healthService.getService().getPort(), getSecure(healthService), getMetadata(healthService),
+			healthService.getService().getTags(), mergeTags);
 		this.healthService = healthService;
 	}
 
 	public ConsulServiceInstance(String instanceId, String serviceId, String host, int port, boolean secure,
-			Map<String, String> metadata, List<String> tags) {
-		super(instanceId, serviceId, host, port, secure, metadata);
+			Map<String, String> metadata, List<String> tags, boolean mergeTags) {
+		super(instanceId, serviceId, host, port, secure, mergeTags ? mergeTags(metadata, tags) : metadata);
 	}
 
 	public ConsulServiceInstance(String instanceId, String serviceId, String host, int port, boolean secure) {
@@ -51,6 +58,39 @@ public ConsulServiceInstance(String instanceId, String serviceId, String host, i
 	public ConsulServiceInstance() {
 	}
 
+	private static Map<String, String> mergeTags(Map<String, String> metadata, List<String> tags) {
+		Map<String, String> result = new LinkedHashMap<>();
+
+		if (metadata != null) {
+			result.putAll(metadata);
+		}
+
+		if (tags == null || tags.isEmpty()) {
+			return result;
+		}
+
+		for (String tag : tags) {
+			String[] parts = StringUtils.delimitedListToStringArray(tag, "=");
+
+			switch (parts.length) {
+				case 0:
+					break;
+				case 1:
+					result.put(parts[0], parts[0]);
+					break;
+				case 2:
+					result.put(parts[0], parts[1]);
+					break;
+				default:
+					String[] end = Arrays.copyOfRange(parts, 1, parts.length);
+					result.put(parts[0], StringUtils.arrayToDelimitedString(end, "="));
+					break;
+			}
+		}
+
+		return result;
+	}
+
 	private static Map<String, String> getMetadata(HealthService healthService) {
 		Map<String, String> metadata = healthService.getService().getMeta();
 		if (metadata == null) {
@@ -77,8 +117,8 @@ public void setHealthService(HealthService healthService) {
 	}
 
 	public List<String> getTags() {
-		if (healthService != null) {
-			return healthService.getService().getTags();
+		if (this.healthService != null) {
+			return this.healthService.getService().getTags();
 		}
 		return Collections.emptyList();
 	}
diff --git a/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/reactive/ConsulReactiveDiscoveryClient.java b/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/reactive/ConsulReactiveDiscoveryClient.java
index 5a4ff0a2e..81f5bc360 100644
--- a/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/reactive/ConsulReactiveDiscoveryClient.java
+++ b/spring-cloud-consul-discovery/src/main/java/org/springframework/cloud/consul/discovery/reactive/ConsulReactiveDiscoveryClient.java
@@ -65,7 +65,8 @@ public Flux<ServiceInstance> getInstances(String serviceId) {
 		return Flux.defer(() -> {
 			List<ServiceInstance> instances = new ArrayList<>();
 			for (HealthService healthService : getHealthServices(serviceId)) {
-				instances.add(new ConsulServiceInstance(healthService, serviceId));
+				instances.add(new ConsulServiceInstance(healthService, serviceId,
+						this.properties.isMergeTagsEnabled()));
 			}
 			return Flux.fromIterable(instances);
 		}).onErrorResume(exception -> {