diff --git a/novaclient/v1_1/base.py b/novaclient/v1_1/base.py
index 9762f73eb..09d80b11a 100644
--- a/novaclient/v1_1/base.py
+++ b/novaclient/v1_1/base.py
@@ -130,7 +130,7 @@ class BootingManagerWithFind(ManagerWithFind):
     def _boot(self, resource_url, response_key, name, image, flavor,
               meta=None, files=None, zone_blob=None,
               reservation_id=None, return_raw=False, min_count=None,
-              max_count=None):
+              max_count=None, security_groups=None):
         """
         Create (boot) a new server.
 
@@ -151,6 +151,7 @@ class BootingManagerWithFind(ManagerWithFind):
         :param reservation_id: a UUID for the set of servers being requested.
         :param return_raw: If True, don't try to coearse the result into
                            a Resource object.
+        :param security_groups: list of security group names
         """
         body = {"server": {
             "name": name,
@@ -171,6 +172,10 @@ class BootingManagerWithFind(ManagerWithFind):
         body["server"]["min_count"] = min_count
         body["server"]["max_count"] = max_count
 
+        if security_groups:
+            body["server"]["security_groups"] =\
+             [{'name': name} for sg in security_groups]
+
         # Files are a slight bit tricky. They're passed in a "personality"
         # list to the POST. Each item is a dict giving a file name and the
         # base64-encoded contents of the file. We want to allow passing
diff --git a/novaclient/v1_1/security_groups.py b/novaclient/v1_1/security_groups.py
index ca1a35f8b..f580cf2dc 100644
--- a/novaclient/v1_1/security_groups.py
+++ b/novaclient/v1_1/security_groups.py
@@ -44,7 +44,7 @@ class SecurityGroupManager(base.ManagerWithFind):
 
         :param name: name for the security group to create
         :param description: description of the security group
-        :rtype: Integer ID of created security group
+        :rtype: the security group object
         """
         body = {"security_group": {"name": name, 'description': description}}
         return self._create('/os-security-groups', body, 'security_group')
diff --git a/novaclient/v1_1/servers.py b/novaclient/v1_1/servers.py
index cac3ec1f5..c6ab9287c 100644
--- a/novaclient/v1_1/servers.py
+++ b/novaclient/v1_1/servers.py
@@ -287,7 +287,7 @@ class ServerManager(local_base.BootingManagerWithFind):
 
     def create(self, name, image, flavor, meta=None, files=None,
                zone_blob=None, reservation_id=None, min_count=None,
-               max_count=None):
+               max_count=None,security_groups=None):
         """
         Create (boot) a new server.
 
@@ -316,7 +316,8 @@ class ServerManager(local_base.BootingManagerWithFind):
         return self._boot("/servers", "server", name, image, flavor,
                           meta=meta, files=files,
                           zone_blob=zone_blob, reservation_id=reservation_id,
-                          min_count=min_count, max_count=max_count)
+                          min_count=min_count, max_count=max_count,
+                          security_groups=security_groups)
 
     def update(self, server, name=None):
         """