diff --git a/doc/source/v0.15.0.txt b/doc/source/v0.15.0.txt
index 5e0af498557f2..e8daf41764a70 100644
--- a/doc/source/v0.15.0.txt
+++ b/doc/source/v0.15.0.txt
@@ -58,6 +58,27 @@ API changes
 
      rolling_min(s, window=10, min_periods=5)
 
+- Bug in passing a ``DatetimeIndex`` with a timezone that was not being retained in DataFrame construction from a dict (:issue:`7822`)
+
+  In prior versions this would drop the timezone.
+
+  .. ipython:: python
+
+        i = date_range('1/1/2011', periods=3, freq='10s', tz = 'US/Eastern')
+        i
+        df = DataFrame( {'a' : i } )
+        df
+        df.dtypes
+
+  This behavior is unchanged.
+
+  .. ipython:: python
+
+        df = DataFrame( )
+        df['a'] = i
+        df
+        df.dtypes
+
 .. _whatsnew_0150.cat:
 
 Categoricals in Series/DataFrame
diff --git a/pandas/core/frame.py b/pandas/core/frame.py
index 7b005867a404f..636dedfbeb7b7 100644
--- a/pandas/core/frame.py
+++ b/pandas/core/frame.py
@@ -2146,19 +2146,13 @@ def reindexer(value):
             value = value.copy()
 
         elif (isinstance(value, Index) or _is_sequence(value)):
-            if len(value) != len(self.index):
-                raise ValueError('Length of values does not match length of '
-                                 'index')
-
+            from pandas.core.series import _sanitize_index
+            value = _sanitize_index(value, self.index, copy=False)
             if not isinstance(value, (np.ndarray, Index)):
                 if isinstance(value, list) and len(value) > 0:
                     value = com._possibly_convert_platform(value)
                 else:
                     value = com._asarray_tuplesafe(value)
-            elif isinstance(value, PeriodIndex):
-                value = value.asobject
-            elif isinstance(value, DatetimeIndex):
-                value = value._to_embed(keep_tz=True).copy()
             elif value.ndim == 2:
                 value = value.copy().T
             else:
diff --git a/pandas/core/series.py b/pandas/core/series.py
index 9abc8f22009b3..502c01ce6d1d1 100644
--- a/pandas/core/series.py
+++ b/pandas/core/series.py
@@ -2431,8 +2431,26 @@ def remove_na(series):
     return series[notnull(_values_from_object(series))]
 
 
+def _sanitize_index(data, index, copy=False):
+    """ sanitize an index type to return an ndarray of the underlying, pass thru a non-Index """
+
+    if len(data) != len(index):
+        raise ValueError('Length of values does not match length of '
+                         'index')
+
+    if isinstance(data, PeriodIndex):
+        data = data.asobject
+    elif isinstance(data, DatetimeIndex):
+        data = data._to_embed(keep_tz=True)
+        if copy:
+            data = data.copy()
+
+    return data
+
 def _sanitize_array(data, index, dtype=None, copy=False,
                     raise_cast_failure=False):
+    """ sanitize input data to an ndarray, copy if specified, coerce to the dtype if specified """
+
     if dtype is not None:
         dtype = np.dtype(dtype)
 
@@ -2482,11 +2500,13 @@ def _try_cast(arr, take_fast_path):
                         raise TypeError('Cannot cast datetime64 to %s' % dtype)
                 else:
                     subarr = _try_cast(data, True)
-        else:
+        elif isinstance(data, Index):
             # don't coerce Index types
             # e.g. indexes can have different conversions (so don't fast path them)
             # GH 6140
-            subarr = _try_cast(data, not isinstance(data, Index))
+            subarr = _sanitize_index(data, index, copy=True)
+        else:
+            subarr = _try_cast(data, True)
 
         if copy:
             subarr = data.copy()
diff --git a/pandas/tests/test_frame.py b/pandas/tests/test_frame.py
index c4783bc49f0ce..0dd729d58f174 100644
--- a/pandas/tests/test_frame.py
+++ b/pandas/tests/test_frame.py
@@ -3599,6 +3599,23 @@ def test_constructor_with_datetimes(self):
         self.assertEqual(df.iat[0,0],dt)
         assert_series_equal(df.dtypes,Series({'End Date' : np.dtype('object') }))
 
+        # GH 7822
+        # preserver an index with a tz on dict construction
+        i = date_range('1/1/2011', periods=5, freq='10s', tz = 'US/Eastern')
+
+        expected = DataFrame( {'a' : i.to_series(keep_tz=True).reset_index(drop=True) })
+        df = DataFrame()
+        df['a'] = i
+        assert_frame_equal(df, expected)
+        df = DataFrame( {'a' : i } )
+        assert_frame_equal(df, expected)
+
+        # multiples
+        i_no_tz = date_range('1/1/2011', periods=5, freq='10s')
+        df = DataFrame( {'a' : i, 'b' :  i_no_tz } )
+        expected = DataFrame( {'a' : i.to_series(keep_tz=True).reset_index(drop=True), 'b': i_no_tz })
+        assert_frame_equal(df, expected)
+
     def test_constructor_for_list_with_dtypes(self):
         intname = np.dtype(np.int_).name
         floatname = np.dtype(np.float_).name
diff --git a/pandas/tseries/tests/test_timezones.py b/pandas/tseries/tests/test_timezones.py
index 531724cdb6837..21f915cb50e21 100644
--- a/pandas/tseries/tests/test_timezones.py
+++ b/pandas/tseries/tests/test_timezones.py
@@ -598,10 +598,13 @@ def test_to_datetime_tzlocal(self):
 
     def test_frame_no_datetime64_dtype(self):
 
+        # after 7822
+        # these retain the timezones on dict construction
+
         dr = date_range('2011/1/1', '2012/1/1', freq='W-FRI')
         dr_tz = dr.tz_localize(self.tzstr('US/Eastern'))
         e = DataFrame({'A': 'foo', 'B': dr_tz}, index=dr)
-        self.assertEqual(e['B'].dtype, 'M8[ns]')
+        self.assertEqual(e['B'].dtype, 'O')
 
         # GH 2810 (with timezones)
         datetimes_naive   = [ ts.to_pydatetime() for ts in dr ]
@@ -610,7 +613,7 @@ def test_frame_no_datetime64_dtype(self):
                         'datetimes_naive': datetimes_naive,
                         'datetimes_with_tz' : datetimes_with_tz })
         result = df.get_dtype_counts()
-        expected = Series({ 'datetime64[ns]' : 3, 'object' : 1 })
+        expected = Series({ 'datetime64[ns]' : 2, 'object' : 2 })
         tm.assert_series_equal(result, expected)
 
     def test_hongkong_tz_convert(self):