diff --git a/hydra/_internal/instantiate/_instantiate2.py b/hydra/_internal/instantiate/_instantiate2.py
index 2f09ece868b..4b1ccd9aa7c 100644
--- a/hydra/_internal/instantiate/_instantiate2.py
+++ b/hydra/_internal/instantiate/_instantiate2.py
@@ -4,7 +4,7 @@
 import functools
 from enum import Enum
 from textwrap import dedent
-from typing import Any, Callable, Dict, List, Sequence, Tuple, Union
+from typing import Any, Callable, Dict, List, Optional, Sequence, Tuple, Union
 
 from omegaconf import OmegaConf, SCMode
 from omegaconf._utils import is_structured_config
@@ -145,7 +145,12 @@ def _resolve_target(
     return target
 
 
-def instantiate(config: Any, *args: Any, **kwargs: Any) -> Any:
+def instantiate(
+    config: Any,
+    *args: Any,
+    target_wrapper: Optional[Callable[..., Any]] = None,
+    **kwargs: Any,
+) -> Any:
     """
     :param config: An config object describing what to call and what params to use.
                    In addition to the parameters, the config must contain:
@@ -168,6 +173,7 @@ def instantiate(config: Any, *args: Any, **kwargs: Any) -> Any:
                                   are converted to dicts / lists too.
                    _partial_: If True, return functools.partial wrapped method or object
                               False by default. Configure per target.
+    :param target_wrapper: Optional callable wrap _target_ with before it itself is called.
     :param args: Optional positional parameters pass-through
     :param kwargs: Optional named parameters to override
                    parameters in the config object. Parameters not present
@@ -224,7 +230,12 @@ def instantiate(config: Any, *args: Any, **kwargs: Any) -> Any:
         _partial_ = config.pop(_Keys.PARTIAL, False)
 
         return instantiate_node(
-            config, *args, recursive=_recursive_, convert=_convert_, partial=_partial_
+            config,
+            *args,
+            recursive=_recursive_,
+            convert=_convert_,
+            partial=_partial_,
+            target_wrapper=target_wrapper,
         )
     elif OmegaConf.is_list(config):
         # Finalize config (convert targets to strings, merge with kwargs)
@@ -247,7 +258,12 @@ def instantiate(config: Any, *args: Any, **kwargs: Any) -> Any:
             )
 
         return instantiate_node(
-            config, *args, recursive=_recursive_, convert=_convert_, partial=_partial_
+            config,
+            *args,
+            recursive=_recursive_,
+            convert=_convert_,
+            partial=_partial_,
+            target_wrapper=target_wrapper,
         )
     else:
         raise InstantiationException(
@@ -281,6 +297,7 @@ def instantiate_node(
     convert: Union[str, ConvertMode] = ConvertMode.NONE,
     recursive: bool = True,
     partial: bool = False,
+    target_wrapper: Optional[Callable[..., Any]] = None,
 ) -> Any:
     # Return None if config is None
     if node is None or (OmegaConf.is_config(node) and node._is_none()):
@@ -314,7 +331,12 @@ def instantiate_node(
     # If OmegaConf list, create new list of instances if recursive
     if OmegaConf.is_list(node):
         items = [
-            instantiate_node(item, convert=convert, recursive=recursive)
+            instantiate_node(
+                item,
+                convert=convert,
+                recursive=recursive,
+                target_wrapper=target_wrapper,
+            )
             for item in node._iter_ex(resolve=True)
         ]
 
@@ -331,6 +353,9 @@ def instantiate_node(
         exclude_keys = set({"_target_", "_convert_", "_recursive_", "_partial_"})
         if _is_target(node):
             _target_ = _resolve_target(node.get(_Keys.TARGET), full_key)
+            if target_wrapper:
+                _target_ = target_wrapper(_target_)
+
             kwargs = {}
             is_partial = node.get("_partial_", False) or partial
             for key in node.keys():
@@ -340,7 +365,10 @@ def instantiate_node(
                     value = node[key]
                     if recursive:
                         value = instantiate_node(
-                            value, convert=convert, recursive=recursive
+                            value,
+                            convert=convert,
+                            recursive=recursive,
+                            target_wrapper=target_wrapper,
                         )
                     kwargs[key] = _convert_node(value, convert)