diff --git a/nova/compute/manager.py b/nova/compute/manager.py
index 327ec6f9a8..313a0dbe5f 100644
--- a/nova/compute/manager.py
+++ b/nova/compute/manager.py
@@ -2338,6 +2338,11 @@ class ComputeManager(manager.Manager):
     def _build_succeeded(self, node):
         self.rt.build_succeeded(node)
 
+    # NOTE(gibi): The normal RPC handler decorators are here but please note
+    # that build_and_run_instance immediately spawns and returns. So any
+    # error from the real work is not propagated back to these decorators.
+    # All those error needs to be handled by _locked_do_build_and_run_instance
+    # and _do_build_and_run_instance
     @wrap_exception()
     @reverts_task_state
     @wrap_instance_fault
diff --git a/nova/tests/fixtures/nova.py b/nova/tests/fixtures/nova.py
index 3ceb8f1316..f5e9f95c8e 100644
--- a/nova/tests/fixtures/nova.py
+++ b/nova/tests/fixtures/nova.py
@@ -1245,7 +1245,12 @@ class IsolatedGreenPoolFixture(fixtures.Fixture):
 
 class _FakeGreenThread(object):
     def __init__(self, func, *args, **kwargs):
-        self._result = func(*args, **kwargs)
+        try:
+            self._result = func(*args, **kwargs)
+            self.raised = False
+        except Exception as e:
+            self.raised = True
+            self._result = e
 
     def cancel(self, *args, **kwargs):
         # This method doesn't make sense for a synchronous call, it's just
@@ -1266,6 +1271,9 @@ class _FakeGreenThread(object):
         pass
 
     def wait(self):
+        if self.raised:
+            raise self._result
+
         return self._result
 
 
diff --git a/nova/tests/unit/compute/test_compute.py b/nova/tests/unit/compute/test_compute.py
index 0a64a47d74..e91973ae1a 100644
--- a/nova/tests/unit/compute/test_compute.py
+++ b/nova/tests/unit/compute/test_compute.py
@@ -14506,10 +14506,12 @@ class ComputeInjectedFilesTestCase(BaseTestCase):
         ]
 
         self.assertRaises(exception.Base64Exception,
-                self.compute.build_and_run_instance,
-                self.context, self.instance, {}, {}, {}, [],
-                          block_device_mapping=[],
-                          injected_files=injected_files)
+            self.compute._do_build_and_run_instance,
+            self.context, self.instance, {}, {}, {},
+            block_device_mapping=[], injected_files=injected_files,
+            admin_password=None, requested_networks=None,
+            security_groups=None, node=None, limits=None, host_list=None,
+            accel_uuids=[])
 
 
 class CheckConfigDriveTestCase(test.NoDBTestCase):
diff --git a/nova/tests/unit/compute/test_compute_mgr.py b/nova/tests/unit/compute/test_compute_mgr.py
index 2a7eb012ea..1c5d501bb3 100644
--- a/nova/tests/unit/compute/test_compute_mgr.py
+++ b/nova/tests/unit/compute/test_compute_mgr.py
@@ -9577,14 +9577,6 @@ class ComputeManagerBuildInstanceTestCase(test.NoDBTestCase):
         mock_succeeded.assert_not_called()
 
     @mock.patch.object(manager.ComputeManager, '_do_build_and_run_instance')
-    @mock.patch(
-        'nova.exception_wrapper._emit_versioned_exception_notification',
-        new=mock.Mock())
-    @mock.patch(
-        'nova.exception_wrapper._emit_legacy_exception_notification',
-        new=mock.Mock())
-    @mock.patch(
-        'nova.compute.utils.add_instance_fault_from_exc', new=mock.Mock())
     @mock.patch.object(manager.ComputeManager, '_build_failed')
     @mock.patch.object(manager.ComputeManager, '_build_succeeded')
     def test_build_exceptions_reported(
@@ -9594,10 +9586,8 @@ class ComputeManagerBuildInstanceTestCase(test.NoDBTestCase):
         instance = objects.Instance(uuid=uuids.instance,
                                     task_state=None)
         for i in range(0, 10):
-            self.assertRaises(test.TestingException,
-                              self.compute.build_and_run_instance,
-                              self.context, instance, None,
-                              None, None, [])
+            self.compute.build_and_run_instance(
+                self.context, instance, None, None, None, [])
 
         self.assertEqual(10, mock_failed.call_count)
         mock_succeeded.assert_not_called()