diff --git a/nova/conductor/manager.py b/nova/conductor/manager.py
index a7987d8c48..cc77b86964 100644
--- a/nova/conductor/manager.py
+++ b/nova/conductor/manager.py
@@ -17,6 +17,7 @@
 import contextlib
 import copy
 import functools
+import sys
 
 from oslo_config import cfg
 from oslo_log import log as logging
@@ -740,7 +741,7 @@ class ComputeTaskManager(base.Base):
                         context, 'get_image_info', self.host, instance.uuid):
                     try:
                         image = safe_image_show(context, image_id)
-                    except exception.ImageNotFound:
+                    except exception.ImageNotFound as error:
                         instance.vm_state = vm_states.ERROR
                         instance.save()
 
@@ -748,6 +749,9 @@ class ComputeTaskManager(base.Base):
                                    'cannot be found.') % image_id
 
                         LOG.error(reason, instance=instance)
+                        compute_utils.add_instance_fault_from_exc(
+                            context, instance, error, sys.exc_info(),
+                            fault_message=reason)
                         raise exception.UnshelveException(
                             instance_id=instance.uuid, reason=reason)
 
diff --git a/nova/tests/unit/conductor/test_conductor.py b/nova/tests/unit/conductor/test_conductor.py
index a9ab3bd998..2da33d977a 100644
--- a/nova/tests/unit/conductor/test_conductor.py
+++ b/nova/tests/unit/conductor/test_conductor.py
@@ -1047,10 +1047,11 @@ class _BaseTaskTestCase(object):
 
         do_test()
 
+    @mock.patch('nova.compute.utils.add_instance_fault_from_exc')
     @mock.patch.object(image_api.API, 'get',
                        side_effect=exc.ImageNotFound(image_id=uuids.image))
     def test_unshelve_offloaded_instance_glance_image_not_found(
-            self, mock_get):
+            self, mock_get, add_instance_fault_from_exc):
         instance = self._create_fake_instance_obj()
         instance.vm_state = vm_states.SHELVED_OFFLOADED
         instance.task_state = task_states.UNSHELVING
@@ -1061,10 +1062,16 @@ class _BaseTaskTestCase(object):
         system_metadata['shelved_host'] = 'fake-mini'
         system_metadata['shelved_image_id'] = uuids.image
 
+        reason = ('Unshelve attempted but the image %s '
+                  'cannot be found.') % uuids.image
+
         self.assertRaises(
             exc.UnshelveException,
             self.conductor_manager.unshelve_instance,
             self.context, instance)
+        add_instance_fault_from_exc.assert_called_once_with(
+            self.context, instance, mock_get.side_effect, mock.ANY,
+            fault_message=reason)
         self.assertEqual(instance.vm_state, vm_states.ERROR)
         mock_get.assert_called_once_with(self.context, uuids.image,
                                          show_deleted=False)