diff --git a/ec2api/api/instance.py b/ec2api/api/instance.py
index c6e4f0fa..3984b35d 100644
--- a/ec2api/api/instance.py
+++ b/ec2api/api/instance.py
@@ -1579,6 +1579,9 @@ def _cloud_format_instance_bdm(context, os_instance, result,
 
 
 def _cloud_get_volume_attach_status(volume):
+    if volume.status == 'reserved':
+        # 'reserved' state means that volume will be attached later
+        return 'attaching'
     if volume.status in ('attaching', 'detaching'):
         return volume.status
     elif volume.attachments:
diff --git a/ec2api/api/volume.py b/ec2api/api/volume.py
index ea8ac649..7f3b1468 100644
--- a/ec2api/api/volume.py
+++ b/ec2api/api/volume.py
@@ -178,6 +178,7 @@ def describe_volumes(context, volume_id=None, filter=None,
 def _format_volume(context, volume, os_volume, instances={}, os_instances={},
                    snapshots={}, snapshot_id=None):
     valid_ec2_api_volume_status_map = {
+        'reserved': 'in-use',
         'attaching': 'in-use',
         'detaching': 'in-use'}
 
@@ -214,11 +215,14 @@ def _format_attachment(context, volume, os_volume, instances={},
         instance = ec2utils.get_db_item_by_os_id(
                 context, 'i', os_instance_id, instances)
         instance_id = instance['id']
+    status = os_volume.status
+    if status == 'reserved':
+        status = 'attaching'
     ec2_attachment = {
             'device': os_attachment.get('device'),
             'instanceId': instance_id,
-            'status': (os_volume.status
-                       if os_volume.status in ('attaching', 'detaching') else
+            'status': (status
+                       if status in ('attaching', 'detaching') else
                        'attached' if os_attachment else 'detached'),
             'volumeId': volume['id']}
     if os_instance_id in os_instances:
diff --git a/ec2api/tests/functional/api/test_volumes.py b/ec2api/tests/functional/api/test_volumes.py
index 45641638..a3cf5d0d 100644
--- a/ec2api/tests/functional/api/test_volumes.py
+++ b/ec2api/tests/functional/api/test_volumes.py
@@ -222,11 +222,6 @@ class VolumeTest(base.EC2TestCase):
     @decorators.idempotent_id('c4b470b7-0825-418f-bc76-533f84247878')
     @testtools.skipUnless(CONF.aws.ebs_image_id, "EBS image id is not defined")
     def test_attaching_stage(self):
-        clean_dict = {}
-        instance_id = self.run_instance(ImageId=CONF.aws.ebs_image_id,
-                                        clean_dict=clean_dict)
-        clean_i = clean_dict['instance']
-
         data = self.client.create_volume(
             AvailabilityZone=CONF.aws.aws_zone, Size=1)
         volume_id = data['VolumeId']
@@ -234,6 +229,11 @@ class VolumeTest(base.EC2TestCase):
                                           VolumeId=volume_id)
         self.get_volume_waiter().wait_available(volume_id)
 
+        clean_dict = {}
+        instance_id = self.run_instance(ImageId=CONF.aws.ebs_image_id,
+                                        clean_dict=clean_dict)
+        clean_i = clean_dict['instance']
+
         device_name = '/dev/xvdh'
         kwargs = {
             'Device': device_name,
@@ -241,8 +241,6 @@ class VolumeTest(base.EC2TestCase):
             'VolumeId': volume_id,
         }
         data = self.client.attach_volume(*[], **kwargs)
-        clean_vi = self.addResourceCleanUp(self.client.detach_volume,
-                                           VolumeId=volume_id)
         self.assertEqual('attaching', data['State'])
 
         if CONF.aws.run_incompatible_tests:
@@ -253,19 +251,12 @@ class VolumeTest(base.EC2TestCase):
         self.get_volume_attachment_waiter().wait_available(
             volume_id, final_set=('attached'))
 
-        # reorder cleanups to avoid error on volume delete
-        self.cancelResourceCleanUp(clean_i)
-        clean_i = self.addResourceCleanUp(self.client.terminate_instances,
-                                          InstanceIds=[instance_id])
-
         # stop instance to prevent 'busy' state of detached volume
         data = self.client.stop_instances(InstanceIds=[instance_id])
         self.get_instance_waiter().wait_available(instance_id,
                                                   final_set=('stopped'))
-
         self.client.detach_volume(VolumeId=volume_id)
         self.get_volume_attachment_waiter().wait_delete(volume_id)
-        self.cancelResourceCleanUp(clean_vi)
 
         self.client.delete_volume(VolumeId=volume_id)
         self.cancelResourceCleanUp(clean_v)