diff --git a/nova/service.py b/nova/service.py
index 5ce1c99cf246..e2e8acaaee72 100644
--- a/nova/service.py
+++ b/nova/service.py
@@ -249,14 +249,20 @@ class Service(service.Service):
 
         debugger.init()
 
-        utils.raise_if_old_compute()
-
         service_obj = cls(host, binary, topic, manager,
                           report_interval=report_interval,
                           periodic_enable=periodic_enable,
                           periodic_fuzzy_delay=periodic_fuzzy_delay,
                           periodic_interval_max=periodic_interval_max)
 
+        # NOTE(gibi): This have to be after the service object creation as
+        # that is the point where we can safely use the RPC to the conductor.
+        # E.g. the Service.__init__ actually waits for the conductor to start
+        # up before it allows the service to be created. The
+        # raise_if_old_compute() depends on the RPC to be up and does not
+        # implement its own retry mechanism to connect to the conductor.
+        utils.raise_if_old_compute()
+
         return service_obj
 
     def kill(self):
diff --git a/nova/tests/unit/test_service.py b/nova/tests/unit/test_service.py
index 7464c56d1a99..676eb0aa42fe 100644
--- a/nova/tests/unit/test_service.py
+++ b/nova/tests/unit/test_service.py
@@ -268,13 +268,23 @@ class ServiceTestCase(test.NoDBTestCase):
             serv.reset()
             mock_reset.assert_called_once_with()
 
+    @mock.patch('nova.conductor.api.API.wait_until_ready')
     @mock.patch('nova.utils.raise_if_old_compute')
-    def test_old_compute_version_is_checked(self, mock_check_old):
+    def test_old_compute_version_check_happens_after_wait_for_conductor(
+            self, mock_check_old, mock_wait):
+        obj_base.NovaObject.indirection_api = mock.MagicMock()
+
+        def fake_wait(*args, **kwargs):
+            mock_check_old.assert_not_called()
+
+        mock_wait.side_effect = fake_wait
+
         service.Service.create(
             self.host, self.binary, self.topic,
             'nova.tests.unit.test_service.FakeManager')
 
         mock_check_old.assert_called_once_with()
+        mock_wait.assert_called_once_with(mock.ANY)
 
 
 class TestWSGIService(test.NoDBTestCase):