diff --git a/nodepool/driver/openstack/handler.py b/nodepool/driver/openstack/handler.py
index 6550ed494..80a978b4f 100644
--- a/nodepool/driver/openstack/handler.py
+++ b/nodepool/driver/openstack/handler.py
@@ -21,6 +21,8 @@ import random
 import threading
 import time
 
+from kazoo import exceptions as kze
+
 from nodepool import exceptions
 from nodepool import nodeutils as utils
 from nodepool import stats
@@ -218,6 +220,10 @@ class NodeLauncher(threading.Thread, stats.StatsReporter):
             try:
                 self._launchNode()
                 break
+            except kze.SessionExpiredError:
+                # If we lost our ZooKeeper session, we've lost our node lock
+                # so there's no need to continue.
+                raise
             except Exception as e:
                 if attempts <= self._retries:
                     self.log.exception(
@@ -252,6 +258,16 @@ class NodeLauncher(threading.Thread, stats.StatsReporter):
 
         try:
             self._run()
+        except kze.SessionExpiredError:
+            # Our node lock is gone, leaving the node state as BUILDING.
+            # This will get cleaned up in ZooKeeper automatically, but we
+            # must still set our cached node state to FAILED for the
+            # NodeLaunchManager's poll() method.
+            self.log.error(
+                "Lost ZooKeeper session trying to launch for node %s",
+                self._node.id)
+            self._node.state = zk.FAILED
+            statsd_key = 'error.zksession'
         except Exception as e:
             self.log.exception("Launch failed for node %s:",
                                self._node.id)
diff --git a/nodepool/tests/test_launcher.py b/nodepool/tests/test_launcher.py
index 0b4d67b09..84b1ca901 100644
--- a/nodepool/tests/test_launcher.py
+++ b/nodepool/tests/test_launcher.py
@@ -17,12 +17,15 @@ import logging
 import math
 import time
 import fixtures
+import mock
 
 from nodepool import tests
 from nodepool import zk
 from nodepool.driver import Drivers
 import nodepool.launcher
 
+from kazoo import exceptions as kze
+
 
 class TestLauncher(tests.DBTestCase):
     log = logging.getLogger("nodepool.TestLauncher")
@@ -1277,3 +1280,33 @@ class TestLauncher(tests.DBTestCase):
         while launchers[0].supported_labels != {'fake-label', 'fake-label2'}:
             time.sleep(1)
             launchers = self.zk.getRegisteredLaunchers()
+
+    @mock.patch('nodepool.driver.openstack.handler.NodeLauncher._launchNode')
+    def test_launchNode_session_expired(self, mock_launch):
+        '''
+        Test ZK session lost during _launchNode().
+        '''
+        mock_launch.side_effect = kze.SessionExpiredError()
+
+        # use a config with min-ready of 0
+        configfile = self.setup_config('node_launch_retry.yaml')
+        self.useBuilder(configfile)
+        pool = self.useNodepool(configfile, watermark_sleep=1)
+        pool.cleanup_interval = 60
+        pool.start()
+        self.waitForImage('fake-provider', 'fake-image')
+
+        req = zk.NodeRequest()
+        req.state = zk.REQUESTED
+        req.node_types.append('fake-label')
+        self.zk.storeNodeRequest(req)
+
+        # A session loss during node launch should at least try to set the
+        # request state to FAILED (in a non-test scenario, it may actually
+        # be missing).
+        req = self.waitForNodeRequest(req, states=(zk.FAILED,))
+        self.assertEqual(1, mock_launch.call_count)
+
+        # Any znodes created for the request should eventually get deleted.
+        while self.zk.countPoolNodes('fake-provider', 'main'):
+            time.sleep(0)