diff --git a/nova/servicegroup/drivers/db.py b/nova/servicegroup/drivers/db.py
index ed9106e7328f..28471d86f137 100644
--- a/nova/servicegroup/drivers/db.py
+++ b/nova/servicegroup/drivers/db.py
@@ -14,6 +14,7 @@
 # limitations under the License.
 
 from oslo_config import cfg
+from oslo_db import exception as db_exception
 from oslo_log import log as logging
 import oslo_messaging as messaging
 from oslo_utils import timeutils
@@ -26,6 +27,7 @@ from nova.servicegroup.drivers import base
 
 CONF = cfg.CONF
 CONF.import_opt('service_down_time', 'nova.service')
+CONF.import_opt('use_local', 'nova.conductor.api', group='conductor')
 
 LOG = logging.getLogger(__name__)
 
@@ -82,6 +84,14 @@ class DbDriver(base.Driver):
 
     def _report_state(self, service):
         """Update the state of this service in the datastore."""
+
+        if CONF.conductor.use_local:
+            # need to catch DB type errors
+            exc_cls = db_exception.DBError  # oslo.db exception base class
+        else:
+            # need to catch messaging timeouts
+            exc_cls = messaging.MessagingTimeout
+
         try:
             service.service_ref.report_count += 1
             service.service_ref.save()
@@ -93,9 +103,8 @@ class DbDriver(base.Driver):
                     _LI('Recovered connection to nova-conductor '
                         'for reporting service status.'))
 
-        # because we are communicating over conductor, a failure to
-        # connect is going to be a messaging failure, not a db error.
-        except messaging.MessagingTimeout:
+        # the type of failure depends on use of remote or local conductor
+        except exc_cls:
             if not getattr(service, 'model_disconnected', False):
                 service.model_disconnected = True
                 LOG.warn(_LW('Lost connection to nova-conductor '
diff --git a/nova/tests/unit/servicegroup/test_db_servicegroup.py b/nova/tests/unit/servicegroup/test_db_servicegroup.py
index abea18d96d39..b53684d4af88 100644
--- a/nova/tests/unit/servicegroup/test_db_servicegroup.py
+++ b/nova/tests/unit/servicegroup/test_db_servicegroup.py
@@ -14,6 +14,8 @@
 
 import datetime
 import mock
+from oslo_db import exception as db_exception
+import oslo_messaging as messaging
 
 from nova import objects
 from nova import servicegroup
@@ -84,3 +86,26 @@ class DBServiceGroupTestCase(test.NoDBTestCase):
         fn(service)
         upd_mock.assert_called_once_with()
         self.assertEqual(11, service_ref.report_count)
+
+    @mock.patch.object(objects.Service, 'save')
+    def _test_report_state_error(self, exc_cls, upd_mock):
+        upd_mock.side_effect = exc_cls("service save failed")
+        service_ref = objects.Service(host='fake-host', topic='compute',
+                                      report_count=10)
+        service = mock.MagicMock(model_disconnected=False,
+                                 service_ref=service_ref)
+        fn = self.servicegroup_api._driver._report_state
+        fn(service)  # fail if exception not caught
+
+    def test_report_state_remote_error_handling(self):
+        # test error handling using remote conductor
+        self.flags(use_local=False, group='conductor')
+        self._test_report_state_error(messaging.MessagingTimeout)
+
+    def test_report_state_local_error_handling(self):
+        # if using local conductor, the db driver must handle DB errors
+        self.flags(use_local=True, group='conductor')
+
+        # mock an oslo.db DBError as it's an exception base class for
+        # oslo.db DB errors (eg DBConnectionError)
+        self._test_report_state_error(db_exception.DBError)