diff --git a/nova/servicegroup/drivers/db.py b/nova/servicegroup/drivers/db.py
index 98a6c435e18e..9b134ffebb1b 100644
--- a/nova/servicegroup/drivers/db.py
+++ b/nova/servicegroup/drivers/db.py
@@ -19,6 +19,7 @@ from oslo_utils import timeutils
 import six
 
 import nova.conf
+from nova import exception
 from nova.i18n import _, _LI, _LW, _LE
 from nova.servicegroup import api
 from nova.servicegroup.drivers import base
@@ -103,6 +104,16 @@ class DbDriver(base.Driver):
                 service.model_disconnected = True
                 LOG.warning(_LW('Lost connection to nova-conductor '
                              'for reporting service status.'))
+        except exception.ServiceNotFound:
+            # The service may have been deleted via the API but the actual
+            # process is still running. Provide a useful error message rather
+            # than the noisy traceback in the generic Exception block below.
+            LOG.error('The services table record for the %s service on '
+                      'host %s is gone. You either need to stop this service '
+                      'if it should be deleted or restart it to recreate the '
+                      'record in the database.',
+                      service.service_ref.binary, service.service_ref.host)
+            service.model_disconnected = True
         except Exception:
             # NOTE(rpodolyaka): we'd like to avoid catching of all possible
             # exceptions here, but otherwise it would become possible for
diff --git a/nova/tests/unit/servicegroup/test_db_servicegroup.py b/nova/tests/unit/servicegroup/test_db_servicegroup.py
index f271f71f4223..9e04451ec790 100644
--- a/nova/tests/unit/servicegroup/test_db_servicegroup.py
+++ b/nova/tests/unit/servicegroup/test_db_servicegroup.py
@@ -17,6 +17,7 @@ import oslo_messaging as messaging
 from oslo_utils import fixture as utils_fixture
 from oslo_utils import timeutils
 
+from nova import exception
 from nova import objects
 from nova import servicegroup
 from nova import test
@@ -95,12 +96,13 @@ class DBServiceGroupTestCase(test.NoDBTestCase):
     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)
+                                      report_count=10, binary='nova-compute')
         service = mock.MagicMock(model_disconnected=False,
                                  service_ref=service_ref)
         fn = self.servicegroup_api._driver._report_state
         fn(service)  # fail if exception not caught
         self.assertTrue(service.model_disconnected)
+        return service_ref
 
     def test_report_state_error_handling_timeout(self):
         self._test_report_state_error(messaging.MessagingTimeout)
@@ -108,6 +110,13 @@ class DBServiceGroupTestCase(test.NoDBTestCase):
     def test_report_state_unexpected_error(self):
         self._test_report_state_error(RuntimeError)
 
+    def test_report_state_service_not_found(self):
+        service_ref = self._test_report_state_error(exception.ServiceNotFound)
+        self.assertIn('The services table record for the %s service on '
+                      'host %s is gone.' %
+                      (service_ref.binary, service_ref.host),
+                      self.stdlog.logger.output)
+
     def test_get_updated_time(self):
         retval = "2016-11-02T22:40:31.000000"
         service_ref = {