diff --git a/nova/compute/cells_api.py b/nova/compute/cells_api.py
index 812e52e13c66..6828a4fc3d29 100644
--- a/nova/compute/cells_api.py
+++ b/nova/compute/cells_api.py
@@ -554,10 +554,15 @@ class HostAPI(compute_api.HostAPI):
         # NOTE(danms): Currently cells does not support objects as
         # return values, so just convert the db-formatted service objects
         # to new-world objects here
+
+        # NOTE(dheeraj): Use ServiceProxy here too. See johannes'
+        # note on service_get_all
         if db_service:
-            return service_obj.Service._from_db_object(context,
-                                                       service_obj.Service(),
-                                                       db_service)
+            cell_path, _id = cells_utils.split_cell_and_item(db_service['id'])
+            db_service['id'] = _id
+            ser_obj = service_obj.Service._from_db_object(
+                context, service_obj.Service(), db_service)
+            return ServiceProxy(ser_obj, cell_path)
 
     def service_update(self, context, host_name, binary, params_to_update):
         """Used to enable/disable a service. For compute services, setting to
@@ -573,10 +578,15 @@ class HostAPI(compute_api.HostAPI):
         # NOTE(danms): Currently cells does not support objects as
         # return values, so just convert the db-formatted service objects
         # to new-world objects here
+
+        # NOTE(dheeraj): Use ServiceProxy here too. See johannes'
+        # note on service_get_all
         if db_service:
-            return service_obj.Service._from_db_object(context,
-                                                       service_obj.Service(),
-                                                       db_service)
+            cell_path, _id = cells_utils.split_cell_and_item(db_service['id'])
+            db_service['id'] = _id
+            ser_obj = service_obj.Service._from_db_object(
+                context, service_obj.Service(), db_service)
+            return ServiceProxy(ser_obj, cell_path)
 
     def service_delete(self, context, service_id):
         """Deletes the specified service."""
diff --git a/nova/tests/compute/test_host_api.py b/nova/tests/compute/test_host_api.py
index e4214cfb7f10..b6c45b84fa32 100644
--- a/nova/tests/compute/test_host_api.py
+++ b/nova/tests/compute/test_host_api.py
@@ -400,24 +400,30 @@ class ComputeHostAPICellsTestCase(ComputeHostAPITestCase):
         self.mox.StubOutWithMock(self.host_api.cells_rpcapi,
                                  'service_get_by_compute_host')
 
+        # Cells return services with full cell_path prepended to IDs
+        fake_service = dict(test_service.fake_service, id='cell1@1')
+        exp_service = fake_service.copy()
+
         self.host_api.cells_rpcapi.service_get_by_compute_host(self.ctxt,
-                'fake-host').AndReturn(test_service.fake_service)
+                'fake-host').AndReturn(fake_service)
         self.mox.ReplayAll()
         result = self.host_api.service_get_by_compute_host(self.ctxt,
                                                            'fake-host')
-        self._compare_obj(result, test_service.fake_service)
+        self._compare_obj(result, exp_service)
 
     def test_service_update(self):
         host_name = 'fake-host'
         binary = 'nova-compute'
         params_to_update = dict(disabled=True)
-        service_id = 42
-        expected_result = dict(test_service.fake_service, id=service_id)
+        service_id = 'cell1@42'   # Cells prepend full cell path to ID
+
+        update_result = dict(test_service.fake_service, id=service_id)
+        expected_result = update_result.copy()
 
         self.mox.StubOutWithMock(self.host_api.cells_rpcapi, 'service_update')
         self.host_api.cells_rpcapi.service_update(
             self.ctxt, host_name,
-            binary, params_to_update).AndReturn(expected_result)
+            binary, params_to_update).AndReturn(update_result)
 
         self.mox.ReplayAll()