diff --git a/nova/conductor/manager.py b/nova/conductor/manager.py
index 7305db79538d..9ef3eff57846 100644
--- a/nova/conductor/manager.py
+++ b/nova/conductor/manager.py
@@ -916,12 +916,12 @@ class ComputeTaskManager(base.Base):
                 with obj_target_cell(instance, cell):
                     instance.create()
 
-            # send a state update notification for the initial create to
-            # show it going from non-existent to BUILDING
-            notifications.send_update_with_states(context, instance, None,
-                    vm_states.BUILDING, None, None, service="conductor")
-
             with obj_target_cell(instance, cell):
+                # send a state update notification for the initial create to
+                # show it going from non-existent to BUILDING
+                # This can lazy-load attributes on instance.
+                notifications.send_update_with_states(context, instance, None,
+                        vm_states.BUILDING, None, None, service="conductor")
                 objects.InstanceAction.action_start(
                     context, instance.uuid, instance_actions.CREATE,
                     want_result=False)
diff --git a/nova/tests/unit/conductor/test_conductor.py b/nova/tests/unit/conductor/test_conductor.py
index 6993a86ed4eb..9fe19f7f52e2 100644
--- a/nova/tests/unit/conductor/test_conductor.py
+++ b/nova/tests/unit/conductor/test_conductor.py
@@ -1429,10 +1429,11 @@ class ConductorTaskTestCase(_BaseTaskTestCase, test_compute.BaseTestCase):
             objects=[bdm])
         self.params = params
 
+    @mock.patch('nova.notifications.send_update_with_states')
     @mock.patch('nova.compute.rpcapi.ComputeAPI.build_and_run_instance')
     @mock.patch('nova.scheduler.rpcapi.SchedulerAPI.select_destinations')
     def test_schedule_and_build_instances(self, select_destinations,
-                                          build_and_run_instance):
+                                          build_and_run_instance, mock_notify):
         select_destinations.return_value = [{'host': 'fake-host',
                                              'nodename': 'fake-nodename',
                                              'limits': None}]
@@ -1448,6 +1449,20 @@ class ConductorTaskTestCase(_BaseTaskTestCase, test_compute.BaseTestCase):
 
         self.start_service('compute', host='fake-host')
         build_and_run_instance.side_effect = _build_and_run_instance
+
+        # NOTE(melwitt): This won't work with call_args because the call
+        # arguments are recorded as references and not as copies of objects.
+        # So even though the notify method was called with Instance._context
+        # targeted, by the time we assert with call_args, the target_cell
+        # context manager has already exited and the referenced Instance
+        # object's _context.db_connection has been restored to None.
+        def fake_notify(ctxt, instance, *args, **kwargs):
+            # Assert the instance object is targeted when going through the
+            # notification code.
+            self.assertIsNotNone(instance._context.db_connection)
+
+        mock_notify.side_effect = fake_notify
+
         self.conductor.schedule_and_build_instances(**params)
         self.assertTrue(build_and_run_instance.called)