diff --git a/nova/conductor/manager.py b/nova/conductor/manager.py
index 318cb0ec81dc..6927e7e4a5e6 100644
--- a/nova/conductor/manager.py
+++ b/nova/conductor/manager.py
@@ -706,6 +706,15 @@ class ComputeTaskManager(base.Base):
         with compute_utils.EventReporter(context, 'rebuild_server',
                                           instance.uuid):
             node = limits = None
+
+            try:
+                migration = objects.Migration.get_by_instance_and_status(
+                    context, instance.uuid, 'accepted')
+            except exception.MigrationNotFoundByStatus:
+                LOG.debug("No migration record for the rebuild/evacuate "
+                          "request.", instance=instance)
+                migration = None
+
             if not host:
                 if not request_spec:
                     # NOTE(sbauza): We were unable to find an original
@@ -744,6 +753,9 @@ class ComputeTaskManager(base.Base):
                                           host_dict['nodename'],
                                           host_dict['limits'])
                 except exception.NoValidHost as ex:
+                    if migration:
+                        migration.status = 'error'
+                        migration.save()
                     # Rollback the image_ref if a new one was provided (this
                     # only happens in the rebuild case, not evacuate).
                     if orig_image_ref and orig_image_ref != image_ref:
@@ -759,6 +771,9 @@ class ComputeTaskManager(base.Base):
                         compute_utils.add_instance_fault_from_exc(context,
                             instance, ex, sys.exc_info())
                 except exception.UnsupportedPolicyException as ex:
+                    if migration:
+                        migration.status = 'error'
+                        migration.save()
                     # Rollback the image_ref if a new one was provided (this
                     # only happens in the rebuild case, not evacuate).
                     if orig_image_ref and orig_image_ref != image_ref:
@@ -775,14 +790,6 @@ class ComputeTaskManager(base.Base):
                         compute_utils.add_instance_fault_from_exc(context,
                             instance, ex, sys.exc_info())
 
-            try:
-                migration = objects.Migration.get_by_instance_and_status(
-                    context, instance.uuid, 'accepted')
-            except exception.MigrationNotFoundByStatus:
-                LOG.debug("No migration record for the rebuild/evacuate "
-                          "request.", instance=instance)
-                migration = None
-
             compute_utils.notify_about_instance_usage(
                 self.notifier, context, instance, "rebuild.scheduled")
 
diff --git a/nova/tests/functional/regressions/test_bug_1713783.py b/nova/tests/functional/regressions/test_bug_1713783.py
index 356c1cc1c24d..fd57421c46d2 100644
--- a/nova/tests/functional/regressions/test_bug_1713783.py
+++ b/nova/tests/functional/regressions/test_bug_1713783.py
@@ -124,7 +124,4 @@ class FailedEvacuateStateTests(test.TestCase,
         self.assertEqual('evacuation', migrations[0]['migration_type'])
         self.assertEqual(server['id'], migrations[0]['instance_uuid'])
         self.assertEqual(self.hostname, migrations[0]['source_compute'])
-        self.assertEqual('accepted', migrations[0]['status'])
-        # NOTE(elod.illes): Migration status should be 'error' and not
-        # 'accepted'. Needs to be replaced when bug #1713783 is fixed.
-        # self.assertEqual('error', migrations[0]['status'])
+        self.assertEqual('error', migrations[0]['status'])
diff --git a/nova/tests/unit/conductor/test_conductor.py b/nova/tests/unit/conductor/test_conductor.py
index 66105ba0192e..b88d9f546e73 100644
--- a/nova/tests/unit/conductor/test_conductor.py
+++ b/nova/tests/unit/conductor/test_conductor.py
@@ -1313,6 +1313,15 @@ class _BaseTaskTestCase(object):
         # build_instances() is a cast, we need to wait for it to complete
         self.useFixture(cast_as_call.CastAsCall(self.stubs))
 
+        # Create the migration record (normally created by the compute API).
+        migration = objects.Migration(self.context,
+                                      source_compute=inst_obj.host,
+                                      source_node=inst_obj.node,
+                                      instance_uuid=inst_obj.uuid,
+                                      status='accepted',
+                                      migration_type='evacuation')
+        migration.create()
+
         self.assertRaises(exc.UnsupportedPolicyException,
                           self.conductor.rebuild_instance,
                           self.context,
@@ -1327,6 +1336,10 @@ class _BaseTaskTestCase(object):
         self.assertIn('ServerGroup policy is not supported',
                       inst_obj.fault.message)
 
+        # Assert the migration status was updated.
+        migration = objects.Migration.get_by_id(self.context, migration.id)
+        self.assertEqual('error', migration.status)
+
     def test_rebuild_instance_evacuate_migration_record(self):
         inst_obj = self._create_fake_instance_obj()
         migration = objects.Migration(context=self.context,