diff --git a/tests/fixtures/config/semaphore/git/common-config/zuul.yaml b/tests/fixtures/config/semaphore/git/common-config/zuul.yaml
index 52a0e7d61d..600543cdb4 100644
--- a/tests/fixtures/config/semaphore/git/common-config/zuul.yaml
+++ b/tests/fixtures/config/semaphore/git/common-config/zuul.yaml
@@ -47,6 +47,15 @@
     semaphore: test-semaphore-two
     run: playbooks/semaphore-two-test2.yaml
 
+- job:
+    name: semaphore-one-test3
+    semaphore: test-semaphore
+    run: playbooks/semaphore-two-test1.yaml
+    nodeset:
+      nodes:
+        - name: controller
+          label: label1
+
 - project:
     name: org/project
     check:
@@ -62,3 +71,9 @@
         - project-test1
         - semaphore-two-test1
         - semaphore-two-test2
+
+- project:
+    name: org/project2
+    check:
+      jobs:
+        - semaphore-one-test3
diff --git a/tests/fixtures/config/semaphore/git/org_project2/README b/tests/fixtures/config/semaphore/git/org_project2/README
new file mode 100644
index 0000000000..9daeafb986
--- /dev/null
+++ b/tests/fixtures/config/semaphore/git/org_project2/README
@@ -0,0 +1 @@
+test
diff --git a/tests/fixtures/config/semaphore/main.yaml b/tests/fixtures/config/semaphore/main.yaml
index 5f57245ccb..83ed0925a9 100644
--- a/tests/fixtures/config/semaphore/main.yaml
+++ b/tests/fixtures/config/semaphore/main.yaml
@@ -7,3 +7,4 @@
         untrusted-projects:
           - org/project
           - org/project1
+          - org/project2
diff --git a/tests/unit/test_scheduler.py b/tests/unit/test_scheduler.py
index 735244e6dd..d7686c6c70 100755
--- a/tests/unit/test_scheduler.py
+++ b/tests/unit/test_scheduler.py
@@ -23,6 +23,7 @@ import shutil
 import time
 from unittest import mock
 from unittest import skip
+from kazoo.exceptions import NoNodeError
 
 import git
 import testtools
@@ -5487,6 +5488,35 @@ class TestSemaphore(ZuulTestCase):
         self.assertEqual(A.reported, 1)
         self.assertEqual(B.reported, 1)
 
+    def test_semaphore_zk_error(self):
+        "Test semaphore release with zk error"
+        tenant = self.sched.abide.tenants.get('tenant-one')
+
+        A = self.fake_gerrit.addFakeChange('org/project2', 'master', 'A')
+        self.assertFalse('test-semaphore' in
+                         tenant.semaphore_handler.semaphores)
+
+        # Simulate a single zk error in useNodeSet
+        orig_useNodeSet = self.nodepool.useNodeSet
+
+        def broken_use_nodeset(nodeset):
+            # restore original useNodeSet
+            self.nodepool.useNodeSet = orig_useNodeSet
+            raise NoNodeError()
+
+        self.nodepool.useNodeSet = broken_use_nodeset
+
+        self.fake_gerrit.addEvent(A.getPatchsetCreatedEvent(1))
+        self.waitUntilSettled()
+
+        # The semaphore should be released
+        self.assertFalse('test-semaphore' in
+                         tenant.semaphore_handler.semaphores)
+
+        # cleanup the queue
+        self.fake_gerrit.addEvent(A.getPatchsetCreatedEvent(1))
+        self.waitUntilSettled()
+
     def test_semaphore_abandon(self):
         "Test abandon with job semaphores"
         self.executor_server.hold_jobs_in_build = True
diff --git a/zuul/manager/__init__.py b/zuul/manager/__init__.py
index a5cf0ee10a..bcb70af354 100644
--- a/zuul/manager/__init__.py
+++ b/zuul/manager/__init__.py
@@ -399,6 +399,14 @@ class PipelineManager(object):
             except Exception:
                 self.log.exception("Exception while executing job %s "
                                    "for change %s:" % (job, item.change))
+                try:
+                    # If we hit an exception we don't have a build in the
+                    # current item so a potentially aquired semaphore must be
+                    # released as it won't be released on dequeue of the item.
+                    tenant = item.pipeline.layout.tenant
+                    tenant.semaphore_handler.release(item, job)
+                except Exception:
+                    self.log.exception("Exception while releasing semaphore")
 
     def executeJobs(self, item):
         # TODO(jeblair): This should return a value indicating a job