diff --git a/blazar/plugins/oshosts/host_plugin.py b/blazar/plugins/oshosts/host_plugin.py
index 93398929..3fb410ac 100644
--- a/blazar/plugins/oshosts/host_plugin.py
+++ b/blazar/plugins/oshosts/host_plugin.py
@@ -302,8 +302,6 @@ class PhysicalHostPlugin(base.BasePlugin, nova.NovaClientWrapper):
                 return None
 
     def update_computehost(self, host_id, values):
-        # NOTE (sbauza): Only update existing extra capabilites, don't create
-        #  other ones
         if values:
             cant_update_extra_capability = []
             for value in values:
@@ -311,17 +309,29 @@ class PhysicalHostPlugin(base.BasePlugin, nova.NovaClientWrapper):
                     host_id,
                     value,
                 )
-                for raw_capability in capabilities:
-                    capability = {
+                if capabilities:
+                    for raw_capability in capabilities:
+                        capability = {
+                            'capability_name': value,
+                            'capability_value': values[value],
+                        }
+                        try:
+                            db_api.host_extra_capability_update(
+                                raw_capability['id'], capability)
+                        except (db_ex.BlazarDBException, RuntimeError):
+                            cant_update_extra_capability.append(
+                                raw_capability['capability_name'])
+                else:
+                    new_capability = {
+                        'computehost_id': host_id,
                         'capability_name': value,
                         'capability_value': values[value],
                     }
                     try:
-                        db_api.host_extra_capability_update(
-                            raw_capability['id'], capability)
-                    except RuntimeError:
+                        db_api.host_extra_capability_create(new_capability)
+                    except (db_ex.BlazarDBException, RuntimeError):
                         cant_update_extra_capability.append(
-                            raw_capability['capability_name'])
+                            new_capability['capability_name'])
             if cant_update_extra_capability:
                 raise manager_ex.CantAddExtraCapability(
                     host=host_id,
diff --git a/blazar/tests/plugins/test_physical_host_plugin.py b/blazar/tests/plugins/test_physical_host_plugin.py
index d4995b9c..d050bc18 100644
--- a/blazar/tests/plugins/test_physical_host_plugin.py
+++ b/blazar/tests/plugins/test_physical_host_plugin.py
@@ -267,6 +267,18 @@ class PhysicalHostPluginTestCase(tests.TestCase):
                           self.fake_phys_plugin.update_computehost,
                           self.fake_host_id, host_values)
 
+    def test_update_host_with_new_extra_capability(self):
+        host_values = {'buzz': 'word'}
+
+        self.db_host_extra_capability_get_all_per_name.return_value = []
+        self.fake_phys_plugin.update_computehost(self.fake_host_id,
+                                                 host_values)
+        self.db_host_extra_capability_create.assert_called_once_with({
+            'computehost_id': '1',
+            'capability_name': 'buzz',
+            'capability_value': 'word'
+        })
+
     def test_delete_host(self):
         self.fake_phys_plugin.delete_computehost(self.fake_host_id)
 
diff --git a/releasenotes/notes/create-extra-capabilities-in-update-host-c74ce75c88e88c67.yaml b/releasenotes/notes/create-extra-capabilities-in-update-host-c74ce75c88e88c67.yaml
new file mode 100644
index 00000000..af39548a
--- /dev/null
+++ b/releasenotes/notes/create-extra-capabilities-in-update-host-c74ce75c88e88c67.yaml
@@ -0,0 +1,7 @@
+---
+features:
+  - |
+    The update host API now allows new extra capabilities to be created on
+    existing hosts, in addition to allowing values of existing keys to be
+    modified. However, extra capabilities cannot yet be removed due to lack of
+    API support. As a workaround, operators can delete hosts and recreate them.