diff --git a/heat/engine/stack.py b/heat/engine/stack.py
index fbe1c4b256..3a69319e89 100644
--- a/heat/engine/stack.py
+++ b/heat/engine/stack.py
@@ -480,22 +480,22 @@ class Stack(collections.Mapping):
             if result:
                 raise exception.StackValidationFailed(message=result)
 
-            for val in self.outputs.values():
-                try:
-                    if not val or not val.get('Value'):
-                        message = _('Each Output must contain '
-                                    'a Value key.')
-                        raise exception.StackValidationFailed(message=message)
-                    function.validate(val.get('Value'))
-                except AttributeError:
-                    message = _('Output validation error: '
-                                'Outputs must contain Output. '
-                                'Found a [%s] instead') % type(val)
+        for val in self.outputs.values():
+            try:
+                if not val or not val.get('Value'):
+                    message = _('Each Output must contain '
+                                'a Value key.')
                     raise exception.StackValidationFailed(message=message)
-                except Exception as ex:
-                    reason = _('Output validation error: '
-                               '%s') % six.text_type(ex)
-                    raise exception.StackValidationFailed(message=reason)
+                function.validate(val.get('Value'))
+            except AttributeError:
+                message = _('Output validation error: '
+                            'Outputs must contain Output. '
+                            'Found a [%s] instead') % type(val)
+                raise exception.StackValidationFailed(message=message)
+            except Exception as ex:
+                reason = _('Output validation error: '
+                           '%s') % six.text_type(ex)
+                raise exception.StackValidationFailed(message=reason)
 
     def requires_deferred_auth(self):
         '''
diff --git a/heat/tests/test_parser.py b/heat/tests/test_parser.py
index 7326743ad7..b6e89b99f6 100644
--- a/heat/tests/test_parser.py
+++ b/heat/tests/test_parser.py
@@ -4268,6 +4268,41 @@ class StackTest(common.HeatTestCase):
                          '(AResource Bar) is incorrect.',
                          six.text_type(ex))
 
+    def test_incorrect_outputs_cfn_incorrect_reference(self):
+        tmpl = template_format.parse("""
+        HeatTemplateFormatVersion: '2012-12-12'
+        Outputs:
+          Output:
+            Value:
+              Fn::GetAtt:
+                - Resource
+                - Foo
+        """)
+        self.stack = parser.Stack(self.ctx, 'stack_with_incorrect_outputs',
+                                  template.Template(tmpl))
+
+        ex = self.assertRaises(exception.StackValidationFailed,
+                               self.stack.validate)
+
+        self.assertIn('The specified reference "Resource" '
+                      '(in unknown) is incorrect.', six.text_type(ex))
+
+    def test_incorrect_outputs_incorrect_reference(self):
+        tmpl = template_format.parse("""
+        heat_template_version: 2013-05-23
+        outputs:
+          output:
+            value: { get_attr: [resource, foo] }
+        """)
+        self.stack = parser.Stack(self.ctx, 'stack_with_incorrect_outputs',
+                                  template.Template(tmpl))
+
+        ex = self.assertRaises(exception.StackValidationFailed,
+                               self.stack.validate)
+
+        self.assertIn('The specified reference "resource" '
+                      '(in unknown) is incorrect.', six.text_type(ex))
+
     def test_incorrect_outputs_cfn_empty_output(self):
         tmpl = template_format.parse("""
         HeatTemplateFormatVersion: '2012-12-12'