diff --git a/heat/engine/resources/openstack/nova/keypair.py b/heat/engine/resources/openstack/nova/keypair.py
index fab0b775eb..f2c4110644 100644
--- a/heat/engine/resources/openstack/nova/keypair.py
+++ b/heat/engine/resources/openstack/nova/keypair.py
@@ -135,6 +135,13 @@ class KeyPair(resource.Resource):
     def get_reference_id(self):
         return self.resource_id
 
+    def prepare_for_replace(self):
+        if self.resource_id is None:
+            return
+
+        with self.client_plugin().ignore_not_found:
+            self.client().keypairs.delete(self.resource_id)
+
 
 def resource_mapping():
     return {'OS::Nova::KeyPair': KeyPair}
diff --git a/heat/tests/openstack/nova/test_keypair.py b/heat/tests/openstack/nova/test_keypair.py
index d9a8ea4936..77b8ce1813 100644
--- a/heat/tests/openstack/nova/test_keypair.py
+++ b/heat/tests/openstack/nova/test_keypair.py
@@ -145,6 +145,18 @@ class NovaKeyPairTest(common.HeatTestCase):
         self.assertIn("boom", six.text_type(exc))
         self.assertEqual((res.CHECK, res.FAILED), res.state)
 
+    def test_update_replace(self):
+        res = self._get_test_resource(self.kp_template)
+        res.state_set(res.CHECK, res.FAILED, 'for test')
+        res.resource_id = 'my_key'
+        # to delete the keypair preparing for replace
+        self.fake_keypairs.delete('my_key')
+        self.m.ReplayAll()
+        updater = scheduler.TaskRunner(res.update, res.t)
+        self.assertRaises(exception.UpdateReplace, updater)
+
+        self.m.ReplayAll()
+
     def test_delete_key_not_found(self):
         """Test delete non-existent key."""
         test_res = self._get_test_resource(self.kp_template)