diff --git a/ironic/drivers/modules/ipmi.py b/ironic/drivers/modules/ipmi.py
index 94be7d4046..ac5baf2d9c 100644
--- a/ironic/drivers/modules/ipmi.py
+++ b/ironic/drivers/modules/ipmi.py
@@ -18,9 +18,10 @@
 #    under the License.
 
 """
-Baremetal IPMI power manager.
+Ironic IPMI power manager.
 """
 
+import contextlib
 import os
 import stat
 import tempfile
@@ -33,6 +34,7 @@ from ironic.common import states
 from ironic.common import utils
 from ironic.drivers import base
 from ironic.manager import task_manager
+from ironic.openstack.common import excutils
 from ironic.openstack.common import jsonutils as json
 from ironic.openstack.common import log as logging
 from ironic.openstack.common import loopingcall
@@ -60,14 +62,19 @@ LOG = logging.getLogger(__name__)
 VALID_BOOT_DEVICES = ['pxe', 'disk', 'safe', 'cdrom', 'bios']
 
 
-# TODO(deva): replace this with remove_path_on_error once that is available
-#             https://review.openstack.org/#/c/31030
+@contextlib.contextmanager
 def _make_password_file(password):
-    fd, path = tempfile.mkstemp()
-    os.fchmod(fd, stat.S_IRUSR | stat.S_IWUSR)
-    with os.fdopen(fd, "w") as f:
-        f.write(password)
-    return path
+    try:
+        fd, path = tempfile.mkstemp()
+        os.fchmod(fd, stat.S_IRUSR | stat.S_IWUSR)
+        with os.fdopen(fd, "w") as f:
+            f.write(password)
+
+        yield path
+        utils.delete_if_exists(path)
+    except Exception:
+        with excutils.save_and_reraise_exception():
+            utils.delete_if_exists(path)
 
 
 def _parse_driver_info(node):
@@ -100,16 +107,13 @@ def _exec_ipmitool(driver_info, command):
             '-U',
             driver_info['username'],
             '-f']
-    try:
-        pwfile = _make_password_file(driver_info['password'])
-        args.append(pwfile)
+    with _make_password_file(driver_info['password']) as pw_file:
+        args.append(pw_file)
         args.extend(command.split(" "))
         out, err = utils.execute(*args, attempts=3)
         LOG.debug(_("ipmitool stdout: '%(out)s', stderr: '%(err)s'"),
                   locals())
         return out, err
-    finally:
-        utils.delete_if_exists(pwfile)
 
 
 def _power_on(driver_info):
diff --git a/ironic/tests/drivers/test_ipmi.py b/ironic/tests/drivers/test_ipmi.py
index 45fcb7f20c..a40348658b 100644
--- a/ironic/tests/drivers/test_ipmi.py
+++ b/ironic/tests/drivers/test_ipmi.py
@@ -50,16 +50,14 @@ class IPMIPrivateMethodTestCase(base.TestCase):
         self.info = ipmi._parse_driver_info(self.node)
 
     def test__make_password_file(self):
-        fakepass = 'this is a fake password'
-        pw_file = ipmi._make_password_file(fakepass)
-        try:
+        with ipmi._make_password_file(self.info.get('password')) as pw_file:
+            del_chk_pw_file = pw_file
             self.assertTrue(os.path.isfile(pw_file))
             self.assertEqual(os.stat(pw_file)[stat.ST_MODE] & 0777, 0600)
             with open(pw_file, "r") as f:
                 password = f.read()
-            self.assertEqual(password, fakepass)
-        finally:
-            os.unlink(pw_file)
+            self.assertEqual(password, self.info.get('password'))
+        self.assertFalse(os.path.isfile(del_chk_pw_file))
 
     def test__parse_driver_info(self):
         # make sure we get back the expected things
@@ -83,21 +81,20 @@ class IPMIPrivateMethodTestCase(base.TestCase):
 
     def test__exec_ipmitool(self):
         pw_file = '/tmp/password_file'
+        file_handle = open(pw_file, "w")
 
         self.mox.StubOutWithMock(ipmi, '_make_password_file')
         self.mox.StubOutWithMock(utils, 'execute')
-        self.mox.StubOutWithMock(utils, 'delete_if_exists')
-        ipmi._make_password_file(self.info['password']).AndReturn(pw_file)
         args = [
-                'ipmitool',
-                '-I', 'lanplus',
-                '-H', self.info['address'],
-                '-U', self.info['username'],
-                '-f', pw_file,
-                'A', 'B', 'C',
-                ]
-        utils.execute(*args, attempts=3).AndReturn(('', ''))
-        utils.delete_if_exists(pw_file).AndReturn(None)
+            'ipmitool',
+            '-I', 'lanplus',
+            '-H', self.info['address'],
+            '-U', self.info['username'],
+            '-f', file_handle,
+            'A', 'B', 'C',
+            ]
+        ipmi._make_password_file(self.info['password']).AndReturn(file_handle)
+        utils.execute(*args, attempts=3).AndReturn((None, None))
         self.mox.ReplayAll()
 
         ipmi._exec_ipmitool(self.info, 'A B C')