diff --git a/neutron/services/externaldns/drivers/designate/driver.py b/neutron/services/externaldns/drivers/designate/driver.py
index 7e690df4cde..ff7bf16662f 100644
--- a/neutron/services/externaldns/drivers/designate/driver.py
+++ b/neutron/services/externaldns/drivers/designate/driver.py
@@ -106,6 +106,8 @@ class Designate(driver.ExternalDNSService):
             raise dns_exc.DNSDomainNotFound(dns_domain=dns_domain)
         except d_exc.Conflict:
             raise dns_exc.DuplicateRecordSet(dns_name=dns_name)
+        except d_exc.OverQuota:
+            raise dns_exc.ExternalDNSOverQuota(resource="recordset")
 
         if not CONF.designate.allow_reverse_dns_lookup:
             return
diff --git a/releasenotes/notes/add-ExternalDNSOverQuota-exception-8728f055d4f1d43c.yaml b/releasenotes/notes/add-ExternalDNSOverQuota-exception-8728f055d4f1d43c.yaml
new file mode 100644
index 00000000000..47ea765ba6b
--- /dev/null
+++ b/releasenotes/notes/add-ExternalDNSOverQuota-exception-8728f055d4f1d43c.yaml
@@ -0,0 +1,6 @@
+---
+fixes:
+  - |
+    Report external dns service OverQuota exception as new neutron
+    ConflictException (409) i.e. ExternalDNSOverQuota. Report the failure
+    as "External DNS Quota exceeded for resources: recordset".