diff --git a/nova/compute/manager.py b/nova/compute/manager.py
index 114324b44500..afcb7518bdc7 100644
--- a/nova/compute/manager.py
+++ b/nova/compute/manager.py
@@ -4364,8 +4364,12 @@ class ComputeManager(manager.Manager):
             # check driver whether support migrate to same host
             if not self.driver.capabilities.get(
                     'supports_migrate_to_same_host', False):
-                raise exception.UnableToMigrateToSelf(
-                    instance_id=instance.uuid, host=self.host)
+                # Raise InstanceFaultRollback so that the
+                # _error_out_instance_on_exception context manager in
+                # prep_resize will set the instance.vm_state properly.
+                raise exception.InstanceFaultRollback(
+                    inner_exception=exception.UnableToMigrateToSelf(
+                        instance_id=instance.uuid, host=self.host))
 
         # NOTE(danms): Stash the new instance_type to avoid having to
         # look it up in the database later
@@ -4439,8 +4443,13 @@ class ComputeManager(manager.Manager):
         if node is None:
             node = self._get_nodename(instance, refresh=True)
 
-        with self._error_out_instance_on_exception(context, instance), \
-                 errors_out_migration_ctxt(migration):
+        # Pass instance_state=instance.vm_state because we can resize
+        # a STOPPED server and we don't want to set it back to ACTIVE
+        # in case _prep_resize fails.
+        instance_state = instance.vm_state
+        with self._error_out_instance_on_exception(
+                context, instance, instance_state=instance_state),\
+                errors_out_migration_ctxt(migration):
             self._send_prep_resize_notifications(
                 context, instance, fields.NotificationPhase.START,
                 instance_type)
diff --git a/nova/tests/unit/compute/test_compute_mgr.py b/nova/tests/unit/compute/test_compute_mgr.py
index c9e93feecf1b..b9792c518aa1 100644
--- a/nova/tests/unit/compute/test_compute_mgr.py
+++ b/nova/tests/unit/compute/test_compute_mgr.py
@@ -8817,6 +8817,68 @@ class ComputeManagerMigrationTestCase(test.NoDBTestCase,
 
         doit()
 
+    def test_prep_resize_fails_unable_to_migrate_to_self(self):
+        """Asserts that _prep_resize handles UnableToMigrateToSelf when
+        _prep_resize is called on the host on which the instance lives and
+        the flavor is not changing.
+        """
+        instance = fake_instance.fake_instance_obj(
+            self.context, host=self.compute.host,
+            expected_attrs=['system_metadata', 'flavor'])
+        migration = mock.MagicMock(spec='nova.objects.Migration')
+        with mock.patch.dict(self.compute.driver.capabilities,
+                             {'supports_migrate_to_same_host': False}):
+            ex = self.assertRaises(
+                exception.InstanceFaultRollback, self.compute._prep_resize,
+                self.context, instance.image_meta, instance, instance.flavor,
+                filter_properties={}, node=instance.node, migration=migration)
+        self.assertIsInstance(
+            ex.inner_exception, exception.UnableToMigrateToSelf)
+
+    @mock.patch('nova.compute.utils.notify_usage_exists')
+    @mock.patch('nova.compute.manager.ComputeManager.'
+                '_notify_about_instance_usage')
+    @mock.patch('nova.compute.utils.notify_about_resize_prep_instance')
+    @mock.patch('nova.objects.Instance.save')
+    @mock.patch('nova.compute.manager.ComputeManager._revert_allocation')
+    @mock.patch('nova.compute.manager.ComputeManager.'
+                '_reschedule_resize_or_reraise')
+    @mock.patch('nova.compute.utils.add_instance_fault_from_exc')
+    def test_prep_resize_fails_rollback(
+            self, add_instance_fault_from_exc, _reschedule_resize_or_reraise,
+            _revert_allocation, mock_instance_save,
+            notify_about_resize_prep_instance, _notify_about_instance_usage,
+            notify_usage_exists):
+        """Tests that if _prep_resize raises InstanceFaultRollback, the
+        instance.vm_state is reset properly in _error_out_instance_on_exception
+        """
+        instance = fake_instance.fake_instance_obj(
+            self.context, host=self.compute.host, vm_state=vm_states.STOPPED,
+            expected_attrs=['system_metadata', 'flavor'])
+        migration = mock.MagicMock(spec='nova.objects.Migration')
+        request_spec = mock.MagicMock(spec='nova.objects.RequestSpec')
+        ex = exception.InstanceFaultRollback(
+            inner_exception=exception.UnableToMigrateToSelf(
+                instance_id=instance.uuid, host=instance.host))
+
+        def fake_reschedule_resize_or_reraise(*args, **kwargs):
+            raise ex
+
+        _reschedule_resize_or_reraise.side_effect = (
+            fake_reschedule_resize_or_reraise)
+
+        with mock.patch.object(self.compute, '_prep_resize', side_effect=ex):
+            self.assertRaises(
+                # _error_out_instance_on_exception should reraise the
+                # UnableToMigrateToSelf inside InstanceFaultRollback.
+                exception.UnableToMigrateToSelf, self.compute.prep_resize,
+                self.context, instance.image_meta, instance, instance.flavor,
+                request_spec, filter_properties={}, node=instance.node,
+                clean_shutdown=True, migration=migration, host_list=[])
+        # The instance.vm_state should remain unchanged
+        # (_error_out_instance_on_exception will set to ACTIVE by default).
+        self.assertEqual(vm_states.STOPPED, instance.vm_state)
+
     def test_get_updated_nw_info_with_pci_mapping(self):
         old_dev = objects.PciDevice(address='0000:04:00.2')
         new_dev = objects.PciDevice(address='0000:05:00.3')
diff --git a/nova/tests/unit/fake_instance.py b/nova/tests/unit/fake_instance.py
index 39d94a029b3d..b038e9a7becf 100644
--- a/nova/tests/unit/fake_instance.py
+++ b/nova/tests/unit/fake_instance.py
@@ -132,6 +132,9 @@ def fake_instance_obj(context, obj_instance_class=None, **updates):
             inst.vcpus = flavor.vcpus
         if 'memory_mb' in flavor and 'memory_mb' not in updates:
             inst.memory_mb = flavor.memory_mb
+        if ('instance_type_id' not in inst or inst.instance_type_id is None
+                and 'id' in flavor):
+            inst.instance_type_id = flavor.id
     inst.old_flavor = None
     inst.new_flavor = None
     inst.obj_reset_changes()