diff --git a/nova/scheduler/utils.py b/nova/scheduler/utils.py
index 0db5f38d7805..df6be247a629 100644
--- a/nova/scheduler/utils.py
+++ b/nova/scheduler/utils.py
@@ -104,7 +104,7 @@ def set_vm_state_and_notify(context, instance_uuid, service, method, updates,
         expected_attrs=['system_metadata'])
     notifications.send_update(context, old_ref, inst_obj, service=service)
     compute_utils.add_instance_fault_from_exc(context,
-            new_ref, ex, sys.exc_info())
+            inst_obj, ex, sys.exc_info())
 
     payload = dict(request_spec=request_spec,
                     instance_properties=properties,
diff --git a/nova/tests/unit/scheduler/test_scheduler_utils.py b/nova/tests/unit/scheduler/test_scheduler_utils.py
index c0b84e6abc21..d037fd773c46 100644
--- a/nova/tests/unit/scheduler/test_scheduler_utils.py
+++ b/nova/tests/unit/scheduler/test_scheduler_utils.py
@@ -99,7 +99,7 @@ class SchedulerUtilsTestCase(test.NoDBTestCase):
                                   service=service)
         compute_utils.add_instance_fault_from_exc(
                 self.context,
-                new_ref, exc_info, mox.IsA(tuple))
+                inst_obj, exc_info, mox.IsA(tuple))
 
         payload = dict(request_spec=request_spec,
                        instance_properties=request_spec.get(