diff --git a/doc/api_samples/versions/v21-version-get-resp.json b/doc/api_samples/versions/v21-version-get-resp.json
index 731af39aa821..79a37afb0ca4 100644
--- a/doc/api_samples/versions/v21-version-get-resp.json
+++ b/doc/api_samples/versions/v21-version-get-resp.json
@@ -19,7 +19,7 @@
             }
         ],
         "status": "CURRENT",
-        "version": "2.37",
+        "version": "2.38",
         "min_version": "2.1",
         "updated": "2013-07-23T11:33:21Z"
     }
diff --git a/doc/api_samples/versions/versions-get-resp.json b/doc/api_samples/versions/versions-get-resp.json
index c2310bee180f..c672f1e6e825 100644
--- a/doc/api_samples/versions/versions-get-resp.json
+++ b/doc/api_samples/versions/versions-get-resp.json
@@ -22,7 +22,7 @@
                 }
             ],
             "status": "CURRENT",
-            "version": "2.37",
+            "version": "2.38",
             "min_version": "2.1",
             "updated": "2013-07-23T11:33:21Z"
         }
diff --git a/nova/api/openstack/api_version_request.py b/nova/api/openstack/api_version_request.py
index 3862da7cc1c6..6a3865f96796 100644
--- a/nova/api/openstack/api_version_request.py
+++ b/nova/api/openstack/api_version_request.py
@@ -93,6 +93,8 @@ REST_API_VERSION_HISTORY = """REST API Version History:
     * 2.37 - Adds support for auto-allocating networking, otherwise known as
              "Get me a Network". Also enforces server.networks.uuid to be in
              UUID format.
+    * 2.38 - Add a condition to return HTTPBadRequest if invalid status is
+             provided for listing servers.
 """
 
 # The minimum and maximum versions of the API supported
@@ -101,7 +103,7 @@ REST_API_VERSION_HISTORY = """REST API Version History:
 # Note(cyeoh): This only applies for the v2.1 API once microversions
 # support is fully merged. It does not affect the V2 API.
 _MIN_API_VERSION = "2.1"
-_MAX_API_VERSION = "2.37"
+_MAX_API_VERSION = "2.38"
 DEFAULT_API_VERSION = _MIN_API_VERSION
 
 # All the proxy APIs which related network, images and baremetal
diff --git a/nova/api/openstack/compute/servers.py b/nova/api/openstack/compute/servers.py
index a387675d9cb6..b4837c0a1d45 100644
--- a/nova/api/openstack/compute/servers.py
+++ b/nova/api/openstack/compute/servers.py
@@ -227,6 +227,10 @@ class ServersController(wsgi.Controller):
             states = common.task_and_vm_state_from_status(statuses)
             vm_state, task_state = states
             if not vm_state and not task_state:
+                if api_version_request.is_supported(req, min_version='2.38'):
+                    msg = _('Invalid status value')
+                    raise exc.HTTPBadRequest(explanation=msg)
+
                 return {'servers': []}
             search_opts['vm_state'] = vm_state
             # When we search by vm state, task state will return 'default'.
diff --git a/nova/api/openstack/rest_api_version_history.rst b/nova/api/openstack/rest_api_version_history.rst
index c3bff4549938..89f5e22875de 100644
--- a/nova/api/openstack/rest_api_version_history.rst
+++ b/nova/api/openstack/rest_api_version_history.rst
@@ -405,3 +405,13 @@ user documentation.
 
   Also, the ``uuid`` field in the ``networks`` object in the server create
   request is now strictly enforced to be in UUID format.
+
+2.38
+----
+
+  Before version 2.38, the command ``nova list --status invalid_status`` was
+  returning empty list for non admin user and 500 InternalServerError for admin
+  user. As there are sufficient statuses defined already, any invalid status
+  should not be accepted. From this version of the API admin as well as non
+  admin user will get 400 HTTPBadRequest if invalid status is passed to nova
+  list command.
diff --git a/nova/tests/unit/api/openstack/compute/test_serversV21.py b/nova/tests/unit/api/openstack/compute/test_serversV21.py
index 8a1a7f344dca..20b9f1a6fc79 100644
--- a/nova/tests/unit/api/openstack/compute/test_serversV21.py
+++ b/nova/tests/unit/api/openstack/compute/test_serversV21.py
@@ -1490,6 +1490,23 @@ class ServersControllerTestV226(ControllerTest):
         self._test_get_servers_allows_tag_filters('not-tags-any')
 
 
+class ServerControllerTestV238(ControllerTest):
+    wsgi_api_version = '2.38'
+
+    def _test_invalid_status(self, is_admin):
+        req = fakes.HTTPRequest.blank('/fake/servers/detail?status=invalid',
+                                      version=self.wsgi_api_version,
+                                      use_admin_context=is_admin)
+        self.assertRaises(webob.exc.HTTPBadRequest,
+                          self.controller.detail, req)
+
+    def test_list_servers_detail_invalid_status_for_admin(self):
+        self._test_invalid_status(True)
+
+    def test_list_servers_detail_invalid_status_for_non_admin(self):
+        self._test_invalid_status(False)
+
+
 class ServersControllerDeleteTest(ControllerTest):
 
     def setUp(self):
diff --git a/releasenotes/notes/list-invalid-status-af07af378728bc57.yaml b/releasenotes/notes/list-invalid-status-af07af378728bc57.yaml
new file mode 100644
index 000000000000..2a51cbb9f991
--- /dev/null
+++ b/releasenotes/notes/list-invalid-status-af07af378728bc57.yaml
@@ -0,0 +1,9 @@
+---
+fixes:
+  - Corrected response for the case where an invalid status value is passed as
+    a filter to the list servers API call. As there are sufficient statuses
+    defined already, any invalid status should not be accepted. As of
+    microversion 2.38, the API will return 400 HTTPBadRequest if an invalid
+    status is passed to list servers API for both admin as well as non admin
+    user.
+