diff --git a/nova/exception.py b/nova/exception.py
index 6a50faa4ace0..f587173e1185 100644
--- a/nova/exception.py
+++ b/nova/exception.py
@@ -818,3 +818,7 @@ class InstanceTypeMemoryTooSmall(NovaException):
 
 class InstanceTypeDiskTooSmall(NovaException):
     message = _("Instance type's disk is too small for requested image.")
+
+
+class InsufficientFreeMemory(NovaException):
+    message = _("Insufficient free memory on compute node to start %(uuid)s.")
diff --git a/nova/tests/test_xenapi.py b/nova/tests/test_xenapi.py
index 2cacd2364eaf..ec0104783b69 100644
--- a/nova/tests/test_xenapi.py
+++ b/nova/tests/test_xenapi.py
@@ -413,7 +413,7 @@ class XenAPIVMTestCase(test.TestCase):
         self.check_vm_params_for_linux()
 
     def test_spawn_not_enough_memory(self):
-        self.assertRaises(Exception,
+        self.assertRaises(exception.InsufficientFreeMemory,
                           self._test_spawn,
                           1, 2, 3, "4")  # m1.xlarge
 
diff --git a/nova/virt/xenapi/vmops.py b/nova/virt/xenapi/vmops.py
index bf4481d694ec..4b1d22baceec 100644
--- a/nova/virt/xenapi/vmops.py
+++ b/nova/virt/xenapi/vmops.py
@@ -220,12 +220,7 @@ class VMOps(object):
 
         # Ensure enough free memory is available
         if not VMHelper.ensure_free_mem(self._session, instance):
-            LOG.exception(_('instance %(instance_name)s: not enough free '
-                          'memory') % locals())
-            db.instance_set_state(nova_context.get_admin_context(),
-                                  instance['id'],
-                                  power_state.SHUTDOWN)
-            return
+            raise exception.InsufficientFreeMemory(uuid=instance.uuid)
 
         disk_image_type = VMHelper.determine_disk_image_type(instance, context)
         kernel = None