diff --git a/nova/tests/virt/vmwareapi/test_io_util.py b/nova/tests/virt/vmwareapi/test_io_util.py
new file mode 100644
index 000000000000..5dd165e4abc2
--- /dev/null
+++ b/nova/tests/virt/vmwareapi/test_io_util.py
@@ -0,0 +1,39 @@
+# Copyright (c) 2014 VMware, Inc.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+import mock
+
+from nova import exception
+from nova import test
+from nova.virt.vmwareapi import io_util
+
+
+class GlanceWriteThreadTestCase(test.NoDBTestCase):
+
+    def setUp(self):
+        super(GlanceWriteThreadTestCase, self).setUp()
+
+    def tearDown(self):
+        super(GlanceWriteThreadTestCase, self).tearDown()
+
+    def test_start_image_update_service_exception(self):
+        image_service = mock.MagicMock()
+        image_service.update.side_effect = exception.ImageNotAuthorized(
+            image_id='image')
+        write_thread = io_util.GlanceWriteThread(
+            None, None, image_service, image_id=None)
+        write_thread.start()
+        self.assertRaises(exception.ImageNotAuthorized, write_thread.wait)
+        write_thread.stop()
+        write_thread.close()
diff --git a/nova/virt/vmwareapi/io_util.py b/nova/virt/vmwareapi/io_util.py
index 1c7a2bdf07b9..6548ec770500 100644
--- a/nova/virt/vmwareapi/io_util.py
+++ b/nova/virt/vmwareapi/io_util.py
@@ -98,11 +98,15 @@ class GlanceWriteThread(object):
             """Function to do the image data transfer through an update
             and thereon checks if the state is 'active'.
             """
-            self.image_service.update(self.context,
-                                      self.image_id,
-                                      self.image_meta,
-                                      data=self.input)
-            self._running = True
+            try:
+                self.image_service.update(self.context,
+                                          self.image_id,
+                                          self.image_meta,
+                                          data=self.input)
+                self._running = True
+            except exception.ImageNotAuthorized as exc:
+                self.done.send_exception(exc)
+
             while self._running:
                 try:
                     image_meta = self.image_service.show(self.context,