diff --git a/nova/conductor/manager.py b/nova/conductor/manager.py
index e3e6cabc302a..379057376c72 100644
--- a/nova/conductor/manager.py
+++ b/nova/conductor/manager.py
@@ -1241,6 +1241,29 @@ class ComputeTaskManager(base.Base):
         else:
             return tags
 
+    def _create_instance_action_for_cell0(self, context, instance, exc):
+        """Create a failed "create" instance action for the instance in cell0.
+
+        :param context: nova auth RequestContext targeted at cell0
+        :param instance: Instance object being buried in cell0
+        :param exc: Exception that occurred which resulted in burial
+        """
+        # First create the action record.
+        objects.InstanceAction.action_start(
+            context, instance.uuid, instance_actions.CREATE, want_result=False)
+        # Now create an event for that action record.
+        event_name = 'conductor_schedule_and_build_instances'
+        objects.InstanceActionEvent.event_start(
+            context, instance.uuid, event_name, want_result=False,
+            host=self.host)
+        # And finish the event with the exception. Note that we expect this
+        # method to be called from _bury_in_cell0 which is called from within
+        # an exception handler so sys.exc_info should return values but if not
+        # it's not the end of the world - this is best effort.
+        objects.InstanceActionEvent.event_finish_with_failure(
+            context, instance.uuid, event_name, exc_val=exc,
+            exc_tb=sys.exc_info()[2], want_result=False)
+
     def _bury_in_cell0(self, context, request_spec, exc,
                        build_requests=None, instances=None,
                        block_device_mapping=None,
@@ -1281,6 +1304,10 @@ class ComputeTaskManager(base.Base):
             with obj_target_cell(instance, cell0) as cctxt:
                 instance.create()
 
+                # Record an instance action with a failed event.
+                self._create_instance_action_for_cell0(
+                    cctxt, instance, exc)
+
                 # NOTE(mnaser): In order to properly clean-up volumes after
                 #               being buried in cell0, we need to store BDMs.
                 if block_device_mapping:
diff --git a/nova/tests/functional/regressions/test_bug_1852458.py b/nova/tests/functional/regressions/test_bug_1852458.py
new file mode 100644
index 000000000000..130427c777e9
--- /dev/null
+++ b/nova/tests/functional/regressions/test_bug_1852458.py
@@ -0,0 +1,82 @@
+# 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.
+
+from nova.compute import instance_actions
+from nova import test
+from nova.tests import fixtures as nova_fixtures
+from nova.tests.functional import fixtures as func_fixtures
+from nova.tests.functional import integrated_helpers
+from nova.tests.unit.image import fake as fake_image
+from nova.tests.unit import policy_fixture
+from nova import utils
+
+
+class TestInstanceActionBuryInCell0(test.TestCase,
+                                    integrated_helpers.InstanceHelperMixin):
+    """Regression test for bug 1852458 where the "create" instance action
+    event was not being created for instances buried in cell0 starting in
+    Ocata.
+    """
+    def setUp(self):
+        super(TestInstanceActionBuryInCell0, self).setUp()
+        # Setup common fixtures.
+        fake_image.stub_out_image_service(self)
+        self.addCleanup(fake_image.FakeImageService_reset)
+        self.useFixture(func_fixtures.PlacementFixture())
+        self.useFixture(nova_fixtures.NeutronFixture(self))
+        policy = self.useFixture(policy_fixture.RealPolicyFixture())
+        # Allow non-admins to see instance action events.
+        policy.set_rules({
+            'os_compute_api:os-instance-actions:events': 'rule:admin_or_owner'
+        }, overwrite=False)
+        # Setup controller services.
+        self.start_service('conductor')
+        self.start_service('scheduler')
+        self.api = self.useFixture(
+            nova_fixtures.OSAPIFixture(api_version='v2.1')).api
+
+    def test_bury_in_cell0_instance_create_action(self):
+        """Tests creating a server which will fail scheduling because there is
+        no compute service and result in the instance being created (buried)
+        in cell0.
+        """
+        server = self._build_minimal_create_server_request(
+            self.api, 'test_bury_in_cell0_instance_create_action',
+            image_uuid=fake_image.get_valid_image_id(),
+            networks='none')
+        # Use microversion 2.37 to create a server without any networking.
+        with utils.temporary_mutation(self.api, microversion='2.37'):
+            server = self.api.post_server({'server': server})
+        # The server should go to ERROR status and have a NoValidHost fault.
+        server = self._wait_for_state_change(self.api, server, 'ERROR')
+        self.assertIn('fault', server)
+        self.assertIn('No valid host', server['fault']['message'])
+        self.assertEqual('', server['hostId'])
+        # Assert the "create" instance action exists and is failed.
+        actions = self.api.get_instance_actions(server['id'])
+        self.assertEqual(1, len(actions), actions)
+        action = actions[0]
+        self.assertEqual(instance_actions.CREATE, action['action'])
+        self.assertEqual('Error', action['message'])
+        # Get the events. There should be one with an Error result.
+        action = self.api.api_get(
+            '/servers/%s/os-instance-actions/%s' %
+            (server['id'], action['request_id'])).body['instanceAction']
+        events = action['events']
+        self.assertEqual(1, len(events), events)
+        event = events[0]
+        self.assertEqual('conductor_schedule_and_build_instances',
+                         event['event'])
+        self.assertEqual('Error', event['result'])
+        # Normally non-admins cannot see the event traceback but we enabled
+        # that via policy in setUp so assert something was recorded.
+        self.assertIn('select_destinations', event['traceback'])
diff --git a/releasenotes/notes/bug-1852458-cell0-instance-action-e3112cf17bcc7c64.yaml b/releasenotes/notes/bug-1852458-cell0-instance-action-e3112cf17bcc7c64.yaml
new file mode 100644
index 000000000000..5bb5dd5e0138
--- /dev/null
+++ b/releasenotes/notes/bug-1852458-cell0-instance-action-e3112cf17bcc7c64.yaml
@@ -0,0 +1,11 @@
+---
+fixes:
+  - |
+    This release contains a fix for a `regression`__ introduced in 15.0.0
+    (Ocata) where server create failing during scheduling would not result in
+    an instance action record being created in the cell0 database. Now when
+    creating a server fails during scheduling and is "buried" in cell0 a
+    ``create`` action will be created with an event named
+    ``conductor_schedule_and_build_instances``.
+
+    .. __: https://bugs.launchpad.net/nova/+bug/1852458