diff --git a/nova/conductor/manager.py b/nova/conductor/manager.py
index 883865988e69..6ef7dd9a9963 100644
--- a/nova/conductor/manager.py
+++ b/nova/conductor/manager.py
@@ -807,6 +807,15 @@ class ComputeTaskManager(base.Base):
         with compute_utils.EventReporter(context, 'rebuild_server',
                                           instance.uuid):
             node = limits = None
+
+            try:
+                migration = objects.Migration.get_by_instance_and_status(
+                    context, instance.uuid, 'accepted')
+            except exception.MigrationNotFoundByStatus:
+                LOG.debug("No migration record for the rebuild/evacuate "
+                          "request.", instance=instance)
+                migration = None
+
             # The host variable is passed in two cases:
             # 1. rebuild - the instance.host is passed to rebuild on the
             #       same host and bypass the scheduler.
@@ -857,6 +866,9 @@ class ComputeTaskManager(base.Base):
                                           host_dict['nodename'],
                                           host_dict['limits'])
                 except exception.NoValidHost as ex:
+                    if migration:
+                        migration.status = 'error'
+                        migration.save()
                     request_spec = request_spec.to_legacy_request_spec_dict()
                     with excutils.save_and_reraise_exception():
                         self._set_vm_state_and_notify(context, instance.uuid,
@@ -866,6 +878,9 @@ class ComputeTaskManager(base.Base):
                         LOG.warning("No valid host found for rebuild",
                                     instance=instance)
                 except exception.UnsupportedPolicyException as ex:
+                    if migration:
+                        migration.status = 'error'
+                        migration.save()
                     request_spec = request_spec.to_legacy_request_spec_dict()
                     with excutils.save_and_reraise_exception():
                         self._set_vm_state_and_notify(context, instance.uuid,
@@ -875,14 +890,6 @@ class ComputeTaskManager(base.Base):
                         LOG.warning("Server with unsupported policy "
                                     "cannot be rebuilt", instance=instance)
 
-            try:
-                migration = objects.Migration.get_by_instance_and_status(
-                    context, instance.uuid, 'accepted')
-            except exception.MigrationNotFoundByStatus:
-                LOG.debug("No migration record for the rebuild/evacuate "
-                          "request.", instance=instance)
-                migration = None
-
             compute_utils.notify_about_instance_usage(
                 self.notifier, context, instance, "rebuild.scheduled")
 
diff --git a/nova/tests/functional/regressions/test_bug_1713783.py b/nova/tests/functional/regressions/test_bug_1713783.py
index 4da5c6086497..4233511aaf67 100644
--- a/nova/tests/functional/regressions/test_bug_1713783.py
+++ b/nova/tests/functional/regressions/test_bug_1713783.py
@@ -118,7 +118,4 @@ class FailedEvacuateStateTests(test.TestCase,
         self.assertEqual('evacuation', migrations[0]['migration_type'])
         self.assertEqual(server['id'], migrations[0]['instance_uuid'])
         self.assertEqual(self.hostname, migrations[0]['source_compute'])
-        self.assertEqual('accepted', migrations[0]['status'])
-        # NOTE(elod.illes): Migration status should be 'error' and not
-        # 'accepted'. Needs to be replaced when bug #1713783 is fixed.
-        # self.assertEqual('error', migrations[0]['status'])
+        self.assertEqual('error', migrations[0]['status'])
diff --git a/nova/tests/unit/conductor/test_conductor.py b/nova/tests/unit/conductor/test_conductor.py
index 484be3daac61..3cba5342a899 100644
--- a/nova/tests/unit/conductor/test_conductor.py
+++ b/nova/tests/unit/conductor/test_conductor.py
@@ -1282,6 +1282,15 @@ class _BaseTaskTestCase(object):
         # build_instances() is a cast, we need to wait for it to complete
         self.useFixture(cast_as_call.CastAsCall(self))
 
+        # Create the migration record (normally created by the compute API).
+        migration = objects.Migration(self.context,
+                                      source_compute=inst_obj.host,
+                                      source_node=inst_obj.node,
+                                      instance_uuid=inst_obj.uuid,
+                                      status='accepted',
+                                      migration_type='evacuation')
+        migration.create()
+
         self.assertRaises(exc.UnsupportedPolicyException,
                           self.conductor.rebuild_instance,
                           self.context,
@@ -1294,6 +1303,10 @@ class _BaseTaskTestCase(object):
         self.assertFalse(select_dest_mock.called)
         self.assertFalse(rebuild_mock.called)
 
+        # Assert the migration status was updated.
+        migration = objects.Migration.get_by_id(self.context, migration.id)
+        self.assertEqual('error', migration.status)
+
     def test_rebuild_instance_evacuate_migration_record(self):
         inst_obj = self._create_fake_instance_obj()
         migration = objects.Migration(context=self.context,