diff --git a/nova/api/openstack/compute/servers.py b/nova/api/openstack/compute/servers.py
index 8f407ddf9dbe..855128788522 100644
--- a/nova/api/openstack/compute/servers.py
+++ b/nova/api/openstack/compute/servers.py
@@ -653,6 +653,7 @@ class ServersController(wsgi.Controller):
             raise exc.HTTPBadRequest(explanation=msg)
         except (exception.ImageNotActive,
                 exception.ImageBadRequest,
+                exception.ImageNotAuthorized,
                 exception.FixedIpNotFoundForAddress,
                 exception.FlavorNotFound,
                 exception.FlavorDiskTooSmall,
diff --git a/nova/tests/unit/api/openstack/compute/test_serversV21.py b/nova/tests/unit/api/openstack/compute/test_serversV21.py
index 8622c3f7af76..a427da10b4df 100644
--- a/nova/tests/unit/api/openstack/compute/test_serversV21.py
+++ b/nova/tests/unit/api/openstack/compute/test_serversV21.py
@@ -3241,6 +3241,14 @@ class ServersControllerCreateTest(test.TestCase):
         self.assertRaises(webob.exc.HTTPBadRequest,
                           self._test_create_extra, {})
 
+    @mock.patch.object(compute_api.API, 'create',
+                       side_effect=exception.ImageNotAuthorized(
+                           project_id=FAKE_UUID))
+    def test_create_instance_with_image_not_authorized(self,
+                                                       mock_create):
+        self.assertRaises(webob.exc.HTTPBadRequest,
+                          self._test_create_extra, {})
+
     @mock.patch.object(compute_api.API, 'create',
                        side_effect=exception.InstanceExists(
                            name='instance-name'))