diff --git a/etc/vitrage/templates.sample/host_down_scenarios.yaml b/etc/vitrage/templates.sample/host_down_scenarios.yaml
index 746bd1648..ad66716f4 100644
--- a/etc/vitrage/templates.sample/host_down_scenarios.yaml
+++ b/etc/vitrage/templates.sample/host_down_scenarios.yaml
@@ -68,3 +68,7 @@ scenarios:
         action_target:
          source: host_down_alarm
          target: instance_alarm
+     - action:
+        action_type: mark_down
+        action_target:
+          target: instance
diff --git a/vitrage/notifier/plugins/nova/__init__.py b/vitrage/notifier/plugins/nova/__init__.py
index 9575afbd1..7abd66730 100644
--- a/vitrage/notifier/plugins/nova/__init__.py
+++ b/vitrage/notifier/plugins/nova/__init__.py
@@ -21,3 +21,8 @@ OPTS = [
                help='nova notifier class path',
                required=True),
 ]
+
+
+class InstanceState(object):
+    ERROR = 'error'
+    ACTIVE = 'active'
diff --git a/vitrage/notifier/plugins/nova/nova_notifier.py b/vitrage/notifier/plugins/nova/nova_notifier.py
index 230efe18d..92bef269b 100644
--- a/vitrage/notifier/plugins/nova/nova_notifier.py
+++ b/vitrage/notifier/plugins/nova/nova_notifier.py
@@ -16,7 +16,9 @@ from oslo_log import log as logging
 from vitrage.common.constants import NotifierEventTypes
 from vitrage.common.constants import VertexProperties as VProps
 from vitrage.datasources import NOVA_HOST_DATASOURCE
+from vitrage.datasources import NOVA_INSTANCE_DATASOURCE
 from vitrage.notifier.plugins.base import NotifierBase
+from vitrage.notifier.plugins.nova import InstanceState
 from vitrage import os_clients
 
 LOG = logging.getLogger(__name__)
@@ -31,13 +33,21 @@ class NovaNotifier(NotifierBase):
     def __init__(self, conf):
         super(NovaNotifier, self).__init__(conf)
         self.client = os_clients.nova_client(conf)
+        self.actions = {
+            NOVA_HOST_DATASOURCE: self._mark_host_down,
+            NOVA_INSTANCE_DATASOURCE: self._reset_instance_state
+        }
 
     def process_event(self, data, event_type):
-        if data and data.get(VProps.VITRAGE_TYPE) == NOVA_HOST_DATASOURCE:
+        if data and data.get(VProps.VITRAGE_TYPE) in self.actions:
+            action = self.actions[data.get(VProps.VITRAGE_TYPE)]
             if event_type == NotifierEventTypes.ACTIVATE_MARK_DOWN_EVENT:
-                self._mark_host_down(data.get(VProps.ID), True)
+                action(data.get(VProps.ID), True)
             elif event_type == NotifierEventTypes.DEACTIVATE_MARK_DOWN_EVENT:
-                self._mark_host_down(data.get(VProps.ID), False)
+                action(data.get(VProps.ID), False)
+        elif data:
+            LOG.warning('Unsupport datasource type %s for mark_down action',
+                        data.get(VProps.VITRAGE_TYPE))
 
     def _mark_host_down(self, host_id, is_down):
         try:
@@ -48,3 +58,13 @@ class NovaNotifier(NotifierBase):
             LOG.info('RESPONSE %s', str(response.to_dict()))
         except Exception as e:
             LOG.exception('Failed to services.force_down - %s', e)
+
+    def _reset_instance_state(self, server_id, is_down):
+        state = InstanceState.ERROR if is_down else InstanceState.ACTIVE
+        try:
+            LOG.info('Nova servers.reset_state - server: %s, state: %s',
+                     str(server_id), str(state))
+            response = self.client.servers.reset_state(server_id, state)
+            LOG.info('RESPONSE %s', str(response))
+        except Exception as e:
+            LOG.exception('Failed to execute servers.reset_state - %s', e)
diff --git a/vitrage/tests/functional/evaluator/test_action_executor.py b/vitrage/tests/functional/evaluator/test_action_executor.py
index fc4d5f829..7b97fc840 100644
--- a/vitrage/tests/functional/evaluator/test_action_executor.py
+++ b/vitrage/tests/functional/evaluator/test_action_executor.py
@@ -28,6 +28,7 @@ from vitrage.datasources.nagios import NAGIOS_DATASOURCE
 from vitrage.datasources.nagios.properties import NagiosProperties as NProps
 from vitrage.datasources.nagios.properties import NagiosTestStatus
 from vitrage.datasources.nova.host import NOVA_HOST_DATASOURCE
+from vitrage.datasources.nova.instance import NOVA_INSTANCE_DATASOURCE
 from vitrage.entity_graph.mappings.operational_alarm_severity import \
     OperationalAlarmSeverity
 from vitrage.entity_graph.mappings.operational_resource_state import \
@@ -116,6 +117,43 @@ class TestActionExecutor(TestFunctionalBase):
         self.assertNotIn(
             VProps.VITRAGE_STATE, host_vertex_after_undo.properties)
 
+    def test_execute_mark_instance_down(self):
+
+        # Test Setup
+        processor = self._create_processor_with_graph(self.conf)
+
+        vertex_attrs = {VProps.VITRAGE_TYPE: NOVA_INSTANCE_DATASOURCE}
+        instance_vertices = processor.entity_graph.get_vertices(
+            vertex_attr_filter=vertex_attrs)
+        instance_vertex_before = instance_vertices[0]
+
+        targets = {TFields.TARGET: instance_vertex_before}
+        props = {}
+        action_spec = ActionSpecs(0, ActionType.MARK_DOWN, targets, props)
+
+        event_queue = queue.Queue()
+        action_executor = ActionExecutor(self.conf, event_queue)
+
+        # Test Action - do
+        action_executor.execute(action_spec, ActionMode.DO)
+        processor.process_event(event_queue.get())
+
+        instance_vertex_after = processor.entity_graph.get_vertex(
+            instance_vertex_before.vertex_id)
+
+        # Test Assertions
+        self.assertTrue(instance_vertex_after.get(VProps.IS_MARKED_DOWN))
+
+        # Test Action - undo
+        action_executor.execute(action_spec, ActionMode.UNDO)
+        processor.process_event(event_queue.get())
+
+        instance_vertex_after_undo = processor.entity_graph.get_vertex(
+            instance_vertex_before.vertex_id)
+
+        # Test Assertions
+        self.assertFalse(instance_vertex_after_undo.get(VProps.IS_MARKED_DOWN))
+
     def test_execute_mark_down(self):
 
         # Test Setup