diff --git a/nova_dpm/tests/unit/virt/dpm/test_vm.py b/nova_dpm/tests/unit/virt/dpm/test_vm.py
index 4a511a2..31db692 100755
--- a/nova_dpm/tests/unit/virt/dpm/test_vm.py
+++ b/nova_dpm/tests/unit/virt/dpm/test_vm.py
@@ -45,6 +45,14 @@ def fake_session():
         'maximum-memory': 512,
         'ifl-processors': 3
     })
+    cpc1.partitions.add({
+        'name': 'OpenStack-foo-cccccccc-cccc-cccc-cccc-cccccccccccc',
+        'description': 'OpenStack CPCSubset=foo',
+        'initial-memory': 1,
+        'status': 'paused',
+        'maximum-memory': 512,
+        'ifl-processors': 3
+    })
     cpc1.partitions.add({
         'name': 'OpenStack-foo-6511ee0f-0d64-4392-aaaa-bbbbbbbbbbbb',
         'description': 'OpenStack CPCSubset=foo',
@@ -283,6 +291,14 @@ class VmPartitionInstanceTestCase(TestCase):
                 'object-uri') + '/hbas/1',
             self.partition_inst.get_boot_hba_uri())
 
+    def test_power_on_vm_when_paused(self):
+        instance = instance_obj.Instance()
+        instance.uuid = 'cccccccc-cccc-cccc-cccc-cccccccccccc'
+        partition_inst = vm.PartitionInstance(instance, self.cpc)
+        partition_inst.power_on_vm()
+        self.assertEqual(
+            'active', partition_inst.get_partition().get_property('status'))
+
     def test_destroy_stopped_partition(self):
         instance = instance_obj.Instance()
         instance.save = mock.Mock()
@@ -340,6 +356,12 @@ class PartitionInstanceInfoTestCase(TestCase):
     def test_state(self):
         self.assertEqual(power_state.RUNNING, self.instance_partition.state)
 
+    def test_paused_partition_state(self):
+        instance = instance_obj.Instance()
+        instance.uuid = 'cccccccc-cccc-cccc-cccc-cccccccccccc'
+        instance_partition = vm.PartitionInstanceInfo(instance, self.cpc)
+        self.assertEqual(power_state.SHUTDOWN, instance_partition.state)
+
     def test_mem(self):
         self.assertEqual(1, self.instance_partition.mem)
 
diff --git a/nova_dpm/virt/dpm/vm.py b/nova_dpm/virt/dpm/vm.py
index f3a04ef..1468b9a 100644
--- a/nova_dpm/virt/dpm/vm.py
+++ b/nova_dpm/virt/dpm/vm.py
@@ -38,12 +38,22 @@ CONF = conf.CONF
 OPENSTACK_PREFIX = 'OpenStack'
 CPCSUBSET_PREFIX = 'CPCSubset='
 
+STARTED_STATUSES = (
+    utils.PartitionState.RUNNING,
+    utils.PartitionState.DEGRADED,
+    utils.PartitionState.RESERVATION_ERROR)
+STOPPED_STATUSES = (
+    utils.PartitionState.STOPPED,
+    utils.PartitionState.TERMINATED,
+    utils.PartitionState.PAUSED)
+
 
 DPM_TO_NOVA_STATE = {
     utils.PartitionState.RUNNING: power_state.RUNNING,
     utils.PartitionState.STOPPED: power_state.SHUTDOWN,
     utils.PartitionState.UNKNOWN: power_state.NOSTATE,
-    utils.PartitionState.PAUSED: power_state.PAUSED,
+    # operation to get out of the "paused" status is "stop"
+    utils.PartitionState.PAUSED: power_state.SHUTDOWN,
     utils.PartitionState.STARTING: power_state.PAUSED
 }
 
@@ -324,10 +334,29 @@ class PartitionInstance(object):
 
     def power_on_vm(self):
         LOG.debug('Partition power on triggered')
-        self.partition.start(True)
-        # TODO(preethipy): The below method to be removed once the bug
-        # on DPM(701894) is fixed to return correct status on API return
-        self._loop_status_update(5, 'Active')
+
+        self._ensure_status_transitioned()
+
+        if self.partition.get_property(
+                'status') == utils.PartitionState.PAUSED:
+            self.partition.stop(True)
+            self.partition.wait_for_status(
+                status=utils.PartitionState.STOPPED, status_timeout=60)
+
+        if self.partition.get_property('status') not in STARTED_STATUSES:
+            self.partition.start(True)
+            self.partition.wait_for_status(
+                status=STARTED_STATUSES, status_timeout=60)
+
+    def _ensure_status_transitioned(self):
+        partition_state = self.partition.get_property('status')
+
+        if partition_state == utils.PartitionState.STARTING:
+            self.partition.wait_for_status(
+                status=STARTED_STATUSES, status_timeout=60)
+        elif partition_state == utils.PartitionState.SHUTTING_DOWN:
+            self.partition.wait_for_status(
+                status=STOPPED_STATUSES, status_timeout=60)
 
     def power_off_vm(self):
         LOG.debug('Partition power off triggered')