diff --git a/neutron/extensions/lbaas_agentscheduler.py b/neutron/extensions/lbaas_agentscheduler.py
index 2ee7a5daaa..3463db9362 100644
--- a/neutron/extensions/lbaas_agentscheduler.py
+++ b/neutron/extensions/lbaas_agentscheduler.py
@@ -22,6 +22,7 @@ from neutron.api.v2 import base
 from neutron.api.v2 import resource
 from neutron.common import constants
 from neutron.extensions import agent
+from neutron.extensions import loadbalancer
 from neutron import manager
 from neutron.plugins.common import constants as plugin_const
 from neutron import policy
@@ -113,7 +114,7 @@ class Lbaas_agentscheduler(extensions.ExtensionDescriptor):
         return {}
 
 
-class NoEligibleLbaasAgent(agent.AgentNotFound):
+class NoEligibleLbaasAgent(loadbalancer.NoEligibleBackend):
     message = _("No eligible loadbalancer agent found "
                 "for pool %(pool_id)s.")
 
diff --git a/neutron/extensions/loadbalancer.py b/neutron/extensions/loadbalancer.py
index 67c231490b..c534b77f72 100644
--- a/neutron/extensions/loadbalancer.py
+++ b/neutron/extensions/loadbalancer.py
@@ -31,6 +31,10 @@ from neutron.services.service_base import ServicePluginBase
 
 
 # Loadbalancer Exceptions
+class NoEligibleBackend(qexception.NotFound):
+    message = _("No eligible backend for pool %(pool_id)s")
+
+
 class VipNotFound(qexception.NotFound):
     message = _("Vip %(vip_id)s could not be found")
 
diff --git a/neutron/services/loadbalancer/plugin.py b/neutron/services/loadbalancer/plugin.py
index b87b7a85aa..a95e658413 100644
--- a/neutron/services/loadbalancer/plugin.py
+++ b/neutron/services/loadbalancer/plugin.py
@@ -21,6 +21,7 @@ from neutron import context
 from neutron.db import api as qdbapi
 from neutron.db.loadbalancer import loadbalancer_db as ldb
 from neutron.db import servicetype_db as st_db
+from neutron.extensions import loadbalancer
 from neutron.openstack.common import excutils
 from neutron.openstack.common import log as logging
 from neutron.plugins.common import constants
@@ -154,7 +155,15 @@ class LoadBalancerPlugin(ldb.LoadBalancerPluginDb,
         #because provider was not known to db plugin at pool creation
         p['provider'] = provider_name
         driver = self.drivers[provider_name]
-        driver.create_pool(context, p)
+        try:
+            driver.create_pool(context, p)
+        except loadbalancer.NoEligibleBackend:
+            # that should catch cases when backend of any kind
+            # is not available (agent, appliance, etc)
+            self.update_status(context, ldb.Pool,
+                               p['id'], constants.ERROR,
+                               "No eligible backend")
+            raise loadbalancer.NoEligibleBackend(pool_id=p['id'])
         return p
 
     def update_pool(self, context, id, pool):
diff --git a/neutron/tests/unit/services/loadbalancer/test_agent_scheduler.py b/neutron/tests/unit/services/loadbalancer/test_agent_scheduler.py
index e9e1f38821..5ee947944b 100644
--- a/neutron/tests/unit/services/loadbalancer/test_agent_scheduler.py
+++ b/neutron/tests/unit/services/loadbalancer/test_agent_scheduler.py
@@ -24,6 +24,7 @@ from neutron import context
 from neutron.db import servicetype_db as st_db
 from neutron.extensions import agent
 from neutron.extensions import lbaas_agentscheduler
+from neutron.extensions import loadbalancer
 from neutron import manager
 from neutron.plugins.common import constants as plugin_const
 from neutron.tests.unit.db.loadbalancer import test_db_loadbalancer
@@ -117,7 +118,7 @@ class LBaaSAgentSchedulerTestCase(test_agent_ext_plugin.AgentDBTestMixIn,
             self.assertEqual(1, len(pools['pools']))
             self.assertEqual(pool['pool'], pools['pools'][0])
 
-    def test_schedule_poll_with_disabled_agent(self):
+    def test_schedule_pool_with_disabled_agent(self):
         lbaas_hosta = {
             'binary': 'neutron-loadbalancer-agent',
             'host': LBAAS_HOSTA,
@@ -141,8 +142,12 @@ class LBaaSAgentSchedulerTestCase(test_agent_ext_plugin.AgentDBTestMixIn,
                          'description': 'test'}}
         lbaas_plugin = manager.NeutronManager.get_service_plugins()[
             plugin_const.LOADBALANCER]
-        self.assertRaises(lbaas_agentscheduler.NoEligibleLbaasAgent,
+        self.assertRaises(loadbalancer.NoEligibleBackend,
                           lbaas_plugin.create_pool, self.adminContext, pool)
+        pools = lbaas_plugin.get_pools(self.adminContext)
+        self.assertEqual('ERROR', pools[0]['status'])
+        self.assertEqual('No eligible backend',
+                         pools[0]['status_description'])
 
     def test_schedule_pool_with_down_agent(self):
         lbaas_hosta = {
@@ -171,9 +176,13 @@ class LBaaSAgentSchedulerTestCase(test_agent_ext_plugin.AgentDBTestMixIn,
                              'description': 'test'}}
             lbaas_plugin = manager.NeutronManager.get_service_plugins()[
                 plugin_const.LOADBALANCER]
-            self.assertRaises(lbaas_agentscheduler.NoEligibleLbaasAgent,
+            self.assertRaises(loadbalancer.NoEligibleBackend,
                               lbaas_plugin.create_pool,
                               self.adminContext, pool)
+            pools = lbaas_plugin.get_pools(self.adminContext)
+            self.assertEqual('ERROR', pools[0]['status'])
+            self.assertEqual('No eligible backend',
+                             pools[0]['status_description'])
 
     def test_pool_unscheduling_on_pool_deletion(self):
         self._register_agent_states(lbaas_agents=True)