diff --git a/nodepool/driver/fake/provider.py b/nodepool/driver/fake/provider.py
index 1bbdfddb7..e38376a1d 100644
--- a/nodepool/driver/fake/provider.py
+++ b/nodepool/driver/fake/provider.py
@@ -421,3 +421,8 @@ class FakeProvider(OpenStackProvider):
 
     def getRequestHandler(self, poolworker, request):
         return FakeNodeRequestHandler(poolworker, request)
+
+    def start(self, zk_conn):
+        if self.provider.region_name == 'broken-region':
+            raise Exception("Broken cloud config")
+        super().start(zk_conn)
diff --git a/nodepool/launcher.py b/nodepool/launcher.py
index c6f619f6e..5377f12b3 100644
--- a/nodepool/launcher.py
+++ b/nodepool/launcher.py
@@ -957,6 +957,9 @@ class NodePool(threading.Thread):
         self.reconfigureZooKeeper(config)
         provider_manager.ProviderManager.reconfigure(self.config, config,
                                                      self.getZK())
+        for provider_name in list(config.providers.keys()):
+            if provider_name not in config.provider_managers:
+                del config.providers[provider_name]
         self.setConfig(config)
 
     def removeCompletedRequests(self):
diff --git a/nodepool/provider_manager.py b/nodepool/provider_manager.py
index 72a7bece1..06674e894 100644
--- a/nodepool/provider_manager.py
+++ b/nodepool/provider_manager.py
@@ -57,8 +57,13 @@ class ProviderManager(object):
             else:
                 ProviderManager.log.debug("Creating new ProviderManager object"
                                           " for %s" % p.name)
-                new_config.provider_managers[p.name] = get_provider(p)
-                new_config.provider_managers[p.name].start(zk_conn)
+                try:
+                    pm = get_provider(p)
+                    pm.start(zk_conn)
+                    new_config.provider_managers[p.name] = pm
+                except Exception:
+                    ProviderManager.log.exception(
+                        "Error starting provider %s", p.name)
 
         for stop_manager in stop_managers:
             stop_manager.stop()
diff --git a/nodepool/tests/fixtures/broken_provider_config.yaml b/nodepool/tests/fixtures/broken_provider_config.yaml
new file mode 100644
index 000000000..500a55658
--- /dev/null
+++ b/nodepool/tests/fixtures/broken_provider_config.yaml
@@ -0,0 +1,49 @@
+elements-dir: .
+images-dir: '{images_dir}'
+build-log-dir: '{build_log_dir}'
+
+zookeeper-servers:
+  - host: {zookeeper_host}
+    port: {zookeeper_port}
+    chroot: {zookeeper_chroot}
+
+zookeeper-tls:
+  ca: {zookeeper_ca}
+  cert: {zookeeper_cert}
+  key: {zookeeper_key}
+
+labels:
+  - name: broken-label
+    min-ready: 0
+  - name: good-label
+    min-ready: 0
+
+providers:
+  - name: good-provider
+    cloud: fake
+    driver: fake
+    region-name: fake
+    rate: 0.0001
+    cloud-images:
+      - name: good-image
+    pools:
+      - name: main
+        labels:
+          - name: good-label
+            cloud-image: good-image
+            min-ram: 8192
+            flavor-name: 'Fake'
+  - name: broken-provider
+    cloud: fake
+    driver: fake
+    region-name: broken-region
+    rate: 0.0001
+    cloud-images:
+      - name: broken-image
+    pools:
+      - name: main
+        labels:
+          - name: broken-label
+            cloud-image: broken-image
+            min-ram: 8192
+            flavor-name: 'Fake'
diff --git a/nodepool/tests/unit/test_launcher.py b/nodepool/tests/unit/test_launcher.py
index 3a1fd51a0..7d7f763ad 100644
--- a/nodepool/tests/unit/test_launcher.py
+++ b/nodepool/tests/unit/test_launcher.py
@@ -1797,6 +1797,36 @@ class TestLauncher(tests.DBTestCase):
         req = self.waitForNodeRequest(req)
         self.assertEqual(req.state, zk.FAILED)
 
+    def test_broken_provider(self):
+        '''
+        If a provider has a broken config, it should not be started, and
+        any requests for it should be declined/failed.  Other
+        providers should be started and should be able to fulfill
+        requests.
+        '''
+        configfile = self.setup_config('broken_provider_config.yaml')
+        pool = self.useNodepool(configfile, watermark_sleep=1)
+        pool.start()
+        self.wait_for_config(pool)
+
+        manager = pool.getProviderManager('good-provider')
+        manager._client.create_image(name="good-image")
+
+        good_req = zk.NodeRequest()
+        good_req.state = zk.REQUESTED
+        good_req.node_types.append('good-label')
+        self.zk.storeNodeRequest(good_req)
+
+        broken_req = zk.NodeRequest()
+        broken_req.state = zk.REQUESTED
+        broken_req.node_types.append('broken-label')
+        self.zk.storeNodeRequest(broken_req)
+
+        good_req = self.waitForNodeRequest(good_req)
+        broken_req = self.waitForNodeRequest(broken_req)
+        self.assertEqual(good_req.state, zk.FULFILLED)
+        self.assertEqual(broken_req.state, zk.FAILED)
+
     def test_provider_wont_wedge(self):
         '''
         A provider should not wedge itself when it is at (1) maximum capacity