diff --git a/tests/fixtures/config/semaphore/git/common-config/zuul.yaml b/tests/fixtures/config/semaphore/git/common-config/zuul.yaml
index dcb0cbd034..01ca390fc5 100644
--- a/tests/fixtures/config/semaphore/git/common-config/zuul.yaml
+++ b/tests/fixtures/config/semaphore/git/common-config/zuul.yaml
@@ -103,3 +103,9 @@
         - project-test1
         - semaphore-one-test1-resources-first
         - semaphore-one-test2-resources-first
+
+- project:
+    name: org/project4
+    check:
+      jobs:
+        - semaphore-one-test1-resources-first
diff --git a/tests/fixtures/config/semaphore/git/org_project4/README b/tests/fixtures/config/semaphore/git/org_project4/README
new file mode 100644
index 0000000000..9daeafb986
--- /dev/null
+++ b/tests/fixtures/config/semaphore/git/org_project4/README
@@ -0,0 +1 @@
+test
diff --git a/tests/fixtures/config/semaphore/main.yaml b/tests/fixtures/config/semaphore/main.yaml
index 919921e916..3d7a5c9c2d 100644
--- a/tests/fixtures/config/semaphore/main.yaml
+++ b/tests/fixtures/config/semaphore/main.yaml
@@ -9,3 +9,4 @@
           - org/project1
           - org/project2
           - org/project3
+          - org/project4
diff --git a/tests/unit/test_scheduler.py b/tests/unit/test_scheduler.py
index 0848103c6b..62583986bd 100644
--- a/tests/unit/test_scheduler.py
+++ b/tests/unit/test_scheduler.py
@@ -6251,6 +6251,38 @@ class TestSemaphore(ZuulTestCase):
         self.assertEqual(A.reported, 1)
         self.assertEqual(B.reported, 1)
 
+    def test_semaphore_node_failure(self):
+        "Test semaphore and node failure"
+        tenant = self.sched.abide.tenants.get('tenant-one')
+
+        # Pause nodepool so we can fail the node request later
+        self.fake_nodepool.pause()
+
+        A = self.fake_gerrit.addFakeChange('org/project2', 'master', 'A')
+        self.assertFalse('test-semaphore' in
+                         tenant.semaphore_handler.semaphores)
+        self.fake_gerrit.addEvent(A.getPatchsetCreatedEvent(1))
+        self.waitUntilSettled()
+
+        # By default we first lock the semaphore and then get the nodes
+        # so at this point the semaphore needs to be aquired.
+        self.assertTrue('test-semaphore' in
+                        tenant.semaphore_handler.semaphores)
+
+        # Fail the node request and unpause
+        req = self.fake_nodepool.getNodeRequests()[0]
+        self.fake_nodepool.addFailRequest(req)
+        self.fake_nodepool.unpause()
+        self.waitUntilSettled()
+
+        # At this point the job that holds the semaphore failed with
+        # node_failure and the semaphore must be released.
+        self.assertFalse('test-semaphore' in
+                         tenant.semaphore_handler.semaphores)
+        self.assertEquals(1, A.reported)
+        self.assertIn('semaphore-one-test3 semaphore-one-test3 : NODE_FAILURE',
+                      A.messages[0])
+
     def test_semaphore_resources_first(self):
         "Test semaphores with max=1 (mutex) and get resources first"
         tenant = self.sched.abide.tenants.get('tenant-one')
@@ -6298,6 +6330,38 @@ class TestSemaphore(ZuulTestCase):
         self.executor_server.release()
         self.waitUntilSettled()
 
+    def test_semaphore_resources_first_node_failure(self):
+        "Test semaphore and node failure"
+        tenant = self.sched.abide.tenants.get('tenant-one')
+
+        # Pause nodepool so we can fail the node request later
+        self.fake_nodepool.pause()
+
+        A = self.fake_gerrit.addFakeChange('org/project4', 'master', 'A')
+        self.assertFalse('test-semaphore' in
+                         tenant.semaphore_handler.semaphores)
+        self.fake_gerrit.addEvent(A.getPatchsetCreatedEvent(1))
+        self.waitUntilSettled()
+
+        # With resources first we first get the nodes so at this point the
+        # semaphore must not be aquired.
+        self.assertFalse('test-semaphore' in
+                         tenant.semaphore_handler.semaphores)
+
+        # Fail the node request and unpause
+        req = self.fake_nodepool.getNodeRequests()[0]
+        self.fake_nodepool.addFailRequest(req)
+        self.fake_nodepool.unpause()
+        self.waitUntilSettled()
+
+        # At this point the job should never have acuired a semaphore so check
+        # that it still has not locked a semaphore.
+        self.assertFalse('test-semaphore' in
+                         tenant.semaphore_handler.semaphores)
+        self.assertEquals(1, A.reported)
+        self.assertIn('semaphore-one-test1-resources-first : NODE_FAILURE',
+                      A.messages[0])
+
     def test_semaphore_zk_error(self):
         "Test semaphore release with zk error"
         tenant = self.sched.abide.tenants.get('tenant-one')
diff --git a/zuul/manager/__init__.py b/zuul/manager/__init__.py
index 416f3f1d08..d3ad0d6e37 100644
--- a/zuul/manager/__init__.py
+++ b/zuul/manager/__init__.py
@@ -864,6 +864,9 @@ class PipelineManager(object):
                           (request, request.job.name,))
             build_set.item.setNodeRequestFailure(request.job)
             self._resumeBuilds(request.build_set)
+            tenant = build_set.item.pipeline.tenant
+            tenant.semaphore_handler.release(build_set.item, request.job)
+
         self.log.info("Completed node request %s for job %s of item %s "
                       "with nodes %s" %
                       (request, request.job, build_set.item,