diff --git a/tempest/api/compute/base.py b/tempest/api/compute/base.py
index e6c065f..c3c5460 100644
--- a/tempest/api/compute/base.py
+++ b/tempest/api/compute/base.py
@@ -304,8 +304,26 @@
         cls.images.append(image_id)
 
         if 'wait_until' in kwargs:
-            waiters.wait_for_image_status(cls.compute_images_client,
-                                          image_id, kwargs['wait_until'])
+            try:
+                waiters.wait_for_image_status(cls.compute_images_client,
+                                              image_id, kwargs['wait_until'])
+            except lib_exc.NotFound:
+                if kwargs['wait_until'].upper() == 'ACTIVE':
+                    # If the image is not found after create_image returned
+                    # that means the snapshot failed in nova-compute and nova
+                    # deleted the image. There should be a compute fault
+                    # recorded with the server in that case, so get the server
+                    # and dump some details.
+                    server = (
+                        cls.servers_client.show_server(server_id)['server'])
+                    if 'fault' in server:
+                        raise exceptions.SnapshotNotFoundException(
+                            server['fault'], image_id=image_id)
+                    else:
+                        raise exceptions.SnapshotNotFoundException(
+                            image_id=image_id)
+                else:
+                    raise
             image = cls.compute_images_client.show_image(image_id)['image']
 
         return image
diff --git a/tempest/exceptions.py b/tempest/exceptions.py
index 43f919a..45bbc11 100644
--- a/tempest/exceptions.py
+++ b/tempest/exceptions.py
@@ -25,6 +25,10 @@
     message = "Server %(server_id)s failed to build and is in ERROR status"
 
 
+class SnapshotNotFoundException(exceptions.TempestException):
+    message = "Server snapshot image %(image_id)s not found."
+
+
 class ImageKilledException(exceptions.TempestException):
     message = "Image %(image_id)s 'killed' while waiting for '%(status)s'"
 
diff --git a/tempest/tests/api/compute/test_base.py b/tempest/tests/api/compute/test_base.py
index 00a9a37..a1da343 100644
--- a/tempest/tests/api/compute/test_base.py
+++ b/tempest/tests/api/compute/test_base.py
@@ -15,9 +15,12 @@
 import mock
 
 from oslo_utils import uuidutils
+import six
 
 from tempest.api.compute import base as compute_base
 from tempest.common import waiters
+from tempest import exceptions
+from tempest.lib import exceptions as lib_exc
 from tempest.tests import base
 
 
@@ -65,3 +68,73 @@
         wait_for_image_status.assert_called_once_with(
             compute_images_client, image_id, 'ACTIVE')
         compute_images_client.show_image.assert_called_once_with(image_id)
+
+    @mock.patch.multiple(compute_base.BaseV2ComputeTest,
+                         compute_images_client=mock.DEFAULT,
+                         servers_client=mock.DEFAULT,
+                         images=[], create=True)
+    @mock.patch.object(waiters, 'wait_for_image_status',
+                       side_effect=lib_exc.NotFound)
+    def _test_create_image_from_server_wait_until_active_not_found(
+            self, wait_for_image_status, compute_images_client,
+            servers_client, fault=None):
+        # setup mocks
+        image_id = uuidutils.generate_uuid()
+        fake_image = mock.Mock(response={'location': image_id})
+        compute_images_client.create_image.return_value = fake_image
+        fake_server = {'id': mock.sentinel.server_id}
+        if fault:
+            fake_server['fault'] = fault
+        servers_client.show_server.return_value = {'server': fake_server}
+        # call the utility method
+        ex = self.assertRaises(
+            exceptions.SnapshotNotFoundException,
+            compute_base.BaseV2ComputeTest.create_image_from_server,
+            mock.sentinel.server_id, wait_until='active')
+        # make our assertions
+        if fault:
+            self.assertIn(fault, six.text_type(ex))
+        else:
+            self.assertNotIn(fault, six.text_type(ex))
+        wait_for_image_status.assert_called_once_with(
+            compute_images_client, image_id, 'active')
+        servers_client.show_server.assert_called_once_with(
+            mock.sentinel.server_id)
+
+    def test_create_image_from_server_wait_until_active_not_found_no_fault(
+            self):
+        # Tests create_image_from_server with wait_until='active' kwarg and
+        # the a 404 is raised while waiting for the image status to change. In
+        # this test the server does not have a fault associated with it.
+        self._test_create_image_from_server_wait_until_active_not_found()
+
+    def test_create_image_from_server_wait_until_active_not_found_with_fault(
+            self):
+        # Tests create_image_from_server with wait_until='active' kwarg and
+        # the a 404 is raised while waiting for the image status to change. In
+        # this test the server has a fault associated with it.
+        self._test_create_image_from_server_wait_until_active_not_found(
+            fault='Lost connection to hypervisor!')
+
+    @mock.patch.multiple(compute_base.BaseV2ComputeTest,
+                         compute_images_client=mock.DEFAULT,
+                         images=[], create=True)
+    @mock.patch.object(waiters, 'wait_for_image_status',
+                       side_effect=lib_exc.NotFound)
+    def test_create_image_from_server_wait_until_saving_not_found(
+            self, wait_for_image_status, compute_images_client):
+        # Tests create_image_from_server with wait_until='SAVING' kwarg and
+        # the a 404 is raised while waiting for the image status to change. In
+        # this case we do not get the server details and just re-raise the 404.
+        # setup mocks
+        image_id = uuidutils.generate_uuid()
+        fake_image = mock.Mock(response={'location': image_id})
+        compute_images_client.create_image.return_value = fake_image
+        # call the utility method
+        self.assertRaises(
+            lib_exc.NotFound,
+            compute_base.BaseV2ComputeTest.create_image_from_server,
+            mock.sentinel.server_id, wait_until='SAVING')
+        # make our assertions
+        wait_for_image_status.assert_called_once_with(
+            compute_images_client, image_id, 'SAVING')