diff --git a/defaults/main.yml b/defaults/main.yml
index 12c65e77..5da3c200 100644
--- a/defaults/main.yml
+++ b/defaults/main.yml
@@ -125,7 +125,7 @@ nova_virt_types:
     nova_firewall_driver: nova.virt.firewall.NoopFirewallDriver
     nova_scheduler_use_baremetal_filters: False
     nova_scheduler_tracks_instance_changes: True
-  lxc:
+  lxd:
     nova_compute_driver: lxd.LXDDriver
     nova_scheduler_host_manager: host_manager
     nova_reserved_host_memory_mb: 2048
@@ -156,7 +156,7 @@ nova_virt_types:
 nova_supported_virt_types:
   - qemu
   - kvm
-  - lxc
+  - lxd
   - ironic
   - powervm
 
diff --git a/releasenotes/notes/add-nova-lxd-f094438e4bf36d52.yaml b/releasenotes/notes/add-nova-lxd-f094438e4bf36d52.yaml
index 6b989b92..a31b03b2 100644
--- a/releasenotes/notes/add-nova-lxd-f094438e4bf36d52.yaml
+++ b/releasenotes/notes/add-nova-lxd-f094438e4bf36d52.yaml
@@ -2,5 +2,5 @@
 features:
   - The os_nova role can now deploy the nova-lxd hypervisor.
     This can be achieved by setting ``nova_virt_type`` to
-    ``lxc`` on a per-host basis in ``openstack_user_config.yml``
+    ``lxd`` on a per-host basis in ``openstack_user_config.yml``
     or on a global basis in ``user_variables.yml``.
diff --git a/templates/nova.conf.j2 b/templates/nova.conf.j2
index 9281f2a7..17d7bd1a 100644
--- a/templates/nova.conf.j2
+++ b/templates/nova.conf.j2
@@ -105,7 +105,7 @@ auth_strategy = keystone
 
 ## Vif
 linuxnet_interface_driver = {{ nova_linuxnet_interface_driver }}
-{% if nova_virt_type in ['kvm', 'lxc', 'qemu', 'xen'] %}
+{% if nova_virt_type in ['kvm', 'lxd', 'qemu', 'xen'] %}
 libvirt_vif_type = ethernet
 {% endif %}
 vif_plugging_timeout = 10
@@ -259,7 +259,7 @@ admin_url = {{ keystone_service_adminuri }}/v2.0
 api_endpoint = {{ ironic_service_adminurl }}
 {% endif %}
 
-{% if nova_virt_type in ['kvm', 'lxc', 'qemu', 'xen'] %}
+{% if nova_virt_type in ['kvm', 'qemu', 'xen'] %}
 [libvirt]
 inject_partition = {{ nova_libvirt_inject_partition }}
 inject_password = {{ nova_libvirt_inject_password }}
diff --git a/tests/test-vars-lxd.yml b/tests/test-vars-lxd.yml
index ade670fa..6e72ed48 100644
--- a/tests/test-vars-lxd.yml
+++ b/tests/test-vars-lxd.yml
@@ -13,7 +13,7 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-nova_virt_type: lxc
+nova_virt_type: lxd
 
 tempest_img_url: "http://download.cirros-cloud.net/0.3.4/cirros-0.3.4-x86_64-lxc.tar.gz"
 tempest_img_disk_format: raw