diff --git a/reddwarf/common/exception.py b/reddwarf/common/exception.py
index bb7e20d401..cd0768376a 100644
--- a/reddwarf/common/exception.py
+++ b/reddwarf/common/exception.py
@@ -172,3 +172,7 @@ class InvalidModelError(ReddwarfError):
 class ModelNotFoundError(NotFound):
 
     message = _("Not Found")
+
+class UpdateGuestError(ReddwarfError):
+
+    message = _("Failed to update instances")
diff --git a/reddwarf/common/wsgi.py b/reddwarf/common/wsgi.py
index f7967e0d32..d1f3fcea97 100644
--- a/reddwarf/common/wsgi.py
+++ b/reddwarf/common/wsgi.py
@@ -289,7 +289,8 @@ class Controller(object):
             exception.VolumeQuotaExceeded,
             ],
         webob.exc.HTTPServerError: [
-            exception.VolumeCreationFailure
+            exception.VolumeCreationFailure,
+            exception.UpdateGuestError,
             ],
         }
 
diff --git a/reddwarf/extensions/mgmt/host/models.py b/reddwarf/extensions/mgmt/host/models.py
index 6dc7584582..9bece2fb3e 100644
--- a/reddwarf/extensions/mgmt/host/models.py
+++ b/reddwarf/extensions/mgmt/host/models.py
@@ -81,9 +81,18 @@ class DetailedHost(object):
     def update_all(self, context):
         num_i = len(self.instances)
         LOG.debug("Host %s has %s instances to update" % (self.name, num_i))
+        failed_instances = []
         for instance in self.instances:
             client = create_guest_client(context, instance['id'])
-            client.update_guest()
+            try:
+                client.update_guest()
+            except exception.ReddwarfError as re:
+                LOG.error(re)
+                LOG.error("Unable to update instance: %s" % instance['id'])
+                failed_instances.append(instance['id'])
+        if len(failed_instances) > 0:
+            msg = "Failed to update instances: %s" % failed_instances
+            raise exception.UpdateGuestError(msg)
 
     @staticmethod
     def load(context, name):