diff --git a/neutron/plugins/nicira/NeutronPlugin.py b/neutron/plugins/nicira/NeutronPlugin.py
index e3c3f79b10..473819a66f 100644
--- a/neutron/plugins/nicira/NeutronPlugin.py
+++ b/neutron/plugins/nicira/NeutronPlugin.py
@@ -1914,11 +1914,12 @@ class NvpPluginV2(addr_pair_db.AllowedAddressPairsMixin,
             nvp_res = nvplib.create_l2_gw_service(self.cluster, tenant_id,
                                                   gw_data['name'], devices)
             nvp_uuid = nvp_res.get('uuid')
-        except Exception:
-            raise nvp_exc.NvpPluginException(
-                err_msg=_("Create_l2_gw_service did not "
-                          "return an uuid for the newly "
-                          "created resource:%s") % nvp_res)
+        except NvpApiClient.Conflict:
+            raise nvp_exc.NvpL2GatewayAlreadyInUse(gateway=gw_data['name'])
+        except NvpApiClient.NvpApiException:
+            err_msg = _("Unable to create l2_gw_service for: %s") % gw_data
+            LOG.exception(err_msg)
+            raise nvp_exc.NvpPluginException(err_msg=err_msg)
         gw_data['id'] = nvp_uuid
         return super(NvpPluginV2, self).create_network_gateway(context,
                                                                network_gateway)
diff --git a/neutron/plugins/nicira/common/exceptions.py b/neutron/plugins/nicira/common/exceptions.py
index e26a49acab..bc7c4f5c0b 100644
--- a/neutron/plugins/nicira/common/exceptions.py
+++ b/neutron/plugins/nicira/common/exceptions.py
@@ -70,6 +70,10 @@ class NvpServicePluginException(q_exc.NeutronException):
                 "in the NVP Service Plugin: %(err_msg)s")
 
 
+class NvpL2GatewayAlreadyInUse(q_exc.Conflict):
+    message = _("Gateway Service %(gateway)s is already in use")
+
+
 class NvpServiceOverQuota(q_exc.Conflict):
     message = _("Quota exceeded for Vcns resource: %(overs)s: %(err_msg)s")
 
diff --git a/neutron/tests/unit/nicira/test_nicira_plugin.py b/neutron/tests/unit/nicira/test_nicira_plugin.py
index 4272d45016..b278f8ac2d 100644
--- a/neutron/tests/unit/nicira/test_nicira_plugin.py
+++ b/neutron/tests/unit/nicira/test_nicira_plugin.py
@@ -1389,6 +1389,15 @@ class TestNiciraNetworkGateway(test_l2_gw.NetworkGatewayDbTestCase,
                 devices=[{'id': uuidutils.generate_uuid()}])
             self.assertEqual(500, res.status_int)
 
+    def test_create_network_gateway_nvp_error_returns_409(self):
+        with mock.patch.object(nvplib,
+                               'create_l2_gw_service',
+                               side_effect=NvpApiClient.Conflict):
+            res = self._create_network_gateway(
+                self.fmt, 'xxx', name='yyy',
+                devices=[{'id': uuidutils.generate_uuid()}])
+            self.assertEqual(409, res.status_int)
+
     def test_list_network_gateways(self):
         with self._network_gateway(name='test-gw-1') as gw1:
             with self._network_gateway(name='test_gw_2') as gw2: