diff --git a/nodepool/driver/fake/provider.py b/nodepool/driver/fake/provider.py
index e38376a1d..6e2388b0c 100644
--- a/nodepool/driver/fake/provider.py
+++ b/nodepool/driver/fake/provider.py
@@ -105,8 +105,7 @@ class FakeOpenStackCloud(object):
         ]
         self._azs = ['az1', 'az2']
         self._server_list = []
-        self.max_cores, self.max_instances, self.max_ram = FakeOpenStackCloud.\
-            _get_quota()
+        self._update_quota()
         self._down_ports = [
             Dummy(Dummy.PORT, id=uuid.uuid4().hex, status='DOWN',
                   device_owner="compute:nova"),
@@ -114,6 +113,10 @@ class FakeOpenStackCloud(object):
                   device_owner=None),
         ]
 
+    def _update_quota(self):
+        self.max_cores, self.max_instances, self.max_ram = FakeOpenStackCloud.\
+            _get_quota()
+
     def _get(self, name_or_id, instance_list):
         self.log.debug("Get %s in %s" % (name_or_id, repr(instance_list)))
         for instance in instance_list:
@@ -162,6 +165,7 @@ class FakeOpenStackCloud(object):
             private_v4 = 'fake'
             host_id = 'fake'
             interface_ip = 'fake'
+        self._update_quota()
         over_quota = False
         if (instance_type == Dummy.INSTANCE and
             self.max_instances > -1 and
@@ -292,6 +296,7 @@ class FakeOpenStackCloud(object):
         return self._azs.copy()
 
     def get_compute_limits(self):
+        self._update_quota()
         return Dummy(
             'limits',
             max_total_cores=self.max_cores,
diff --git a/nodepool/driver/utils.py b/nodepool/driver/utils.py
index e017e569d..a2fe32267 100644
--- a/nodepool/driver/utils.py
+++ b/nodepool/driver/utils.py
@@ -259,7 +259,8 @@ class QuotaSupport:
 
     def __init__(self, *args, **kw):
         super().__init__(*args, **kw)
-        self._current_nodepool_quota = None
+        self._current_nodepool_quota_timestamp = 0
+        self._current_nodepool_quota = {}
 
     @abc.abstractmethod
     def quotaNeededByLabel(self, label, pool):
@@ -291,7 +292,7 @@ class QuotaSupport:
         pass
 
     def invalidateQuotaCache(self):
-        self._current_nodepool_quota['timestamp'] = 0
+        self._current_nodepool_quota_timestamp = 0
 
     def estimatedNodepoolQuota(self):
         '''
@@ -307,8 +308,8 @@ class QuotaSupport:
 
         if self._current_nodepool_quota:
             now = time.time()
-            if now < self._current_nodepool_quota['timestamp'] + MAX_QUOTA_AGE:
-                return copy.deepcopy(self._current_nodepool_quota['quota'])
+            if now < self._current_nodepool_quota_timestamp + MAX_QUOTA_AGE:
+                return copy.deepcopy(self._current_nodepool_quota)
 
         # This is initialized with the full tenant quota and later becomes
         # the quota available for nodepool.
@@ -318,7 +319,7 @@ class QuotaSupport:
             if self._current_nodepool_quota:
                 self.log.exception("Unable to get provider quota, "
                                    "using cached value")
-                return copy.deepcopy(self._current_nodepool_quota['quota'])
+                return copy.deepcopy(self._current_nodepool_quota)
             raise
 
         self.log.debug("Provider quota for %s: %s",
@@ -328,10 +329,8 @@ class QuotaSupport:
         # to get the quota available for us.
         nodepool_quota.subtract(self.unmanagedQuotaUsed())
 
-        self._current_nodepool_quota = {
-            'quota': nodepool_quota,
-            'timestamp': time.time()
-        }
+        self._current_nodepool_quota = nodepool_quota
+        self._current_nodepool_quota_timestamp = time.time()
 
         self.log.debug("Available quota for %s: %s",
                        self.provider.name, nodepool_quota)
diff --git a/nodepool/tests/__init__.py b/nodepool/tests/__init__.py
index 56edb03db..1dc4eb663 100644
--- a/nodepool/tests/__init__.py
+++ b/nodepool/tests/__init__.py
@@ -583,6 +583,15 @@ class DBTestCase(BaseTestCase):
         self.wait_for_threads()
         return ready_nodes[label]
 
+    def waitForAnyNodeInState(self, state):
+        # Wait for a node to be in the aborted state
+        for _ in iterate_timeout(ONE_MINUTE, Exception,
+                                 f"Timeout waiting for node in {state} state",
+                                 interval=1):
+            for node in self.zk.nodeIterator(False):
+                if node.state == state:
+                    return node
+
     def waitForNodeRequest(self, req, states=None):
         '''
         Wait for a node request to transition to a final state.
diff --git a/nodepool/tests/unit/test_launcher.py b/nodepool/tests/unit/test_launcher.py
index 9f8b1aa38..453d4843d 100644
--- a/nodepool/tests/unit/test_launcher.py
+++ b/nodepool/tests/unit/test_launcher.py
@@ -403,6 +403,7 @@ class TestLauncher(tests.DBTestCase):
 
         # patch the cloud with requested quota
         def fake_get_quota():
+            nonlocal max_cores, max_instances, max_ram
             return (max_cores, max_instances, max_ram)
         self.useFixture(fixtures.MockPatchObject(
             fakeprovider.FakeProvider.fake_cloud, '_get_quota',
@@ -435,7 +436,7 @@ class TestLauncher(tests.DBTestCase):
 
         # Now, reduce the quota so the next node unexpectedly
         # (according to nodepool's quota estimate) fails.
-        client.max_instances = 1
+        max_instances = 1
 
         # Request a second node; this request should pause the handler.
         req2 = zk.NodeRequest()
@@ -2280,6 +2281,53 @@ class TestLauncher(tests.DBTestCase):
         req3 = self.waitForNodeRequest(req3)
         self.assertEqual(req3.state, zk.FAILED)
 
+    def test_ignore_provider_quota_true_with_provider_error(self):
+        '''
+        Tests that quota errors returned from the provider when allocating a
+        node are correctly handled and retried. The node request should be
+        retried until there is sufficient quota to satisfy it.
+        '''
+        max_instances = 0
+
+        def fake_get_quota():
+            nonlocal max_instances
+            return (100, max_instances, 1000000)
+
+        self.useFixture(fixtures.MockPatchObject(
+            fakeprovider.FakeProvider.fake_cloud, '_get_quota',
+            fake_get_quota
+        ))
+
+        configfile = self.setup_config('ignore_provider_quota_true.yaml')
+        self.useBuilder(configfile)
+        self.waitForImage('fake-provider', 'fake-image')
+
+        pool = self.useNodepool(configfile, watermark_sleep=1)
+        pool.start()
+
+        # Create a request with ignore-provider-quota set to true that should
+        # pass regardless of the lack of cloud/provider quota.
+        self.replace_config(configfile, 'ignore_provider_quota_true.yaml')
+
+        self.log.debug(
+            "Submitting an initial request with ignore-provider-quota True")
+        req = zk.NodeRequest()
+        req.state = zk.REQUESTED
+        req.node_types.append('fake-label')
+        self.zk.storeNodeRequest(req)
+
+        self.waitForAnyNodeInState(zk.ABORTED)
+
+        self.assertReportedStat(
+            'nodepool.launch.provider.fake-provider.error.quota')
+        self.assertReportedStat(
+            'nodepool.launch.error.quota')
+
+        # Bump up the quota to allow the provider to allocate a node
+        max_instances = 1
+        req = self.waitForNodeRequest(req)
+        self.assertEqual(req.state, zk.FULFILLED)
+
     def test_request_order(self):
         """Test that requests are handled in sorted order"""
         configfile = self.setup_config('node_no_min_ready.yaml')
diff --git a/releasenotes/notes/quota-cache-timestamp-fix-c4edf9dc08e0eb8b.yaml b/releasenotes/notes/quota-cache-timestamp-fix-c4edf9dc08e0eb8b.yaml
new file mode 100644
index 000000000..235e0f1d9
--- /dev/null
+++ b/releasenotes/notes/quota-cache-timestamp-fix-c4edf9dc08e0eb8b.yaml
@@ -0,0 +1,8 @@
+---
+fixes:
+  - |
+    Fixes an exception that was raised by the OpenStack driver when attempting
+    to reset the quota timestamp and `ignore-provider-quota` is `true`. This
+    exception prevented nodepool from seeing quota errors from OpenStack,
+    causing it to fail the node request instead of retrying as it does for
+    other providers.