diff --git a/drivers/openstack/client.go b/drivers/openstack/client.go
index e464a5674c..218af191b0 100644
--- a/drivers/openstack/client.go
+++ b/drivers/openstack/client.go
@@ -4,8 +4,10 @@ import (
 	"crypto/tls"
 	"fmt"
 	"net/http"
+	"time"
 
 	"github.com/docker/machine/log"
+	"github.com/docker/machine/utils"
 	"github.com/docker/machine/version"
 	"github.com/rackspace/gophercloud"
 	"github.com/rackspace/gophercloud/openstack"
@@ -31,7 +33,7 @@ type Client interface {
 	StopInstance(d *Driver) error
 	RestartInstance(d *Driver) error
 	DeleteInstance(d *Driver) error
-	WaitForInstanceStatus(d *Driver, status string, timeout int) error
+	WaitForInstanceStatus(d *Driver, status string) error
 	GetInstanceIpAddresses(d *Driver) ([]IpAddress, error)
 	CreateKeyPair(d *Driver, name string, publicKey string) error
 	DeleteKeyPair(d *Driver, name string) error
@@ -132,11 +134,23 @@ func (c *GenericClient) DeleteInstance(d *Driver) error {
 	return nil
 }
 
-func (c *GenericClient) WaitForInstanceStatus(d *Driver, status string, timeout int) error {
-	if err := servers.WaitForStatus(c.Compute, d.MachineId, status, timeout); err != nil {
-		return err
-	}
-	return nil
+func (c *GenericClient) WaitForInstanceStatus(d *Driver, status string) error {
+	return utils.WaitForSpecificOrError(func() (bool, error) {
+		current, err := servers.Get(c.Compute, d.MachineId).Extract()
+		if err != nil {
+			return true, err
+		}
+
+		if current.Status == "ERROR" {
+			return true, fmt.Errorf("Instance creation failed. Instance is in ERROR state")
+		}
+
+		if current.Status == status {
+			return true, nil
+		}
+
+		return false, nil
+	}, 50, 4*time.Second)
 }
 
 func (c *GenericClient) GetInstanceIpAddresses(d *Driver) ([]IpAddress, error) {
diff --git a/drivers/openstack/openstack.go b/drivers/openstack/openstack.go
index d6e6bdf862..2bba3e5ed1 100644
--- a/drivers/openstack/openstack.go
+++ b/drivers/openstack/openstack.go
@@ -664,7 +664,7 @@ func (d *Driver) assignFloatingIp() error {
 
 func (d *Driver) waitForInstanceActive() error {
 	log.WithField("MachineId", d.MachineId).Debug("Waiting for the OpenStack instance to be ACTIVE...")
-	if err := d.client.WaitForInstanceStatus(d, "ACTIVE", 200); err != nil {
+	if err := d.client.WaitForInstanceStatus(d, "ACTIVE"); err != nil {
 		return err
 	}
 	return nil
diff --git a/utils/utils.go b/utils/utils.go
index d2d0483b22..e2ec725dae 100644
--- a/utils/utils.go
+++ b/utils/utils.go
@@ -94,9 +94,13 @@ func CopyFile(src, dst string) error {
 	return nil
 }
 
-func WaitForSpecific(f func() bool, maxAttempts int, waitInterval time.Duration) error {
+func WaitForSpecificOrError(f func() (bool, error), maxAttempts int, waitInterval time.Duration) error {
 	for i := 0; i < maxAttempts; i++ {
-		if f() {
+		stop, err := f()
+		if err != nil {
+			return err
+		}
+		if stop {
 			return nil
 		}
 		time.Sleep(waitInterval)
@@ -104,6 +108,12 @@ func WaitForSpecific(f func() bool, maxAttempts int, waitInterval time.Duration)
 	return fmt.Errorf("Maximum number of retries (%d) exceeded", maxAttempts)
 }
 
+func WaitForSpecific(f func() bool, maxAttempts int, waitInterval time.Duration) error {
+	return WaitForSpecificOrError(func() (bool, error) {
+		return f(), nil
+	}, maxAttempts, waitInterval)
+}
+
 func WaitFor(f func() bool) error {
 	return WaitForSpecific(f, 60, 3*time.Second)
 }