Index: n/nova/virt/libvirt/driver.py
===================================================================
--- n.orig/nova/virt/libvirt/driver.py
+++ n/nova/virt/libvirt/driver.py
@@ -2343,7 +2343,8 @@ class LibvirtDriver(driver.ComputeDriver
                       disk_mapping, suffix='',
                       disk_images=None, network_info=None,
                       block_device_info=None, files=None,
-                      admin_pass=None, inject_files=True):
+                      admin_pass=None, inject_files=True,
+                      fallback_from_host=None):
         if not suffix:
             suffix = ''
 
@@ -2413,14 +2414,31 @@ class LibvirtDriver(driver.ComputeDriver
 
             if size == 0 or suffix == '.rescue':
                 size = None
-
-            image('disk').cache(fetch_func=libvirt_utils.fetch_image,
-                                context=context,
-                                filename=root_fname,
-                                size=size,
-                                image_id=disk_images['image_id'],
-                                user_id=instance['user_id'],
-                                project_id=instance['project_id'])
+            try:
+                image('disk').cache(fetch_func=libvirt_utils.fetch_image,
+                                    context=context,
+                                    filename=root_fname,
+                                    size=size,
+                                    image_id=disk_images['image_id'],
+                                    user_id=instance['user_id'],
+                                    project_id=instance['project_id'])
+            except exception.ImageNotFound:
+                if not fallback_from_host:
+                    raise
+                LOG.debug("Image %(image_id)s doesn't exist anymore "
+                          "on image service, attempting to copy %(root_fname)%"
+                          "image from %(host)s",
+                          dict(image_id=instance['image_ref'],
+                               root_fname=root_fname,
+                               host=fallback_from_host))
+
+                def copy_from_host(target, max_size):
+                    libvirt_utils.copy_image(src=target,
+                                             dest=target,
+                                             host=fallback_from_host,
+                                             receive=True)
+                image('disk').cache(fetch_func=copy_from_host,
+                            filename=root_fname)
 
         # Lookup the filesystem type if required
         os_type_with_default = disk.get_fs_type_for_os_type(
@@ -4641,7 +4659,8 @@ class LibvirtDriver(driver.ComputeDriver
         self._create_image(context, instance,
                            disk_mapping=disk_info['mapping'],
                            network_info=network_info,
-                           block_device_info=None, inject_files=False)
+                           block_device_info=None, inject_files=False,
+                           fallback_from_host=instance.host)
         xml = self.to_xml(context, instance, network_info, disk_info,
                           block_device_info=block_device_info,
                           write_to_disk=True)
Index: n/nova/tests/virt/libvirt/test_libvirt.py
===================================================================
--- n.orig/nova/tests/virt/libvirt/test_libvirt.py
+++ n/nova/tests/virt/libvirt/test_libvirt.py
@@ -7146,7 +7146,8 @@ class LibvirtDriverTestCase(test.TestCas
         def fake_create_image(context, inst,
                               disk_mapping, suffix='',
                               disk_images=None, network_info=None,
-                              block_device_info=None, inject_files=True):
+                              block_device_info=None, inject_files=True,
+                              fallback_from_host=None):
             self.assertFalse(inject_files)
 
         def fake_create_domain(xml, instance=None, power_on=True):