I just hit a similar issue (note: I didn't make a typo Phil mentioned in comment #5) while I was testing on Fedora 20 with Neutron+ML2+OVS+GRE with IceHouse release . My setup is more completely described here[1]. --------------------------------- . . . 2014-05-13 07:06:32.123 29455 TRACE nova.compute.manager [instance: 950de10f-4368-4498-b46a-b1595d057e38] File "/usr/lib/python2.7/site-packages/nova/virt/libvirt/driver.py", line 3431, in to_xml 2014-05-13 07:06:32.123 29455 TRACE nova.compute.manager [instance: 950de10f-4368-4498-b46a-b1595d057e38] disk_info, rescue, block_device_info) 2014-05-13 07:06:32.123 29455 TRACE nova.compute.manager [instance: 950de10f-4368-4498-b46a-b1595d057e38] File "/usr/lib/python2.7/site-packages/nova/virt/libvirt/driver.py", line 3247, in get_guest_config 2014-05-13 07:06:32.123 29455 TRACE nova.compute.manager [instance: 950de10f-4368-4498-b46a-b1595d057e38] flavor) 2014-05-13 07:06:32.123 29455 TRACE nova.compute.manager [instance: 950de10f-4368-4498-b46a-b1595d057e38] File "/usr/lib/python2.7/site-packages/nova/virt/libvirt/vif.py", line 384, in get_config 2014-05-13 07:06:32.123 29455 TRACE nova.compute.manager [instance: 950de10f-4368-4498-b46a-b1595d057e38] _("Unexpected vif_type=%s") % vif_type) 2014-05-13 07:06:32.123 29455 TRACE nova.compute.manager [instance: 950de10f-4368-4498-b46a-b1595d057e38] NovaException: Unexpected vif_type=binding_failed 2014-05-13 07:06:32.123 29455 TRACE nova.compute.manager [instance: 950de10f-4368-4498-b46a-b1595d057e38] 2014-05-13 07:06:32.846 29455 ERROR oslo.messaging.rpc.dispatcher [-] Exception during message handling: Unexpected vif_type=binding_failed --------------------------------- [1] https://www.redhat.com/archives/rdo-list/2014-May/msg00060.html ml2_config.ini and nova.conf ------------------------------------ ml2 plugin: $ cat /etc/neutron/plugin.ini | grep -v ^$ | grep -v ^# [ml2] type_drivers = gre tenant_network_types = gre mechanism_drivers = openvswitch [ml2_type_flat] [ml2_type_vlan] [ml2_type_gre] tunnel_id_ranges = 1:1000 [ml2_type_vxlan] [securitygroup] firewall_driver = neutron.agent.linux.iptables_firewall.OVSHybridIptablesFirewallDriver enable_security_group = True nova.conf: $ cat /etc/nova/nova.conf | grep -v ^$ | grep -v ^# [DEFAULT] logdir = /var/log/nova state_path = /var/lib/nova lock_path = /var/lib/nova/tmp volumes_dir = /etc/nova/volumes dhcpbridge = /usr/bin/nova-dhcpbridge dhcpbridge_flagfile = /etc/nova/nova.conf force_dhcp_release = True injected_network_template = /usr/share/nova/interfaces.template libvirt_nonblocking = True libvirt_use_virtio_for_bridges=True libvirt_inject_partition = -1 #libvirt_vif_driver=nova.virt.libvirt.vif.LibvirtGenericVIFDriver #libvirt_vif_driver=nova.virt.libvirt.vif.LibvirtHybridOVSBridgeDriver #iscsi_helper = tgtadm sql_connection = mysql://nova:nova@192.169.142.97/nova compute_driver = libvirt.LibvirtDriver libvirt_type=qemu rootwrap_config = /etc/nova/rootwrap.conf auth_strategy = keystone firewall_driver=nova.virt.firewall.NoopFirewallDriver enabled_apis = ec2,osapi_compute,metadata my_ip=192.169.142.168 network_api_class = nova.network.neutronv2.api.API neutron_url = http://192.169.142.97:9696 neutron_auth_strategy = keystone neutron_admin_tenant_name = services neutron_admin_username = neutron neutron_admin_password = fedora neutron_admin_auth_url = http://192.169.142.97:35357/v2.0 linuxnet_interface_driver = nova.network.linux_net.LinuxOVSInterfaceDriver firewall_driver = nova.virt.firewall.NoopFirewallDriver security_group_api = neutron rpc_backend = nova.rpc.impl_kombu rabbit_host = 192.169.142.97 rabbit_port = 5672 rabbit_userid = guest rabbit_password = fedora glance_host = 192.169.142.97 [keystone_authtoken] auth_uri = http://192.169.142.97:5000 admin_tenant_name = services admin_user = nova admin_password = fedora auth_host = 192.169.142.97 auth_port = 35357 auth_protocol = http signing_dirname = /tmp/keystone-signing-nova