diff --git a/nova/compute/api.py b/nova/compute/api.py
index bfb5c61..c8888c4 100644
--- a/nova/compute/api.py
+++ b/nova/compute/api.py
@@ -159,6 +159,20 @@ def check_policy(context, action, target, scope='compute'):
     nova.policy.enforce(context, _action, target)
 
 
+def restore_instance_state_on_failure(function):
+    """Decorator to restore instance original state on failure."""
+
+    @functools.wraps(function)
+    def inner(self, context, instance, *args, **kwargs):
+        try:
+            orig_state = instance['task_state']
+            return function(self, context, instance, *args, **kwargs)
+        except Exception, e:
+            with excutils.save_and_reraise_exception():
+                self.update(context, instance, task_state=orig_state)
+    return inner
+
+
 class API(base.Base):
     """API for interacting with the compute manager."""
 
@@ -2173,6 +2187,7 @@ class API(base.Base):
             return False
 
     @check_instance_state(vm_state=[vm_states.ACTIVE])
+    @restore_instance_state_on_failure
     def live_migrate(self, context, instance, block_migration,
                      disk_over_commit, host_name):
         """Migrate a server lively to a new host."""