diff --git a/api/src/com/cloud/network/Network.java b/api/src/com/cloud/network/Network.java
index 0b767898b31..2197c2b7143 100644
--- a/api/src/com/cloud/network/Network.java
+++ b/api/src/com/cloud/network/Network.java
@@ -225,7 +225,7 @@ public interface Network extends ControlledEntity, StateObject<Network.State>, I
             s_fsm.addTransition(State.Implementing, Event.OperationFailed, State.Shutdown);
             s_fsm.addTransition(State.Implemented, Event.DestroyNetwork, State.Shutdown);
             s_fsm.addTransition(State.Shutdown, Event.OperationSucceeded, State.Allocated);
-            s_fsm.addTransition(State.Shutdown, Event.OperationFailed, State.Implemented);
+            s_fsm.addTransition(State.Shutdown, Event.OperationFailed, State.Shutdown);
             s_fsm.addTransition(State.Setup, Event.DestroyNetwork, State.Destroy);
             s_fsm.addTransition(State.Allocated, Event.DestroyNetwork, State.Destroy);
         }