diff --git a/server/src/main/java/com/cloud/network/router/NetworkHelperImpl.java b/server/src/main/java/com/cloud/network/router/NetworkHelperImpl.java
index 934336066cc..56860499ae0 100644
--- a/server/src/main/java/com/cloud/network/router/NetworkHelperImpl.java
+++ b/server/src/main/java/com/cloud/network/router/NetworkHelperImpl.java
@@ -21,6 +21,7 @@ import java.util.Arrays;
 import java.util.HashMap;
 import java.util.Iterator;
 import java.util.LinkedHashMap;
+import java.util.LinkedHashSet;
 import java.util.List;
 import java.util.Map;
 
@@ -35,6 +36,7 @@ import org.apache.cloudstack.framework.config.ConfigKey;
 import org.apache.cloudstack.framework.config.dao.ConfigurationDao;
 import org.apache.cloudstack.network.router.deployment.RouterDeploymentDefinition;
 import org.apache.cloudstack.utils.CloudStackVersion;
+import org.apache.commons.collections.CollectionUtils;
 import org.apache.log4j.Logger;
 
 import com.cloud.agent.AgentManager;
@@ -42,6 +44,7 @@ import com.cloud.agent.api.Answer;
 import com.cloud.agent.api.to.NicTO;
 import com.cloud.agent.manager.Commands;
 import com.cloud.alert.AlertManager;
+import com.cloud.capacity.CapacityManager;
 import com.cloud.configuration.Config;
 import com.cloud.dc.ClusterVO;
 import com.cloud.dc.DataCenter;
@@ -167,6 +170,8 @@ public class NetworkHelperImpl implements NetworkHelper {
     RouterHealthCheckResultDao _routerHealthCheckResultDao;
     @Inject
     Ipv6Service ipv6Service;
+    @Inject
+    CapacityManager capacityMgr;
 
     protected final Map<HypervisorType, ConfigKey<String>> hypervisorsMap = new HashMap<>();
 
@@ -502,12 +507,12 @@ public class NetworkHelperImpl implements NetworkHelper {
         // failed both times, throw the exception up
         final List<HypervisorType> hypervisors = getHypervisors(routerDeploymentDefinition);
 
-        int allocateRetry = 0;
-        int startRetry = 0;
         DomainRouterVO router = null;
         for (final Iterator<HypervisorType> iter = hypervisors.iterator(); iter.hasNext();) {
             final HypervisorType hType = iter.next();
             try {
+                checkIfZoneHasCapacity(routerDeploymentDefinition.getDest().getDataCenter(), hType, routerOffering);
+
                 final long id = _routerDao.getNextInSequence(Long.class, "id");
                 if (s_logger.isDebugEnabled()) {
                     s_logger.debug(String.format("Allocating the VR with id=%s in datacenter %s with the hypervisor type %s", id, routerDeploymentDefinition.getDest()
@@ -547,14 +552,12 @@ public class NetworkHelperImpl implements NetworkHelper {
                 reallocateRouterNetworks(routerDeploymentDefinition, router, template, null);
                 router = _routerDao.findById(router.getId());
             } catch (final InsufficientCapacityException ex) {
-                if (allocateRetry < 2 && iter.hasNext()) {
+                if (iter.hasNext()) {
                     s_logger.debug("Failed to allocate the VR with hypervisor type " + hType + ", retrying one more time");
                     continue;
                 } else {
                     throw ex;
                 }
-            } finally {
-                allocateRetry++;
             }
 
             if (startRouter) {
@@ -562,7 +565,7 @@ public class NetworkHelperImpl implements NetworkHelper {
                     router = startVirtualRouter(router, _accountMgr.getSystemUser(), _accountMgr.getSystemAccount(), routerDeploymentDefinition.getParams());
                     break;
                 } catch (final InsufficientCapacityException ex) {
-                    if (startRetry < 2 && iter.hasNext()) {
+                    if (iter.hasNext()) {
                         s_logger.debug("Failed to start the VR  " + router + " with hypervisor type " + hType + ", " + "destroying it and recreating one more time");
                         // destroy the router
                         destroyRouter(router.getId(), _accountMgr.getAccount(Account.ACCOUNT_ID_SYSTEM), User.UID_SYSTEM);
@@ -570,8 +573,6 @@ public class NetworkHelperImpl implements NetworkHelper {
                     } else {
                         throw ex;
                     }
-                } finally {
-                    startRetry++;
                 }
             } else {
                 // return stopped router
@@ -582,6 +583,25 @@ public class NetworkHelperImpl implements NetworkHelper {
         return router;
     }
 
+    private void checkIfZoneHasCapacity(final DataCenter zone, final HypervisorType hypervisorType, final ServiceOfferingVO routerOffering) throws InsufficientServerCapacityException {
+        List <HostVO> hosts = _hostDao.listByDataCenterIdAndHypervisorType(zone.getId(), hypervisorType);
+        if (CollectionUtils.isEmpty(hosts)) {
+            String msg = String.format("Zone %s has no %s host available which is enabled and in Up state", zone.getName(), hypervisorType);
+            s_logger.debug(msg);
+            throw new InsufficientServerCapacityException(msg, DataCenter.class, zone.getId());
+        }
+        for (HostVO host : hosts) {
+            Pair<Boolean, Boolean> cpuCapabilityAndCapacity = capacityMgr.checkIfHostHasCpuCapabilityAndCapacity(host, routerOffering, false);
+            if (cpuCapabilityAndCapacity.first() && cpuCapabilityAndCapacity.second()) {
+                s_logger.debug("Host " + host + " has enough capacity for the router");
+                return;
+            }
+        }
+        String msg = String.format("Zone %s has no %s host which has enough capacity", zone.getName(), hypervisorType);
+        s_logger.debug(msg);
+        throw new InsufficientServerCapacityException(msg, DataCenter.class, zone.getId());
+    }
+
     protected void filterSupportedHypervisors(final List<HypervisorType> hypervisors) {
         // For non vpc we keep them all assuming all types in the list are
         // supported
@@ -618,7 +638,7 @@ public class NetworkHelperImpl implements NetworkHelper {
             throw new InsufficientServerCapacityException("Unable to create virtual router, there are no clusters in the zone." + getNoHypervisorsErrMsgDetails(),
                     DataCenter.class, dest.getDataCenter().getId());
         }
-        return hypervisors;
+        return new ArrayList(new LinkedHashSet<>(hypervisors));
     }
 
     /*