diff --git a/api/src/main/java/org/apache/cloudstack/context/CallContext.java b/api/src/main/java/org/apache/cloudstack/context/CallContext.java
index 50049b30a07..ecc109977eb 100644
--- a/api/src/main/java/org/apache/cloudstack/context/CallContext.java
+++ b/api/src/main/java/org/apache/cloudstack/context/CallContext.java
@@ -92,6 +92,10 @@ public class CallContext {
         context.put(key, value);
     }
 
+    public void removeContextParameter(Object key) {
+        context.remove(key);
+    }
+
     /**
      * @param key any not null key object
      * @return the value of the key from context map
@@ -234,6 +238,7 @@ public class CallContext {
         CallContext callContext = register(parent.getCallingUserId(), parent.getCallingAccountId());
         callContext.setStartEventId(parent.getStartEventId());
         callContext.setEventResourceType(eventResourceType);
+        callContext.putContextParameters(parent.getContextParameters());
         return callContext;
     }
 
diff --git a/server/src/main/java/com/cloud/resourcelimit/CheckedReservation.java b/server/src/main/java/com/cloud/resourcelimit/CheckedReservation.java
index 0075ef1b4f1..d0c20a3a7af 100644
--- a/server/src/main/java/com/cloud/resourcelimit/CheckedReservation.java
+++ b/server/src/main/java/com/cloud/resourcelimit/CheckedReservation.java
@@ -18,17 +18,19 @@
 //
 package com.cloud.resourcelimit;
 
+import org.apache.cloudstack.context.CallContext;
+import org.apache.cloudstack.reservation.ReservationVO;
+import org.apache.cloudstack.reservation.dao.ReservationDao;
+import org.apache.cloudstack.user.ResourceReservation;
+import org.apache.log4j.Logger;
+import org.jetbrains.annotations.NotNull;
+
 import com.cloud.configuration.Resource.ResourceType;
 import com.cloud.exception.ResourceAllocationException;
 import com.cloud.user.Account;
 import com.cloud.user.ResourceLimitService;
 import com.cloud.utils.db.GlobalLock;
-import org.apache.cloudstack.user.ResourceReservation;
 import com.cloud.utils.exception.CloudRuntimeException;
-import org.apache.cloudstack.reservation.ReservationVO;
-import org.apache.cloudstack.reservation.dao.ReservationDao;
-import org.apache.log4j.Logger;
-import org.jetbrains.annotations.NotNull;
 
 
 public class CheckedReservation  implements AutoCloseable, ResourceReservation {
@@ -42,6 +44,10 @@ public class CheckedReservation  implements AutoCloseable, ResourceReservation {
     private Long amount;
     private ResourceReservation reservation;
 
+    private String getContextParameterKey() {
+        return String.format("%s-%s", ResourceReservation.class.getSimpleName(), resourceType.getName());
+    }
+
     /**
      * - check if adding a reservation is allowed
      * - create DB entry for reservation
@@ -70,6 +76,7 @@ public class CheckedReservation  implements AutoCloseable, ResourceReservation {
                     resourceLimitService.checkResourceLimit(account,resourceType,amount);
                     ReservationVO reservationVO = new ReservationVO(account.getAccountId(), account.getDomainId(), resourceType, amount);
                     this.reservation = reservationDao.persist(reservationVO);
+                    CallContext.current().putContextParameter(getContextParameterKey(), reservationVO.getId());
                 } catch (NullPointerException npe) {
                     throw new CloudRuntimeException("not enough means to check limits", npe);
                 } finally {
@@ -97,7 +104,8 @@ public class CheckedReservation  implements AutoCloseable, ResourceReservation {
 
     @Override
     public void close() throws Exception {
-        if (this.reservation != null){
+        if (this.reservation != null) {
+            CallContext.current().removeContextParameter(getContextParameterKey());
             reservationDao.remove(reservation.getId());
             reservation = null;
         }
diff --git a/server/src/main/java/com/cloud/resourcelimit/ResourceLimitManagerImpl.java b/server/src/main/java/com/cloud/resourcelimit/ResourceLimitManagerImpl.java
index 9efeed39ac0..288315d5b62 100644
--- a/server/src/main/java/com/cloud/resourcelimit/ResourceLimitManagerImpl.java
+++ b/server/src/main/java/com/cloud/resourcelimit/ResourceLimitManagerImpl.java
@@ -16,6 +16,8 @@
 // under the License.
 package com.cloud.resourcelimit;
 
+import static com.cloud.utils.NumbersUtil.toHumanReadableSize;
+
 import java.util.ArrayList;
 import java.util.Arrays;
 import java.util.EnumMap;
@@ -103,13 +105,11 @@ import com.cloud.utils.db.TransactionCallbackNoReturn;
 import com.cloud.utils.db.TransactionCallbackWithExceptionNoReturn;
 import com.cloud.utils.db.TransactionStatus;
 import com.cloud.utils.exception.CloudRuntimeException;
-import com.cloud.vm.VirtualMachineManager;
 import com.cloud.vm.VirtualMachine.State;
+import com.cloud.vm.VirtualMachineManager;
 import com.cloud.vm.dao.UserVmDao;
 import com.cloud.vm.dao.VMInstanceDao;
 
-import static com.cloud.utils.NumbersUtil.toHumanReadableSize;
-
 @Component
 public class ResourceLimitManagerImpl extends ManagerBase implements ResourceLimitService, Configurable {
     public static final Logger s_logger = Logger.getLogger(ResourceLimitManagerImpl.class);
@@ -173,6 +173,23 @@ public class ResourceLimitManagerImpl extends ManagerBase implements ResourceLim
     Map<ResourceType, Long> domainResourceLimitMap = new EnumMap<ResourceType, Long>(ResourceType.class);
     Map<ResourceType, Long> projectResourceLimitMap = new EnumMap<ResourceType, Long>(ResourceType.class);
 
+    protected void removeResourceReservationIfNeededAndIncrementResourceCount(final long accountId, final ResourceType type, final long numToIncrement) {
+        Transaction.execute(new TransactionCallbackWithExceptionNoReturn<CloudRuntimeException>() {
+            @Override
+            public void doInTransactionWithoutResult(TransactionStatus status) throws CloudRuntimeException {
+
+                Object obj = CallContext.current().getContextParameter(String.format("%s-%s", ResourceReservation.class.getSimpleName(), type.getName()));
+                if (obj instanceof Long) {
+                    reservationDao.remove((long)obj);
+                }
+                if (!updateResourceCountForAccount(accountId, type, true, numToIncrement)) {
+                    // we should fail the operation (resource creation) when failed to update the resource count
+                    throw new CloudRuntimeException("Failed to increment resource count of type " + type + " for account id=" + accountId);
+                }
+            }
+        });
+    }
+
     @Override
     public boolean start() {
         if (_resourceCountCheckInterval > 0) {
@@ -270,12 +287,8 @@ public class ResourceLimitManagerImpl extends ManagerBase implements ResourceLim
             return;
         }
 
-        long numToIncrement = (delta.length == 0) ? 1 : delta[0].longValue();
-
-        if (!updateResourceCountForAccount(accountId, type, true, numToIncrement)) {
-            // we should fail the operation (resource creation) when failed to update the resource count
-            throw new CloudRuntimeException("Failed to increment resource count of type " + type + " for account id=" + accountId);
-        }
+        final long numToIncrement = (delta.length == 0) ? 1 : delta[0].longValue();
+        removeResourceReservationIfNeededAndIncrementResourceCount(accountId, type, numToIncrement);
     }
 
     @Override