diff --git a/distributedcloud/dcmanager/manager/subcloud_manager.py b/distributedcloud/dcmanager/manager/subcloud_manager.py
index a19418902..e65fc513d 100644
--- a/distributedcloud/dcmanager/manager/subcloud_manager.py
+++ b/distributedcloud/dcmanager/manager/subcloud_manager.py
@@ -1152,7 +1152,7 @@ class SubcloudManager(manager.Manager):
             LOG.error(msg)
             db_api.subcloud_update(
                 context, subcloud.id,
-                deploy_status=consts.DEPLOY_STATE_RESTORE_PREP_FAILED
+                deploy_status=consts.DEPLOY_STATE_RESTORE_FAILED
             )
             return False