diff --git a/server/src/main/java/com/cloud/hypervisor/KVMGuru.java b/server/src/main/java/com/cloud/hypervisor/KVMGuru.java
index 9edaa5e6d646..c178cc8bc53b 100644
--- a/server/src/main/java/com/cloud/hypervisor/KVMGuru.java
+++ b/server/src/main/java/com/cloud/hypervisor/KVMGuru.java
@@ -132,7 +132,8 @@ protected void setVmQuotaPercentage(VirtualMachineTO to, VirtualMachineProfile v
             VirtualMachine vm = vmProfile.getVirtualMachine();
             HostVO host = hostDao.findById(vm.getHostId());
             if (host == null) {
-                throw new CloudRuntimeException("Host with id: " + vm.getHostId() + " not found");
+                logger.warn("Host is not available. Skipping CPU quota calculation for VM: {}", vm);
+                return;
             }
             logger.debug("Limiting CPU usage for VM: {} on host: {}", vm, host);
             double hostMaxSpeed = getHostCPUSpeed(host);
diff --git a/server/src/test/java/com/cloud/hypervisor/KVMGuruTest.java b/server/src/test/java/com/cloud/hypervisor/KVMGuruTest.java
index eea8bb9de680..07e19d99f394 100644
--- a/server/src/test/java/com/cloud/hypervisor/KVMGuruTest.java
+++ b/server/src/test/java/com/cloud/hypervisor/KVMGuruTest.java
@@ -32,7 +32,6 @@
 import com.cloud.storage.dao.GuestOSDao;
 import com.cloud.storage.dao.GuestOSHypervisorDao;
 import com.cloud.utils.Pair;
-import com.cloud.utils.exception.CloudRuntimeException;
 import com.cloud.vm.VirtualMachine;
 import com.cloud.vm.VirtualMachineProfile;
 import org.apache.cloudstack.api.ApiConstants;
@@ -141,10 +140,11 @@ public void testSetVmQuotaPercentage() {
         Mockito.verify(vmTO).setCpuQuotaPercentage(Mockito.anyDouble());
     }
 
-    @Test(expected = CloudRuntimeException.class)
+    @Test
     public void testSetVmQuotaPercentageNullHost() {
         Mockito.when(hostDao.findById(hostId)).thenReturn(null);
         guru.setVmQuotaPercentage(vmTO, vmProfile);
+        Mockito.verify(vmTO, Mockito.never()).setCpuQuotaPercentage(Mockito.anyDouble());
     }
 
     @Test