diff --git a/ChangeLog b/ChangeLog
index 4ad0b60455..4e21475734 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,11 @@
+2008-03-31  Dan Williams  <dcbw@redhat.com>
+
+	* src/vpn-manager/nm-vpn-connection.c
+		- (device_state_changed): send correct state on device failure too
+		- (plugin_state_changed): failed state means unexpected disconnection,
+			thus if the service goes away while the VPN connection is activated
+			that's a failure too
+
 2008-03-31  Dan Williams  <dcbw@redhat.com>
 
 	* src/vpn-manager/nm-vpn-manager.c
diff --git a/src/vpn-manager/nm-vpn-connection.c b/src/vpn-manager/nm-vpn-connection.c
index 3863851131..19063948d4 100644
--- a/src/vpn-manager/nm-vpn-connection.c
+++ b/src/vpn-manager/nm-vpn-connection.c
@@ -122,6 +122,10 @@ device_state_changed (NMDevice *device, NMDeviceState state, gpointer user_data)
 		nm_vpn_connection_set_state (connection,
 		                             NM_VPN_CONNECTION_STATE_DISCONNECTED,
 		                             NM_VPN_CONNECTION_STATE_REASON_DEVICE_DISCONNECTED);
+	} else if (state == NM_DEVICE_STATE_FAILED) {
+		nm_vpn_connection_set_state (connection,
+		                             NM_VPN_CONNECTION_STATE_FAILED,
+		                             NM_VPN_CONNECTION_STATE_REASON_DEVICE_DISCONNECTED);
 	}
 }
 
@@ -191,13 +195,9 @@ plugin_state_changed (DBusGProxy *proxy,
 	case NM_VPN_CONNECTION_STATE_NEED_AUTH:
 	case NM_VPN_CONNECTION_STATE_CONNECT:
 	case NM_VPN_CONNECTION_STATE_IP_CONFIG_GET:
-		nm_vpn_connection_set_state (connection,
-		                             NM_VPN_CONNECTION_STATE_FAILED,
-		                             NM_VPN_CONNECTION_STATE_REASON_SERVICE_STOPPED);
-		break;
 	case NM_VPN_CONNECTION_STATE_ACTIVATED:
 		nm_vpn_connection_set_state (connection,
-		                             NM_VPN_CONNECTION_STATE_DISCONNECTED,
+		                             NM_VPN_CONNECTION_STATE_FAILED,
 		                             NM_VPN_CONNECTION_STATE_REASON_SERVICE_STOPPED);
 		break;
 	default: