Hope you have configured the following. $ nova secgroup-add-rule default icmp -1 -1 0.0.0.0/0 $ nova secgroup-add-rule default tcp 22 22 0.0.0.0/0 If not check where the packets are going using 'traceroute ipaddress'. Hope it will give some hint for you.

Hi, I did add the commands. but it still failed. I tried to check the console.log located at /var/lib/nova/instances/9656ec5c-714f-42e4-829b-68d4747f3413, but nothing is being recorded. below is the kvm process of the instance. any idea? [root@compute1 ~]# ps -ef|grep kvm qemu 3205 1 20 15:46 ? 00:00:17 /usr/libexec/qemu-kvm -name instance-00000002 -S -M rhel6.4.0 -cpu pentium,+lahf_lm,+lm,+nx,+syscall,+hypervisor,+avx,+osxsave,+xsave,+aes,+popcnt,+x2apic,+sse4.2,+sse4.1,+cx16,+ssse3,+pclmuldq,+pni,+ss,+sse2,+sse,+fxsr,+clflush,+pse36,+pat,+cmov,+mca,+pge,+mtrr,+apic,+pae -no-kvm -m 512 -smp 1,sockets=1,cores=1,threads=1 -uuid 9656ec5c-714f-42e4-829b-68d4747f3413 -smbios type=1,manufacturer=Red Hat Inc.,product=OpenStack Nova,version=2013.2-2.el6,serial=6fcce9f6-42e2-8265-8c60-f9b9a3340ff2,uuid=9656ec5c-714f-42e4-829b-68d4747f3413 -nodefconfig -nodefaults -chardev socket,id=charmonitor,path=/var/lib/libvirt/qemu/instance-00000002.monitor,server,nowait -mon

Did you run the command 'traceroute 10.0.0.2' from compute ?

Yes. but error is responded. [root@compute1 ~]# traceroute 10.0.0.2 traceroute to 10.0.0.2 (10.0.0.2), 30 hops max, 60 byte packets send: Operation not permitted

Is it multi node setup ? If yes, can bring down the second compute node and try creating new VM and then ping. I'm trying to ensure that second compute node is not causing any issue