diff --git a/rwlaunchpad/plugins/rwvnfm/rift/tasklets/rwvnfmtasklet/rwvnfmtasklet.py b/rwlaunchpad/plugins/rwvnfm/rift/tasklets/rwvnfmtasklet/rwvnfmtasklet.py
index 15e6f46..2bcbecc 100755
--- a/rwlaunchpad/plugins/rwvnfm/rift/tasklets/rwvnfmtasklet/rwvnfmtasklet.py
+++ b/rwlaunchpad/plugins/rwvnfm/rift/tasklets/rwvnfmtasklet/rwvnfmtasklet.py
@@ -521,6 +521,7 @@
             try:
                 return cloud_init_extractor.read_script(stored_package, filename)
             except rift.package.cloud_init.CloudInitExtractionError as e:
+                self.instantiation_failed(str(e))
                 raise VirtualDeploymentUnitRecordError(e)
         else:
             self._log.debug("VDU Instantiation: cloud-init script not provided")
@@ -942,8 +943,8 @@
 
             vm_resp = yield from self.create_resource(xact, vnfr, config)
             self._vm_resp = vm_resp
-
             self._state = VDURecordState.RESOURCE_ALLOC_PENDING
+
             self._log.debug("Requested VM from resource manager response %s",
                             vm_resp)
             if vm_resp.resource_state == "active":
@@ -1528,6 +1529,10 @@
         return placement_groups
 
     @asyncio.coroutine
+    def vdu_cloud_init_instantiation(self):
+        [vdu.vdud_cloud_init for vdu in self._vdus]
+
+    @asyncio.coroutine
     def create_vdus(self, vnfr, restart_mode=False):
         """ Create the VDUs associated with this VNF """
 
@@ -1591,8 +1596,8 @@
         vdu_id_pattern = re.compile(r"\{\{ vdu\[([^]]+)\]\S* \}\}")
 
         for vdu in self._vdus:
-            if vdu.vdud_cloud_init is not None:
-                for vdu_id in vdu_id_pattern.findall(vdu.vdud_cloud_init):
+            if vdu._vdud_cloud_init is not None:
+                for vdu_id in vdu_id_pattern.findall(vdu._vdud_cloud_init):
                     if vdu_id != vdu.vdu_id:
                         # This means that vdu.vdu_id depends upon vdu_id,
                         # i.e. vdu_id must be instantiated before
@@ -1620,7 +1625,6 @@
             # wait for the VDUR to enter a terminal state
             while vdu._state not in terminal:
                 yield from asyncio.sleep(1, loop=self._loop)
-
             # update the datastore
             datastore.update(vdu)
 
@@ -1861,6 +1865,7 @@
         self._log.debug("VNFR-ID %s: Publish VNFR", self._vnfr_id)
         yield from self.publish(xact)
 
+
         # instantiate VLs
         self._log.debug("VNFR-ID %s: Instantiate VLs", self._vnfr_id)
         try:
@@ -1876,6 +1881,13 @@
         self._log.debug("VNFR-ID %s: Create VDUs", self._vnfr_id)
         yield from self.create_vdus(self, restart_mode)
 
+        try:
+            yield from self.vdu_cloud_init_instantiation()
+        except Exception as e:
+            self.set_state(VirtualNetworkFunctionRecordState.FAILED)
+            self._state_failed_reason = str(e)
+            yield from self.publish(xact)
+
         # publish the VNFR
         self._log.debug("VNFR-ID %s: Publish VNFR", self._vnfr_id)
         yield from self.publish(xact)