diff --git a/src/plugins/select/bluegene/block_allocator/block_allocator.c b/src/plugins/select/bluegene/block_allocator/block_allocator.c
index 3d10468dc1ce82bc2b4e53ab53e882a80d44044a..76584ea37ec9db35272645d77b9ae4078bacd049 100644
--- a/src/plugins/select/bluegene/block_allocator/block_allocator.c
+++ b/src/plugins/select/bluegene/block_allocator/block_allocator.c
@@ -1204,6 +1204,7 @@ extern void ba_fini()
 extern void ba_update_node_state(ba_node_t *ba_node, uint16_t state)
 {
 	uint16_t node_base_state = state & NODE_STATE_BASE;
+	uint16_t node_flags = state & NODE_STATE_FLAGS;
 
 	if (!_initialized){
 		error("Error, configuration not initialized, "
@@ -1223,7 +1224,7 @@ extern void ba_update_node_state(ba_node_t *ba_node, uint16_t state)
 
 	/* basically set the node as used */
 	if((node_base_state == NODE_STATE_DOWN)
-	   || (state & NODE_STATE_DRAIN)) 
+	   || (node_flags & (NODE_STATE_DRAIN | NODE_STATE_FAIL))) 
 		ba_node->used = true;
 	else
 		ba_node->used = false;
diff --git a/src/slurmctld/node_mgr.c b/src/slurmctld/node_mgr.c
index 4ee7a54f8099aa223ac13ebb5a2618a992b8a33c..a0a3117243e117f0ee66986827e93a6727c8a824 100644
--- a/src/slurmctld/node_mgr.c
+++ b/src/slurmctld/node_mgr.c
@@ -647,8 +647,7 @@ extern int load_all_node_state ( bool state_only )
 			   until the nodes check in.  This is needed
 			   for bluegene to set up drained nodes
 			   correctly. */
-			if((node_ptr->node_state & NODE_STATE_BASE)
-			   == NODE_STATE_UNKNOWN) 
+			if(IS_NODE_UNKNOWN(node_ptr)) 
 				node_ptr->node_state |= NODE_STATE_IDLE;
 
 			select_g_update_node_state(