diff --git a/engine/orchestration/test/com/cloud/agent/manager/AgentManagerImplTest.java b/engine/orchestration/test/com/cloud/agent/manager/AgentManagerImplTest.java
new file mode 100644
index 00000000000..03044c5e3b5
--- /dev/null
+++ b/engine/orchestration/test/com/cloud/agent/manager/AgentManagerImplTest.java
@@ -0,0 +1,86 @@
+// Licensed to the Apache Software Foundation (ASF) under one
+// or more contributor license agreements.  See the NOTICE file
+// distributed with this work for additional information
+// regarding copyright ownership.  The ASF licenses this file
+// to you under the Apache License, Version 2.0 (the
+// "License"); you may not use this file except in compliance
+// with the License.  You may obtain a copy of the License at
+//
+//   http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing,
+// software distributed under the License is distributed on an
+// "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+// KIND, either express or implied.  See the License for the
+// specific language governing permissions and limitations
+// under the License.
+package com.cloud.agent.manager;
+
+import com.cloud.agent.Listener;
+import com.cloud.agent.api.Answer;
+import com.cloud.agent.api.ReadyCommand;
+import com.cloud.agent.api.StartupCommand;
+import com.cloud.agent.api.StartupRoutingCommand;
+import com.cloud.exception.ConnectionException;
+import com.cloud.host.HostVO;
+import com.cloud.host.Status;
+import com.cloud.host.dao.HostDao;
+import com.cloud.utils.Pair;
+import org.junit.Assert;
+import org.junit.Before;
+import org.junit.Test;
+import org.mockito.Mockito;
+
+import java.util.ArrayList;
+
+public class AgentManagerImplTest {
+
+    private HostDao hostDao;
+    private Listener storagePoolMonitor;
+    private AgentAttache attache;
+    private AgentManagerImpl mgr = Mockito.spy(new AgentManagerImpl());
+    private HostVO host;
+    private StartupCommand[] cmds;
+
+    @Before
+    public void setUp() throws Exception {
+        host = new HostVO("some-Uuid");
+        host.setDataCenterId(1L);
+        cmds = new StartupCommand[]{new StartupRoutingCommand()};
+        attache = new ConnectedAgentAttache(null, 1L, "kvm-attache", null, false);
+
+        hostDao = Mockito.mock(HostDao.class);
+        storagePoolMonitor = Mockito.mock(Listener.class);
+
+        mgr._hostDao = hostDao;
+        mgr._hostMonitors = new ArrayList<>();
+        mgr._hostMonitors.add(new Pair<>(0, storagePoolMonitor));
+    }
+
+    @Test
+    public void testNotifyMonitorsOfConnectionNormal() throws ConnectionException {
+        Mockito.when(hostDao.findById(Mockito.anyLong())).thenReturn(host);
+        Mockito.doNothing().when(storagePoolMonitor).processConnect(Mockito.eq(host), Mockito.eq(cmds[0]), Mockito.eq(false));
+        Mockito.doReturn(true).when(mgr).handleDisconnectWithoutInvestigation(Mockito.any(attache.getClass()), Mockito.any(Status.Event.class), Mockito.anyBoolean(), Mockito.anyBoolean());
+        Mockito.doReturn(Mockito.mock(Answer.class)).when(mgr).easySend(Mockito.anyLong(), Mockito.any(ReadyCommand.class));
+        Mockito.doReturn(true).when(mgr).agentStatusTransitTo(Mockito.eq(host), Mockito.eq(Status.Event.Ready), Mockito.anyLong());
+
+        final AgentAttache agentAttache = mgr.notifyMonitorsOfConnection(attache, cmds, false);
+        Assert.assertTrue(agentAttache.isReady()); // Agent is in UP state
+    }
+
+    @Test
+    public void testNotifyMonitorsOfConnectionWhenStoragePoolConnectionHostFailure() throws ConnectionException {
+        ConnectionException connectionException = new ConnectionException(true, "storage pool could not be connected on host");
+        Mockito.when(hostDao.findById(Mockito.anyLong())).thenReturn(host);
+        Mockito.doThrow(connectionException).when(storagePoolMonitor).processConnect(Mockito.eq(host), Mockito.eq(cmds[0]), Mockito.eq(false));
+        Mockito.doReturn(true).when(mgr).handleDisconnectWithoutInvestigation(Mockito.any(attache.getClass()), Mockito.any(Status.Event.class), Mockito.anyBoolean(), Mockito.anyBoolean());
+        try {
+            mgr.notifyMonitorsOfConnection(attache, cmds, false);
+            Assert.fail("Connection Exception was expected");
+        } catch (ConnectionException e) {
+            Assert.assertEquals(e.getMessage(), connectionException.getMessage());
+        }
+        Mockito.verify(mgr, Mockito.times(1)).handleDisconnectWithoutInvestigation(Mockito.any(attache.getClass()), Mockito.eq(Status.Event.AgentDisconnected), Mockito.eq(true), Mockito.eq(true));
+    }
+}
\ No newline at end of file
diff --git a/packaging/centos63/cloud-agent.rc b/packaging/centos63/cloud-agent.rc
index 6cc6abc5e5f..aad95828f6d 100755
--- a/packaging/centos63/cloud-agent.rc
+++ b/packaging/centos63/cloud-agent.rc
@@ -26,6 +26,7 @@
 
 # set environment variables
 
+TMP=/usr/share/cloudstack-agent/tmp
 SHORTNAME=$(basename $0 | sed -e 's/^[SK][0-9][0-9]//')
 PIDFILE=/var/run/"$SHORTNAME".pid
 LOCKFILE=/var/lock/subsys/"$SHORTNAME"
@@ -41,6 +42,9 @@ if [ -z "$JSVC" ]; then
     exit 1;
 fi
 
+# create java tmp dir if not found
+mkdir -m 0755 -p "$TMP"
+
 unset OPTIONS
 [ -r /etc/sysconfig/"$SHORTNAME" ] && source /etc/sysconfig/"$SHORTNAME"
 
@@ -64,7 +68,7 @@ export CLASSPATH="/usr/share/java/commons-daemon.jar:$ACP:$PCP:/etc/cloudstack/a
 start() {
     echo -n $"Starting $PROGNAME: "
     if hostname --fqdn >/dev/null 2>&1 ; then
-        $JSVC -Xms256m -Xmx2048m -cp "$CLASSPATH" -pidfile "$PIDFILE" \
+        $JSVC -Djava.io.tmpdir="$TMP" -Xms256m -Xmx2048m -cp "$CLASSPATH" -pidfile "$PIDFILE" \
             -errfile $LOGDIR/cloudstack-agent.err -outfile $LOGDIR/cloudstack-agent.out $CLASS
         RETVAL=$?
         echo
diff --git a/packaging/centos7/cloud-agent.rc b/packaging/centos7/cloud-agent.rc
index 6cc6abc5e5f..aad95828f6d 100755
--- a/packaging/centos7/cloud-agent.rc
+++ b/packaging/centos7/cloud-agent.rc
@@ -26,6 +26,7 @@
 
 # set environment variables
 
+TMP=/usr/share/cloudstack-agent/tmp
 SHORTNAME=$(basename $0 | sed -e 's/^[SK][0-9][0-9]//')
 PIDFILE=/var/run/"$SHORTNAME".pid
 LOCKFILE=/var/lock/subsys/"$SHORTNAME"
@@ -41,6 +42,9 @@ if [ -z "$JSVC" ]; then
     exit 1;
 fi
 
+# create java tmp dir if not found
+mkdir -m 0755 -p "$TMP"
+
 unset OPTIONS
 [ -r /etc/sysconfig/"$SHORTNAME" ] && source /etc/sysconfig/"$SHORTNAME"
 
@@ -64,7 +68,7 @@ export CLASSPATH="/usr/share/java/commons-daemon.jar:$ACP:$PCP:/etc/cloudstack/a
 start() {
     echo -n $"Starting $PROGNAME: "
     if hostname --fqdn >/dev/null 2>&1 ; then
-        $JSVC -Xms256m -Xmx2048m -cp "$CLASSPATH" -pidfile "$PIDFILE" \
+        $JSVC -Djava.io.tmpdir="$TMP" -Xms256m -Xmx2048m -cp "$CLASSPATH" -pidfile "$PIDFILE" \
             -errfile $LOGDIR/cloudstack-agent.err -outfile $LOGDIR/cloudstack-agent.out $CLASS
         RETVAL=$?
         echo
diff --git a/packaging/debian/cloudstack-agent.init b/packaging/debian/cloudstack-agent.init
index a3f2ae9bcf4..0cae5f55a3c 100755
--- a/packaging/debian/cloudstack-agent.init
+++ b/packaging/debian/cloudstack-agent.init
@@ -33,6 +33,7 @@
 
 . /lib/lsb/init-functions
 
+TMP=/usr/share/cloudstack-agent/tmp
 SHORTNAME="cloudstack-agent"
 PIDFILE=/var/run/"$SHORTNAME".pid
 LOCKFILE=/var/lock/subsys/"$SHORTNAME"
@@ -45,6 +46,9 @@ SHUTDOWN_WAIT="30"
 unset OPTIONS
 [ -r /etc/default/"$SHORTNAME" ] && source /etc/default/"$SHORTNAME"
 
+# create java tmp dir if not found
+mkdir -m 0755 -p "$TMP"
+
 # The first existing directory is used for JAVA_HOME (if JAVA_HOME is not defined in $DEFAULT)
 JDK_DIRS="/usr/lib/jvm/java-7-openjdk-amd64 /usr/lib/jvm/java-7-openjdk-i386 /usr/lib/jvm/java-7-oracle /usr/lib/jvm/java-6-openjdk /usr/lib/jvm/java-6-openjdk-i386 /usr/lib/jvm/java-6-openjdk-amd64 /usr/lib/jvm/java-6-sun"
 
@@ -96,7 +100,7 @@ start() {
 
     wait_for_network
 
-    if start_daemon -p $PIDFILE $DAEMON -Xms256m -Xmx2048m -cp "$CLASSPATH" -Djna.nosys=true -pidfile "$PIDFILE" -errfile SYSLOG $CLASS
+    if start_daemon -p $PIDFILE $DAEMON -Djava.io.tmpdir="$TMP" -Xms256m -Xmx2048m -cp "$CLASSPATH" -Djna.nosys=true -pidfile "$PIDFILE" -errfile SYSLOG $CLASS
         RETVAL=$?
     then
         rc=0
diff --git a/packaging/systemd/cloudstack-agent.default b/packaging/systemd/cloudstack-agent.default
index 659d71503e3..41fa85bfd22 100644
--- a/packaging/systemd/cloudstack-agent.default
+++ b/packaging/systemd/cloudstack-agent.default
@@ -19,3 +19,4 @@ JAVA=/usr/bin/java
 JAVA_HEAP_INITIAL=256m
 JAVA_HEAP_MAX=2048m
 JAVA_CLASS=com.cloud.agent.AgentShell
+JAVA_TMPDIR=/usr/share/cloudstack-agent/tmp
diff --git a/packaging/systemd/cloudstack-agent.service b/packaging/systemd/cloudstack-agent.service
index dd1560c2a41..92ff965a26e 100644
--- a/packaging/systemd/cloudstack-agent.service
+++ b/packaging/systemd/cloudstack-agent.service
@@ -27,7 +27,8 @@ EnvironmentFile=-/etc/default/cloudstack-agent
 ExecStart=/bin/sh -ec '\
     export ACP=`ls /usr/share/cloudstack-agent/lib/*.jar /usr/share/cloudstack-agent/plugins/*.jar 2>/dev/null|tr "\\n" ":"`; \
     export CLASSPATH="$ACP:/etc/cloudstack/agent:/usr/share/cloudstack-common/scripts"; \
-    ${JAVA} -Xms${JAVA_HEAP_INITIAL} -Xmx${JAVA_HEAP_MAX} -cp "$CLASSPATH" $JAVA_CLASS'
+    mkdir -m 0755 -p ${JAVA_TMPDIR} \
+    ${JAVA} -Djava.io.tmpdir="${JAVA_TMPDIR}" -Xms${JAVA_HEAP_INITIAL} -Xmx${JAVA_HEAP_MAX} -cp "$CLASSPATH" $JAVA_CLASS'
 Restart=always
 RestartSec=10s
 
diff --git a/server/src/com/cloud/storage/listener/StoragePoolMonitor.java b/server/src/com/cloud/storage/listener/StoragePoolMonitor.java
index dcbe4744adc..0b149189f41 100644
--- a/server/src/com/cloud/storage/listener/StoragePoolMonitor.java
+++ b/server/src/com/cloud/storage/listener/StoragePoolMonitor.java
@@ -121,12 +121,14 @@ public class StoragePoolMonitor implements Listener {
                     }
 
                     Long hostId = host.getId();
-                    s_logger.debug("Host " + hostId + " connected, sending down storage pool information ...");
+                    if (s_logger.isDebugEnabled()) {
+                        s_logger.debug("Host " + hostId + " connected, connecting host to shared pool id " + pool.getId() + " and sending storage pool information ...");
+                    }
                     try {
                         _storageManager.connectHostToSharedPool(hostId, pool.getId());
                         _storageManager.createCapacityEntry(pool.getId());
                     } catch (Exception e) {
-                        s_logger.warn("Unable to connect host " + hostId + " to pool " + pool + " due to " + e.toString(), e);
+                        throw new ConnectionException(true, "Unable to connect host " + hostId + " to storage pool id " + pool.getId() + " due to " + e.toString(), e);
                     }
                 }
             }
diff --git a/server/test/com/cloud/storage/listener/StoragePoolMonitorTest.java b/server/test/com/cloud/storage/listener/StoragePoolMonitorTest.java
new file mode 100644
index 00000000000..06733f44034
--- /dev/null
+++ b/server/test/com/cloud/storage/listener/StoragePoolMonitorTest.java
@@ -0,0 +1,80 @@
+// Licensed to the Apache Software Foundation (ASF) under one
+// or more contributor license agreements.  See the NOTICE file
+// distributed with this work for additional information
+// regarding copyright ownership.  The ASF licenses this file
+// to you under the Apache License, Version 2.0 (the
+// "License"); you may not use this file except in compliance
+// with the License.  You may obtain a copy of the License at
+//
+//   http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing,
+// software distributed under the License is distributed on an
+// "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+// KIND, either express or implied.  See the License for the
+// specific language governing permissions and limitations
+// under the License.
+package com.cloud.storage.listener;
+
+import com.cloud.agent.api.StartupRoutingCommand;
+import com.cloud.exception.ConnectionException;
+import com.cloud.exception.StorageUnavailableException;
+import com.cloud.host.HostVO;
+import com.cloud.hypervisor.Hypervisor;
+import com.cloud.storage.ScopeType;
+import com.cloud.storage.StorageManagerImpl;
+import com.cloud.storage.StoragePoolStatus;
+import org.apache.cloudstack.storage.datastore.db.PrimaryDataStoreDao;
+import org.apache.cloudstack.storage.datastore.db.StoragePoolVO;
+import org.junit.Before;
+import org.junit.Test;
+import org.mockito.Mockito;
+
+import java.util.Collections;
+
+public class StoragePoolMonitorTest {
+
+    private StorageManagerImpl storageManager;
+    private PrimaryDataStoreDao poolDao;
+    private StoragePoolMonitor storagePoolMonitor;
+    private HostVO host;
+    private StoragePoolVO pool;
+    private StartupRoutingCommand cmd;
+
+    @Before
+    public void setUp() throws Exception {
+        storageManager = Mockito.mock(StorageManagerImpl.class);
+        poolDao = Mockito.mock(PrimaryDataStoreDao.class);
+
+        storagePoolMonitor = new StoragePoolMonitor(storageManager, poolDao);
+        host = new HostVO("some-uuid");
+        pool = new StoragePoolVO();
+        pool.setScope(ScopeType.CLUSTER);
+        pool.setStatus(StoragePoolStatus.Up);
+        pool.setId(123L);
+        cmd = new StartupRoutingCommand();
+        cmd.setHypervisorType(Hypervisor.HypervisorType.KVM);
+    }
+
+    @Test
+    public void testProcessConnectStoragePoolNormal() throws Exception {
+        Mockito.when(poolDao.listBy(Mockito.anyLong(), Mockito.anyLong(), Mockito.anyLong(), Mockito.any(ScopeType.class))).thenReturn(Collections.singletonList(pool));
+        Mockito.when(poolDao.findZoneWideStoragePoolsByTags(Mockito.anyLong(), Mockito.any(String[].class))).thenReturn(Collections.<StoragePoolVO>emptyList());
+        Mockito.when(poolDao.findZoneWideStoragePoolsByHypervisor(Mockito.anyLong(), Mockito.any(Hypervisor.HypervisorType.class))).thenReturn(Collections.<StoragePoolVO>emptyList());
+
+        storagePoolMonitor.processConnect(host, cmd, false);
+
+        Mockito.verify(storageManager, Mockito.times(1)).connectHostToSharedPool(Mockito.eq(host.getId()), Mockito.eq(pool.getId()));
+        Mockito.verify(storageManager, Mockito.times(1)).createCapacityEntry(Mockito.eq(pool.getId()));
+    }
+
+    @Test(expected = ConnectionException.class)
+    public void testProcessConnectStoragePoolFailureOnHost() throws Exception {
+        Mockito.when(poolDao.listBy(Mockito.anyLong(), Mockito.anyLong(), Mockito.anyLong(), Mockito.any(ScopeType.class))).thenReturn(Collections.singletonList(pool));
+        Mockito.when(poolDao.findZoneWideStoragePoolsByTags(Mockito.anyLong(), Mockito.any(String[].class))).thenReturn(Collections.<StoragePoolVO>emptyList());
+        Mockito.when(poolDao.findZoneWideStoragePoolsByHypervisor(Mockito.anyLong(), Mockito.any(Hypervisor.HypervisorType.class))).thenReturn(Collections.<StoragePoolVO>emptyList());
+        Mockito.doThrow(new StorageUnavailableException("unable to mount storage", 123L)).when(storageManager).connectHostToSharedPool(Mockito.anyLong(), Mockito.anyLong());
+
+        storagePoolMonitor.processConnect(host, cmd, false);
+    }
+}
\ No newline at end of file