diff --git a/nexus/db-model/src/vmm_state.rs b/nexus/db-model/src/vmm_state.rs
index 648d2593d4..f929c9a4db 100644
--- a/nexus/db-model/src/vmm_state.rs
+++ b/nexus/db-model/src/vmm_state.rs
@@ -106,11 +106,11 @@ impl From<VmmState> for omicron_common::api::external::InstanceState {
             VmmState::Starting => Output::Starting,
             VmmState::Running => Output::Running,
             VmmState::Stopping => Output::Stopping,
-            VmmState::Stopped => Output::Stopped,
+            VmmState::Stopped | VmmState::SagaUnwound => Output::Stopped,
             VmmState::Rebooting => Output::Rebooting,
             VmmState::Migrating => Output::Migrating,
             VmmState::Failed => Output::Failed,
-            VmmState::Destroyed | VmmState::SagaUnwound => Output::Destroyed,
+            VmmState::Destroyed => Output::Destroyed,
         }
     }
 }
diff --git a/nexus/src/app/sagas/instance_common.rs b/nexus/src/app/sagas/instance_common.rs
index e4378c04df..14263df0ff 100644
--- a/nexus/src/app/sagas/instance_common.rs
+++ b/nexus/src/app/sagas/instance_common.rs
@@ -255,7 +255,7 @@ pub async fn instance_ip_get_instance_state(
     // - starting: see below.
     match (found_instance_state, found_vmm_state) {
         // If there's no VMM, the instance is definitely not on any sled.
-        (InstanceState::NoVmm, _) => {
+        (InstanceState::NoVmm, _) | (_, Some(VmmState::SagaUnwound)) => {
             sled_id = None;
         }
 
@@ -329,10 +329,7 @@ pub async fn instance_ip_get_instance_state(
                 ),
             )));
         }
-        (
-            InstanceState::Vmm,
-            Some(VmmState::Destroyed | VmmState::SagaUnwound),
-        ) => {
+        (InstanceState::Vmm, Some(VmmState::Destroyed)) => {
             return Err(ActionError::action_failed(Error::internal_error(
                 &format!(
                     "instance {} points to destroyed VMM",