diff --git a/app/scripts/controllers/transactions.js b/app/scripts/controllers/transactions.js
index 6110b9c75..f95b5e39a 100644
--- a/app/scripts/controllers/transactions.js
+++ b/app/scripts/controllers/transactions.js
@@ -138,18 +138,20 @@ module.exports = class TransactionController extends EventEmitter {
 
   async newUnapprovedTransaction (txParams) {
     log.debug(`MetaMaskController newUnapprovedTransaction ${JSON.stringify(txParams)}`)
-    const txMeta = await this.addUnapprovedTransaction(txParams)
-    this.emit('newUnapprovedTx', txMeta)
+    const initialTxMeta = await this.addUnapprovedTransaction(txParams)
+    this.emit('newUnapprovedTx', initialTxMeta)
     // listen for tx completion (success, fail)
     return new Promise((resolve, reject) => {
-      this.txStateManager.once(`${txMeta.id}:finished`, (completedTx) => {
-        switch (completedTx.status) {
+      this.txStateManager.once(`${initialTxMeta.id}:finished`, (finishedTxMeta) => {
+        switch (finishedTxMeta.status) {
           case 'submitted':
-            return resolve(completedTx.hash)
+            return resolve(finishedTxMeta.hash)
           case 'rejected':
             return reject(new Error('MetaMask Tx Signature: User denied transaction signature.'))
+          case 'failed':
+            return reject(new Error(finishedTxMeta.err.message))
           default:
-            return reject(new Error(`MetaMask Tx Signature: Unknown problem: ${JSON.stringify(completedTx.txParams)}`))
+            return reject(new Error(`MetaMask Tx Signature: Unknown problem: ${JSON.stringify(finishedTxMeta.txParams)}`))
         }
       })
     })
diff --git a/app/scripts/lib/tx-state-manager.js b/app/scripts/lib/tx-state-manager.js
index cc441c584..a8ef39891 100644
--- a/app/scripts/lib/tx-state-manager.js
+++ b/app/scripts/lib/tx-state-manager.js
@@ -240,7 +240,7 @@ module.exports = class TransactionStateManger extends EventEmitter {
     txMeta.status = status
     this.emit(`${txMeta.id}:${status}`, txId)
     this.emit(`tx:status-update`, txId, status)
-    if (status === 'submitted' || status === 'rejected') {
+    if (['submitted', 'rejected', 'failed'].includes(status)) {
       this.emit(`${txMeta.id}:finished`, txMeta)
     }
     this.updateTx(txMeta, `txStateManager: setting status to ${status}`)