diff --git a/ethcore/src/executive.rs b/ethcore/src/executive.rs
index 49cea6f23..7ae43ff0a 100644
--- a/ethcore/src/executive.rs
+++ b/ethcore/src/executive.rs
@@ -306,11 +306,9 @@ impl<'a> Executive<'a> {
 		};
 
 		if let Some((TraceAction::Create(ref mut c), _)) = trace_info {
-			if let Some(output) = trace_output { 
-				c.result = res.as_ref().ok().map(|gas_left| (c.gas - *gas_left, created, output));
-			}
+			c.result = res.as_ref().ok().map(|gas_left| (c.gas - *gas_left, created, trace_output.expect("trace_info is Some: qed")));
 		}
-		
+
 		trace!(target: "executive", "trace_info={:?}", trace_info);
 
 		self.enact_result(&res, substate, unconfirmed_substate, trace_info);
@@ -349,6 +347,8 @@ impl<'a> Executive<'a> {
 			self.state.kill_account(address);
 		}
 
+		let trace = substate.subtraces.and_then(|mut v| v.pop());
+
 		match result {
 			Err(evm::Error::Internal) => Err(ExecutionError::Internal),
 			Err(_) => {
@@ -359,7 +359,7 @@ impl<'a> Executive<'a> {
 					cumulative_gas_used: self.info.gas_used + t.gas,
 					logs: vec![],
 					contracts_created: vec![],
-					trace: None,
+					trace: trace,
 				})
 			},
 			_ => {
@@ -370,7 +370,7 @@ impl<'a> Executive<'a> {
 					cumulative_gas_used: self.info.gas_used + gas_used,
 					logs: substate.logs,
 					contracts_created: substate.contracts_created,
-					trace: substate.subtraces.and_then(|mut v| v.pop()),
+					trace: trace,
 				})
 			},
 		}
@@ -384,6 +384,7 @@ impl<'a> Executive<'a> {
 				| Err(evm::Error::StackUnderflow {..})
 				| Err(evm::Error::OutOfStack {..}) => {
 				self.state.revert_snapshot();
+				substate.accrue_trace(un_substate.subtraces, maybe_info)
 			},
 			Ok(_) | Err(evm::Error::Internal) => {
 				self.state.clear_snapshot();
diff --git a/ethcore/src/state.rs b/ethcore/src/state.rs
index 2f64401d2..ef64ebbbe 100644
--- a/ethcore/src/state.rs
+++ b/ethcore/src/state.rs
@@ -392,6 +392,44 @@ fn should_apply_create_transaction() {
 	assert_eq!(result.trace, expected_trace);
 }
 
+#[test]
+fn should_trace_failed_create_transaction() {
+	init_log();
+
+	let temp = RandomTempPath::new();
+	let mut state = get_temp_state_in(temp.as_path());
+
+	let mut info = EnvInfo::default();
+	info.gas_limit = x!(1_000_000);
+	let engine = TestEngine::new(5, Factory::default());
+
+	let t = Transaction {
+		nonce: x!(0),
+		gas_price: x!(0),
+		gas: x!(100_000),
+		action: Action::Create,
+		value: x!(100),
+		data: FromHex::from_hex("5b600056").unwrap(),
+	}.sign(&"".sha3());
+
+	state.add_balance(t.sender().as_ref().unwrap(), &x!(100));
+	let result = state.apply(&info, &engine, &t, true).unwrap();
+	let expected_trace = Some(Trace {
+		depth: 0,
+		action: TraceAction::Create(TraceCreate {
+			from: x!("9cce34f7ab185c7aba1b7c8140d620b4bda941d6"),
+			value: x!(100),
+			gas: x!(78792),
+			init: FromHex::from_hex("5b600056").unwrap(),
+			result: None
+		}),
+		subs: vec![]
+	});
+
+	assert_eq!(result.trace, expected_trace);
+}
+
+
 #[test]
 fn code_from_database() {
 	let a = Address::zero();
diff --git a/ethcore/src/substate.rs b/ethcore/src/substate.rs
index 0610bffb8..9d81badb9 100644
--- a/ethcore/src/substate.rs
+++ b/ethcore/src/substate.rs
@@ -49,19 +49,27 @@ impl Substate {
 		}
 	}
 
-	/// Merge secondary substate `s` into self, accruing each element correspondingly.
+	/// Merge tracing information from substate `s` if enabled.
+	pub fn accrue_trace(&mut self, subs: Option<Vec<Trace>>, maybe_info: Option<(TraceAction, usize)>) {
+		// it failed, so we don't bother accrueing any protocol-level stuff, only the
+		// trace info.
+		if let Some(info) = maybe_info {
+			self.subtraces.as_mut().expect("maybe_action is Some: so we must be tracing: qed").push(Trace {
+				action: info.0,
+				depth: info.1,
+				subs: subs.expect("maybe_action is Some: so we must be tracing: qed"),
+			});
+		}
+	}
+
+	/// Merge secondary substate `s` into self, accruing each element correspondingly; will merge
+	/// tracing information too, if enabled.
 	pub fn accrue(&mut self, s: Substate, maybe_info: Option<(TraceAction, usize)>) {
 		self.suicides.extend(s.suicides.into_iter());
 		self.logs.extend(s.logs.into_iter());
 		self.sstore_clears_count = self.sstore_clears_count + s.sstore_clears_count;
 		self.contracts_created.extend(s.contracts_created.into_iter());
-		if let Some(info) = maybe_info {
-			self.subtraces.as_mut().expect("maybe_action is Some: so we must be tracing: qed").push(Trace {
-				action: info.0,
-				depth: info.1,
-				subs: s.subtraces.expect("maybe_action is Some: so we must be tracing: qed"),
-			});
-		}
+		self.accrue_trace(s.subtraces, maybe_info);
 	}
 }