diff --git a/hadoop-yarn-project/CHANGES.txt b/hadoop-yarn-project/CHANGES.txt
index 3ea919181df..669eebe5576 100644
--- a/hadoop-yarn-project/CHANGES.txt
+++ b/hadoop-yarn-project/CHANGES.txt
@@ -365,6 +365,9 @@ Release 0.23.7 - UNRELEASED
     YARN-448. Remove unnecessary hflush from log aggregation (Kihwal Lee via
     bobby)
 
+    YARN-345. Many InvalidStateTransitonException errors for ApplicationImpl
+    in Node Manager (Robert Parker via jlowe)
+
 Release 0.23.6 - UNRELEASED
 
   INCOMPATIBLE CHANGES
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/application/ApplicationEventType.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/application/ApplicationEventType.java
index 24c9a132b0a..b4ba76ae0d5 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/application/ApplicationEventType.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/application/ApplicationEventType.java
@@ -34,5 +34,6 @@ public enum ApplicationEventType {
 
   // Source: Log Handler
   APPLICATION_LOG_HANDLING_INITED,
-  APPLICATION_LOG_HANDLING_FINISHED
+  APPLICATION_LOG_HANDLING_FINISHED,
+  APPLICATION_LOG_HANDLING_FAILED
 }
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/application/ApplicationImpl.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/application/ApplicationImpl.java
index 85f7da1d08c..e48e2fae55a 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/application/ApplicationImpl.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/application/ApplicationImpl.java
@@ -149,6 +149,9 @@ ApplicationEventType.INIT_APPLICATION, new AppInitTransition())
            .addTransition(ApplicationState.INITING, ApplicationState.INITING,
                ApplicationEventType.APPLICATION_LOG_HANDLING_INITED,
                new AppLogInitDoneTransition())
+           .addTransition(ApplicationState.INITING, ApplicationState.INITING,
+               ApplicationEventType.APPLICATION_LOG_HANDLING_FAILED,
+               new AppLogInitFailTransition())
            .addTransition(ApplicationState.INITING, ApplicationState.RUNNING,
                ApplicationEventType.APPLICATION_INITED,
                new AppInitDoneTransition())
@@ -237,6 +240,26 @@ public void transition(ApplicationImpl app, ApplicationEvent event) {
     }
   }
 
+  /**
+   * Handles the APPLICATION_LOG_HANDLING_FAILED event that occurs after
+   * {@link LogAggregationService} has failed to initialize the log 
+   * aggregation service
+   * 
+   * In particular, this requests that the {@link ResourceLocalizationService}
+   * localize the application-scoped resources.
+   */
+  @SuppressWarnings("unchecked")
+  static class AppLogInitFailTransition implements
+      SingleArcTransition<ApplicationImpl, ApplicationEvent> {
+    @Override
+    public void transition(ApplicationImpl app, ApplicationEvent event) {
+      LOG.warn("Log Aggregation service failed to initialize, there will " + 
+               "be no logs for this application");
+      app.dispatcher.getEventHandler().handle(
+          new ApplicationLocalizationEvent(
+              LocalizationEventType.INIT_APPLICATION_RESOURCES, app));
+    }
+  }
   /**
    * Handles INIT_CONTAINER events which request that we launch a new
    * container. When we're still in the INITTING state, we simply
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/logaggregation/LogAggregationService.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/logaggregation/LogAggregationService.java
index 69c981e198e..88a01eb3854 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/logaggregation/LogAggregationService.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/logaggregation/LogAggregationService.java
@@ -300,8 +300,9 @@ private void initApp(final ApplicationId appId, String user,
       eventResponse = new ApplicationEvent(appId,
           ApplicationEventType.APPLICATION_LOG_HANDLING_INITED);
     } catch (YarnException e) {
-      eventResponse = new ApplicationFinishEvent(appId,
-          "Application failed to init aggregation: " + e.getMessage());
+      LOG.warn("Application failed to init aggregation: " + e.getMessage());
+      eventResponse = new ApplicationEvent(appId,
+          ApplicationEventType.APPLICATION_LOG_HANDLING_FAILED);
     }
     this.dispatcher.getEventHandler().handle(eventResponse);
   }
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/test/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/logaggregation/TestLogAggregationService.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/test/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/logaggregation/TestLogAggregationService.java
index aad7b845c92..168f619adfb 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/test/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/logaggregation/TestLogAggregationService.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/test/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/logaggregation/TestLogAggregationService.java
@@ -421,8 +421,8 @@ public void testLogAggregationInitFailsWithoutKillingNM() throws Exception {
 
     dispatcher.await();
     ApplicationEvent expectedEvents[] = new ApplicationEvent[]{
-        new ApplicationFinishEvent(appId,
-            "Application failed to init aggregation: KABOOM!")
+        new ApplicationEvent(appId,
+            ApplicationEventType.APPLICATION_LOG_HANDLING_FAILED)
     };
     checkEvents(appEventHandler, expectedEvents, false,
         "getType", "getApplicationID", "getDiagnostic");
@@ -471,8 +471,8 @@ public void testLogAggregationCreateDirsFailsWithoutKillingNM()
     
     dispatcher.await();
     ApplicationEvent expectedEvents[] = new ApplicationEvent[]{
-        new ApplicationFinishEvent(appId,
-            "Application failed to init aggregation: "+e)
+        new ApplicationEvent(appId, 
+        		ApplicationEventType.APPLICATION_LOG_HANDLING_FAILED)
     };
     checkEvents(appEventHandler, expectedEvents, false,
         "getType", "getApplicationID", "getDiagnostic");