diff --git a/hadoop-yarn-project/CHANGES.txt b/hadoop-yarn-project/CHANGES.txt
index 974b4aaa775..29439cb661f 100644
--- a/hadoop-yarn-project/CHANGES.txt
+++ b/hadoop-yarn-project/CHANGES.txt
@@ -384,6 +384,9 @@ Release 2.7.0 - UNRELEASED
     YARN-3088. LinuxContainerExecutor.deleteAsUser can throw NPE if native
     executor returns an error (Eric Payne via jlowe)
 
+    YARN-3011. Possible IllegalArgumentException in ResourceLocalizationService
+    might lead NM to crash. (Varun Saxena via jianhe)
+
 Release 2.6.0 - 2014-11-18
 
   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/localizer/ResourceLocalizationService.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/localizer/ResourceLocalizationService.java
index 2f4fa5e39a5..8c84132ab02 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/localizer/ResourceLocalizationService.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/localizer/ResourceLocalizationService.java
@@ -794,6 +794,13 @@ public class ResourceLocalizationService extends CompositeService
               .getResource().getRequest(), e.getMessage()));
             LOG.error("Local path for public localization is not found. "
                 + " May be disks failed.", e);
+          } catch (IllegalArgumentException ie) {
+            rsrc.unlock();
+            publicRsrc.handle(new ResourceFailedLocalizationEvent(request
+                .getResource().getRequest(), ie.getMessage()));
+            LOG.error("Local path for public localization is not found. "
+                + " Incorrect path. " + request.getResource().getRequest()
+                .getPath(), ie);
           } catch (RejectedExecutionException re) {
             rsrc.unlock();
             publicRsrc.handle(new ResourceFailedLocalizationEvent(request
@@ -1015,6 +1022,9 @@ public class ResourceLocalizationService extends CompositeService
         } catch (IOException e) {
           LOG.error("local path for PRIVATE localization could not be " +
             "found. Disks might have failed.", e);
+        } catch (IllegalArgumentException e) {
+          LOG.error("Inorrect path for PRIVATE localization."
+              + next.getResource().getFile(), e);
         } catch (URISyntaxException e) {
             //TODO fail? Already translated several times...
         }
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/localizer/TestResourceLocalizationService.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/test/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/localizer/TestResourceLocalizationService.java
index 9ed18dd49fc..30af5a43591 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/test/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/localizer/TestResourceLocalizationService.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/test/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/localizer/TestResourceLocalizationService.java
@@ -1253,14 +1253,33 @@ public class TestResourceLocalizationService {
             user, appId);
       Assert.assertNull(tracker.getLocalizedResource(pubReq));
 
-      // test RejectedExecutionException
+      // test IllegalArgumentException
+      String name = Long.toHexString(r.nextLong());
+      URL url = getPath("/local/PRIVATE/" + name + "/");
+      final LocalResource rsrc =
+          BuilderUtils.newLocalResource(url, LocalResourceType.FILE,
+          LocalResourceVisibility.PUBLIC, r.nextInt(1024) + 1024L,
+          r.nextInt(1024) + 2048L, false);
+      final LocalResourceRequest pubReq1 = new LocalResourceRequest(rsrc);
+      Map<LocalResourceVisibility, Collection<LocalResourceRequest>> req1 =
+          new HashMap<LocalResourceVisibility, 
+          Collection<LocalResourceRequest>>();
+      req1.put(LocalResourceVisibility.PUBLIC,
+          Collections.singletonList(pubReq1));
       Mockito
         .doCallRealMethod()
         .when(dirsHandlerSpy)
         .getLocalPathForWrite(isA(String.class), Mockito.anyLong(),
           Mockito.anyBoolean());
+      // send request
+      spyService.handle(new ContainerLocalizationRequestEvent(c, req1));
+      dispatcher.await();
+      tracker =
+          spyService.getLocalResourcesTracker(LocalResourceVisibility.PUBLIC,
+          user, appId);
+      Assert.assertNull(tracker.getLocalizedResource(pubReq));
 
-      // shutdown the thread pool
+      // test RejectedExecutionException by shutting down the thread pool
       PublicLocalizer publicLocalizer = spyService.getPublicLocalizer();
       publicLocalizer.threadPool.shutdown();