diff --git a/manila/message/message_field.py b/manila/message/message_field.py
index 9d96e81274..85f9ac5378 100644
--- a/manila/message/message_field.py
+++ b/manila/message/message_field.py
@@ -32,6 +32,7 @@ class Action(object):
     REVERT_TO_SNAPSHOT = ('006', _('revert to snapshot'))
     DELETE = ('007', _('delete'))
     EXTEND = ('008', _('extend'))
+    SHRINK = ('009', _('shrink'))
     ALL = (ALLOCATE_HOST,
            CREATE,
            DELETE_ACCESS_RULES,
@@ -39,7 +40,8 @@ class Action(object):
            UPDATE,
            REVERT_TO_SNAPSHOT,
            DELETE,
-           EXTEND)
+           EXTEND,
+           SHRINK)
 
 
 class Detail(object):
@@ -86,6 +88,12 @@ class Detail(object):
         _("Share Driver has failed to create the share from snapshot. This "
           "operation can be re-attempted by creating a new share. Contact "
           "your administrator to determine the cause of this failure."))
+    DRIVER_REFUSED_SHRINK = (
+        '018',
+        _("Share Driver refused to shrink the share. The size to be shrunk is"
+          " smaller than the current used space. The share status has been"
+          " set to available. Please select a size greater than the current"
+          " used space."))
 
     ALL = (UNKNOWN_ERROR,
            NO_VALID_HOST,
@@ -103,7 +111,8 @@ class Detail(object):
            FILTER_REPLICATION,
            DRIVER_FAILED_EXTEND,
            FILTER_CREATE_FROM_SNAPSHOT,
-           DRIVER_FAILED_CREATING_FROM_SNAP)
+           DRIVER_FAILED_CREATING_FROM_SNAP,
+           DRIVER_REFUSED_SHRINK)
 
     # Exception and detail mappings
     EXCEPTION_DETAIL_MAPPINGS = {
diff --git a/manila/share/manager.py b/manila/share/manager.py
index 34a4705a05..e97a1c72ae 100644
--- a/manila/share/manager.py
+++ b/manila/share/manager.py
@@ -3985,8 +3985,15 @@ class ShareManager(manager.SchedulerDependentManager):
         except Exception as e:
             if isinstance(e, exception.ShareShrinkingPossibleDataLoss):
                 msg = ("Shrink share failed due to possible data loss.")
-                status = constants.STATUS_SHRINKING_POSSIBLE_DATA_LOSS_ERROR
+                status = constants.STATUS_AVAILABLE
                 error_params = {'msg': msg, 'status': status}
+                self.message_api.create(
+                    context,
+                    message_field.Action.SHRINK,
+                    share['project_id'],
+                    resource_type=message_field.Resource.SHARE,
+                    resource_id=share_id,
+                    detail=message_field.Detail.DRIVER_REFUSED_SHRINK)
             else:
                 error_params = {'msg': ("Shrink share failed.")}
 
diff --git a/manila/tests/share/test_manager.py b/manila/tests/share/test_manager.py
index ccb973d4bf..c0a7bca455 100644
--- a/manila/tests/share/test_manager.py
+++ b/manila/tests/share/test_manager.py
@@ -3717,10 +3717,10 @@ class ShareManagerTestCase(test.TestCase):
         (self.share_manager.db.share_replicas_get_all_by_share
             .assert_called_once_with(mock.ANY, share['id']))
 
-    @ddt.data({'exc': exception.InvalidShare('fake'),
+    @ddt.data({'exc': exception.InvalidShare("fake"),
                'status': constants.STATUS_SHRINKING_ERROR},
               {'exc': exception.ShareShrinkingPossibleDataLoss("fake"),
-               'status': constants.STATUS_SHRINKING_POSSIBLE_DATA_LOSS_ERROR})
+               'status': constants.STATUS_AVAILABLE})
     @ddt.unpack
     def test_shrink_share_invalid(self, exc, status):
         share = db_utils.create_share()
@@ -3758,6 +3758,15 @@ class ShareManagerTestCase(test.TestCase):
         )
         self.assertTrue(self.share_manager.db.share_get.called)
 
+        if isinstance(exc, exception.ShareShrinkingPossibleDataLoss):
+            self.share_manager.message_api.create.assert_called_once_with(
+                utils.IsAMatcher(context.RequestContext),
+                message_field.Action.SHRINK,
+                share['project_id'],
+                resource_type=message_field.Resource.SHARE,
+                resource_id=share_id,
+                detail=message_field.Detail.DRIVER_REFUSED_SHRINK)
+
     @ddt.data(True, False)
     def test_shrink_share(self, supports_replication):
         share = db_utils.create_share()
diff --git a/releasenotes/notes/fix-share-manager-shrinking-data-loss-state-edc87ba2fd7e32d8.yaml b/releasenotes/notes/fix-share-manager-shrinking-data-loss-state-edc87ba2fd7e32d8.yaml
new file mode 100644
index 0000000000..16bafdf672
--- /dev/null
+++ b/releasenotes/notes/fix-share-manager-shrinking-data-loss-state-edc87ba2fd7e32d8.yaml
@@ -0,0 +1,7 @@
+---
+fixes:
+  - |
+    When attempting to shrink a share to a size smaller than the current used
+    space, the share status will remain as ``available`` instead of
+    ``shrinking_possible_data_loss_error``. The user will receive warning
+    message saying that the shrink operation was not completed.