diff --git a/doc/source/user/filter-scheduler.rst b/doc/source/user/filter-scheduler.rst
index 35cef69a0..8e4ef6222 100644
--- a/doc/source/user/filter-scheduler.rst
+++ b/doc/source/user/filter-scheduler.rst
@@ -29,6 +29,8 @@ There are many standard filter classes which may be used
   to host the instance are passed.
 * LabelFilter - filters hosts based on whether host has the CLI specified
   labels.
+* ComputeFilter - filters hosts that are operational and enabled. In general,
+  you should always enable this filter.
 
 Configuring Filters
 -------------------
@@ -45,7 +47,7 @@ The default values for these settings in zun.conf are:
 ::
 
     --filter_scheduler.available_filters=zun.scheduler.filters.all_filters
-    --filter_scheduler.enabled_filters=RamFilter,CPUFilter
+    --filter_scheduler.enabled_filters=RamFilter,CPUFilter,ComputeFilter
 
 With this configuration, all filters in ``zun.scheduler.filters``
 would be available, and by default the RamFilter and CPUFilter would be
diff --git a/setup.cfg b/setup.cfg
index 10fbf8c50..08803806a 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -72,7 +72,7 @@ zun.database.migration_backend =
 
 zun.scheduler.driver =
     chance_scheduler = zun.scheduler.chance_scheduler:ChanceScheduler
-    fake_scheduler = zun.tests.unit.scheduler.fake_scheduler:FakeScheduler
+    fake_scheduler = zun.tests.unit.scheduler.fakes:FakeScheduler
     filter_scheduler = zun.scheduler.filter_scheduler:FilterScheduler
 
 zun.image.driver =
diff --git a/zun/conf/scheduler.py b/zun/conf/scheduler.py
index 297f21116..48bfc3b93 100644
--- a/zun/conf/scheduler.py
+++ b/zun/conf/scheduler.py
@@ -64,7 +64,8 @@ Related options:
     cfg.ListOpt("enabled_filters",
                 default=[
                     "CPUFilter",
-                    "RamFilter"
+                    "RamFilter",
+                    "ComputeFilter"
                     ],
                 help="""
 Filters that the scheduler will use.
diff --git a/zun/scheduler/filter_scheduler.py b/zun/scheduler/filter_scheduler.py
index e0597e00a..6bc5dc473 100644
--- a/zun/scheduler/filter_scheduler.py
+++ b/zun/scheduler/filter_scheduler.py
@@ -21,7 +21,6 @@ from zun.common import exception
 from zun.common.i18n import _
 import zun.conf
 from zun import objects
-from zun.pci import stats as pci_stats
 from zun.scheduler import driver
 from zun.scheduler import filters
 from zun.scheduler.host_state import HostState
@@ -44,10 +43,11 @@ class FilterScheduler(driver.Scheduler):
 
     def _schedule(self, context, container, extra_spec):
         """Picks a host according to filters."""
-        hosts = self.hosts_up(context)
+        services = self._get_services_by_host(context)
         nodes = objects.ComputeNode.list(context)
+        hosts = services.keys()
         nodes = [node for node in nodes if node.hostname in hosts]
-        host_states = self.get_all_host_state(nodes)
+        host_states = self.get_all_host_state(nodes, services)
         hosts = self.filter_handler.get_filtered_objects(self.enabled_filters,
                                                          host_states,
                                                          container,
@@ -102,17 +102,18 @@ class FilterScheduler(driver.Scheduler):
     def _load_filters(self):
         return CONF.scheduler.enabled_filters
 
-    def get_all_host_state(self, nodes):
+    def _get_services_by_host(self, context):
+        """Get a dict of services indexed by hostname"""
+        return {service.host: service
+                for service in objects.ZunService.list_by_binary(
+                    context,
+                    'zun-compute')}
+
+    def get_all_host_state(self, nodes, services):
         host_states = []
         for node in nodes:
             host_state = HostState(node.hostname)
-            host_state.mem_total = node.mem_total
-            host_state.mem_used = node.mem_used
-            host_state.cpus = node.cpus
-            host_state.cpu_used = node.cpu_used
-            host_state.numa_topology = node.numa_topology
-            host_state.labels = node.labels
-            host_state.pci_stats = pci_stats.PciDeviceStats(
-                stats=node.pci_device_pools)
+            host_state.update(compute_node=node,
+                              service=services.get(node.hostname))
             host_states.append(host_state)
         return host_states
diff --git a/zun/scheduler/filters/compute_filter.py b/zun/scheduler/filters/compute_filter.py
new file mode 100644
index 000000000..1c25df3a1
--- /dev/null
+++ b/zun/scheduler/filters/compute_filter.py
@@ -0,0 +1,47 @@
+# Copyright (c) 2017 OpenStack Foundation
+# All Rights Reserved.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+from oslo_log.log import logging
+
+from zun.api import servicegroup
+from zun.scheduler import filters
+
+LOG = logging.getLogger(__name__)
+
+
+class ComputeFilter(filters.BaseHostFilter):
+    """Filter on active Compute nodes"""
+
+    def __init__(self):
+        self.servicegroup_api = servicegroup.ServiceGroup()
+        super(ComputeFilter, self).__init__()
+
+    # Host state does not change within a request
+    run_filter_once_per_request = True
+
+    def host_passes(self, host_state, container, extra_spec):
+        """Returns True for only active compute nodes"""
+        service = host_state.service
+        if service.disabled:
+            LOG.debug('%(host_state)s is disabled, reason: %(reason)s',
+                      {'host_state': host_state,
+                       'reason': service.disabled_reason or 'Unknow'})
+            return False
+        else:
+            if not self.servicegroup_api.service_is_up(service):
+                LOG.warning('%(host_state)s has not been heard from in '
+                            'a while', {'host_state': host_state})
+                return False
+        return True
diff --git a/zun/scheduler/host_state.py b/zun/scheduler/host_state.py
index b6c20be09..e895743e6 100644
--- a/zun/scheduler/host_state.py
+++ b/zun/scheduler/host_state.py
@@ -10,6 +10,13 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+from oslo_log.log import logging
+
+from zun.common import utils
+from zun.pci import stats as pci_stats
+
+LOG = logging.getLogger(__name__)
+
 
 class HostState(object):
     """Mutable and immutable information tracked for a host.
@@ -28,6 +35,34 @@ class HostState(object):
         self.cpus = 0
         self.cpu_used = 0
         self.numa_topology = None
+        self.labels = None
+        self.pci_stats = None
 
         # Resource oversubscription values for the compute host:
         self.limits = {}
+
+    def update(self, compute_node=None, service=None):
+        """Update information about a host"""
+        @utils.synchronized((self.hostname, compute_node))
+        def _locked_update(self, compute_node, service):
+            if compute_node is not None:
+                LOG.debug('Update host state from compute node: %s',
+                          compute_node)
+                self._update_from_compute_node(compute_node)
+            if service is not None:
+                LOG.debug('Update host state with service: %s', service)
+                self.service = service
+
+        return _locked_update(self, compute_node, service)
+
+    def _update_from_compute_node(self, compute_node):
+        """Update information about a host from a Compute object"""
+        self.mem_total = compute_node.mem_total
+        self.mem_free = compute_node.mem_free
+        self.mem_used = compute_node.mem_used
+        self.cpus = compute_node.cpus
+        self.cpu_used = compute_node.cpu_used
+        self.numa_topology = compute_node.numa_topology
+        self.labels = compute_node.labels
+        self.pci_stats = pci_stats.PciDeviceStats(
+            stats=compute_node.pci_device_pools)
diff --git a/zun/tests/unit/scheduler/fake_scheduler.py b/zun/tests/unit/scheduler/fakes.py
similarity index 60%
rename from zun/tests/unit/scheduler/fake_scheduler.py
rename to zun/tests/unit/scheduler/fakes.py
index 443fc1662..f7ff9714c 100644
--- a/zun/tests/unit/scheduler/fake_scheduler.py
+++ b/zun/tests/unit/scheduler/fakes.py
@@ -11,9 +11,26 @@
 #    under the License.
 
 from zun.scheduler import driver
+from zun.scheduler import host_state
 
 
 class FakeScheduler(driver.Scheduler):
 
     def select_destinations(self, context, containers):
         return []
+
+
+class FakeHostState(host_state.HostState):
+    def __init__(self, host, attribute_dict=None):
+        super(FakeHostState, self).__init__(host)
+        if attribute_dict:
+            for (key, val) in attribute_dict.items():
+                setattr(self, key, val)
+
+
+class FakeService(object):
+
+    def __init__(self, name, host, disabled=False):
+        self.name = name
+        self.host = host
+        self.disabled = disabled
diff --git a/zun/tests/unit/scheduler/filters/test_compute_filter.py b/zun/tests/unit/scheduler/filters/test_compute_filter.py
new file mode 100644
index 000000000..6d8ec0625
--- /dev/null
+++ b/zun/tests/unit/scheduler/filters/test_compute_filter.py
@@ -0,0 +1,68 @@
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+import mock
+from oslo_utils import timeutils
+
+from zun.common import context
+from zun import objects
+from zun.scheduler.filters import compute_filter
+from zun.tests import base
+from zun.tests.unit.scheduler import fakes
+
+
+@mock.patch('zun.api.servicegroup.ServiceGroup.service_is_up')
+class TestComputeFilter(base.TestCase):
+
+    def setUp(self):
+        super(TestComputeFilter, self).setUp()
+        self.context = context.RequestContext('fake_user', 'fake_project')
+
+    def test_compute_filter_manual_disable(self, service_up_mock):
+        filt_cls = compute_filter.ComputeFilter()
+        container = objects.Container(self.context)
+        extra_spec = {}
+        service = objects.ZunService(self.context)
+        service.disabled = True
+        service.disabled_reason = 'This is a reason!'
+        host = fakes.FakeHostState('host1',
+                                   {'service': service})
+        self.assertFalse(filt_cls.host_passes(host, container,
+                                              extra_spec))
+        self.assertFalse(service_up_mock.called)
+
+    def test_compute_filter_sgapi_passes(self, service_up_mock):
+        filt_cls = compute_filter.ComputeFilter()
+        container = objects.Container(self.context)
+        service = objects.ZunService(self.context)
+        service.disabled = False
+        extra_spec = {}
+        host = fakes.FakeHostState('host2',
+                                   {'service': service})
+        service_up_mock.return_value = True
+        self.assertTrue(filt_cls.host_passes(host, container,
+                                             extra_spec))
+        service_up_mock.assert_called_once_with(service)
+
+    def test_compute_filter_sgapi_fails(self, service_up_mock):
+        filts_cls = compute_filter.ComputeFilter()
+        container = objects.Container(self.context)
+        service = objects.ZunService(self.context)
+        service.disabled = False
+        service.updated_at = timeutils.utcnow()
+        extra_spec = {}
+        host = fakes.FakeHostState('host3',
+                                   {'service': service})
+        service_up_mock.return_value = False
+        self.assertFalse(filts_cls.host_passes(host, container,
+                                               extra_spec))
+        service_up_mock.assert_called_once_with(service)
diff --git a/zun/tests/unit/scheduler/filters/test_cpu_filter.py b/zun/tests/unit/scheduler/filters/test_cpu_filter.py
index cf5f8e356..f02ebfa4c 100644
--- a/zun/tests/unit/scheduler/filters/test_cpu_filter.py
+++ b/zun/tests/unit/scheduler/filters/test_cpu_filter.py
@@ -13,8 +13,8 @@
 from zun.common import context
 from zun import objects
 from zun.scheduler.filters import cpu_filter
-from zun.scheduler.host_state import HostState
 from zun.tests import base
+from zun.tests.unit.scheduler import fakes
 
 
 class TestCPUFilter(base.TestCase):
@@ -27,7 +27,7 @@ class TestCPUFilter(base.TestCase):
         self.filt_cls = cpu_filter.CPUFilter()
         container = objects.Container(self.context)
         container.cpu = 5.0
-        host = HostState('testhost')
+        host = fakes.FakeHostState('testhost')
         host.cpus = 8
         host.cpu_used = 0.0
         extra_spec = {}
@@ -37,7 +37,7 @@ class TestCPUFilter(base.TestCase):
         self.filt_cls = cpu_filter.CPUFilter()
         container = objects.Container(self.context)
         container.cpu = 8.0
-        host = HostState('testhost')
+        host = fakes.FakeHostState('testhost')
         host.cpus = 5
         host.cpu_used = 2.0
         extra_spec = {}
diff --git a/zun/tests/unit/scheduler/filters/test_ram_filter.py b/zun/tests/unit/scheduler/filters/test_ram_filter.py
index 5b28e7e73..add926bee 100644
--- a/zun/tests/unit/scheduler/filters/test_ram_filter.py
+++ b/zun/tests/unit/scheduler/filters/test_ram_filter.py
@@ -13,8 +13,8 @@
 from zun.common import context
 from zun import objects
 from zun.scheduler.filters import ram_filter
-from zun.scheduler.host_state import HostState
 from zun.tests import base
+from zun.tests.unit.scheduler import fakes
 
 
 class TestRamFilter(base.TestCase):
@@ -27,7 +27,7 @@ class TestRamFilter(base.TestCase):
         self.filt_cls = ram_filter.RamFilter()
         container = objects.Container(self.context)
         container.memory = '1024M'
-        host = HostState('testhost')
+        host = fakes.FakeHostState('testhost')
         host.mem_total = 1024 * 128
         host.mem_used = 1024
         extra_spec = {}
@@ -37,7 +37,7 @@ class TestRamFilter(base.TestCase):
         self.filt_cls = ram_filter.RamFilter()
         container = objects.Container(self.context)
         container.memory = '4096M'
-        host = HostState('testhost')
+        host = fakes.FakeHostState('testhost')
         host.mem_total = 1024 * 128
         host.mem_used = 1024 * 127
         extra_spec = {}
diff --git a/zun/tests/unit/scheduler/test_client.py b/zun/tests/unit/scheduler/test_client.py
index a2d7dfa38..223cf107d 100644
--- a/zun/tests/unit/scheduler/test_client.py
+++ b/zun/tests/unit/scheduler/test_client.py
@@ -17,7 +17,7 @@ from oslo_config import cfg
 from zun.scheduler import client as scheduler_client
 from zun.scheduler import filter_scheduler
 from zun.tests import base
-from zun.tests.unit.scheduler import fake_scheduler
+from zun.tests.unit.scheduler import fakes
 
 
 CONF = cfg.CONF
@@ -37,7 +37,7 @@ class SchedulerClientTestCase(base.TestCase):
     def test_init_using_custom_schedulerdriver(self):
         CONF.set_override('driver', 'fake_scheduler', group='scheduler')
         driver = self.client_cls().driver
-        self.assertIsInstance(driver, fake_scheduler.FakeScheduler)
+        self.assertIsInstance(driver, fakes.FakeScheduler)
 
     @mock.patch('zun.scheduler.filter_scheduler.FilterScheduler'
                 '.select_destinations')
diff --git a/zun/tests/unit/scheduler/test_filter_scheduler.py b/zun/tests/unit/scheduler/test_filter_scheduler.py
index fe8a2fe12..b2612ee7c 100644
--- a/zun/tests/unit/scheduler/test_filter_scheduler.py
+++ b/zun/tests/unit/scheduler/test_filter_scheduler.py
@@ -12,19 +12,14 @@
 
 import mock
 
+from zun.api import servicegroup
 from zun.common import context
 from zun.common import exception
 from zun import objects
 from zun.scheduler import filter_scheduler
 from zun.tests import base
 from zun.tests.unit.db import utils
-
-
-class FakeService(object):
-
-    def __init__(self, name, host):
-        self.name = name
-        self.host = host
+from zun.tests.unit.scheduler.fakes import FakeService
 
 
 class FilterSchedulerTestCase(base.TestCase):
@@ -37,11 +32,13 @@ class FilterSchedulerTestCase(base.TestCase):
         self.context = context.RequestContext('fake_user', 'fake_project')
         self.driver = self.driver_cls()
 
+    @mock.patch.object(servicegroup.ServiceGroup, 'service_is_up')
     @mock.patch.object(objects.ComputeNode, 'list')
     @mock.patch.object(objects.ZunService, 'list_by_binary')
     @mock.patch('random.choice')
     def test_select_destinations(self, mock_random_choice,
-                                 mock_list_by_binary, mock_compute_list):
+                                 mock_list_by_binary, mock_compute_list,
+                                 mock_service_is_up):
         all_services = [FakeService('service1', 'host1'),
                         FakeService('service2', 'host2'),
                         FakeService('service3', 'host3'),
@@ -60,6 +57,7 @@ class FilterSchedulerTestCase(base.TestCase):
         node1.cpu_used = 0.0
         node1.mem_total = 1024 * 128
         node1.mem_used = 1024 * 4
+        node1.mem_free = 1024 * 124
         node1.hostname = 'host1'
         node1.numa_topology = None
         node1.labels = {}
@@ -69,6 +67,7 @@ class FilterSchedulerTestCase(base.TestCase):
         node2.cpu_used = 0.0
         node2.mem_total = 1024 * 128
         node2.mem_used = 1024 * 4
+        node2.mem_free = 1024 * 124
         node2.hostname = 'host2'
         node2.numa_topology = None
         node2.labels = {}
@@ -78,6 +77,7 @@ class FilterSchedulerTestCase(base.TestCase):
         node3.cpu_used = 0.0
         node3.mem_total = 1024 * 128
         node3.mem_used = 1024 * 4
+        node3.mem_free = 1024 * 124
         node3.hostname = 'host3'
         node3.numa_topology = None
         node3.labels = {}
@@ -87,6 +87,7 @@ class FilterSchedulerTestCase(base.TestCase):
         node4.cpu_used = 0.0
         node4.mem_total = 1024 * 128
         node4.mem_used = 1024 * 4
+        node4.mem_free = 1024 * 124
         node4.hostname = 'host4'
         node4.numa_topology = None
         node4.labels = {}
@@ -97,6 +98,7 @@ class FilterSchedulerTestCase(base.TestCase):
         def side_effect(hosts):
             return hosts[2]
         mock_random_choice.side_effect = side_effect
+        mock_service_is_up.return_value = True
         extra_spec = {}
         dests = self.driver.select_destinations(self.context, containers,
                                                 extra_spec)
diff --git a/zun/tests/unit/scheduler/test_scheduler.py b/zun/tests/unit/scheduler/test_scheduler.py
index 7457a36bf..ef8288b16 100644
--- a/zun/tests/unit/scheduler/test_scheduler.py
+++ b/zun/tests/unit/scheduler/test_scheduler.py
@@ -17,13 +17,13 @@ import mock
 
 from zun import objects
 from zun.tests import base
-from zun.tests.unit.scheduler import fake_scheduler
+from zun.tests.unit.scheduler import fakes
 
 
 class SchedulerTestCase(base.TestCase):
     """Test case for base scheduler driver class."""
 
-    driver_cls = fake_scheduler.FakeScheduler
+    driver_cls = fakes.FakeScheduler
 
     def setUp(self):
         super(SchedulerTestCase, self).setUp()