diff --git a/pkg/controller/daemon/controller.go b/pkg/controller/daemon/controller.go
index f89fb77b2c..5302cdda78 100644
--- a/pkg/controller/daemon/controller.go
+++ b/pkg/controller/daemon/controller.go
@@ -674,6 +674,9 @@ func (dsc *DaemonSetsController) nodeShouldRunDaemonPod(node *api.Node, ds *exte
 		if pod.Spec.NodeName != node.Name {
 			continue
 		}
+		if pod.Status.Phase == api.PodSucceeded || pod.Status.Phase == api.PodFailed {
+			continue
+		}
 		// ignore pods that belong to the daemonset when taking into account wheter
 		// a daemonset should bind to a node.
 		if pds := dsc.getPodDaemonSet(pod); pds != nil && ds.Name == pds.Name {
diff --git a/pkg/controller/daemon/controller_test.go b/pkg/controller/daemon/controller_test.go
index 861f9df830..61b08c85ca 100644
--- a/pkg/controller/daemon/controller_test.go
+++ b/pkg/controller/daemon/controller_test.go
@@ -240,6 +240,35 @@ func TestInsufficentCapacityNodeDaemonDoesNotLaunchPod(t *testing.T) {
 	syncAndValidateDaemonSets(t, manager, ds, podControl, 0, 0)
 }
 
+func TestSufficentCapacityWithTerminatedPodsDaemonLaunchesPod(t *testing.T) {
+	podSpec := api.PodSpec{
+		NodeName: "too-much-mem",
+		Containers: []api.Container{{
+			Resources: api.ResourceRequirements{
+				Requests: api.ResourceList{
+					api.ResourceMemory: resource.MustParse("75M"),
+					api.ResourceCPU:    resource.MustParse("75m"),
+				},
+			},
+		}},
+	}
+	manager, podControl := newTestController()
+	node := newNode("too-much-mem", nil)
+	node.Status.Allocatable = api.ResourceList{
+		api.ResourceMemory: resource.MustParse("100M"),
+		api.ResourceCPU:    resource.MustParse("200m"),
+	}
+	manager.nodeStore.Add(node)
+	manager.podStore.Add(&api.Pod{
+		Spec:   podSpec,
+		Status: api.PodStatus{Phase: api.PodSucceeded},
+	})
+	ds := newDaemonSet("foo")
+	ds.Spec.Template.Spec = podSpec
+	manager.dsStore.Add(ds)
+	syncAndValidateDaemonSets(t, manager, ds, podControl, 1, 0)
+}
+
 // DaemonSets should place onto nodes with sufficient free resource
 func TestSufficentCapacityNodeDaemonLaunchesPod(t *testing.T) {
 	podSpec := api.PodSpec{