diff --git a/fs_mgr/libfiemap/binder.cpp b/fs_mgr/libfiemap/binder.cpp
index f99055a..96c36ed 100644
--- a/fs_mgr/libfiemap/binder.cpp
+++ b/fs_mgr/libfiemap/binder.cpp
@@ -17,6 +17,7 @@
 #if !defined(__ANDROID_RECOVERY__)
 #include <android-base/logging.h>
 #include <android-base/properties.h>
+#include <android/gsi/BnProgressCallback.h>
 #include <android/gsi/IGsiService.h>
 #include <android/gsi/IGsid.h>
 #include <binder/IServiceManager.h>
@@ -29,10 +30,29 @@
 using namespace android::gsi;
 using namespace std::chrono_literals;
 
+class ProgressCallback final : public BnProgressCallback {
+  public:
+    ProgressCallback(std::function<bool(uint64_t, uint64_t)>&& callback)
+        : callback_(std::move(callback)) {
+        CHECK(callback_);
+    }
+    android::binder::Status onProgress(int64_t current, int64_t total) {
+        if (callback_(static_cast<uint64_t>(current), static_cast<uint64_t>(total))) {
+            return android::binder::Status::ok();
+        }
+        return android::binder::Status::fromServiceSpecificError(UNKNOWN_ERROR,
+                                                                 "Progress callback failed");
+    }
+
+  private:
+    std::function<bool(uint64_t, uint64_t)> callback_;
+};
+
 class ImageManagerBinder final : public IImageManager {
   public:
     ImageManagerBinder(android::sp<IGsiService>&& service, android::sp<IImageService>&& manager);
-    bool CreateBackingImage(const std::string& name, uint64_t size, int flags) override;
+    FiemapStatus CreateBackingImage(const std::string& name, uint64_t size, int flags,
+                                    std::function<bool(uint64_t, uint64_t)>&& on_progress) override;
     bool DeleteBackingImage(const std::string& name) override;
     bool MapImageDevice(const std::string& name, const std::chrono::milliseconds& timeout_ms,
                         std::string* path) override;
@@ -41,7 +61,7 @@
     bool IsImageMapped(const std::string& name) override;
     bool MapImageWithDeviceMapper(const IPartitionOpener& opener, const std::string& name,
                                   std::string* dev) override;
-    bool ZeroFillNewImage(const std::string& name, uint64_t bytes) override;
+    FiemapStatus ZeroFillNewImage(const std::string& name, uint64_t bytes) override;
     bool RemoveAllImages() override;
     bool DisableImage(const std::string& name) override;
     bool RemoveDisabledImages() override;
@@ -55,18 +75,31 @@
     android::sp<IImageService> manager_;
 };
 
+static FiemapStatus ToFiemapStatus(const char* func, const binder::Status& status) {
+    if (!status.isOk()) {
+        LOG(ERROR) << func << " binder returned: " << status.toString8().string();
+        if (status.serviceSpecificErrorCode() != 0) {
+            return FiemapStatus::FromErrorCode(status.serviceSpecificErrorCode());
+        } else {
+            return FiemapStatus::Error();
+        }
+    }
+    return FiemapStatus::Ok();
+}
+
 ImageManagerBinder::ImageManagerBinder(android::sp<IGsiService>&& service,
                                        android::sp<IImageService>&& manager)
     : service_(std::move(service)), manager_(std::move(manager)) {}
 
-bool ImageManagerBinder::CreateBackingImage(const std::string& name, uint64_t size, int flags) {
-    auto status = manager_->createBackingImage(name, size, flags);
-    if (!status.isOk()) {
-        LOG(ERROR) << __PRETTY_FUNCTION__
-                   << " binder returned: " << status.exceptionMessage().string();
-        return false;
+FiemapStatus ImageManagerBinder::CreateBackingImage(
+        const std::string& name, uint64_t size, int flags,
+        std::function<bool(uint64_t, uint64_t)>&& on_progress) {
+    sp<IProgressCallback> callback = nullptr;
+    if (on_progress) {
+        callback = new ProgressCallback(std::move(on_progress));
     }
-    return true;
+    auto status = manager_->createBackingImage(name, size, flags, callback);
+    return ToFiemapStatus(__PRETTY_FUNCTION__, status);
 }
 
 bool ImageManagerBinder::DeleteBackingImage(const std::string& name) {
@@ -147,14 +180,9 @@
     return retval;
 }
 
-bool ImageManagerBinder::ZeroFillNewImage(const std::string& name, uint64_t bytes) {
+FiemapStatus ImageManagerBinder::ZeroFillNewImage(const std::string& name, uint64_t bytes) {
     auto status = manager_->zeroFillNewImage(name, bytes);
-    if (!status.isOk()) {
-        LOG(ERROR) << __PRETTY_FUNCTION__
-                   << " binder returned: " << status.exceptionMessage().string();
-        return false;
-    }
-    return true;
+    return ToFiemapStatus(__PRETTY_FUNCTION__, status);
 }
 
 bool ImageManagerBinder::RemoveAllImages() {
diff --git a/fs_mgr/libfiemap/image_manager.cpp b/fs_mgr/libfiemap/image_manager.cpp
index baa5de4..30eb5a0 100644
--- a/fs_mgr/libfiemap/image_manager.cpp
+++ b/fs_mgr/libfiemap/image_manager.cpp
@@ -133,27 +133,25 @@
     return access(header_file.c_str(), F_OK) == 0;
 }
 
-bool ImageManager::CreateBackingImage(const std::string& name, uint64_t size, int flags) {
-    return CreateBackingImage(name, size, flags, nullptr);
-}
-
 static bool IsUnreliablePinningAllowed(const std::string& path) {
     return android::base::StartsWith(path, "/data/gsi/dsu/") ||
            android::base::StartsWith(path, "/data/gsi/test/") ||
            android::base::StartsWith(path, "/data/gsi/ota/test/");
 }
 
-bool ImageManager::CreateBackingImage(const std::string& name, uint64_t size, int flags,
-                                      std::function<bool(uint64_t, uint64_t)>&& on_progress) {
+FiemapStatus ImageManager::CreateBackingImage(
+        const std::string& name, uint64_t size, int flags,
+        std::function<bool(uint64_t, uint64_t)>&& on_progress) {
     auto data_path = GetImageHeaderPath(name);
-    auto fw = SplitFiemap::Create(data_path, size, 0, on_progress);
-    if (!fw) {
-        return false;
+    std::unique_ptr<SplitFiemap> fw;
+    auto status = SplitFiemap::Create(data_path, size, 0, &fw, on_progress);
+    if (!status.is_ok()) {
+        return status;
     }
 
     bool reliable_pinning;
     if (!FilesystemHasReliablePinning(data_path, &reliable_pinning)) {
-        return false;
+        return FiemapStatus::Error();
     }
     if (!reliable_pinning && !IsUnreliablePinningAllowed(data_path)) {
         // For historical reasons, we allow unreliable pinning for certain use
@@ -164,7 +162,7 @@
         // proper pinning.
         LOG(ERROR) << "File system does not have reliable block pinning";
         SplitFiemap::RemoveSplitFiles(data_path);
-        return false;
+        return FiemapStatus::Error();
     }
 
     // Except for testing, we do not allow persisting metadata that references
@@ -180,24 +178,25 @@
 
         fw = {};
         SplitFiemap::RemoveSplitFiles(data_path);
-        return false;
+        return FiemapStatus::Error();
     }
 
     bool readonly = !!(flags & CREATE_IMAGE_READONLY);
     if (!UpdateMetadata(metadata_dir_, name, fw.get(), size, readonly)) {
-        return false;
+        return FiemapStatus::Error();
     }
 
     if (flags & CREATE_IMAGE_ZERO_FILL) {
-        if (!ZeroFillNewImage(name, 0)) {
+        auto res = ZeroFillNewImage(name, 0);
+        if (!res.is_ok()) {
             DeleteBackingImage(name);
-            return false;
+            return res;
         }
     }
-    return true;
+    return FiemapStatus::Ok();
 }
 
-bool ImageManager::ZeroFillNewImage(const std::string& name, uint64_t bytes) {
+FiemapStatus ImageManager::ZeroFillNewImage(const std::string& name, uint64_t bytes) {
     auto data_path = GetImageHeaderPath(name);
 
     // See the comment in MapImageDevice() about how this works.
@@ -205,13 +204,13 @@
     bool can_use_devicemapper;
     if (!FiemapWriter::GetBlockDeviceForFile(data_path, &block_device, &can_use_devicemapper)) {
         LOG(ERROR) << "Could not determine block device for " << data_path;
-        return false;
+        return FiemapStatus::Error();
     }
 
     if (!can_use_devicemapper) {
         // We've backed with loop devices, and since we store files in an
         // unencrypted folder, the initial zeroes we wrote will suffice.
-        return true;
+        return FiemapStatus::Ok();
     }
 
     // data is dm-crypt, or FBE + dm-default-key. This means the zeroes written
@@ -219,7 +218,7 @@
     // this.
     auto device = MappedDevice::Open(this, 10s, name);
     if (!device) {
-        return false;
+        return FiemapStatus::Error();
     }
 
     static constexpr size_t kChunkSize = 4096;
@@ -232,7 +231,7 @@
         remaining = get_block_device_size(device->fd());
         if (!remaining) {
             PLOG(ERROR) << "Could not get block device size for " << device->path();
-            return false;
+            return FiemapStatus::FromErrno(errno);
         }
     }
     while (remaining) {
@@ -240,11 +239,11 @@
         if (!android::base::WriteFully(device->fd(), zeroes.data(),
                                        static_cast<size_t>(to_write))) {
             PLOG(ERROR) << "write failed: " << device->path();
-            return false;
+            return FiemapStatus::FromErrno(errno);
         }
         remaining -= to_write;
     }
-    return true;
+    return FiemapStatus::Ok();
 }
 
 bool ImageManager::DeleteBackingImage(const std::string& name) {
diff --git a/fs_mgr/libfiemap/include/libfiemap/fiemap_status.h b/fs_mgr/libfiemap/include/libfiemap/fiemap_status.h
index 2444ba8..56917cc 100644
--- a/fs_mgr/libfiemap/include/libfiemap/fiemap_status.h
+++ b/fs_mgr/libfiemap/include/libfiemap/fiemap_status.h
@@ -37,6 +37,12 @@
     // Create from a given errno (specified in errno,h)
     static FiemapStatus FromErrno(int error_num) { return FiemapStatus(CastErrorCode(-error_num)); }
 
+    // Create from an integer error code that is expected to be an ErrorCode
+    // value. If it isn't, Error() is returned.
+    static FiemapStatus FromErrorCode(int32_t error_code) {
+        return FiemapStatus(CastErrorCode(error_code));
+    }
+
     // Generic error.
     static FiemapStatus Error() { return FiemapStatus(ErrorCode::ERROR); }
 
diff --git a/fs_mgr/libfiemap/include/libfiemap/image_manager.h b/fs_mgr/libfiemap/include/libfiemap/image_manager.h
index 7b907c0..2c13229 100644
--- a/fs_mgr/libfiemap/include/libfiemap/image_manager.h
+++ b/fs_mgr/libfiemap/include/libfiemap/image_manager.h
@@ -25,6 +25,7 @@
 #include <string>
 
 #include <android-base/unique_fd.h>
+#include <libfiemap/fiemap_status.h>
 #include <liblp/partition_opener.h>
 
 namespace android {
@@ -52,7 +53,9 @@
     // of the image is undefined. If zero-fill is requested, and the operation
     // cannot be completed, the image will be deleted and this function will
     // return false.
-    virtual bool CreateBackingImage(const std::string& name, uint64_t size, int flags) = 0;
+    virtual FiemapStatus CreateBackingImage(
+            const std::string& name, uint64_t size, int flags,
+            std::function<bool(uint64_t, uint64_t)>&& on_progress = nullptr) = 0;
 
     // Delete an image created with CreateBackingImage. Its entry will be
     // removed from the associated lp_metadata file.
@@ -113,7 +116,7 @@
 
     // Writes |bytes| zeros to |name| file. If |bytes| is 0, then the
     // whole file if filled with zeros.
-    virtual bool ZeroFillNewImage(const std::string& name, uint64_t bytes) = 0;
+    virtual FiemapStatus ZeroFillNewImage(const std::string& name, uint64_t bytes) = 0;
 
     // Find and remove all images and metadata for this manager.
     virtual bool RemoveAllImages() = 0;
@@ -133,7 +136,8 @@
     static std::unique_ptr<ImageManager> Open(const std::string& dir_prefix);
 
     // Methods that must be implemented from IImageManager.
-    bool CreateBackingImage(const std::string& name, uint64_t size, int flags) override;
+    FiemapStatus CreateBackingImage(const std::string& name, uint64_t size, int flags,
+                                    std::function<bool(uint64_t, uint64_t)>&& on_progress) override;
     bool DeleteBackingImage(const std::string& name) override;
     bool MapImageDevice(const std::string& name, const std::chrono::milliseconds& timeout_ms,
                         std::string* path) override;
@@ -149,9 +153,6 @@
     bool MapAllImages(const std::function<bool(std::set<std::string>)>& init) override;
 
     std::vector<std::string> GetAllBackingImages();
-    // Same as CreateBackingImage, but provides a progress notification.
-    bool CreateBackingImage(const std::string& name, uint64_t size, int flags,
-                            std::function<bool(uint64_t, uint64_t)>&& on_progress);
 
     // Returns true if the named partition exists. This does not check the
     // consistency of the backing image/data file.
@@ -164,7 +165,7 @@
     void set_partition_opener(std::unique_ptr<IPartitionOpener>&& opener);
 
     // Writes |bytes| zeros at the beginning of the passed image
-    bool ZeroFillNewImage(const std::string& name, uint64_t bytes);
+    FiemapStatus ZeroFillNewImage(const std::string& name, uint64_t bytes);
 
   private:
     ImageManager(const std::string& metadata_dir, const std::string& data_dir);
diff --git a/fs_mgr/libsnapshot/include_test/libsnapshot/test_helpers.h b/fs_mgr/libsnapshot/include_test/libsnapshot/test_helpers.h
index 2bf1b57..11de6ed 100644
--- a/fs_mgr/libsnapshot/include_test/libsnapshot/test_helpers.h
+++ b/fs_mgr/libsnapshot/include_test/libsnapshot/test_helpers.h
@@ -14,10 +14,12 @@
 
 #pragma once
 
+#include <memory>
 #include <optional>
 #include <string>
 #include <unordered_set>
 
+#include <android-base/file.h>
 #include <android/hardware/boot/1.1/IBootControl.h>
 #include <gmock/gmock.h>
 #include <gtest/gtest.h>
@@ -155,5 +157,28 @@
 // Get partition size from update package metadata.
 uint64_t GetSize(PartitionUpdate* partition_update);
 
+// Util class for test cases on low space scenario. These tests assumes image manager
+// uses /data as backup device.
+class LowSpaceUserdata {
+  public:
+    // Set the maximum free space allowed for this test. If /userdata has more space than the given
+    // number, a file is allocated to consume space.
+    AssertionResult Init(uint64_t max_free_space);
+
+    uint64_t free_space() const;
+    uint64_t available_space() const;
+    uint64_t bsize() const;
+
+  private:
+    AssertionResult ReadUserdataStats();
+
+    static constexpr const char* kUserDataDevice = "/data";
+    std::unique_ptr<TemporaryFile> big_file_;
+    bool initialized_ = false;
+    uint64_t free_space_ = 0;
+    uint64_t available_space_ = 0;
+    uint64_t bsize_ = 0;
+};
+
 }  // namespace snapshot
 }  // namespace android
diff --git a/fs_mgr/libsnapshot/snapshot_test.cpp b/fs_mgr/libsnapshot/snapshot_test.cpp
index 2da0103..9e2719f 100644
--- a/fs_mgr/libsnapshot/snapshot_test.cpp
+++ b/fs_mgr/libsnapshot/snapshot_test.cpp
@@ -47,6 +47,7 @@
 using android::base::unique_fd;
 using android::dm::DeviceMapper;
 using android::dm::DmDeviceState;
+using android::fiemap::FiemapStatus;
 using android::fiemap::IImageManager;
 using android::fs_mgr::BlockDeviceInfo;
 using android::fs_mgr::CreateLogicalPartitionParams;
@@ -1700,6 +1701,55 @@
                                     "Merge"s;
                          });
 
+// Test behavior of ImageManager::Create on low space scenario. These tests assumes image manager
+// uses /data as backup device.
+class ImageManagerTest : public SnapshotTest, public WithParamInterface<uint64_t> {
+  public:
+    void SetUp() override {
+        SnapshotTest::SetUp();
+        userdata_ = std::make_unique<LowSpaceUserdata>();
+        ASSERT_TRUE(userdata_->Init(GetParam()));
+    }
+    void TearDown() override {
+        EXPECT_TRUE(!image_manager_->BackingImageExists(kImageName) ||
+                    image_manager_->DeleteBackingImage(kImageName));
+    }
+    static constexpr const char* kImageName = "my_image";
+    std::unique_ptr<LowSpaceUserdata> userdata_;
+};
+
+TEST_P(ImageManagerTest, CreateImageEnoughAvailSpace) {
+    if (userdata_->available_space() == 0) {
+        GTEST_SKIP() << "/data is full (" << userdata_->available_space()
+                     << " bytes available), skipping";
+    }
+    ASSERT_TRUE(image_manager_->CreateBackingImage(kImageName, userdata_->available_space(),
+                                                   IImageManager::CREATE_IMAGE_DEFAULT))
+            << "Should be able to create image with size = " << userdata_->available_space()
+            << " bytes";
+    ASSERT_TRUE(image_manager_->DeleteBackingImage(kImageName))
+            << "Should be able to delete created image";
+}
+
+TEST_P(ImageManagerTest, CreateImageNoSpace) {
+    uint64_t to_allocate = userdata_->free_space() + userdata_->bsize();
+    auto res = image_manager_->CreateBackingImage(kImageName, to_allocate,
+                                                  IImageManager::CREATE_IMAGE_DEFAULT);
+    ASSERT_FALSE(res) << "Should not be able to create image with size = " << to_allocate
+                      << " bytes because only " << userdata_->free_space() << " bytes are free";
+    ASSERT_EQ(FiemapStatus::ErrorCode::NO_SPACE, res.error_code()) << res.string();
+}
+
+std::vector<uint64_t> ImageManagerTestParams() {
+    std::vector<uint64_t> ret;
+    for (uint64_t size = 1_MiB; size <= 512_MiB; size *= 2) {
+        ret.push_back(size);
+    }
+    return ret;
+}
+
+INSTANTIATE_TEST_SUITE_P(ImageManagerTest, ImageManagerTest, ValuesIn(ImageManagerTestParams()));
+
 }  // namespace snapshot
 }  // namespace android
 
diff --git a/fs_mgr/libsnapshot/test_helpers.cpp b/fs_mgr/libsnapshot/test_helpers.cpp
index f7f25af..b036606 100644
--- a/fs_mgr/libsnapshot/test_helpers.cpp
+++ b/fs_mgr/libsnapshot/test_helpers.cpp
@@ -14,8 +14,11 @@
 
 #include <libsnapshot/test_helpers.h>
 
+#include <sys/statvfs.h>
+
 #include <android-base/file.h>
 #include <android-base/logging.h>
+#include <android-base/strings.h>
 #include <android-base/unique_fd.h>
 #include <gtest/gtest.h>
 #include <openssl/sha.h>
@@ -167,5 +170,67 @@
     return partition_update->mutable_new_partition_info()->size();
 }
 
+AssertionResult LowSpaceUserdata::Init(uint64_t max_free_space) {
+    auto res = ReadUserdataStats();
+    if (!res) return res;
+
+    // Try to fill up the disk as much as possible until free_space_ <= max_free_space.
+    big_file_ = std::make_unique<TemporaryFile>();
+    if (big_file_->fd == -1) {
+        return AssertionFailure() << strerror(errno);
+    }
+    if (!android::base::StartsWith(big_file_->path, kUserDataDevice)) {
+        return AssertionFailure() << "Temp file allocated to " << big_file_->path << ", not in "
+                                  << kUserDataDevice;
+    }
+    uint64_t next_consume =
+            std::min(free_space_ - max_free_space, (uint64_t)std::numeric_limits<off_t>::max());
+    off_t allocated = 0;
+    while (next_consume > 0 && free_space_ > max_free_space) {
+        int status = fallocate(big_file_->fd, 0, allocated, next_consume);
+        if (status == -1 && errno == ENOSPC) {
+            next_consume /= 2;
+            continue;
+        }
+        if (status == -1) {
+            return AssertionFailure() << strerror(errno);
+        }
+        allocated += next_consume;
+
+        res = ReadUserdataStats();
+        if (!res) return res;
+    }
+
+    LOG(INFO) << allocated << " bytes allocated to " << big_file_->path;
+    initialized_ = true;
+    return AssertionSuccess();
+}
+
+AssertionResult LowSpaceUserdata::ReadUserdataStats() {
+    struct statvfs buf;
+    if (statvfs(kUserDataDevice, &buf) == -1) {
+        return AssertionFailure() << strerror(errno);
+    }
+    bsize_ = buf.f_bsize;
+    free_space_ = buf.f_bsize * buf.f_bfree;
+    available_space_ = buf.f_bsize * buf.f_bavail;
+    return AssertionSuccess();
+}
+
+uint64_t LowSpaceUserdata::free_space() const {
+    CHECK(initialized_);
+    return free_space_;
+}
+
+uint64_t LowSpaceUserdata::available_space() const {
+    CHECK(initialized_);
+    return available_space_;
+}
+
+uint64_t LowSpaceUserdata::bsize() const {
+    CHECK(initialized_);
+    return bsize_;
+}
+
 }  // namespace snapshot
 }  // namespace android