diff --git a/builtin/providers/aws/resource_aws_vpc_peering_connection.go b/builtin/providers/aws/resource_aws_vpc_peering_connection.go
index 2be170682cf7..3d768577b396 100644
--- a/builtin/providers/aws/resource_aws_vpc_peering_connection.go
+++ b/builtin/providers/aws/resource_aws_vpc_peering_connection.go
@@ -101,6 +101,14 @@ func resourceAwsVPCPeeringRead(d *schema.ResourceData, meta interface{}) error {
 
 	pc := pcRaw.(*ec2.VPCPeeringConnection)
 
+	// The failed status is a status that we can assume just means the
+	// connection is gone. Destruction isn't allowed, and it eventually
+	// just "falls off" the console. See GH-2322
+	if *pc.Status.Code == "failed" {
+		d.SetId("")
+		return nil
+	}
+
 	d.Set("accept_status", *pc.Status.Code)
 	d.Set("peer_owner_id", pc.AccepterVPCInfo.OwnerID)
 	d.Set("peer_vpc_id", pc.AccepterVPCInfo.VPCID)