diff --git a/releasenotes/notes/create-stack-fix-12dbb59a48ac7442.yaml b/releasenotes/notes/create-stack-fix-12dbb59a48ac7442.yaml
new file mode 100644
index 000000000..35bb8c0b6
--- /dev/null
+++ b/releasenotes/notes/create-stack-fix-12dbb59a48ac7442.yaml
@@ -0,0 +1,4 @@
+---
+fixes:
+  - The create_stack() call was fixed to call the correct iterator
+    method and to return the updated stack object when waiting.
diff --git a/shade/openstackcloud.py b/shade/openstackcloud.py
index 912b6ff27..699f8488d 100644
--- a/shade/openstackcloud.py
+++ b/shade/openstackcloud.py
@@ -730,10 +730,11 @@ class OpenStackCloud(object):
             stack = self.manager.submitTask(_tasks.StackCreate(**params))
         if not wait:
             return stack
-        for count in _iterate_timeout(
+        for count in _utils._iterate_timeout(
                 timeout,
                 "Timed out waiting for heat stack to finish"):
-            if self.get_stack(name, cache=False):
+            stack = self.get_stack(name, cache=False)
+            if stack:
                 return stack
 
     def delete_stack(self, name_or_id):
diff --git a/shade/tests/unit/test_stack.py b/shade/tests/unit/test_stack.py
index 6cf493724..b044c5577 100644
--- a/shade/tests/unit/test_stack.py
+++ b/shade/tests/unit/test_stack.py
@@ -16,6 +16,8 @@
 import mock
 import testtools
 
+from heatclient.common import template_utils
+
 import shade
 from shade import meta
 from shade.tests import fakes
@@ -76,3 +78,36 @@ class TestStack(base.TestCase):
             "Failed to delete stack %s" % stack['id']
         ):
             self.cloud.delete_stack('stack_name')
+
+    @mock.patch.object(template_utils, 'get_template_contents')
+    @mock.patch.object(shade.OpenStackCloud, 'heat_client')
+    def test_create_stack(self, mock_heat, mock_template):
+        mock_template.return_value = ({}, {})
+        self.cloud.create_stack('stack_name')
+        self.assertTrue(mock_template.called)
+        mock_heat.stacks.create.assert_called_once_with(
+            stack_name='stack_name',
+            disable_rollback=False,
+            parameters={},
+            template={},
+            files={}
+        )
+
+    @mock.patch.object(template_utils, 'get_template_contents')
+    @mock.patch.object(shade.OpenStackCloud, 'get_stack')
+    @mock.patch.object(shade.OpenStackCloud, 'heat_client')
+    def test_create_stack_wait(self, mock_heat, mock_get, mock_template):
+        stack = {'id': 'stack_id', 'name': 'stack_name'}
+        mock_template.return_value = ({}, {})
+        mock_get.side_effect = iter([None, stack])
+        ret = self.cloud.create_stack('stack_name', wait=True)
+        self.assertTrue(mock_template.called)
+        mock_heat.stacks.create.assert_called_once_with(
+            stack_name='stack_name',
+            disable_rollback=False,
+            parameters={},
+            template={},
+            files={}
+        )
+        self.assertEqual(2, mock_get.call_count)
+        self.assertEqual(stack, ret)