diff --git a/nova/conf/compute.py b/nova/conf/compute.py
index dbdd051d9fdb..3b288e06e6ea 100644
--- a/nova/conf/compute.py
+++ b/nova/conf/compute.py
@@ -979,6 +979,27 @@ Additional documentation is available here:
 
   https://docs.openstack.org/nova/latest/admin/managing-resource-providers.html
 
+"""),
+    cfg.ListOpt('image_type_exclude_list',
+                default=[],
+                help="""
+A list of image formats that should not be advertised as supported by this
+compute node.
+
+In some situations, it may be desirable to have a compute node
+refuse to support an expensive or complex image format. This factors into
+the decisions made by the scheduler about which compute node to select when
+booted with a given image.
+
+Possible values:
+
+* Any glance image ``disk_format`` name (i.e. ``raw``, ``qcow2``, etc)
+
+Related options:
+
+* ``[scheduler]query_placement_for_image_type_support`` - enables
+  filtering computes based on supported image types, which is required
+  to be enabled for this to take effect.
 """),
 ]
 
diff --git a/nova/tests/unit/virt/test_virt.py b/nova/tests/unit/virt/test_virt.py
index 6e817d5f1004..eddb6ac925d2 100644
--- a/nova/tests/unit/virt/test_virt.py
+++ b/nova/tests/unit/virt/test_virt.py
@@ -16,11 +16,13 @@
 import io
 
 import mock
+import os_traits
 import six
 
 from nova import test
 from nova.virt.disk import api as disk_api
 from nova.virt import driver
+from nova.virt import fake
 
 PROC_MOUNTS_CONTENTS = """rootfs / rootfs rw 0 0
 sysfs /sys sysfs rw,nosuid,nodev,noexec,relatime 0 0
@@ -89,6 +91,18 @@ class TestVirtDriver(test.NoDBTestCase):
         self.assertTrue(driver.swap_is_usable({'device_name': '/dev/sdb',
                                                 'swap_size': 1}))
 
+    def test_image_type_exclude_list(self):
+        fake_driver = fake.FakeDriver(None)
+
+        traits = fake_driver.capabilities_as_traits()
+        self.assertTrue(traits[os_traits.COMPUTE_IMAGE_TYPE_RAW])
+        self.assertFalse(traits[os_traits.COMPUTE_IMAGE_TYPE_VHD])
+
+        self.flags(image_type_exclude_list='raw', group='compute')
+        traits = fake_driver.capabilities_as_traits()
+        self.assertFalse(traits[os_traits.COMPUTE_IMAGE_TYPE_RAW])
+        self.assertFalse(traits[os_traits.COMPUTE_IMAGE_TYPE_VHD])
+
 
 class FakeMount(object):
     def __init__(self, image, mount_dir, partition=None, device=None):
diff --git a/nova/virt/driver.py b/nova/virt/driver.py
index 86db4b8bd07d..12b00a97146f 100644
--- a/nova/virt/driver.py
+++ b/nova/virt/driver.py
@@ -134,6 +134,20 @@ CAPABILITY_TRAITS_MAP = {
 }
 
 
+def _check_image_type_exclude_list(capability, supported):
+    """Enforce the exclusion list on image_type capabilites.
+
+    :param capability: The supports_image_type_foo capability being checked
+    :param supported: The flag indicating whether the virt driver *can*
+                      support the given image type.
+    :returns: True if the virt driver *can* support the image type and
+              if it is not listed in the config to be excluded.
+    """
+    image_type = capability.replace('supports_image_type_', '')
+    return (supported and
+            image_type not in CONF.compute.image_type_exclude_list)
+
+
 class ComputeDriver(object):
     """Base class for compute drivers.
 
@@ -1113,6 +1127,10 @@ class ComputeDriver(object):
         """
         traits = {}
         for capability, supported in self.capabilities.items():
+            if capability.startswith('supports_image_type_'):
+                supported = _check_image_type_exclude_list(capability,
+                                                           supported)
+
             if capability in CAPABILITY_TRAITS_MAP:
                 traits[CAPABILITY_TRAITS_MAP[capability]] = supported
 
diff --git a/nova/virt/libvirt/driver.py b/nova/virt/libvirt/driver.py
index f1d16ce71aa1..529b7f809f99 100644
--- a/nova/virt/libvirt/driver.py
+++ b/nova/virt/libvirt/driver.py
@@ -291,11 +291,6 @@ class LibvirtDriver(driver.ComputeDriver):
             "supports_image_type_aki": True,
             "supports_image_type_ari": True,
             "supports_image_type_ami": True,
-            # FIXME(danms): I can see a future where people might want to
-            # configure certain compute nodes to not allow giant raw images
-            # to be booted (like nodes that are across a WAN). Thus, at some
-            # point we may want to be able to _not_ expose "supports raw" on
-            # some nodes by policy. Until then, raw is always supported.
             "supports_image_type_raw": True,
             "supports_image_type_iso": True,
             # NOTE(danms): Certain backends do not work with complex image
diff --git a/releasenotes/notes/image-type-exclusion-list-dac61a747a1140a3.yaml b/releasenotes/notes/image-type-exclusion-list-dac61a747a1140a3.yaml
new file mode 100644
index 000000000000..a0cbbae12792
--- /dev/null
+++ b/releasenotes/notes/image-type-exclusion-list-dac61a747a1140a3.yaml
@@ -0,0 +1,9 @@
+---
+features:
+  - |
+    A ``[compute]image_type_exclusion_list`` configuration option was
+    added to remove supported image types from being advertised by a
+    compute node as supported. This is to be used in conjunction with
+    ``[scheduler]query_placement_for_image_type_support`` to prevent
+    instances from booting on a compute node with a given image type,
+    even if the underlying hypervisor supports it.