diff --git a/compiler/damlc/tests/daml-test-files/TransientFailure.daml b/compiler/damlc/tests/daml-test-files/TransientFailure.daml
new file mode 100644
index 00000000000..931977f8623
--- /dev/null
+++ b/compiler/damlc/tests/daml-test-files/TransientFailure.daml
@@ -0,0 +1,35 @@
+-- Copyright (c) 2020, Digital Asset (Switzerland) GmbH and/or its affiliates.
+-- All rights reserved.
+
+-- @ERROR exercise C on #1:1
+module TransientFailure where
+
+template T'
+  with
+    p: Party
+  where
+    signatory p
+    choice C : ()
+      controller p
+      do assert False
+
+template T
+  with
+    p: Party
+  where
+    signatory p
+    nonconsuming choice FailingTransient : ()
+      controller p
+      do cid <- create T' with p
+         exercise cid C
+
+testBio : Scenario ()
+testBio  = do
+  p <- getParty "p"
+  latestCid <- submit p do create T with p
+  -- This produces a failing transaction with a contract created
+  -- in the same transaction. In the past this resulted
+  -- in an exception in the scenario service when converting
+  -- between contract ids and node ids.
+  submit p do exercise latestCid FailingTransient
+  return ()
diff --git a/compiler/scenario-service/server/src/main/scala/com/digitalasset/daml/lf/scenario/Conversions.scala b/compiler/scenario-service/server/src/main/scala/com/digitalasset/daml/lf/scenario/Conversions.scala
index be5dde343f1..720816b6b1a 100644
--- a/compiler/scenario-service/server/src/main/scala/com/digitalasset/daml/lf/scenario/Conversions.scala
+++ b/compiler/scenario-service/server/src/main/scala/com/digitalasset/daml/lf/scenario/Conversions.scala
@@ -24,7 +24,20 @@ final class Conversions(
   private val packageIdSelf: PackageIdentifier =
     PackageIdentifier.newBuilder.setSelf(empty).build
 
-  private val coidToNodeId = ledger.ledgerData.coidToNodeId
+  // The ledger data will not contain information from the partial transaction at this point.
+  // We need the mapping for converting error message so we manually add it here.
+  private val ptxCoidToNodeId = machine.ptx.nodes
+    .collect {
+      case (nodeId, node: N.NodeCreate.WithTxValue[V.ContractId]) =>
+        node.coid match {
+          case acoid: V.AbsoluteContractId =>
+            acoid -> ledger.ptxNodeId(nodeId)
+          case V.RelativeContractId(_) =>
+            throw new IllegalArgumentException("unexpected relative contract id")
+        }
+    }
+
+  private val coidToNodeId = ledger.ledgerData.coidToNodeId ++ ptxCoidToNodeId
 
   private val nodes =
     ledger.ledgerData.nodeInfos.map(Function.tupled(convertNode))
@@ -308,7 +321,7 @@ final class Conversions(
       case acoid: V.AbsoluteContractId =>
         coidToNodeId(acoid)
       case V.RelativeContractId(_) =>
-        throw new IllegalArgumentException("unexpected relative cotnract id")
+        throw new IllegalArgumentException("unexpected relative contract id")
     }
 
   def convertScenarioStep(
diff --git a/daml-lf/interpreter/src/main/scala/com/digitalasset/daml/lf/types/Ledger.scala b/daml-lf/interpreter/src/main/scala/com/digitalasset/daml/lf/types/Ledger.scala
index 3a84adf2315..23945de8038 100644
--- a/daml-lf/interpreter/src/main/scala/com/digitalasset/daml/lf/types/Ledger.scala
+++ b/daml-lf/interpreter/src/main/scala/com/digitalasset/daml/lf/types/Ledger.scala
@@ -389,6 +389,11 @@ object Ledger {
           }
       }
     }
+
+    // Given a ledger and the node index of a node in a partial transaction
+    // turn it into a node it that can be used in scenario error messages.
+    def ptxNodeId(nodeIdx: NodeId): ScenarioNodeId =
+      ScenarioNodeId(scenarioStepId.makeCommitPrefix, nodeIdx)
   }
 
   sealed trait CommitError