diff --git a/nomad/structs/structs.go b/nomad/structs/structs.go
index 7e59fc8f8..b92999408 100644
--- a/nomad/structs/structs.go
+++ b/nomad/structs/structs.go
@@ -721,6 +721,12 @@ type AllocMetric struct {
 	// AllocationTime is a measure of how long the allocation
 	// attempt took. This can affect performance and SLAs.
 	AllocationTime time.Duration
+
+	// CoalescedFailures indicates the number of other
+	// allocations that were coalesced into this failed allocation.
+	// This is to prevent creating many failed allocations for a
+	// single task group.
+	CoalescedFailures int
 }
 
 func (a *AllocMetric) EvaluateNode() {
diff --git a/scheduler/generic_sched.go b/scheduler/generic_sched.go
index fe2caa5fc..08049ad7d 100644
--- a/scheduler/generic_sched.go
+++ b/scheduler/generic_sched.go
@@ -222,8 +222,21 @@ func (s *GenericScheduler) computePlacements(job *structs.Job, place []allocTupl
 	// Construct the placement stack
 	stack := NewGenericStack(s.batch, ctx, nodes)
 
+	// Track the failed task groups so that we can coalesce
+	// the failures together to avoid creating many failed allocs.
+	failedTG := make(map[*structs.TaskGroup]*structs.Allocation)
+
 	for _, missing := range place {
+		// Check if this task group has already failed
+		if alloc, ok := failedTG[missing.TaskGroup]; ok {
+			alloc.Metrics.CoalescedFailures += 1
+			continue
+		}
+
+		// Attempt to match the task group
 		option, size := stack.Select(missing.TaskGroup)
+
+		// Handle a placement failure
 		var nodeID, status, desc string
 		if option == nil {
 			status = structs.AllocStatusFailed
@@ -250,6 +263,7 @@ func (s *GenericScheduler) computePlacements(job *structs.Job, place []allocTupl
 			s.plan.AppendAlloc(alloc)
 		} else {
 			s.plan.AppendFailed(alloc)
+			failedTG[missing.TaskGroup] = alloc
 		}
 	}
 	return nil
diff --git a/scheduler/generic_sched_test.go b/scheduler/generic_sched_test.go
index 1429729bf..30666cb3e 100644
--- a/scheduler/generic_sched_test.go
+++ b/scheduler/generic_sched_test.go
@@ -90,7 +90,7 @@ func TestServiceSched_JobRegister_AllocFail(t *testing.T) {
 	plan := h.Plans[0]
 
 	// Ensure the plan failed to alloc
-	if len(plan.FailedAllocs) != 10 {
+	if len(plan.FailedAllocs) != 1 {
 		t.Fatalf("bad: %#v", plan)
 	}
 
@@ -99,10 +99,15 @@ func TestServiceSched_JobRegister_AllocFail(t *testing.T) {
 	noErr(t, err)
 
 	// Ensure all allocations placed
-	if len(out) != 10 {
+	if len(out) != 1 {
 		t.Fatalf("bad: %#v", out)
 	}
 
+	// Check the coalesced failures
+	if out[0].Metrics.CoalescedFailures != 9 {
+		t.Fatalf("bad: %#v", out[0].Metrics)
+	}
+
 	h.AssertEvalStatus(t, structs.EvalStatusComplete)
 }