diff --git a/libqpol/policy.c b/libqpol/policy.c
index 7bfe177..8014fef 100644
--- a/libqpol/policy.c
+++ b/libqpol/policy.c
@@ -200,7 +200,7 @@ static int read_source_policy(qpol_policy_t * qpolicy, const char *progname, int
 		ERR(qpolicy, "%s:  error(s) encountered while parsing configuration\n", progname);
 		queue_destroy(id_queue);
 		id_queue = NULL;
-//		errno = EIO;
+		errno = EINVAL;
 		return -1;
 	}
 	/* rewind the pointer */
@@ -211,13 +211,13 @@ static int read_source_policy(qpol_policy_t * qpolicy, const char *progname, int
 		ERR(qpolicy, "%s:  error(s) encountered while parsing configuration\n", progname);
 		queue_destroy(id_queue);
 		id_queue = NULL;
-//		errno = EIO;
+		errno = EINVAL;
 		return -1;
 	}
 	queue_destroy(id_queue);
 	id_queue = NULL;
 	if (policydb_errors) {
-//		errno = EIO;
+		errno = EINVAL;
 		return -1;
 	}
 	return 0;
diff --git a/setools/__init__.py b/setools/__init__.py
index f3df759..12443d6 100644
--- a/setools/__init__.py
+++ b/setools/__init__.py
@@ -25,7 +25,7 @@ except:  # pragma: no cover
 
 # Python classes for policy representation
 from . import policyrep
-from .policyrep import SELinuxPolicy
+from .policyrep import SELinuxPolicy, InvalidPolicy
 
 # Component Queries
 from . import commonquery
diff --git a/setools/policyrep/__init__.py b/setools/policyrep/__init__.py
index 5d0943a..c2ad594 100644
--- a/setools/policyrep/__init__.py
+++ b/setools/policyrep/__init__.py
@@ -56,6 +56,12 @@ from . import fscontext
 from . import netcontext
 
 
+class InvalidPolicy(SyntaxError):
+
+    """Exception for invalid policy."""
+    pass
+
+
 class SELinuxPolicy(object):
 
     """The complete SELinux policy."""
@@ -68,8 +74,8 @@ class SELinuxPolicy(object):
 
         try:
             self.policy = qpol.qpol_policy_t(policyfile, 0)
-        except OSError as err:
-            raise OSError("Error opening policy file \"{0}\": {1}".format(policyfile, err))
+        except SyntaxError as err:
+            raise InvalidPolicy("Error opening policy file \"{0}\": {1}".format(policyfile, err))
 
     #
     # Policy properties
diff --git a/setools/policyrep/qpol.i b/setools/policyrep/qpol.i
index e1ff778..4562a55 100644
--- a/setools/policyrep/qpol.i
+++ b/setools/policyrep/qpol.i
@@ -258,7 +258,11 @@ typedef enum qpol_capability
 %exception qpol_policy {
   $action
   if (!result) {
-    PyErr_SetFromErrno(PyExc_OSError);
+    if (errno == EINVAL) {
+        PyErr_SetString(PyExc_SyntaxError, "Invalid policy.");
+    } else {
+        PyErr_SetFromErrno(PyExc_OSError);
+    }
     return NULL;
   }
 }
diff --git a/tests/policyrep/selinuxpolicy.py b/tests/policyrep/selinuxpolicy.py
index 624fdbf..0674fbf 100644
--- a/tests/policyrep/selinuxpolicy.py
+++ b/tests/policyrep/selinuxpolicy.py
@@ -15,13 +15,13 @@
 # You should have received a copy of the GNU General Public License
 # along with SETools.  If not, see <http://www.gnu.org/licenses/>.
 #
-
+from __future__ import print_function
 import os
 import subprocess
 import tempfile
 import unittest
 
-from setools import SELinuxPolicy
+from setools import SELinuxPolicy, InvalidPolicy
 from setools.boolquery import BoolQuery
 
 
@@ -54,8 +54,13 @@ class SELinuxPolicyTest(unittest.TestCase):
         self.p_binary = SELinuxPolicy(self.policy_path)
 
     def test_001_open_policy_error(self):
-        """SELinuxPolicy: error on open."""
-        self.assertRaises(OSError, SELinuxPolicy, "tests/policyrep/selinuxpolicy-bad.conf")
+        """SELinuxPolicy: Invalid policy on open."""
+        self.assertRaises(InvalidPolicy, SELinuxPolicy, "tests/policyrep/selinuxpolicy-bad.conf")
+        print("The \"category can not be associated\" error above is expected.")
+
+    def test_002_open_policy_non_existant(self):
+        """SELinuxPolicy: Non existant policy on open."""
+        self.assertRaises(OSError, SELinuxPolicy, "tests/policyrep/DOES_NOT_EXIST")
 
     def test_010_handle_unknown(self):
         """SELinuxPolicy: handle unknown setting."""