diff --git a/moto/ec2/models.py b/moto/ec2/models.py
index 3a2775237..8e5bcdfbd 100755
--- a/moto/ec2/models.py
+++ b/moto/ec2/models.py
@@ -1360,22 +1360,25 @@ class SecurityGroupBackend(object):
         return group
 
     def describe_security_groups(self, group_ids=None, groupnames=None, filters=None):
-        all_groups = itertools.chain(*[x.values()
-                                       for x in self.groups.values()])
-        groups = []
+        matches = itertools.chain(*[x.values()
+                                    for x in self.groups.values()])
+        if group_ids:
+            matches = [grp for grp in matches
+                       if grp.id in group_ids]
+            if len(group_ids) > len(matches):
+                unknown_ids = set(group_ids) - set(matches)
+                raise InvalidSecurityGroupNotFoundError(unknown_ids)
+        if groupnames:
+            matches = [grp for grp in matches
+                       if grp.name in groupnames]
+            if len(groupnames) > len(matches):
+                unknown_names = set(groupnames) - set(matches)
+                raise InvalidSecurityGroupNotFoundError(unknown_names)
+        if filters:
+            matches = [grp for grp in matches
+                       if grp.matches_filters(filters)]
 
-        if group_ids or groupnames or filters:
-            for group in all_groups:
-                if ((group_ids and group.id not in group_ids) or
-                        (groupnames and group.name not in groupnames)):
-                    continue
-                if filters and not group.matches_filters(filters):
-                    continue
-                groups.append(group)
-        else:
-            groups = all_groups
-
-        return groups
+        return matches
 
     def _delete_security_group(self, vpc_id, group_id):
         if self.groups[vpc_id][group_id].enis:
diff --git a/tests/test_ec2/test_security_groups.py b/tests/test_ec2/test_security_groups.py
index 21ecad11e..45e6e327d 100644
--- a/tests/test_ec2/test_security_groups.py
+++ b/tests/test_ec2/test_security_groups.py
@@ -348,6 +348,15 @@ def test_get_all_security_groups():
     resp.should.have.length_of(1)
     resp[0].id.should.equal(sg1.id)
 
+    with assert_raises(EC2ResponseError) as cm:
+        conn.get_all_security_groups(groupnames=['does_not_exist'])
+    cm.exception.code.should.equal('InvalidGroup.NotFound')
+    cm.exception.status.should.equal(400)
+    cm.exception.request_id.should_not.be.none
+
+    resp.should.have.length_of(1)
+    resp[0].id.should.equal(sg1.id)
+
     resp = conn.get_all_security_groups(filters={'vpc-id': ['vpc-mjm05d27']})
     resp.should.have.length_of(1)
     resp[0].id.should.equal(sg1.id)
@@ -681,3 +690,9 @@ def test_get_all_security_groups_filter_with_same_vpc_id():
     security_groups = conn.get_all_security_groups(
         group_ids=[security_group.id], filters={'vpc-id': [vpc_id]})
     security_groups.should.have.length_of(1)
+
+    with assert_raises(EC2ResponseError) as cm:
+        conn.get_all_security_groups(group_ids=['does_not_exist'])
+    cm.exception.code.should.equal('InvalidGroup.NotFound')
+    cm.exception.status.should.equal(400)
+    cm.exception.request_id.should_not.be.none