diff --git a/src/core/ext/filters/client_channel/client_channel.cc b/src/core/ext/filters/client_channel/client_channel.cc
index 8e9ee889e1d..38036c97181 100644
--- a/src/core/ext/filters/client_channel/client_channel.cc
+++ b/src/core/ext/filters/client_channel/client_channel.cc
@@ -597,6 +597,8 @@ static void on_resolver_result_changed_locked(void* arg, grpc_error* error) {
     if (grpc_client_channel_trace.enabled()) {
       gpr_log(GPR_INFO, "chand=%p: resolver transient failure", chand);
     }
+    // Don't override connectivity state if we already have an LB policy.
+    if (chand->lb_policy != nullptr) set_connectivity_state = false;
   } else {
     grpc_core::UniquePtr<char> lb_policy_name =
         get_lb_policy_name_from_resolver_result_locked(chand);
diff --git a/src/core/ext/filters/client_channel/resolver/fake/fake_resolver.cc b/src/core/ext/filters/client_channel/resolver/fake/fake_resolver.cc
index 144ac24a56a..3aa690bea41 100644
--- a/src/core/ext/filters/client_channel/resolver/fake/fake_resolver.cc
+++ b/src/core/ext/filters/client_channel/resolver/fake/fake_resolver.cc
@@ -103,7 +103,7 @@ void FakeResolver::NextLocked(grpc_channel_args** target_result,
 }
 
 void FakeResolver::RequestReresolutionLocked() {
-  if (reresolution_results_ != nullptr) {
+  if (reresolution_results_ != nullptr || return_failure_) {
     grpc_channel_args_destroy(next_results_);
     next_results_ = grpc_channel_args_copy(reresolution_results_);
     MaybeFinishNextLocked();
@@ -141,6 +141,7 @@ struct SetResponseClosureArg {
   grpc_closure set_response_closure;
   FakeResolverResponseGenerator* generator;
   grpc_channel_args* response;
+  bool immediate = true;
 };
 
 void FakeResolverResponseGenerator::SetResponseLocked(void* arg,
@@ -194,7 +195,7 @@ void FakeResolverResponseGenerator::SetFailureLocked(void* arg,
   SetResponseClosureArg* closure_arg = static_cast<SetResponseClosureArg*>(arg);
   FakeResolver* resolver = closure_arg->generator->resolver_;
   resolver->return_failure_ = true;
-  resolver->MaybeFinishNextLocked();
+  if (closure_arg->immediate) resolver->MaybeFinishNextLocked();
   Delete(closure_arg);
 }
 
@@ -209,6 +210,18 @@ void FakeResolverResponseGenerator::SetFailure() {
       GRPC_ERROR_NONE);
 }
 
+void FakeResolverResponseGenerator::SetFailureOnReresolution() {
+  GPR_ASSERT(resolver_ != nullptr);
+  SetResponseClosureArg* closure_arg = New<SetResponseClosureArg>();
+  closure_arg->generator = this;
+  closure_arg->immediate = false;
+  GRPC_CLOSURE_SCHED(
+      GRPC_CLOSURE_INIT(&closure_arg->set_response_closure, SetFailureLocked,
+                        closure_arg,
+                        grpc_combiner_scheduler(resolver_->combiner())),
+      GRPC_ERROR_NONE);
+}
+
 namespace {
 
 static void* response_generator_arg_copy(void* p) {
diff --git a/src/core/ext/filters/client_channel/resolver/fake/fake_resolver.h b/src/core/ext/filters/client_channel/resolver/fake/fake_resolver.h
index 74a3062e7f4..7f690593510 100644
--- a/src/core/ext/filters/client_channel/resolver/fake/fake_resolver.h
+++ b/src/core/ext/filters/client_channel/resolver/fake/fake_resolver.h
@@ -61,6 +61,10 @@ class FakeResolverResponseGenerator
   // returning a null result with no error).
   void SetFailure();
 
+  // Same as SetFailure(), but instead of returning the error
+  // immediately, waits for the next call to RequestReresolutionLocked().
+  void SetFailureOnReresolution();
+
   // Returns a channel arg containing \a generator.
   static grpc_arg MakeChannelArg(FakeResolverResponseGenerator* generator);
 
diff --git a/test/cpp/end2end/client_lb_end2end_test.cc b/test/cpp/end2end/client_lb_end2end_test.cc
index d13fb23796e..312065a2dfe 100644
--- a/test/cpp/end2end/client_lb_end2end_test.cc
+++ b/test/cpp/end2end/client_lb_end2end_test.cc
@@ -191,6 +191,11 @@ class ClientLbEnd2endTest : public ::testing::Test {
     grpc_channel_args_destroy(fake_results);
   }
 
+  void SetFailureOnReresolution() {
+    grpc_core::ExecCtx exec_ctx;
+    response_generator_->SetFailureOnReresolution();
+  }
+
   std::vector<int> GetServersPorts() {
     std::vector<int> ports;
     for (const auto& server : servers_) ports.push_back(server->port_);
@@ -728,6 +733,23 @@ TEST_F(ClientLbEnd2endTest, PickFirstCheckStateBeforeStartWatch) {
   EXPECT_EQ("pick_first", channel_2->GetLoadBalancingPolicyName());
 }
 
+TEST_F(ClientLbEnd2endTest, PickFirstIdleOnDisconnect) {
+  // Start server, send RPC, and make sure channel is READY.
+  const int kNumServers = 1;
+  StartServers(kNumServers);
+  auto channel = BuildChannel("");  // pick_first is the default.
+  auto stub = BuildStub(channel);
+  SetNextResolution(GetServersPorts());
+  CheckRpcSendOk(stub, DEBUG_LOCATION);
+  EXPECT_EQ(channel->GetState(false), GRPC_CHANNEL_READY);
+  // Stop server.  Channel should go into state IDLE.
+  SetFailureOnReresolution();
+  servers_[0]->Shutdown();
+  EXPECT_TRUE(WaitForChannelNotReady(channel.get()));
+  EXPECT_EQ(channel->GetState(false), GRPC_CHANNEL_IDLE);
+  servers_.clear();
+}
+
 TEST_F(ClientLbEnd2endTest, RoundRobin) {
   // Start servers and send one RPC per server.
   const int kNumServers = 3;