diff --git a/src/core/ext/filters/client_channel/lb_policy/xds/eds.cc b/src/core/ext/filters/client_channel/lb_policy/xds/eds.cc
index 5fae55a93dc..6afdce4d5cc 100644
--- a/src/core/ext/filters/client_channel/lb_policy/xds/eds.cc
+++ b/src/core/ext/filters/client_channel/lb_policy/xds/eds.cc
@@ -36,6 +36,7 @@
 #include "src/core/ext/xds/xds_client.h"
 #include "src/core/ext/xds/xds_client_stats.h"
 #include "src/core/lib/channel/channel_args.h"
+#include "src/core/lib/gpr/env.h"
 #include "src/core/lib/gpr/string.h"
 #include "src/core/lib/gprpp/orphanable.h"
 #include "src/core/lib/gprpp/ref_counted_ptr.h"
@@ -56,6 +57,17 @@ constexpr char kEds[] = "eds_experimental";
 
 const char* kXdsLocalityNameAttributeKey = "xds_locality_name";
 
+// TODO (donnadionne): Check to see if circuit breaking is enabled, this will be
+// removed once circuit breaking feature is fully integrated and enabled by
+// default.
+bool XdsCircuitBreakingEnabled() {
+  char* value = gpr_getenv("GRPC_XDS_EXPERIMENTAL_CIRCUIT_BREAKING");
+  bool parsed_value;
+  bool parse_succeeded = gpr_parse_bool_value(value, &parsed_value);
+  gpr_free(value);
+  return parse_succeeded && parsed_value;
+}
+
 // Config for EDS LB policy.
 class EdsLbConfig : public LoadBalancingPolicy::Config {
  public:
@@ -206,6 +218,7 @@ class EdsLb : public LoadBalancingPolicy {
     RefCountedPtr<XdsApi::EdsUpdate::DropConfig> drop_config_;
     RefCountedPtr<XdsClusterDropStats> drop_stats_;
     RefCountedPtr<ChildPickerWrapper> child_picker_;
+    bool xds_circuit_breaking_enabled_;
     uint32_t max_concurrent_requests_;
   };
 
@@ -309,6 +322,7 @@ EdsLb::EdsPicker::EdsPicker(RefCountedPtr<EdsLb> eds_policy)
     : eds_policy_(std::move(eds_policy)),
       drop_stats_(eds_policy_->drop_stats_),
       child_picker_(eds_policy_->child_picker_),
+      xds_circuit_breaking_enabled_(XdsCircuitBreakingEnabled()),
       max_concurrent_requests_(
           eds_policy_->config_->max_concurrent_requests()) {
   if (GRPC_TRACE_FLAG_ENABLED(grpc_lb_eds_trace)) {
@@ -318,16 +332,18 @@ EdsLb::EdsPicker::EdsPicker(RefCountedPtr<EdsLb> eds_policy)
 }
 
 EdsLb::PickResult EdsLb::EdsPicker::Pick(PickArgs args) {
-  // Check and see if we exceeded the max concurrent requests count.
   uint32_t current = eds_policy_->concurrent_requests_.FetchAdd(1);
-  if (current >= max_concurrent_requests_) {
-    eds_policy_->concurrent_requests_.FetchSub(1);
-    if (drop_stats_ != nullptr) {
-      drop_stats_->AddUncategorizedDrops();
+  if (xds_circuit_breaking_enabled_) {
+    // Check and see if we exceeded the max concurrent requests count.
+    if (current >= max_concurrent_requests_) {
+      eds_policy_->concurrent_requests_.FetchSub(1);
+      if (drop_stats_ != nullptr) {
+        drop_stats_->AddUncategorizedDrops();
+      }
+      PickResult result;
+      result.type = PickResult::PICK_COMPLETE;
+      return result;
     }
-    PickResult result;
-    result.type = PickResult::PICK_COMPLETE;
-    return result;
   }
   // If we're not dropping the call, we should always have a child picker.
   if (child_picker_ == nullptr) {  // Should never happen.
diff --git a/test/cpp/end2end/xds_end2end_test.cc b/test/cpp/end2end/xds_end2end_test.cc
index 744d7aac3fd..97be5d6da16 100644
--- a/test/cpp/end2end/xds_end2end_test.cc
+++ b/test/cpp/end2end/xds_end2end_test.cc
@@ -2290,6 +2290,7 @@ TEST_P(XdsResolverOnlyTest, CircuitBreaking) {
     Status status_;
   };
 
+  gpr_setenv("GRPC_XDS_EXPERIMENTAL_CIRCUIT_BREAKING", "true");
   constexpr size_t kMaxConcurrentRequests = 10;
   SetNextResolution({});
   SetNextResolutionForLbChannelAllBalancers();
@@ -2332,6 +2333,71 @@ TEST_P(XdsResolverOnlyTest, CircuitBreaking) {
   // Make sure RPCs go to the correct backend:
   EXPECT_EQ(kMaxConcurrentRequests + 1,
             backends_[0]->backend_service()->request_count());
+  gpr_unsetenv("GRPC_XDS_EXPERIMENTAL_CIRCUIT_BREAKING");
+}
+
+TEST_P(XdsResolverOnlyTest, CircuitBreakingDisabled) {
+  class TestRpc {
+   public:
+    TestRpc() {}
+
+    void StartRpc(grpc::testing::EchoTestService::Stub* stub) {
+      sender_thread_ = std::thread([this, stub]() {
+        EchoResponse response;
+        EchoRequest request;
+        request.mutable_param()->set_client_cancel_after_us(1 * 1000 * 1000);
+        request.set_message(kRequestMessage);
+        status_ = stub->Echo(&context_, request, &response);
+      });
+    }
+
+    void CancelRpc() {
+      context_.TryCancel();
+      sender_thread_.join();
+    }
+
+   private:
+    std::thread sender_thread_;
+    ClientContext context_;
+    Status status_;
+  };
+
+  constexpr size_t kMaxConcurrentRequests = 10;
+  SetNextResolution({});
+  SetNextResolutionForLbChannelAllBalancers();
+  // Populate new EDS resources.
+  AdsServiceImpl::EdsResourceArgs args({
+      {"locality0", GetBackendPorts(0, 1)},
+  });
+  balancers_[0]->ads_service()->SetEdsResource(
+      AdsServiceImpl::BuildEdsResource(args));
+  // Update CDS resource to set max concurrent request.
+  CircuitBreakers circuit_breaks;
+  Cluster cluster = balancers_[0]->ads_service()->default_cluster();
+  auto* threshold = cluster.mutable_circuit_breakers()->add_thresholds();
+  threshold->set_priority(RoutingPriority::DEFAULT);
+  threshold->mutable_max_requests()->set_value(kMaxConcurrentRequests);
+  balancers_[0]->ads_service()->SetCdsResource(cluster);
+  // Send exactly max_concurrent_requests long RPCs.
+  TestRpc rpcs[kMaxConcurrentRequests];
+  for (size_t i = 0; i < kMaxConcurrentRequests; ++i) {
+    rpcs[i].StartRpc(stub_.get());
+  }
+  // Wait for all RPCs to be in flight.
+  while (backends_[0]->backend_service()->RpcsWaitingForClientCancel() <
+         kMaxConcurrentRequests) {
+    gpr_sleep_until(gpr_time_add(gpr_now(GPR_CLOCK_REALTIME),
+                                 gpr_time_from_micros(1 * 1000, GPR_TIMESPAN)));
+  }
+  // Sending a RPC now should not fail as circuit breaking is disabled.
+  Status status = SendRpc();
+  EXPECT_TRUE(status.ok());
+  for (size_t i = 0; i < kMaxConcurrentRequests; ++i) {
+    rpcs[i].CancelRpc();
+  }
+  // Make sure RPCs go to the correct backend:
+  EXPECT_EQ(kMaxConcurrentRequests + 1,
+            backends_[0]->backend_service()->request_count());
 }
 
 TEST_P(XdsResolverOnlyTest, MultipleChannelsShareXdsClient) {