diff --git a/BUILD b/BUILD
index 4e24f7fedf7..8893aee2bb1 100644
--- a/BUILD
+++ b/BUILD
@@ -3674,6 +3674,7 @@ grpc_cc_library(
     ],
     external_deps = [
         "absl/base:core_headers",
+        "absl/cleanup",
         "absl/memory",
         "absl/status",
         "absl/status:statusor",
diff --git a/src/core/BUILD b/src/core/BUILD
index 7c273dce60e..f39d235d711 100644
--- a/src/core/BUILD
+++ b/src/core/BUILD
@@ -4455,6 +4455,7 @@ grpc_cc_library(
     ],
     external_deps = [
         "absl/base:core_headers",
+        "absl/cleanup",
         "absl/functional:bind_front",
         "absl/memory",
         "absl/random",
@@ -4664,6 +4665,7 @@ grpc_cc_library(
         "//:ref_counted_ptr",
         "//:sockaddr_utils",
         "//:uri_parser",
+        "//:xds_client",
     ],
 )
 
@@ -4732,6 +4734,7 @@ grpc_cc_library(
         "//:orphanable",
         "//:ref_counted_ptr",
         "//:work_serializer",
+        "//:xds_client",
     ],
 )
 
diff --git a/src/core/ext/filters/client_channel/lb_policy/xds/cds.cc b/src/core/ext/filters/client_channel/lb_policy/xds/cds.cc
index 857bdf5c473..2aeae2e7a6b 100644
--- a/src/core/ext/filters/client_channel/lb_policy/xds/cds.cc
+++ b/src/core/ext/filters/client_channel/lb_policy/xds/cds.cc
@@ -40,6 +40,7 @@
 #include "src/core/ext/filters/client_channel/lb_policy/outlier_detection/outlier_detection.h"
 #include "src/core/ext/xds/certificate_provider_store.h"
 #include "src/core/ext/xds/xds_certificate_provider.h"
+#include "src/core/ext/xds/xds_client.h"
 #include "src/core/ext/xds/xds_client_grpc.h"
 #include "src/core/ext/xds/xds_cluster.h"
 #include "src/core/ext/xds/xds_common_types.h"
@@ -123,26 +124,32 @@ class CdsLb : public LoadBalancingPolicy {
         : parent_(std::move(parent)), name_(std::move(name)) {}
 
     void OnResourceChanged(
-        std::shared_ptr<const XdsClusterResource> cluster_data) override {
+        std::shared_ptr<const XdsClusterResource> cluster_data,
+        RefCountedPtr<XdsClient::ReadDelayHandle> read_delay_handle) override {
       parent_->work_serializer()->Run(
           [self = RefAsSubclass<ClusterWatcher>(),
-           cluster_data = std::move(cluster_data)]() mutable {
+           cluster_data = std::move(cluster_data),
+           read_handle = std::move(read_delay_handle)]() mutable {
             self->parent_->OnClusterChanged(self->name_,
                                             std::move(cluster_data));
           },
           DEBUG_LOCATION);
     }
-    void OnError(absl::Status status) override {
+    void OnError(
+        absl::Status status,
+        RefCountedPtr<XdsClient::ReadDelayHandle> read_delay_handle) override {
       parent_->work_serializer()->Run(
-          [self = RefAsSubclass<ClusterWatcher>(),
-           status = std::move(status)]() mutable {
+          [self = RefAsSubclass<ClusterWatcher>(), status = std::move(status),
+           read_handle = std::move(read_delay_handle)]() mutable {
             self->parent_->OnError(self->name_, std::move(status));
           },
           DEBUG_LOCATION);
     }
-    void OnResourceDoesNotExist() override {
+    void OnResourceDoesNotExist(
+        RefCountedPtr<XdsClient::ReadDelayHandle> read_delay_handle) override {
       parent_->work_serializer()->Run(
-          [self = RefAsSubclass<ClusterWatcher>()]() {
+          [self = RefAsSubclass<ClusterWatcher>(),
+           read_handle = std::move(read_delay_handle)]() {
             self->parent_->OnResourceDoesNotExist(self->name_);
           },
           DEBUG_LOCATION);
diff --git a/src/core/ext/filters/client_channel/lb_policy/xds/xds_cluster_resolver.cc b/src/core/ext/filters/client_channel/lb_policy/xds/xds_cluster_resolver.cc
index f05d8f153a2..7e29c17553c 100644
--- a/src/core/ext/filters/client_channel/lb_policy/xds/xds_cluster_resolver.cc
+++ b/src/core/ext/filters/client_channel/lb_policy/xds/xds_cluster_resolver.cc
@@ -215,26 +215,33 @@ class XdsClusterResolverLb : public LoadBalancingPolicy {
       ~EndpointWatcher() override {
         discovery_mechanism_.reset(DEBUG_LOCATION, "EndpointWatcher");
       }
-      void OnResourceChanged(
-          std::shared_ptr<const XdsEndpointResource> update) override {
+      void OnResourceChanged(std::shared_ptr<const XdsEndpointResource> update,
+                             RefCountedPtr<XdsClient::ReadDelayHandle>
+                                 read_delay_handle) override {
         discovery_mechanism_->parent()->work_serializer()->Run(
             [self = RefAsSubclass<EndpointWatcher>(),
-             update = std::move(update)]() mutable {
+             update = std::move(update),
+             read_delay_handle = std::move(read_delay_handle)]() mutable {
               self->OnResourceChangedHelper(std::move(update));
             },
             DEBUG_LOCATION);
       }
-      void OnError(absl::Status status) override {
+      void OnError(absl::Status status,
+                   RefCountedPtr<XdsClient::ReadDelayHandle> read_delay_handle)
+          override {
         discovery_mechanism_->parent()->work_serializer()->Run(
             [self = RefAsSubclass<EndpointWatcher>(),
-             status = std::move(status)]() mutable {
+             status = std::move(status),
+             read_delay_handle = std::move(read_delay_handle)]() mutable {
               self->OnErrorHelper(std::move(status));
             },
             DEBUG_LOCATION);
       }
-      void OnResourceDoesNotExist() override {
+      void OnResourceDoesNotExist(RefCountedPtr<XdsClient::ReadDelayHandle>
+                                      read_delay_handle) override {
         discovery_mechanism_->parent()->work_serializer()->Run(
-            [self = RefAsSubclass<EndpointWatcher>()]() {
+            [self = RefAsSubclass<EndpointWatcher>(),
+             read_delay_handle = std::move(read_delay_handle)]() {
               self->OnResourceDoesNotExistHelper();
             },
             DEBUG_LOCATION);
diff --git a/src/core/ext/filters/client_channel/resolver/xds/xds_resolver.cc b/src/core/ext/filters/client_channel/resolver/xds/xds_resolver.cc
index 80d14cf17fb..2ae4b1d2d3b 100644
--- a/src/core/ext/filters/client_channel/resolver/xds/xds_resolver.cc
+++ b/src/core/ext/filters/client_channel/resolver/xds/xds_resolver.cc
@@ -55,6 +55,7 @@
 #include "src/core/ext/filters/client_channel/lb_policy/ring_hash/ring_hash.h"
 #include "src/core/ext/xds/xds_bootstrap.h"
 #include "src/core/ext/xds/xds_bootstrap_grpc.h"
+#include "src/core/ext/xds/xds_client.h"
 #include "src/core/ext/xds/xds_client_grpc.h"
 #include "src/core/ext/xds/xds_http_filters.h"
 #include "src/core/ext/xds/xds_listener.h"
@@ -99,6 +100,8 @@ TraceFlag grpc_xds_resolver_trace(false, "xds_resolver");
 
 namespace {
 
+using ReadDelayHandle = XdsClient::ReadDelayHandle;
+
 //
 // XdsResolver
 //
@@ -141,26 +144,31 @@ class XdsResolver : public Resolver {
     explicit ListenerWatcher(RefCountedPtr<XdsResolver> resolver)
         : resolver_(std::move(resolver)) {}
     void OnResourceChanged(
-        std::shared_ptr<const XdsListenerResource> listener) override {
+        std::shared_ptr<const XdsListenerResource> listener,
+        RefCountedPtr<ReadDelayHandle> read_delay_handle) override {
       resolver_->work_serializer_->Run(
           [self = RefAsSubclass<ListenerWatcher>(),
-           listener = std::move(listener)]() mutable {
+           listener = std::move(listener),
+           read_delay_handle = std::move(read_delay_handle)]() mutable {
             self->resolver_->OnListenerUpdate(std::move(listener));
           },
           DEBUG_LOCATION);
     }
-    void OnError(absl::Status status) override {
+    void OnError(absl::Status status,
+                 RefCountedPtr<ReadDelayHandle> read_delay_handle) override {
       resolver_->work_serializer_->Run(
-          [self = RefAsSubclass<ListenerWatcher>(),
-           status = std::move(status)]() mutable {
+          [self = RefAsSubclass<ListenerWatcher>(), status = std::move(status),
+           read_delay_handle = std::move(read_delay_handle)]() mutable {
             self->resolver_->OnError(self->resolver_->lds_resource_name_,
                                      std::move(status));
           },
           DEBUG_LOCATION);
     }
-    void OnResourceDoesNotExist() override {
+    void OnResourceDoesNotExist(
+        RefCountedPtr<ReadDelayHandle> read_delay_handle) override {
       resolver_->work_serializer_->Run(
-          [self = RefAsSubclass<ListenerWatcher>()]() {
+          [self = RefAsSubclass<ListenerWatcher>(),
+           read_delay_handle = std::move(read_delay_handle)]() {
             self->resolver_->OnResourceDoesNotExist(
                 absl::StrCat(self->resolver_->lds_resource_name_,
                              ": xDS listener resource does not exist"));
@@ -178,28 +186,34 @@ class XdsResolver : public Resolver {
     explicit RouteConfigWatcher(RefCountedPtr<XdsResolver> resolver)
         : resolver_(std::move(resolver)) {}
     void OnResourceChanged(
-        std::shared_ptr<const XdsRouteConfigResource> route_config) override {
+        std::shared_ptr<const XdsRouteConfigResource> route_config,
+        RefCountedPtr<ReadDelayHandle> read_delay_handle) override {
       resolver_->work_serializer_->Run(
           [self = RefAsSubclass<RouteConfigWatcher>(),
-           route_config = std::move(route_config)]() mutable {
+           route_config = std::move(route_config),
+           read_delay_handle = std::move(read_delay_handle)]() mutable {
             if (self != self->resolver_->route_config_watcher_) return;
             self->resolver_->OnRouteConfigUpdate(std::move(route_config));
           },
           DEBUG_LOCATION);
     }
-    void OnError(absl::Status status) override {
+    void OnError(absl::Status status,
+                 RefCountedPtr<ReadDelayHandle> read_delay_handle) override {
       resolver_->work_serializer_->Run(
           [self = RefAsSubclass<RouteConfigWatcher>(),
-           status = std::move(status)]() mutable {
+           status = std::move(status),
+           read_delay_handle = std::move(read_delay_handle)]() mutable {
             if (self != self->resolver_->route_config_watcher_) return;
             self->resolver_->OnError(self->resolver_->route_config_name_,
                                      std::move(status));
           },
           DEBUG_LOCATION);
     }
-    void OnResourceDoesNotExist() override {
+    void OnResourceDoesNotExist(
+        RefCountedPtr<ReadDelayHandle> read_delay_handle) override {
       resolver_->work_serializer_->Run(
-          [self = RefAsSubclass<RouteConfigWatcher>()]() {
+          [self = RefAsSubclass<RouteConfigWatcher>(),
+           read_delay_handle = std::move(read_delay_handle)]() {
             if (self != self->resolver_->route_config_watcher_) return;
             self->resolver_->OnResourceDoesNotExist(absl::StrCat(
                 self->resolver_->route_config_name_,
diff --git a/src/core/ext/xds/xds_client.cc b/src/core/ext/xds/xds_client.cc
index e6399e98d1a..7b125b771d2 100644
--- a/src/core/ext/xds/xds_client.cc
+++ b/src/core/ext/xds/xds_client.cc
@@ -23,8 +23,10 @@
 
 #include <algorithm>
 #include <functional>
+#include <memory>
 #include <type_traits>
 
+#include "absl/cleanup/cleanup.h"
 #include "absl/strings/match.h"
 #include "absl/strings/str_cat.h"
 #include "absl/strings/str_join.h"
@@ -129,6 +131,16 @@ class XdsClient::ChannelState::AdsCallState
   bool HasSubscribedResources() const;
 
  private:
+  class AdsReadDelayHandle : public ReadDelayHandle {
+   public:
+    explicit AdsReadDelayHandle(RefCountedPtr<AdsCallState> ads_call_state)
+        : ads_call_state_(std::move(ads_call_state)) {}
+    ~AdsReadDelayHandle() override;
+
+   private:
+    RefCountedPtr<AdsCallState> ads_call_state_;
+  };
+
   class AdsResponseParser : public XdsApi::AdsResponseParserInterface {
    public:
     struct Result {
@@ -140,6 +152,7 @@ class XdsClient::ChannelState::AdsCallState
       std::map<std::string /*authority*/, std::set<XdsResourceKey>>
           resources_seen;
       bool have_valid_resources = false;
+      RefCountedPtr<ReadDelayHandle> read_delay_handle;
     };
 
     explicit AdsResponseParser(AdsCallState* ads_call_state)
@@ -259,7 +272,7 @@ class XdsClient::ChannelState::AdsCallState
         ResourceState& state = authority_state.resource_map[type_][name_.key];
         state.meta.client_status = XdsApi::ResourceMetadata::DOES_NOT_EXIST;
         ads_calld_->xds_client()->NotifyWatchersOnResourceDoesNotExist(
-            state.watchers);
+            state.watchers, ReadDelayHandle::NoWait());
       }
       ads_calld_->xds_client()->work_serializer_.DrainQueue();
       ads_calld_.reset();
@@ -588,7 +601,7 @@ void XdsClient::ChannelState::SetChannelStatusLocked(absl::Status status) {
       [watchers = std::move(watchers), status = std::move(status)]()
           ABSL_EXCLUSIVE_LOCKS_REQUIRED(xds_client_->work_serializer_) {
             for (const auto& watcher : watchers) {
-              watcher->OnError(status);
+              watcher->OnError(status, ReadDelayHandle::NoWait());
             }
           },
       DEBUG_LOCATION);
@@ -686,6 +699,20 @@ void XdsClient::ChannelState::RetryableCall<T>::OnRetryTimer() {
   }
 }
 
+//
+// XdsClient::ChannelState::AdsCallState::AdsReadDelayHandle
+//
+
+XdsClient::ChannelState::AdsCallState::AdsReadDelayHandle::
+    ~AdsReadDelayHandle() {
+  XdsClient* client = ads_call_state_->xds_client();
+  MutexLock lock(&client->mu_);
+  auto call = ads_call_state_->call_.get();
+  if (call != nullptr) {
+    call->StartRecvMessage();
+  }
+}
+
 //
 // XdsClient::ChannelState::AdsCallState::AdsResponseParser
 //
@@ -711,6 +738,8 @@ absl::Status XdsClient::ChannelState::AdsCallState::AdsResponseParser::
   result_.type_url = std::move(fields.type_url);
   result_.version = std::move(fields.version);
   result_.nonce = std::move(fields.nonce);
+  result_.read_delay_handle =
+      MakeRefCounted<AdsReadDelayHandle>(ads_call_state_->Ref());
   return absl::OkStatus();
 }
 
@@ -841,7 +870,8 @@ void XdsClient::ChannelState::AdsCallState::AdsResponseParser::ParseResource(
     xds_client()->NotifyWatchersOnErrorLocked(
         resource_state.watchers,
         absl::UnavailableError(
-            absl::StrCat("invalid resource: ", decode_status.ToString())));
+            absl::StrCat("invalid resource: ", decode_status.ToString())),
+        result_.read_delay_handle);
     UpdateResourceMetadataNacked(result_.version, decode_status.ToString(),
                                  update_time_, &resource_state.meta);
     return;
@@ -867,10 +897,11 @@ void XdsClient::ChannelState::AdsCallState::AdsResponseParser::ParseResource(
   // Notify watchers.
   auto& watchers_list = resource_state.watchers;
   xds_client()->work_serializer_.Schedule(
-      [watchers_list, value = resource_state.resource]()
+      [watchers_list, value = resource_state.resource,
+       read_delay_handle = result_.read_delay_handle]()
           ABSL_EXCLUSIVE_LOCKS_REQUIRED(&xds_client()->work_serializer_) {
             for (const auto& p : watchers_list) {
-              p.first->OnGenericResourceChanged(value);
+              p.first->OnGenericResourceChanged(value, read_delay_handle);
             }
           },
       DEBUG_LOCATION);
@@ -930,6 +961,7 @@ XdsClient::ChannelState::AdsCallState::AdsCallState(
   for (const auto& p : state_map_) {
     SendMessageLocked(p.first);
   }
+  call_->StartRecvMessage();
 }
 
 void XdsClient::ChannelState::AdsCallState::Orphan() {
@@ -1034,12 +1066,17 @@ void XdsClient::ChannelState::AdsCallState::OnRequestSent(bool ok) {
 
 void XdsClient::ChannelState::AdsCallState::OnRecvMessage(
     absl::string_view payload) {
+  // Needs to be destroyed after the mutex is released.
+  RefCountedPtr<ReadDelayHandle> read_delay_handle;
   {
     MutexLock lock(&xds_client()->mu_);
     if (!IsCurrentCallOnChannel()) return;
     // Parse and validate the response.
     AdsResponseParser parser(this);
     absl::Status status = xds_client()->api_.ParseAdsResponse(payload, &parser);
+    // This includes a handle that will trigger an ADS read.
+    AdsResponseParser::Result result = parser.TakeResult();
+    read_delay_handle = std::move(result.read_delay_handle);
     if (!status.ok()) {
       // Ignore unparsable response.
       gpr_log(GPR_ERROR,
@@ -1050,7 +1087,6 @@ void XdsClient::ChannelState::AdsCallState::OnRecvMessage(
     } else {
       seen_response_ = true;
       chand()->status_ = absl::OkStatus();
-      AdsResponseParser::Result result = parser.TakeResult();
       // Update nonce.
       auto& state = state_map_[result.type];
       state.nonce = result.nonce;
@@ -1110,7 +1146,7 @@ void XdsClient::ChannelState::AdsCallState::OnRecvMessage(
                 resource_state.meta.client_status =
                     XdsApi::ResourceMetadata::DOES_NOT_EXIST;
                 xds_client()->NotifyWatchersOnResourceDoesNotExist(
-                    resource_state.watchers);
+                    resource_state.watchers, read_delay_handle);
               }
             }
           }
@@ -1335,6 +1371,7 @@ XdsClient::ChannelState::LrsCallState::LrsCallState(
   std::string serialized_payload = xds_client()->api_.CreateLrsInitialRequest();
   call_->SendMessage(std::move(serialized_payload));
   send_message_pending_ = true;
+  call_->StartRecvMessage();
 }
 
 void XdsClient::ChannelState::LrsCallState::Orphan() {
@@ -1385,6 +1422,9 @@ void XdsClient::ChannelState::LrsCallState::OnRecvMessage(
   MutexLock lock(&xds_client()->mu_);
   // If we're no longer the current call, ignore the result.
   if (!IsCurrentCallOnChannel()) return;
+  // Start recv after any code branch
+  auto cleanup =
+      absl::MakeCleanup([call = call_.get()]() { call->StartRecvMessage(); });
   // Parse the response.
   bool send_all_clusters = false;
   std::set<std::string> new_cluster_names;
@@ -1555,7 +1595,7 @@ void XdsClient::WatchResource(const XdsResourceType* type,
     work_serializer_.Run(
         [watcher = std::move(watcher), status = std::move(status)]()
             ABSL_EXCLUSIVE_LOCKS_REQUIRED(&work_serializer_) {
-              watcher->OnError(status);
+              watcher->OnError(status, ReadDelayHandle::NoWait());
             },
         DEBUG_LOCATION);
   };
@@ -1606,7 +1646,8 @@ void XdsClient::WatchResource(const XdsResourceType* type,
       work_serializer_.Schedule(
           [watcher, value = resource_state.resource]()
               ABSL_EXCLUSIVE_LOCKS_REQUIRED(&work_serializer_) {
-                watcher->OnGenericResourceChanged(value);
+                watcher->OnGenericResourceChanged(value,
+                                                  ReadDelayHandle::NoWait());
               },
           DEBUG_LOCATION);
     } else if (resource_state.meta.client_status ==
@@ -1618,7 +1659,7 @@ void XdsClient::WatchResource(const XdsResourceType* type,
       }
       work_serializer_.Schedule(
           [watcher]() ABSL_EXCLUSIVE_LOCKS_REQUIRED(&work_serializer_) {
-            watcher->OnResourceDoesNotExist();
+            watcher->OnResourceDoesNotExist(ReadDelayHandle::NoWait());
           },
           DEBUG_LOCATION);
     } else if (resource_state.meta.client_status ==
@@ -1638,8 +1679,9 @@ void XdsClient::WatchResource(const XdsResourceType* type,
       work_serializer_.Schedule(
           [watcher, details = std::move(details)]()
               ABSL_EXCLUSIVE_LOCKS_REQUIRED(&work_serializer_) {
-                watcher->OnError(absl::UnavailableError(
-                    absl::StrCat("invalid resource: ", details)));
+                watcher->OnError(absl::UnavailableError(absl::StrCat(
+                                     "invalid resource: ", details)),
+                                 ReadDelayHandle::NoWait());
               },
           DEBUG_LOCATION);
     }
@@ -1660,7 +1702,7 @@ void XdsClient::WatchResource(const XdsResourceType* type,
       work_serializer_.Schedule(
           [watcher = std::move(watcher), status = std::move(channel_status)]()
               ABSL_EXCLUSIVE_LOCKS_REQUIRED(&work_serializer_) mutable {
-                watcher->OnError(std::move(status));
+                watcher->OnError(std::move(status), ReadDelayHandle::NoWait());
               },
           DEBUG_LOCATION);
     }
@@ -1927,7 +1969,7 @@ void XdsClient::ResetBackoff() {
 void XdsClient::NotifyWatchersOnErrorLocked(
     const std::map<ResourceWatcherInterface*,
                    RefCountedPtr<ResourceWatcherInterface>>& watchers,
-    absl::Status status) {
+    absl::Status status, RefCountedPtr<ReadDelayHandle> read_delay_handle) {
   const auto* node = bootstrap_->node();
   if (node != nullptr) {
     status = absl::Status(
@@ -1935,10 +1977,11 @@ void XdsClient::NotifyWatchersOnErrorLocked(
         absl::StrCat(status.message(), " (node ID:", node->id(), ")"));
   }
   work_serializer_.Schedule(
-      [watchers, status = std::move(status)]()
+      [watchers, status = std::move(status),
+       read_delay_handle = std::move(read_delay_handle)]()
           ABSL_EXCLUSIVE_LOCKS_REQUIRED(&work_serializer_) {
             for (const auto& p : watchers) {
-              p.first->OnError(status);
+              p.first->OnError(status, read_delay_handle);
             }
           },
       DEBUG_LOCATION);
@@ -1946,13 +1989,15 @@ void XdsClient::NotifyWatchersOnErrorLocked(
 
 void XdsClient::NotifyWatchersOnResourceDoesNotExist(
     const std::map<ResourceWatcherInterface*,
-                   RefCountedPtr<ResourceWatcherInterface>>& watchers) {
+                   RefCountedPtr<ResourceWatcherInterface>>& watchers,
+    RefCountedPtr<ReadDelayHandle> read_delay_handle) {
   work_serializer_.Schedule(
-      [watchers]() ABSL_EXCLUSIVE_LOCKS_REQUIRED(&work_serializer_) {
-        for (const auto& p : watchers) {
-          p.first->OnResourceDoesNotExist();
-        }
-      },
+      [watchers, read_delay_handle = std::move(read_delay_handle)]()
+          ABSL_EXCLUSIVE_LOCKS_REQUIRED(&work_serializer_) {
+            for (const auto& p : watchers) {
+              p.first->OnResourceDoesNotExist(read_delay_handle);
+            }
+          },
       DEBUG_LOCATION);
 }
 
diff --git a/src/core/ext/xds/xds_client.h b/src/core/ext/xds/xds_client.h
index 0831c3c768a..779198c581e 100644
--- a/src/core/ext/xds/xds_client.h
+++ b/src/core/ext/xds/xds_client.h
@@ -56,6 +56,11 @@ extern TraceFlag grpc_xds_client_refcount_trace;
 
 class XdsClient : public DualRefCounted<XdsClient> {
  public:
+  class ReadDelayHandle : public RefCounted<ReadDelayHandle> {
+   public:
+    static RefCountedPtr<ReadDelayHandle> NoWait() { return nullptr; }
+  };
+
   // Resource watcher interface.  Implemented by callers.
   // Note: Most callers will not use this API directly but rather via a
   // resource-type-specific wrapper API provided by the relevant
@@ -63,11 +68,14 @@ class XdsClient : public DualRefCounted<XdsClient> {
   class ResourceWatcherInterface : public RefCounted<ResourceWatcherInterface> {
    public:
     virtual void OnGenericResourceChanged(
-        std::shared_ptr<const XdsResourceType::ResourceData> resource)
+        std::shared_ptr<const XdsResourceType::ResourceData> resource,
+        RefCountedPtr<ReadDelayHandle> read_delay_handle)
         ABSL_EXCLUSIVE_LOCKS_REQUIRED(&work_serializer_) = 0;
-    virtual void OnError(absl::Status status)
+    virtual void OnError(absl::Status status,
+                         RefCountedPtr<ReadDelayHandle> read_delay_handle)
         ABSL_EXCLUSIVE_LOCKS_REQUIRED(&work_serializer_) = 0;
-    virtual void OnResourceDoesNotExist()
+    virtual void OnResourceDoesNotExist(
+        RefCountedPtr<ReadDelayHandle> read_delay_handle)
         ABSL_EXCLUSIVE_LOCKS_REQUIRED(&work_serializer_) = 0;
   };
 
@@ -277,11 +285,12 @@ class XdsClient : public DualRefCounted<XdsClient> {
   void NotifyWatchersOnErrorLocked(
       const std::map<ResourceWatcherInterface*,
                      RefCountedPtr<ResourceWatcherInterface>>& watchers,
-      absl::Status status);
+      absl::Status status, RefCountedPtr<ReadDelayHandle> read_delay_handle);
   // Sends a resource-does-not-exist notification to a specific set of watchers.
   void NotifyWatchersOnResourceDoesNotExist(
       const std::map<ResourceWatcherInterface*,
-                     RefCountedPtr<ResourceWatcherInterface>>& watchers);
+                     RefCountedPtr<ResourceWatcherInterface>>& watchers,
+      RefCountedPtr<ReadDelayHandle> read_delay_handle);
 
   void MaybeRegisterResourceTypeLocked(const XdsResourceType* resource_type)
       ABSL_EXCLUSIVE_LOCKS_REQUIRED(mu_);
diff --git a/src/core/ext/xds/xds_resource_type_impl.h b/src/core/ext/xds/xds_resource_type_impl.h
index 35dfbbfcb4c..ed3d2d6387b 100644
--- a/src/core/ext/xds/xds_resource_type_impl.h
+++ b/src/core/ext/xds/xds_resource_type_impl.h
@@ -42,16 +42,18 @@ class XdsResourceTypeImpl : public XdsResourceType {
   class WatcherInterface : public XdsClient::ResourceWatcherInterface {
    public:
     virtual void OnResourceChanged(
-        std::shared_ptr<const ResourceType> resource) = 0;
+        std::shared_ptr<const ResourceType> resource,
+        RefCountedPtr<XdsClient::ReadDelayHandle> read_delay_handle) = 0;
 
    private:
     // Get result from XdsClient generic watcher interface, perform
     // down-casting, and invoke the caller's OnResourceChanged() method.
     void OnGenericResourceChanged(
-        std::shared_ptr<const XdsResourceType::ResourceData> resource)
-        override {
+        std::shared_ptr<const XdsResourceType::ResourceData> resource,
+        RefCountedPtr<XdsClient::ReadDelayHandle> read_delay_handle) override {
       OnResourceChanged(
-          std::static_pointer_cast<const ResourceType>(std::move(resource)));
+          std::static_pointer_cast<const ResourceType>(std::move(resource)),
+          std::move(read_delay_handle));
     }
   };
 
diff --git a/src/core/ext/xds/xds_server_config_fetcher.cc b/src/core/ext/xds/xds_server_config_fetcher.cc
index ee85f0a7d4c..1c6373f4dfa 100644
--- a/src/core/ext/xds/xds_server_config_fetcher.cc
+++ b/src/core/ext/xds/xds_server_config_fetcher.cc
@@ -52,6 +52,7 @@
 #include "src/core/ext/xds/xds_bootstrap_grpc.h"
 #include "src/core/ext/xds/xds_certificate_provider.h"
 #include "src/core/ext/xds/xds_channel_stack_modifier.h"
+#include "src/core/ext/xds/xds_client.h"
 #include "src/core/ext/xds/xds_client_grpc.h"
 #include "src/core/ext/xds/xds_common_types.h"
 #include "src/core/ext/xds/xds_http_filters.h"
@@ -91,6 +92,8 @@
 namespace grpc_core {
 namespace {
 
+using ReadDelayHandle = XdsClient::ReadDelayHandle;
+
 TraceFlag grpc_xds_server_config_fetcher_trace(false,
                                                "xds_server_config_fetcher");
 
@@ -151,11 +154,14 @@ class XdsServerConfigFetcher::ListenerWatcher
   }
 
   void OnResourceChanged(
-      std::shared_ptr<const XdsListenerResource> listener) override;
+      std::shared_ptr<const XdsListenerResource> listener,
+      RefCountedPtr<ReadDelayHandle> read_delay_handle) override;
 
-  void OnError(absl::Status status) override;
+  void OnError(absl::Status status,
+               RefCountedPtr<ReadDelayHandle> read_delay_handle) override;
 
-  void OnResourceDoesNotExist() override;
+  void OnResourceDoesNotExist(
+      RefCountedPtr<ReadDelayHandle> read_delay_handle) override;
 
   const std::string& listening_address() const { return listening_address_; }
 
@@ -292,16 +298,20 @@ class XdsServerConfigFetcher::ListenerWatcher::FilterChainMatchManager::
         filter_chain_match_manager_(std::move(filter_chain_match_manager)) {}
 
   void OnResourceChanged(
-      std::shared_ptr<const XdsRouteConfigResource> route_config) override {
+      std::shared_ptr<const XdsRouteConfigResource> route_config,
+      RefCountedPtr<ReadDelayHandle> /* read_delay_handle */) override {
     filter_chain_match_manager_->OnRouteConfigChanged(resource_name_,
                                                       std::move(route_config));
   }
 
-  void OnError(absl::Status status) override {
+  void OnError(
+      absl::Status status,
+      RefCountedPtr<ReadDelayHandle> /* read_delay_handle */) override {
     filter_chain_match_manager_->OnError(resource_name_, status);
   }
 
-  void OnResourceDoesNotExist() override {
+  void OnResourceDoesNotExist(
+      RefCountedPtr<ReadDelayHandle> /* read_delay_handle */) override {
     filter_chain_match_manager_->OnResourceDoesNotExist(resource_name_);
   }
 
@@ -488,13 +498,21 @@ class XdsServerConfigFetcher::ListenerWatcher::FilterChainMatchManager::
       : parent_(std::move(parent)) {}
 
   void OnResourceChanged(
-      std::shared_ptr<const XdsRouteConfigResource> route_config) override {
+      std::shared_ptr<const XdsRouteConfigResource> route_config,
+      RefCountedPtr<ReadDelayHandle> /* read_delay_handle */) override {
     parent_->OnRouteConfigChanged(std::move(route_config));
   }
 
-  void OnError(absl::Status status) override { parent_->OnError(status); }
+  void OnError(
+      absl::Status status,
+      RefCountedPtr<ReadDelayHandle> /* read_delay_handle */) override {
+    parent_->OnError(status);
+  }
 
-  void OnResourceDoesNotExist() override { parent_->OnResourceDoesNotExist(); }
+  void OnResourceDoesNotExist(
+      RefCountedPtr<ReadDelayHandle> /* read_delay_handle */) override {
+    parent_->OnResourceDoesNotExist();
+  }
 
  private:
   WeakRefCountedPtr<DynamicXdsServerConfigSelectorProvider> parent_;
@@ -574,7 +592,8 @@ XdsServerConfigFetcher::ListenerWatcher::ListenerWatcher(
       listening_address_(std::move(listening_address)) {}
 
 void XdsServerConfigFetcher::ListenerWatcher::OnResourceChanged(
-    std::shared_ptr<const XdsListenerResource> listener) {
+    std::shared_ptr<const XdsListenerResource> listener,
+    RefCountedPtr<ReadDelayHandle> /* read_delay_handle */) {
   if (GRPC_TRACE_FLAG_ENABLED(grpc_xds_server_config_fetcher_trace)) {
     gpr_log(GPR_INFO,
             "[ListenerWatcher %p] Received LDS update from xds client %p: %s",
@@ -610,7 +629,9 @@ void XdsServerConfigFetcher::ListenerWatcher::OnResourceChanged(
   }
 }
 
-void XdsServerConfigFetcher::ListenerWatcher::OnError(absl::Status status) {
+void XdsServerConfigFetcher::ListenerWatcher::OnError(
+    absl::Status status,
+    RefCountedPtr<ReadDelayHandle> /* read_delay_handle */) {
   MutexLock lock(&mu_);
   if (filter_chain_match_manager_ != nullptr ||
       pending_filter_chain_match_manager_ != nullptr) {
@@ -653,7 +674,8 @@ void XdsServerConfigFetcher::ListenerWatcher::OnFatalError(
   }
 }
 
-void XdsServerConfigFetcher::ListenerWatcher::OnResourceDoesNotExist() {
+void XdsServerConfigFetcher::ListenerWatcher::OnResourceDoesNotExist(
+    RefCountedPtr<ReadDelayHandle> /* read_delay_handle */) {
   MutexLock lock(&mu_);
   OnFatalError(absl::NotFoundError("Requested listener does not exist"));
 }
diff --git a/src/core/ext/xds/xds_transport.h b/src/core/ext/xds/xds_transport.h
index 40be0fb1e63..66155475903 100644
--- a/src/core/ext/xds/xds_transport.h
+++ b/src/core/ext/xds/xds_transport.h
@@ -58,6 +58,9 @@ class XdsTransportFactory : public InternallyRefCounted<XdsTransportFactory> {
       // Only one message will be in flight at a time; subsequent
       // messages will not be sent until this one is done.
       virtual void SendMessage(std::string payload) = 0;
+
+      // Starts a recv_message operation on the stream.
+      virtual void StartRecvMessage() = 0;
     };
 
     // Create a streaming call on this transport for the specified method.
diff --git a/src/core/ext/xds/xds_transport_grpc.cc b/src/core/ext/xds/xds_transport_grpc.cc
index d2142c91396..1deff78f2a3 100644
--- a/src/core/ext/xds/xds_transport_grpc.cc
+++ b/src/core/ext/xds/xds_transport_grpc.cc
@@ -86,39 +86,31 @@ GrpcXdsTransportFactory::GrpcXdsTransport::GrpcStreamingCall::GrpcStreamingCall(
   GRPC_CLOSURE_INIT(&on_request_sent_, OnRequestSent, this, nullptr);
   // Start ops on the call.
   grpc_call_error call_error;
-  grpc_op ops[3];
+  grpc_op ops[2];
   memset(ops, 0, sizeof(ops));
-  // Send initial metadata.  No callback for this, since we don't really
-  // care when it finishes.
+  // Send initial metadata.
   grpc_op* op = ops;
   op->op = GRPC_OP_SEND_INITIAL_METADATA;
   op->data.send_initial_metadata.count = 0;
   op->flags = GRPC_INITIAL_METADATA_WAIT_FOR_READY |
               GRPC_INITIAL_METADATA_WAIT_FOR_READY_EXPLICITLY_SET;
   op->reserved = nullptr;
-  op++;
-  call_error = grpc_call_start_batch_and_execute(
-      call_, ops, static_cast<size_t>(op - ops), nullptr);
-  GPR_ASSERT(GRPC_CALL_OK == call_error);
-  // Start a batch with recv_initial_metadata and recv_message.
-  op = ops;
+  ++op;
   op->op = GRPC_OP_RECV_INITIAL_METADATA;
   op->data.recv_initial_metadata.recv_initial_metadata =
       &initial_metadata_recv_;
   op->flags = 0;
   op->reserved = nullptr;
-  op++;
-  op->op = GRPC_OP_RECV_MESSAGE;
-  op->data.recv_message.recv_message = &recv_message_payload_;
-  op->flags = 0;
-  op->reserved = nullptr;
-  op++;
-  Ref(DEBUG_LOCATION, "OnResponseReceived").release();
-  GRPC_CLOSURE_INIT(&on_response_received_, OnResponseReceived, this, nullptr);
+  ++op;
+  // Ref will be released in the callback
+  GRPC_CLOSURE_INIT(
+      &on_recv_initial_metadata_, OnRecvInitialMetadata,
+      this->Ref(DEBUG_LOCATION, "OnRecvInitialMetadata").release(), nullptr);
   call_error = grpc_call_start_batch_and_execute(
-      call_, ops, static_cast<size_t>(op - ops), &on_response_received_);
+      call_, ops, static_cast<size_t>(op - ops), &on_recv_initial_metadata_);
   GPR_ASSERT(GRPC_CALL_OK == call_error);
   // Start a batch for recv_trailing_metadata.
+  memset(ops, 0, sizeof(ops));
   op = ops;
   op->op = GRPC_OP_RECV_STATUS_ON_CLIENT;
   op->data.recv_status_on_client.trailing_metadata = &trailing_metadata_recv_;
@@ -126,7 +118,7 @@ GrpcXdsTransportFactory::GrpcXdsTransport::GrpcStreamingCall::GrpcStreamingCall(
   op->data.recv_status_on_client.status_details = &status_details_;
   op->flags = 0;
   op->reserved = nullptr;
-  op++;
+  ++op;
   // This callback signals the end of the call, so it relies on the initial
   // ref instead of a new ref. When it's invoked, it's the initial ref that is
   // unreffed.
@@ -134,11 +126,11 @@ GrpcXdsTransportFactory::GrpcXdsTransport::GrpcStreamingCall::GrpcStreamingCall(
   call_error = grpc_call_start_batch_and_execute(
       call_, ops, static_cast<size_t>(op - ops), &on_status_received_);
   GPR_ASSERT(GRPC_CALL_OK == call_error);
+  GRPC_CLOSURE_INIT(&on_response_received_, OnResponseReceived, this, nullptr);
 }
 
 GrpcXdsTransportFactory::GrpcXdsTransport::GrpcStreamingCall::
     ~GrpcStreamingCall() {
-  grpc_metadata_array_destroy(&initial_metadata_recv_);
   grpc_metadata_array_destroy(&trailing_metadata_recv_);
   grpc_byte_buffer_destroy(send_message_payload_);
   grpc_byte_buffer_destroy(recv_message_payload_);
@@ -175,55 +167,59 @@ void GrpcXdsTransportFactory::GrpcXdsTransport::GrpcStreamingCall::SendMessage(
   GPR_ASSERT(GRPC_CALL_OK == call_error);
 }
 
+void GrpcXdsTransportFactory::GrpcXdsTransport::GrpcStreamingCall::
+    StartRecvMessage() {
+  Ref(DEBUG_LOCATION, "StartRecvMessage").release();
+  grpc_op op;
+  memset(&op, 0, sizeof(op));
+  op.op = GRPC_OP_RECV_MESSAGE;
+  op.data.recv_message.recv_message = &recv_message_payload_;
+  GPR_ASSERT(call_ != nullptr);
+  const grpc_call_error call_error =
+      grpc_call_start_batch_and_execute(call_, &op, 1, &on_response_received_);
+  GPR_ASSERT(GRPC_CALL_OK == call_error);
+}
+
+void GrpcXdsTransportFactory::GrpcXdsTransport::GrpcStreamingCall::
+    OnRecvInitialMetadata(void* arg, grpc_error_handle /*error*/) {
+  RefCountedPtr<GrpcStreamingCall> self(static_cast<GrpcStreamingCall*>(arg));
+  grpc_metadata_array_destroy(&self->initial_metadata_recv_);
+}
+
 void GrpcXdsTransportFactory::GrpcXdsTransport::GrpcStreamingCall::
     OnRequestSent(void* arg, grpc_error_handle error) {
-  auto* self = static_cast<GrpcStreamingCall*>(arg);
+  RefCountedPtr<GrpcStreamingCall> self(static_cast<GrpcStreamingCall*>(arg));
   // Clean up the sent message.
   grpc_byte_buffer_destroy(self->send_message_payload_);
   self->send_message_payload_ = nullptr;
   // Invoke request handler.
   self->event_handler_->OnRequestSent(error.ok());
-  // Drop the ref.
-  self->Unref(DEBUG_LOCATION, "OnRequestSent");
 }
 
 void GrpcXdsTransportFactory::GrpcXdsTransport::GrpcStreamingCall::
     OnResponseReceived(void* arg, grpc_error_handle /*error*/) {
-  auto* self = static_cast<GrpcStreamingCall*>(arg);
+  RefCountedPtr<GrpcStreamingCall> self(static_cast<GrpcStreamingCall*>(arg));
   // If there was no payload, then we received status before we received
   // another message, so we stop reading.
-  if (self->recv_message_payload_ == nullptr) {
-    self->Unref(DEBUG_LOCATION, "OnResponseReceived");
-    return;
+  if (self->recv_message_payload_ != nullptr) {
+    // Process the response.
+    grpc_byte_buffer_reader bbr;
+    grpc_byte_buffer_reader_init(&bbr, self->recv_message_payload_);
+    grpc_slice response_slice = grpc_byte_buffer_reader_readall(&bbr);
+    grpc_byte_buffer_reader_destroy(&bbr);
+    grpc_byte_buffer_destroy(self->recv_message_payload_);
+    self->recv_message_payload_ = nullptr;
+    self->event_handler_->OnRecvMessage(StringViewFromSlice(response_slice));
+    CSliceUnref(response_slice);
   }
-  // Process the response.
-  grpc_byte_buffer_reader bbr;
-  grpc_byte_buffer_reader_init(&bbr, self->recv_message_payload_);
-  grpc_slice response_slice = grpc_byte_buffer_reader_readall(&bbr);
-  grpc_byte_buffer_reader_destroy(&bbr);
-  grpc_byte_buffer_destroy(self->recv_message_payload_);
-  self->recv_message_payload_ = nullptr;
-  self->event_handler_->OnRecvMessage(StringViewFromSlice(response_slice));
-  CSliceUnref(response_slice);
-  // Keep reading.
-  grpc_op op;
-  memset(&op, 0, sizeof(op));
-  op.op = GRPC_OP_RECV_MESSAGE;
-  op.data.recv_message.recv_message = &self->recv_message_payload_;
-  GPR_ASSERT(self->call_ != nullptr);
-  // Reuses the "OnResponseReceived" ref taken in ctor.
-  const grpc_call_error call_error = grpc_call_start_batch_and_execute(
-      self->call_, &op, 1, &self->on_response_received_);
-  GPR_ASSERT(GRPC_CALL_OK == call_error);
 }
 
 void GrpcXdsTransportFactory::GrpcXdsTransport::GrpcStreamingCall::
     OnStatusReceived(void* arg, grpc_error_handle /*error*/) {
-  auto* self = static_cast<GrpcStreamingCall*>(arg);
+  RefCountedPtr<GrpcStreamingCall> self(static_cast<GrpcStreamingCall*>(arg));
   self->event_handler_->OnStatusReceived(
       absl::Status(static_cast<absl::StatusCode>(self->status_code_),
                    StringViewFromSlice(self->status_details_)));
-  self->Unref(DEBUG_LOCATION, "OnStatusReceived");
 }
 
 //
diff --git a/src/core/ext/xds/xds_transport_grpc.h b/src/core/ext/xds/xds_transport_grpc.h
index f9e29fc0e4c..a4d25ff75c9 100644
--- a/src/core/ext/xds/xds_transport_grpc.h
+++ b/src/core/ext/xds/xds_transport_grpc.h
@@ -100,7 +100,10 @@ class GrpcXdsTransportFactory::GrpcXdsTransport::GrpcStreamingCall
 
   void SendMessage(std::string payload) override;
 
+  void StartRecvMessage() override;
+
  private:
+  static void OnRecvInitialMetadata(void* arg, grpc_error_handle /*error*/);
   static void OnRequestSent(void* arg, grpc_error_handle error);
   static void OnResponseReceived(void* arg, grpc_error_handle /*error*/);
   static void OnStatusReceived(void* arg, grpc_error_handle /*error*/);
@@ -114,6 +117,7 @@ class GrpcXdsTransportFactory::GrpcXdsTransport::GrpcStreamingCall
 
   // recv_initial_metadata
   grpc_metadata_array initial_metadata_recv_;
+  grpc_closure on_recv_initial_metadata_;
 
   // send_message
   grpc_byte_buffer* send_message_payload_ = nullptr;
diff --git a/test/core/xds/xds_client_fuzzer.cc b/test/core/xds/xds_client_fuzzer.cc
index be166400f49..0e7459c9abe 100644
--- a/test/core/xds/xds_client_fuzzer.cc
+++ b/test/core/xds/xds_client_fuzzer.cc
@@ -57,7 +57,8 @@ class Fuzzer {
       // Leave xds_client_ unset, so Act() will be a no-op.
       return;
     }
-    auto transport_factory = MakeOrphanable<FakeXdsTransportFactory>();
+    auto transport_factory = MakeOrphanable<FakeXdsTransportFactory>(
+        []() { Crash("Multiple concurrent reads"); });
     transport_factory->SetAutoCompleteMessagesFromClient(false);
     transport_factory->SetAbortOnUndrainedMessages(false);
     transport_factory_ = transport_factory.get();
@@ -147,20 +148,26 @@ class Fuzzer {
         : resource_name_(std::move(resource_name)) {}
 
     void OnResourceChanged(
-        std::shared_ptr<const typename ResourceType::ResourceType> resource)
+        std::shared_ptr<const typename ResourceType::ResourceType> resource,
+        RefCountedPtr<XdsClient::ReadDelayHandle> /* read_delay_handle */)
         override {
       gpr_log(GPR_INFO, "==> OnResourceChanged(%s %s): %s",
               std::string(ResourceType::Get()->type_url()).c_str(),
               resource_name_.c_str(), resource->ToString().c_str());
     }
 
-    void OnError(absl::Status status) override {
+    void OnError(
+        absl::Status status,
+        RefCountedPtr<XdsClient::ReadDelayHandle> /* read_delay_handle */)
+        override {
       gpr_log(GPR_INFO, "==> OnError(%s %s): %s",
               std::string(ResourceType::Get()->type_url()).c_str(),
               resource_name_.c_str(), status.ToString().c_str());
     }
 
-    void OnResourceDoesNotExist() override {
+    void OnResourceDoesNotExist(
+        RefCountedPtr<XdsClient::ReadDelayHandle> /* read_delay_handle */)
+        override {
       gpr_log(GPR_INFO, "==> OnResourceDoesNotExist(%s %s)",
               std::string(ResourceType::Get()->type_url()).c_str(),
               resource_name_.c_str());
diff --git a/test/core/xds/xds_client_test.cc b/test/core/xds/xds_client_test.cc
index 729ebc1c38a..14f2ffdc9e6 100644
--- a/test/core/xds/xds_client_test.cc
+++ b/test/core/xds/xds_client_test.cc
@@ -235,6 +235,11 @@ class XdsClientTest : public ::testing::Test {
             XdsTestResourceType<ResourceStruct, all_resources_required_in_sotw>,
             ResourceStruct> {
    public:
+    struct ResourceAndReadDelayHandle {
+      std::shared_ptr<const ResourceStruct> resource;
+      RefCountedPtr<XdsClient::ReadDelayHandle> read_delay_handle;
+    };
+
     // A watcher implementation that queues delivered watches.
     class Watcher : public XdsResourceTypeImpl<
                         XdsTestResourceType<ResourceStruct,
@@ -252,28 +257,37 @@ class XdsClientTest : public ::testing::Test {
         return !queue_.empty();
       }
 
-      std::shared_ptr<const ResourceStruct> WaitForNextResource(
+      absl::optional<ResourceAndReadDelayHandle> WaitForNextResourceAndHandle(
           absl::Duration timeout = absl::Seconds(1),
           SourceLocation location = SourceLocation()) {
         MutexLock lock(&mu_);
-        if (!WaitForEventLocked(timeout)) return nullptr;
+        if (!WaitForEventLocked(timeout)) return absl::nullopt;
         Event& event = queue_.front();
-        if (!absl::holds_alternative<std::shared_ptr<const ResourceStruct>>(
-                event)) {
+        if (!absl::holds_alternative<ResourceAndReadDelayHandle>(event)) {
           EXPECT_TRUE(false)
               << "got unexpected event "
               << (absl::holds_alternative<absl::Status>(event)
                       ? "error"
                       : "does-not-exist")
               << " at " << location.file() << ":" << location.line();
-          return nullptr;
+          return absl::nullopt;
         }
-        auto foo =
-            std::move(absl::get<std::shared_ptr<const ResourceStruct>>(event));
+        auto foo = std::move(absl::get<ResourceAndReadDelayHandle>(event));
         queue_.pop_front();
         return foo;
       }
 
+      std::shared_ptr<const ResourceStruct> WaitForNextResource(
+          absl::Duration timeout = absl::Seconds(1),
+          SourceLocation location = SourceLocation()) {
+        auto resource_and_handle =
+            WaitForNextResourceAndHandle(timeout, location);
+        if (!resource_and_handle.has_value()) {
+          return nullptr;
+        }
+        return std::move(resource_and_handle->resource);
+      }
+
       absl::optional<absl::Status> WaitForNextError(
           absl::Duration timeout = absl::Seconds(1),
           SourceLocation location = SourceLocation()) {
@@ -283,8 +297,7 @@ class XdsClientTest : public ::testing::Test {
         if (!absl::holds_alternative<absl::Status>(event)) {
           EXPECT_TRUE(false)
               << "got unexpected event "
-              << (absl::holds_alternative<
-                      std::shared_ptr<const ResourceStruct>>(event)
+              << (absl::holds_alternative<ResourceAndReadDelayHandle>(event)
                       ? "resource"
                       : "does-not-exist")
               << " at " << location.file() << ":" << location.line();
@@ -314,21 +327,31 @@ class XdsClientTest : public ::testing::Test {
 
      private:
       struct DoesNotExist {};
-      using Event = absl::variant<std::shared_ptr<const ResourceStruct>,
-                                  absl::Status, DoesNotExist>;
+      using Event =
+          absl::variant<ResourceAndReadDelayHandle, absl::Status, DoesNotExist>;
 
-      void OnResourceChanged(
-          std::shared_ptr<const ResourceStruct> foo) override {
+      void OnResourceChanged(std::shared_ptr<const ResourceStruct> foo,
+                             RefCountedPtr<XdsClient::ReadDelayHandle>
+                                 read_delay_handle) override {
         MutexLock lock(&mu_);
-        queue_.push_back(std::move(foo));
+        ResourceAndReadDelayHandle event_details = {
+            std::move(foo), std::move(read_delay_handle)};
+        queue_.emplace_back(std::move(event_details));
         cv_.Signal();
       }
-      void OnError(absl::Status status) override {
+
+      void OnError(
+          absl::Status status,
+          RefCountedPtr<XdsClient::ReadDelayHandle> /* read_delay_handle */)
+          override {
         MutexLock lock(&mu_);
         queue_.push_back(std::move(status));
         cv_.Signal();
       }
-      void OnResourceDoesNotExist() override {
+
+      void OnResourceDoesNotExist(
+          RefCountedPtr<XdsClient::ReadDelayHandle> /* read_delay_handle */)
+          override {
         MutexLock lock(&mu_);
         queue_.push_back(DoesNotExist());
         cv_.Signal();
@@ -577,7 +600,8 @@ class XdsClientTest : public ::testing::Test {
   void InitXdsClient(
       FakeXdsBootstrap::Builder bootstrap_builder = FakeXdsBootstrap::Builder(),
       Duration resource_request_timeout = Duration::Seconds(15)) {
-    auto transport_factory = MakeOrphanable<FakeXdsTransportFactory>();
+    auto transport_factory = MakeOrphanable<FakeXdsTransportFactory>(
+        []() { FAIL() << "Multiple concurrent reads"; });
     transport_factory_ =
         transport_factory->Ref().TakeAsSubclass<FakeXdsTransportFactory>();
     xds_client_ = MakeRefCounted<XdsClient>(
@@ -671,8 +695,9 @@ class XdsClientTest : public ::testing::Test {
   // Helper function to check the fields of a DiscoveryRequest.
   void CheckRequest(const DiscoveryRequest& request, absl::string_view type_url,
                     absl::string_view version_info,
-                    absl::string_view response_nonce, absl::Status error_detail,
-                    std::set<absl::string_view> resource_names,
+                    absl::string_view response_nonce,
+                    const absl::Status& error_detail,
+                    const std::set<absl::string_view>& resource_names,
                     SourceLocation location = SourceLocation()) {
     EXPECT_EQ(request.type_url(),
               absl::StrCat("type.googleapis.com/", type_url))
@@ -2695,6 +2720,91 @@ TEST_F(XdsClientTest, FederationChannelFailureReportedToWatchers) {
   EXPECT_TRUE(stream2->Orphaned());
 }
 
+TEST_F(XdsClientTest, AdsReadWaitsForHandleRelease) {
+  InitXdsClient();
+  // Start watches for "foo1" and "foo2".
+  auto watcher1 = StartFooWatch("foo1");
+  // XdsClient should have created an ADS stream.
+  auto stream = WaitForAdsStream();
+  ASSERT_TRUE(stream != nullptr);
+  // XdsClient should have sent a subscription request on the ADS stream.
+  auto request = WaitForRequest(stream.get());
+  ASSERT_TRUE(request.has_value());
+  CheckRequest(*request, XdsFooResourceType::Get()->type_url(),
+               /*version_info=*/"", /*response_nonce=*/"",
+               /*error_detail=*/absl::OkStatus(),
+               /*resource_names=*/{"foo1"});
+  auto watcher2 = StartFooWatch("foo2");
+  request = WaitForRequest(stream.get());
+  ASSERT_TRUE(request.has_value());
+  CheckRequest(*request, XdsFooResourceType::Get()->type_url(),
+               /*version_info=*/"", /*response_nonce=*/"",
+               /*error_detail=*/absl::OkStatus(),
+               /*resource_names=*/{"foo1", "foo2"});
+  // Send a response with 2 resources.
+  stream->SendMessageToClient(
+      ResponseBuilder(XdsFooResourceType::Get()->type_url())
+          .set_version_info("1")
+          .set_nonce("A")
+          .AddFooResource(XdsFooResource("foo1", 6))
+          .AddFooResource(XdsFooResource("foo2", 10))
+          .Serialize());
+  // Send a response with a single resource, will not be read until the handle
+  // is released
+  stream->SendMessageToClient(
+      ResponseBuilder(XdsFooResourceType::Get()->type_url())
+          .set_version_info("2")
+          .set_nonce("B")
+          .AddFooResource(XdsFooResource("foo1", 8))
+          .Serialize());
+  // XdsClient should have delivered the response to the watcher.
+  auto resource1 = watcher1->WaitForNextResourceAndHandle();
+  ASSERT_NE(resource1, absl::nullopt);
+  EXPECT_EQ(resource1->resource->name, "foo1");
+  EXPECT_EQ(resource1->resource->value, 6);
+  auto resource2 = watcher2->WaitForNextResourceAndHandle();
+  ASSERT_NE(resource2, absl::nullopt);
+  EXPECT_EQ(resource2->resource->name, "foo2");
+  EXPECT_EQ(resource2->resource->value, 10);
+  // XdsClient should have sent an ACK message to the xDS server.
+  request = WaitForRequest(stream.get());
+  ASSERT_TRUE(request.has_value());
+  CheckRequest(*request, XdsFooResourceType::Get()->type_url(),
+               /*version_info=*/"1", /*response_nonce=*/"A",
+               /*error_detail=*/absl::OkStatus(),
+               /*resource_names=*/{"foo1", "foo2"});
+  EXPECT_EQ(stream->reads_started(), 1);
+  resource1->read_delay_handle.reset();
+  EXPECT_EQ(stream->reads_started(), 1);
+  resource2->read_delay_handle.reset();
+  EXPECT_EQ(stream->reads_started(), 2);
+  resource1 = watcher1->WaitForNextResourceAndHandle();
+  ASSERT_NE(resource1, absl::nullopt);
+  EXPECT_EQ(resource1->resource->name, "foo1");
+  EXPECT_EQ(resource1->resource->value, 8);
+  EXPECT_EQ(watcher2->WaitForNextResourceAndHandle(), absl::nullopt);
+  // XdsClient should have sent an ACK message to the xDS server.
+  request = WaitForRequest(stream.get());
+  ASSERT_TRUE(request.has_value());
+  CheckRequest(*request, XdsFooResourceType::Get()->type_url(),
+               /*version_info=*/"2", /*response_nonce=*/"B",
+               /*error_detail=*/absl::OkStatus(),
+               /*resource_names=*/{"foo1", "foo2"});
+  EXPECT_EQ(stream->reads_started(), 2);
+  resource1->read_delay_handle.reset();
+  EXPECT_EQ(stream->reads_started(), 3);
+  // Cancel watch.
+  CancelFooWatch(watcher1.get(), "foo1");
+  request = WaitForRequest(stream.get());
+  ASSERT_TRUE(request.has_value());
+  CheckRequest(*request, XdsFooResourceType::Get()->type_url(),
+               /*version_info=*/"2", /*response_nonce=*/"B",
+               /*error_detail=*/absl::OkStatus(),
+               /*resource_names=*/{"foo2"});
+  CancelFooWatch(watcher2.get(), "foo2");
+  EXPECT_TRUE(stream->Orphaned());
+}
+
 }  // namespace
 }  // namespace testing
 }  // namespace grpc_core
diff --git a/test/core/xds/xds_transport_fake.cc b/test/core/xds/xds_transport_fake.cc
index 054aa4b7cba..300e849acef 100644
--- a/test/core/xds/xds_transport_fake.cc
+++ b/test/core/xds/xds_transport_fake.cc
@@ -20,6 +20,8 @@
 
 #include <functional>
 #include <memory>
+#include <string>
+#include <thread>
 #include <type_traits>
 #include <utility>
 
@@ -46,6 +48,10 @@ FakeXdsTransportFactory::FakeStreamingCall::~FakeStreamingCall() {
   {
     MutexLock lock(&mu_);
     if (transport_->abort_on_undrained_messages()) {
+      for (const auto& message : from_client_messages_) {
+        gpr_log(GPR_ERROR, "From client message left in queue: %s",
+                message.c_str());
+      }
       GPR_ASSERT(from_client_messages_.empty());
     }
   }
@@ -120,15 +126,49 @@ void FakeXdsTransportFactory::FakeStreamingCall::CompleteSendMessageFromClient(
   CompleteSendMessageFromClientLocked(ok);
 }
 
+void FakeXdsTransportFactory::FakeStreamingCall::StartRecvMessage() {
+  MutexLock lock(&mu_);
+  if (num_pending_reads_ > 0) {
+    transport_->factory()->too_many_pending_reads_callback_();
+  }
+  ++reads_started_;
+  ++num_pending_reads_;
+  if (!to_client_messages_.empty()) {
+    // Dispatch pending message (if there's one) on a separate thread to avoid
+    // recursion
+    GetDefaultEventEngine()->Run([call = RefAsSubclass<FakeStreamingCall>()]() {
+      call->MaybeDeliverMessageToClient();
+    });
+  }
+}
+
 void FakeXdsTransportFactory::FakeStreamingCall::SendMessageToClient(
     absl::string_view payload) {
-  ExecCtx exec_ctx;
-  RefCountedPtr<RefCountedEventHandler> event_handler;
   {
     MutexLock lock(&mu_);
-    event_handler = event_handler_->Ref();
+    to_client_messages_.emplace_back(payload);
+  }
+  MaybeDeliverMessageToClient();
+}
+
+void FakeXdsTransportFactory::FakeStreamingCall::MaybeDeliverMessageToClient() {
+  RefCountedPtr<RefCountedEventHandler> event_handler;
+  std::string message;
+  // Loop terminates with a break inside
+  while (true) {
+    {
+      MutexLock lock(&mu_);
+      if (num_pending_reads_ == 0 || to_client_messages_.empty()) {
+        break;
+      }
+      --num_pending_reads_;
+      message = std::move(to_client_messages_.front());
+      to_client_messages_.pop_front();
+      event_handler = event_handler_;
+    }
+    ExecCtx exec_ctx;
+    event_handler->OnRecvMessage(message);
   }
-  event_handler->OnRecvMessage(payload);
 }
 
 void FakeXdsTransportFactory::FakeStreamingCall::MaybeSendStatusToClient(
diff --git a/test/core/xds/xds_transport_fake.h b/test/core/xds/xds_transport_fake.h
index 1dc52083552..f3d51de240e 100644
--- a/test/core/xds/xds_transport_fake.h
+++ b/test/core/xds/xds_transport_fake.h
@@ -19,6 +19,8 @@
 
 #include <grpc/support/port_platform.h>
 
+#include <stddef.h>
+
 #include <deque>
 #include <functional>
 #include <map>
@@ -66,6 +68,8 @@ class FakeXdsTransportFactory : public XdsTransportFactory {
 
     void Orphan() override;
 
+    void StartRecvMessage() override;
+
     using StreamingCall::Ref;  // Make it public.
 
     bool HaveMessageFromClient();
@@ -84,6 +88,11 @@ class FakeXdsTransportFactory : public XdsTransportFactory {
 
     bool Orphaned();
 
+    size_t reads_started() {
+      MutexLock lock(&mu_);
+      return reads_started_;
+    }
+
    private:
     class RefCountedEventHandler : public RefCounted<RefCountedEventHandler> {
      public:
@@ -107,6 +116,7 @@ class FakeXdsTransportFactory : public XdsTransportFactory {
 
     void CompleteSendMessageFromClientLocked(bool ok)
         ABSL_EXCLUSIVE_LOCKS_REQUIRED(&mu_);
+    void MaybeDeliverMessageToClient();
 
     RefCountedPtr<FakeXdsTransport> transport_;
     const char* method_;
@@ -117,9 +127,15 @@ class FakeXdsTransportFactory : public XdsTransportFactory {
     std::deque<std::string> from_client_messages_ ABSL_GUARDED_BY(&mu_);
     bool status_sent_ ABSL_GUARDED_BY(&mu_) = false;
     bool orphaned_ ABSL_GUARDED_BY(&mu_) = false;
+    size_t reads_started_ ABSL_GUARDED_BY(&mu_) = 0;
+    size_t num_pending_reads_ ABSL_GUARDED_BY(&mu_) = 0;
+    std::deque<std::string> to_client_messages_ ABSL_GUARDED_BY(&mu_);
   };
 
-  FakeXdsTransportFactory() = default;
+  explicit FakeXdsTransportFactory(
+      std::function<void()> too_many_pending_reads_callback)
+      : too_many_pending_reads_callback_(
+            std::move(too_many_pending_reads_callback)) {}
 
   using XdsTransportFactory::Ref;  // Make it public.
 
@@ -130,7 +146,7 @@ class FakeXdsTransportFactory : public XdsTransportFactory {
   // EventHandler::OnRequestSent() upon reading a request from the client.
   // If this is set to false, that behavior will be inhibited, and
   // EventHandler::OnRequestSent() will not be called until the test
-  // expicitly calls FakeStreamingCall::CompleteSendMessageFromClient().
+  // explicitly calls FakeStreamingCall::CompleteSendMessageFromClient().
   //
   // This value affects all transports created after this call is
   // complete.  Any transport that already exists prior to this call
@@ -189,6 +205,8 @@ class FakeXdsTransportFactory : public XdsTransportFactory {
 
     void RemoveStream(const char* method, FakeStreamingCall* call);
 
+    FakeXdsTransportFactory* factory() const { return factory_.get(); }
+
    private:
     class RefCountedOnConnectivityFailure
         : public RefCounted<RefCountedOnConnectivityFailure> {
@@ -237,6 +255,7 @@ class FakeXdsTransportFactory : public XdsTransportFactory {
       transport_map_ ABSL_GUARDED_BY(&mu_);
   bool auto_complete_messages_from_client_ ABSL_GUARDED_BY(&mu_) = true;
   bool abort_on_undrained_messages_ ABSL_GUARDED_BY(&mu_) = true;
+  std::function<void()> too_many_pending_reads_callback_;
 };
 
 }  // namespace grpc_core