diff --git a/interop/xds/client/client.go b/interop/xds/client/client.go
index 27f954c30d2..7792094d54d 100644
--- a/interop/xds/client/client.go
+++ b/interop/xds/client/client.go
@@ -27,6 +27,7 @@ import (
 	"net"
 	"strings"
 	"sync"
+	"sync/atomic"
 	"time"
 
 	"google.golang.org/grpc"
@@ -73,7 +74,7 @@ func (watcher *statsWatcher) buildResp() *testpb.LoadBalancerStatsResponse {
 }
 
 var (
-	failOnFailedRPC = flag.Bool("fail_on_failed_rpc", false, "Fail client if any RPCs fail")
+	failOnFailedRPC = flag.Bool("fail_on_failed_rpc", false, "Fail client if any RPCs fail after first success")
 	numChannels     = flag.Int("num_channels", 1, "Num of channels")
 	printResponse   = flag.Bool("print_response", false, "Write RPC response to stdout")
 	qps             = flag.Int("qps", 1, "QPS per channel, for each type of RPC")
@@ -86,12 +87,24 @@ var (
 	mu               sync.Mutex
 	currentRequestID int32
 	watchers         = make(map[statsWatcherKey]*statsWatcher)
+
+	// 0 or 1 representing an RPC has succeeded. Use hasRPCSucceeded and
+	// setRPCSucceeded to access in a safe manner.
+	rpcSucceeded uint32
 )
 
 type statsService struct {
 	testpb.UnimplementedLoadBalancerStatsServiceServer
 }
 
+func hasRPCSucceeded() bool {
+	return atomic.LoadUint32(&rpcSucceeded) > 0
+}
+
+func setRPCSucceeded() {
+	atomic.StoreUint32(&rpcSucceeded, 1)
+}
+
 // Wait for the next LoadBalancerStatsRequest.GetNumRpcs to start and complete,
 // and return the distribution of remote peers. This is essentially a clientside
 // LB reporting mechanism that is designed to be queried by an external test
@@ -291,9 +304,12 @@ func sendRPCs(clients []testpb.TestServiceClient, cfgs []*rpcConfig, ticker *tim
 					// This sends an empty string if the RPC failed.
 					watcher.chanHosts <- info
 				}
-				if err != nil && *failOnFailedRPC {
+				if err != nil && *failOnFailedRPC && hasRPCSucceeded() {
 					grpclog.Fatalf("RPC failed: %v", err)
 				}
+				if err == nil {
+					setRPCSucceeded()
+				}
 				if *printResponse {
 					if err == nil {
 						if cfg.typ == unaryCall {