diff --git a/xds/src/main/java/io/grpc/xds/ClientXdsClient.java b/xds/src/main/java/io/grpc/xds/ClientXdsClient.java
index 5af2042d478..47aab05aad8 100644
--- a/xds/src/main/java/io/grpc/xds/ClientXdsClient.java
+++ b/xds/src/main/java/io/grpc/xds/ClientXdsClient.java
@@ -385,7 +385,8 @@ static EnvoyServerProtoData.Listener parseServerSideListener(
       Listener proto, Set<String> rdsResources, TlsContextManager tlsContextManager,
       FilterRegistry filterRegistry, Set<String> certProviderInstances, boolean parseHttpFilter)
       throws ResourceInvalidException {
-    if (!proto.getTrafficDirection().equals(TrafficDirection.INBOUND)) {
+    if (!proto.getTrafficDirection().equals(TrafficDirection.INBOUND)
+        && !proto.getTrafficDirection().equals(TrafficDirection.UNSPECIFIED)) {
       throw new ResourceInvalidException(
           "Listener " + proto.getName() + " with invalid traffic direction: "
               + proto.getTrafficDirection());
diff --git a/xds/src/test/java/io/grpc/xds/ClientXdsClientDataTest.java b/xds/src/test/java/io/grpc/xds/ClientXdsClientDataTest.java
index a4665285b7e..fdc39d6f6f8 100644
--- a/xds/src/test/java/io/grpc/xds/ClientXdsClientDataTest.java
+++ b/xds/src/test/java/io/grpc/xds/ClientXdsClientDataTest.java
@@ -2006,6 +2006,16 @@ public void parseServerSideListener_invalidTrafficDirection() throws ResourceInv
         listener, new HashSet<String>(), null, filterRegistry, null, true /* does not matter */);
   }
 
+  @Test
+  public void parseServerSideListener_noTrafficDirection() throws ResourceInvalidException {
+    Listener listener =
+        Listener.newBuilder()
+            .setName("listener1")
+            .build();
+    ClientXdsClient.parseServerSideListener(
+        listener, new HashSet<String>(), null, filterRegistry, null, true /* does not matter */);
+  }
+
   @Test
   public void parseServerSideListener_listenerFiltersPresent() throws ResourceInvalidException {
     Listener listener =