diff --git a/grpclb/src/main/java/io/grpc/grpclb/GrpclbState.java b/grpclb/src/main/java/io/grpc/grpclb/GrpclbState.java
index 59fa67dc2dc..19bc35b373f 100644
--- a/grpclb/src/main/java/io/grpc/grpclb/GrpclbState.java
+++ b/grpclb/src/main/java/io/grpc/grpclb/GrpclbState.java
@@ -259,11 +259,19 @@ void handleAddresses(
         serviceName,
         newLbAddressGroups,
         newBackendServers);
+    fallbackBackendList = newBackendServers;
     if (newLbAddressGroups.isEmpty()) {
-      // No balancer address: close existing balancer connection and enter fallback mode
-      // immediately.
+      // No balancer address: close existing balancer connection and prepare to enter fallback
+      // mode. If there is no successful backend connection, it enters fallback mode immediately.
+      // Otherwise, fallback does not happen until backend connections are lost. This behavior
+      // might be different from other languages (e.g., existing balancer connection is not
+      // closed in C-core), but we aren't changing it at this time.
       shutdownLbComm();
-      syncContext.execute(new FallbackModeTask(NO_LB_ADDRESS_PROVIDED_STATUS));
+      if (!usingFallbackBackends) {
+        fallbackReason = NO_LB_ADDRESS_PROVIDED_STATUS;
+        cancelFallbackTimer();
+        maybeUseFallbackBackends();
+      }
     } else {
       startLbComm(newLbAddressGroups);
       // Avoid creating a new RPC just because the addresses were updated, as it can cause a
@@ -281,7 +289,6 @@ void handleAddresses(
             TimeUnit.MILLISECONDS, timerService);
       }
     }
-    fallbackBackendList = newBackendServers;
     if (usingFallbackBackends) {
       // Populate the new fallback backends to round-robin list.
       useFallbackBackends();
diff --git a/grpclb/src/test/java/io/grpc/grpclb/GrpclbLoadBalancerTest.java b/grpclb/src/test/java/io/grpc/grpclb/GrpclbLoadBalancerTest.java
index 7dba20be1d0..f664aad0a7a 100644
--- a/grpclb/src/test/java/io/grpc/grpclb/GrpclbLoadBalancerTest.java
+++ b/grpclb/src/test/java/io/grpc/grpclb/GrpclbLoadBalancerTest.java
@@ -1452,8 +1452,11 @@ public void grpclbFallback_breakLbStreamBeforeFallbackTimerExpires() {
   public void grpclbFallback_noBalancerAddress() {
     InOrder inOrder = inOrder(helper, subchannelPool);
 
-    // Create just backend addresses
-    List<EquivalentAddressGroup> backendList = createResolvedBackendAddresses(2);
+    // Create 5 distinct backends
+    List<EquivalentAddressGroup> backends = createResolvedBackendAddresses(5);
+
+    // Name resolver gives the first two backend addresses
+    List<EquivalentAddressGroup> backendList = backends.subList(0, 2);
     deliverResolvedAddresses(backendList, Collections.<EquivalentAddressGroup>emptyList());
 
     assertThat(logs).containsAtLeast(
@@ -1474,6 +1477,28 @@ public void grpclbFallback_noBalancerAddress() {
         .createOobChannel(ArgumentMatchers.<EquivalentAddressGroup>anyList(), anyString());
     logs.clear();
 
+    /////////////////////////////////////////////////////////////////////////////////////////
+    // Name resolver sends new resolution results with new backend addr but no balancer addr
+    /////////////////////////////////////////////////////////////////////////////////////////
+    // Name resolver then gives the last three backends
+    backendList = backends.subList(2, 5);
+    deliverResolvedAddresses(backendList, Collections.<EquivalentAddressGroup>emptyList());
+
+    assertThat(logs).containsAtLeast(
+        "INFO: [grpclb-<api.google.com>] Using fallback backends",
+        "INFO: [grpclb-<api.google.com>] "
+            + "Using RR list=[[[FakeSocketAddress-fake-address-2]/{}], "
+            + "[[FakeSocketAddress-fake-address-3]/{}], "
+            + "[[FakeSocketAddress-fake-address-4]/{}]], drop=[null, null, null]",
+        "INFO: [grpclb-<api.google.com>] "
+            + "Update balancing state to CONNECTING: picks=[BUFFER_ENTRY], "
+            + "drops=[null, null, null]")
+        .inOrder();
+
+    // Shift to use updated backends
+    fallbackTestVerifyUseOfFallbackBackendLists(inOrder, backendList);
+    logs.clear();
+
     ///////////////////////////////////////////////////////////////////////////////////////
     // Name resolver sends new resolution results without any backend addr or balancer addr
     ///////////////////////////////////////////////////////////////////////////////////////