diff --git a/xds/internal/balancer/clusterresolver/e2e_test/aggregate_cluster_test.go b/xds/internal/balancer/clusterresolver/e2e_test/aggregate_cluster_test.go
new file mode 100644
index 000000000..ea0cdf6fc
--- /dev/null
+++ b/xds/internal/balancer/clusterresolver/e2e_test/aggregate_cluster_test.go
@@ -0,0 +1,773 @@
+/*
+ * Copyright 2023 gRPC authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package e2e_test
+
+import (
+	"context"
+	"fmt"
+	"sort"
+	"strings"
+	"testing"
+	"time"
+
+	"github.com/google/go-cmp/cmp"
+	"google.golang.org/grpc"
+	"google.golang.org/grpc/codes"
+	"google.golang.org/grpc/internal/testutils"
+	"google.golang.org/grpc/internal/testutils/xds/e2e"
+	"google.golang.org/grpc/peer"
+	"google.golang.org/grpc/resolver"
+	"google.golang.org/grpc/resolver/manual"
+	"google.golang.org/grpc/status"
+	"google.golang.org/grpc/xds/internal/xdsclient/xdsresource/version"
+
+	v3clusterpb "github.com/envoyproxy/go-control-plane/envoy/config/cluster/v3"
+	v3corepb "github.com/envoyproxy/go-control-plane/envoy/config/core/v3"
+	v3endpointpb "github.com/envoyproxy/go-control-plane/envoy/config/endpoint/v3"
+	v3aggregateclusterpb "github.com/envoyproxy/go-control-plane/envoy/extensions/clusters/aggregate/v3"
+	v3discoverypb "github.com/envoyproxy/go-control-plane/envoy/service/discovery/v3"
+	testgrpc "google.golang.org/grpc/interop/grpc_testing"
+	testpb "google.golang.org/grpc/interop/grpc_testing"
+)
+
+// makeAggregateClusterResource returns an aggregate cluster resource with the
+// given name and list of child names.
+func makeAggregateClusterResource(name string, childNames []string) *v3clusterpb.Cluster {
+	return &v3clusterpb.Cluster{
+		Name: name,
+		ClusterDiscoveryType: &v3clusterpb.Cluster_ClusterType{
+			ClusterType: &v3clusterpb.Cluster_CustomClusterType{
+				Name: "envoy.clusters.aggregate",
+				TypedConfig: testutils.MarshalAny(&v3aggregateclusterpb.ClusterConfig{
+					Clusters: childNames,
+				}),
+			},
+		},
+		LbPolicy: v3clusterpb.Cluster_ROUND_ROBIN,
+	}
+}
+
+// makeLogicalDNSClusterResource returns a LOGICAL_DNS cluster resource with the
+// given name and given DNS host and port.
+func makeLogicalDNSClusterResource(name, dnsHost string, dnsPort uint32) *v3clusterpb.Cluster {
+	return &v3clusterpb.Cluster{
+		Name:                 name,
+		ClusterDiscoveryType: &v3clusterpb.Cluster_Type{Type: v3clusterpb.Cluster_LOGICAL_DNS},
+		LbPolicy:             v3clusterpb.Cluster_ROUND_ROBIN,
+		LoadAssignment: &v3endpointpb.ClusterLoadAssignment{
+			Endpoints: []*v3endpointpb.LocalityLbEndpoints{{
+				LbEndpoints: []*v3endpointpb.LbEndpoint{{
+					HostIdentifier: &v3endpointpb.LbEndpoint_Endpoint{
+						Endpoint: &v3endpointpb.Endpoint{
+							Address: &v3corepb.Address{
+								Address: &v3corepb.Address_SocketAddress{
+									SocketAddress: &v3corepb.SocketAddress{
+										Address: dnsHost,
+										PortSpecifier: &v3corepb.SocketAddress_PortValue{
+											PortValue: dnsPort,
+										},
+									},
+								},
+							},
+						},
+					},
+				}},
+			}},
+		},
+	}
+}
+
+// setupDNS unregisters the DNS resolver and registers a manual resolver for the
+// same scheme. This allows the test to mock the DNS resolution by supplying the
+// addresses of the test backends.
+//
+// Returns the following:
+//   - a channel onto which the DNS target being resolved is written to by the
+//     mock DNS resolver
+//   - a channel to notify close of the DNS resolver
+//   - a channel to notify re-resolution requests to the DNS resolver
+//   - a manual resolver which is used to mock the actual DNS resolution
+//   - a cleanup function which re-registers the original DNS resolver
+func setupDNS() (chan resolver.Target, chan struct{}, chan resolver.ResolveNowOptions, *manual.Resolver, func()) {
+	targetCh := make(chan resolver.Target, 1)
+	closeCh := make(chan struct{}, 1)
+	resolveNowCh := make(chan resolver.ResolveNowOptions, 1)
+
+	mr := manual.NewBuilderWithScheme("dns")
+	mr.BuildCallback = func(target resolver.Target, _ resolver.ClientConn, _ resolver.BuildOptions) { targetCh <- target }
+	mr.CloseCallback = func() { closeCh <- struct{}{} }
+	mr.ResolveNowCallback = func(opts resolver.ResolveNowOptions) { resolveNowCh <- opts }
+
+	dnsResolverBuilder := resolver.Get("dns")
+	resolver.UnregisterForTesting("dns")
+	resolver.Register(mr)
+
+	return targetCh, closeCh, resolveNowCh, mr, func() { resolver.Register(dnsResolverBuilder) }
+}
+
+// TestAggregateCluster_WithTwoEDSClusters tests the case where the top-level
+// cluster resource is an aggregate cluster. It verifies that RPCs fail when the
+// management server has not responded to all requested EDS resources, and also
+// that RPCs are routed to the highest priority cluster once all requested EDS
+// resources have been sent by the management server.
+func (s) TestAggregateCluster_WithTwoEDSClusters(t *testing.T) {
+	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
+	defer cancel()
+
+	// Start an xDS management server that pushes the EDS resource names onto a
+	// channel when requested.
+	edsResourceNameCh := make(chan []string, 1)
+	managementServer, nodeID, bootstrapContents, _, cleanup := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{
+		OnStreamRequest: func(_ int64, req *v3discoverypb.DiscoveryRequest) error {
+			if req.GetTypeUrl() != version.V3EndpointsURL {
+				return nil
+			}
+			if len(req.GetResourceNames()) == 0 {
+				// This is the case for ACKs. Do nothing here.
+				return nil
+			}
+			select {
+			case edsResourceNameCh <- req.GetResourceNames():
+			case <-ctx.Done():
+			}
+			return nil
+		},
+		AllowResourceSubset: true,
+	})
+	defer cleanup()
+
+	// Start two test backends and extract their host and port. The first
+	// backend belongs to EDS cluster "cluster-1", while the second backend
+	// belongs to EDS cluster "cluster-2".
+	servers, cleanup2 := startTestServiceBackends(t, 2)
+	defer cleanup2()
+	addrs, ports := backendAddressesAndPorts(t, servers)
+
+	// Configure an aggregate cluster, two EDS clusters and only one endpoints
+	// resource (corresponding to the first EDS cluster) in the management
+	// server.
+	const clusterName1 = clusterName + "-cluster-1"
+	const clusterName2 = clusterName + "-cluster-2"
+	resources := e2e.UpdateOptions{
+		NodeID: nodeID,
+		Clusters: []*v3clusterpb.Cluster{
+			makeAggregateClusterResource(clusterName, []string{clusterName1, clusterName2}),
+			e2e.DefaultCluster(clusterName1, "", e2e.SecurityLevelNone),
+			e2e.DefaultCluster(clusterName2, "", e2e.SecurityLevelNone),
+		},
+		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{e2e.DefaultEndpoint(clusterName1, "localhost", []uint32{uint32(ports[0])})},
+		SkipValidation: true,
+	}
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Create xDS client, configure cds_experimental LB policy with a manual
+	// resolver, and dial the test backends.
+	cc, cleanup := setupAndDial(t, bootstrapContents)
+	defer cleanup()
+
+	// Wait for both EDS resources to be requested.
+	func() {
+		for ; ctx.Err() == nil; <-time.After(defaultTestShortTimeout) {
+			select {
+			case names := <-edsResourceNameCh:
+				// Copy and sort the sortedNames to avoid racing with an
+				// OnStreamRequest call.
+				sortedNames := make([]string, len(names))
+				copy(sortedNames, names)
+				sort.Strings(sortedNames)
+				if cmp.Equal(sortedNames, []string{clusterName1, clusterName2}) {
+					return
+				}
+			default:
+			}
+		}
+	}()
+	if ctx.Err() != nil {
+		t.Fatalf("Timeout when waiting for all EDS resources %v to be requested", []string{clusterName1, clusterName2})
+	}
+
+	// Make an RPC with a short deadline. We expect this RPC to not succeed
+	// because the management server has not responded with all EDS resources
+	// requested.
+	client := testgrpc.NewTestServiceClient(cc)
+	sCtx, sCancel := context.WithTimeout(ctx, defaultTestShortTimeout)
+	defer sCancel()
+	if _, err := client.EmptyCall(sCtx, &testpb.Empty{}); status.Code(err) != codes.DeadlineExceeded {
+		t.Fatalf("EmptyCall() code %s, want %s", status.Code(err), codes.DeadlineExceeded)
+	}
+
+	// Update the management server with the second EDS resource.
+	resources.Endpoints = append(resources.Endpoints, e2e.DefaultEndpoint(clusterName2, "localhost", []uint32{uint32(ports[1])}))
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Make an RPC and ensure that it gets routed to cluster-1, implicitly
+	// higher priority than cluster-2.
+	peer := &peer.Peer{}
+	if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer), grpc.WaitForReady(true)); err != nil {
+		t.Fatalf("EmptyCall() failed: %v", err)
+	}
+	if peer.Addr.String() != addrs[0].Addr {
+		t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
+	}
+}
+
+// TestAggregateCluster_WithTwoEDSClusters_PrioritiesChange tests the case where
+// the top-level cluster resource is an aggregate cluster. It verifies that RPCs
+// are routed to the highest priority EDS cluster.
+func (s) TestAggregateCluster_WithTwoEDSClusters_PrioritiesChange(t *testing.T) {
+	// Start an xDS management server.
+	managementServer, nodeID, bootstrapContents, _, cleanup := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{AllowResourceSubset: true})
+	defer cleanup()
+
+	// Start two test backends and extract their host and port. The first
+	// backend belongs to EDS cluster "cluster-1", while the second backend
+	// belongs to EDS cluster "cluster-2".
+	servers, cleanup2 := startTestServiceBackends(t, 2)
+	defer cleanup2()
+	addrs, ports := backendAddressesAndPorts(t, servers)
+
+	// Configure an aggregate cluster, two EDS clusters and the corresponding
+	// endpoints resources in the management server.
+	const clusterName1 = clusterName + "cluster-1"
+	const clusterName2 = clusterName + "cluster-2"
+	resources := e2e.UpdateOptions{
+		NodeID: nodeID,
+		Clusters: []*v3clusterpb.Cluster{
+			makeAggregateClusterResource(clusterName, []string{clusterName1, clusterName2}),
+			e2e.DefaultCluster(clusterName1, "", e2e.SecurityLevelNone),
+			e2e.DefaultCluster(clusterName2, "", e2e.SecurityLevelNone),
+		},
+		Endpoints: []*v3endpointpb.ClusterLoadAssignment{
+			e2e.DefaultEndpoint(clusterName1, "localhost", []uint32{uint32(ports[0])}),
+			e2e.DefaultEndpoint(clusterName2, "localhost", []uint32{uint32(ports[1])}),
+		},
+		SkipValidation: true,
+	}
+	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
+	defer cancel()
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Create xDS client, configure cds_experimental LB policy with a manual
+	// resolver, and dial the test backends.
+	cc, cleanup := setupAndDial(t, bootstrapContents)
+	defer cleanup()
+
+	// Make an RPC and ensure that it gets routed to cluster-1, implicitly
+	// higher priority than cluster-2.
+	client := testgrpc.NewTestServiceClient(cc)
+	peer := &peer.Peer{}
+	if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer), grpc.WaitForReady(true)); err != nil {
+		t.Fatalf("EmptyCall() failed: %v", err)
+	}
+	if peer.Addr.String() != addrs[0].Addr {
+		t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
+	}
+
+	// Swap the priorities of the EDS clusters in the aggregate cluster.
+	resources.Clusters = []*v3clusterpb.Cluster{
+		makeAggregateClusterResource(clusterName, []string{clusterName2, clusterName1}),
+		e2e.DefaultCluster(clusterName1, "", e2e.SecurityLevelNone),
+		e2e.DefaultCluster(clusterName2, "", e2e.SecurityLevelNone),
+	}
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Wait for RPCs to get routed to cluster-2, which is now implicitly higher
+	// priority than cluster-1, after the priority switch above.
+	for ; ctx.Err() == nil; <-time.After(defaultTestShortTimeout) {
+		if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer), grpc.WaitForReady(true)); err != nil {
+			t.Fatalf("EmptyCall() failed: %v", err)
+		}
+		if peer.Addr.String() == addrs[1].Addr {
+			break
+		}
+	}
+	if ctx.Err() != nil {
+		t.Fatal("Timeout waiting for RPCs to be routed to cluster-2 after priority switch")
+	}
+}
+
+// TestAggregateCluster_WithOneDNSCluster tests the case where the top-level
+// cluster resource is an aggregate cluster that resolves to a single
+// LOGICAL_DNS cluster. The test verifies that RPCs can be made to backends that
+// make up the LOGICAL_DNS cluster.
+func (s) TestAggregateCluster_WithOneDNSCluster(t *testing.T) {
+	dnsTargetCh, _, _, dnsR, cleanup1 := setupDNS()
+	defer cleanup1()
+
+	// Start an xDS management server.
+	managementServer, nodeID, bootstrapContents, _, cleanup2 := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{AllowResourceSubset: true})
+	defer cleanup2()
+
+	// Start two test backends.
+	servers, cleanup3 := startTestServiceBackends(t, 2)
+	defer cleanup3()
+	addrs, _ := backendAddressesAndPorts(t, servers)
+
+	// Configure an aggregate cluster pointing to a single LOGICAL_DNS cluster.
+	const (
+		dnsClusterName = clusterName + "-dns"
+		dnsHostName    = "dns_host"
+		dnsPort        = uint32(8080)
+	)
+	resources := e2e.UpdateOptions{
+		NodeID: nodeID,
+		Clusters: []*v3clusterpb.Cluster{
+			makeAggregateClusterResource(clusterName, []string{dnsClusterName}),
+			makeLogicalDNSClusterResource(dnsClusterName, dnsHostName, dnsPort),
+		},
+		SkipValidation: true,
+	}
+	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
+	defer cancel()
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Create xDS client, configure cds_experimental LB policy with a manual
+	// resolver, and dial the test backends.
+	cc, cleanup := setupAndDial(t, bootstrapContents)
+	defer cleanup()
+
+	// Ensure that the DNS resolver is started for the expected target.
+	select {
+	case <-ctx.Done():
+		t.Fatal("Timeout when waiting for DNS resolver to be started")
+	case target := <-dnsTargetCh:
+		got, want := target.Endpoint(), fmt.Sprintf("%s:%d", dnsHostName, dnsPort)
+		if got != want {
+			t.Fatalf("DNS resolution started for target %q, want %q", got, want)
+		}
+	}
+
+	// Update DNS resolver with test backend addresses.
+	dnsR.UpdateState(resolver.State{Addresses: addrs})
+
+	// Make an RPC and ensure that it gets routed to the first backend since the
+	// child policy for a LOGICAL_DNS cluster is pick_first by default.
+	client := testgrpc.NewTestServiceClient(cc)
+	peer := &peer.Peer{}
+	if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer), grpc.WaitForReady(true)); err != nil {
+		t.Fatalf("EmptyCall() failed: %v", err)
+	}
+	if peer.Addr.String() != addrs[0].Addr {
+		t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
+	}
+}
+
+// TestAggregateCluster_WithEDSAndDNS tests the case where the top-level cluster
+// resource is an aggregate cluster that resolves to an EDS and a LOGICAL_DNS
+// cluster. The test verifies that RPCs fail until both clusters are resolved to
+// endpoints, and RPCs are routed to the higher priority EDS cluster.
+func (s) TestAggregateCluster_WithEDSAndDNS(t *testing.T) {
+	dnsTargetCh, _, _, dnsR, cleanup1 := setupDNS()
+	defer cleanup1()
+
+	// Start an xDS management server that pushes the name of the requested EDS
+	// resource onto a channel.
+	edsResourceCh := make(chan string, 1)
+	managementServer, nodeID, bootstrapContents, _, cleanup2 := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{
+		OnStreamRequest: func(_ int64, req *v3discoverypb.DiscoveryRequest) error {
+			if req.GetTypeUrl() != version.V3EndpointsURL {
+				return nil
+			}
+			if len(req.GetResourceNames()) > 0 {
+				select {
+				case edsResourceCh <- req.GetResourceNames()[0]:
+				default:
+				}
+			}
+			return nil
+		},
+		AllowResourceSubset: true,
+	})
+	defer cleanup2()
+
+	// Start two test backends and extract their host and port. The first
+	// backend is used for the EDS cluster and the second backend is used for
+	// the LOGICAL_DNS cluster.
+	servers, cleanup3 := startTestServiceBackends(t, 2)
+	defer cleanup3()
+	addrs, ports := backendAddressesAndPorts(t, servers)
+
+	// Configure an aggregate cluster pointing to an EDS and DNS cluster. Also
+	// configure an endpoints resource for the EDS cluster.
+	const (
+		edsClusterName = clusterName + "-eds"
+		dnsClusterName = clusterName + "-dns"
+		dnsHostName    = "dns_host"
+		dnsPort        = uint32(8080)
+	)
+	resources := e2e.UpdateOptions{
+		NodeID: nodeID,
+		Clusters: []*v3clusterpb.Cluster{
+			makeAggregateClusterResource(clusterName, []string{edsClusterName, dnsClusterName}),
+			e2e.DefaultCluster(edsClusterName, "", e2e.SecurityLevelNone),
+			makeLogicalDNSClusterResource(dnsClusterName, dnsHostName, dnsPort),
+		},
+		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{e2e.DefaultEndpoint(edsClusterName, "localhost", []uint32{uint32(ports[0])})},
+		SkipValidation: true,
+	}
+	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
+	defer cancel()
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Create xDS client, configure cds_experimental LB policy with a manual
+	// resolver, and dial the test backends.
+	cc, cleanup := setupAndDial(t, bootstrapContents)
+	defer cleanup()
+
+	// Ensure that an EDS request is sent for the expected resource name.
+	select {
+	case <-ctx.Done():
+		t.Fatal("Timeout when waiting for EDS request to be received on the management server")
+	case name := <-edsResourceCh:
+		if name != edsClusterName {
+			t.Fatalf("Received EDS request with resource name %q, want %q", name, edsClusterName)
+		}
+	}
+
+	// Ensure that the DNS resolver is started for the expected target.
+	select {
+	case <-ctx.Done():
+		t.Fatal("Timeout when waiting for DNS resolver to be started")
+	case target := <-dnsTargetCh:
+		got, want := target.Endpoint(), fmt.Sprintf("%s:%d", dnsHostName, dnsPort)
+		if got != want {
+			t.Fatalf("DNS resolution started for target %q, want %q", got, want)
+		}
+	}
+
+	// Make an RPC with a short deadline. We expect this RPC to not succeed
+	// because the DNS resolver has not responded with endpoint addresses.
+	client := testgrpc.NewTestServiceClient(cc)
+	sCtx, sCancel := context.WithTimeout(ctx, defaultTestShortTimeout)
+	defer sCancel()
+	if _, err := client.EmptyCall(sCtx, &testpb.Empty{}); status.Code(err) != codes.DeadlineExceeded {
+		t.Fatalf("EmptyCall() code %s, want %s", status.Code(err), codes.DeadlineExceeded)
+	}
+
+	// Update DNS resolver with test backend addresses.
+	dnsR.UpdateState(resolver.State{Addresses: addrs[1:]})
+
+	// Make an RPC and ensure that it gets routed to the first backend since the
+	// EDS cluster is of higher priority than the LOGICAL_DNS cluster.
+	peer := &peer.Peer{}
+	if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer), grpc.WaitForReady(true)); err != nil {
+		t.Fatalf("EmptyCall() failed: %v", err)
+	}
+	if peer.Addr.String() != addrs[0].Addr {
+		t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
+	}
+}
+
+// TestAggregateCluster_SwitchEDSAndDNS tests the case where the top-level
+// cluster resource is an aggregate cluster. It initially resolves to a single
+// EDS cluster. The test verifies that RPCs are routed to backends in the EDS
+// cluster. Subsequently, the aggregate cluster resolves to a single DNS
+// cluster. The test verifies that RPCs are successful, this time to backends in
+// the DNS cluster.
+func (s) TestAggregateCluster_SwitchEDSAndDNS(t *testing.T) {
+	dnsTargetCh, _, _, dnsR, cleanup1 := setupDNS()
+	defer cleanup1()
+
+	// Start an xDS management server.
+	managementServer, nodeID, bootstrapContents, _, cleanup2 := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{AllowResourceSubset: true})
+	defer cleanup2()
+
+	// Start two test backends and extract their host and port. The first
+	// backend is used for the EDS cluster and the second backend is used for
+	// the LOGICAL_DNS cluster.
+	servers, cleanup3 := startTestServiceBackends(t, 2)
+	defer cleanup3()
+	addrs, ports := backendAddressesAndPorts(t, servers)
+
+	// Configure an aggregate cluster pointing to a single EDS cluster. Also,
+	// configure the underlying EDS cluster (and the corresponding endpoints
+	// resource) and DNS cluster (will be used later in the test).
+	const (
+		dnsClusterName = clusterName + "-dns"
+		dnsHostName    = "dns_host"
+		dnsPort        = uint32(8080)
+	)
+	resources := e2e.UpdateOptions{
+		NodeID: nodeID,
+		Clusters: []*v3clusterpb.Cluster{
+			makeAggregateClusterResource(clusterName, []string{edsServiceName}),
+			e2e.DefaultCluster(edsServiceName, "", e2e.SecurityLevelNone),
+			makeLogicalDNSClusterResource(dnsClusterName, dnsHostName, dnsPort),
+		},
+		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{e2e.DefaultEndpoint(edsServiceName, "localhost", []uint32{uint32(ports[0])})},
+		SkipValidation: true,
+	}
+	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
+	defer cancel()
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Create xDS client, configure cds_experimental LB policy with a manual
+	// resolver, and dial the test backends.
+	cc, cleanup := setupAndDial(t, bootstrapContents)
+	defer cleanup()
+
+	// Ensure that the RPC is routed to the appropriate backend.
+	client := testgrpc.NewTestServiceClient(cc)
+	peer := &peer.Peer{}
+	if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer), grpc.WaitForReady(true)); err != nil {
+		t.Fatalf("EmptyCall() failed: %v", err)
+	}
+	if peer.Addr.String() != addrs[0].Addr {
+		t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
+	}
+
+	// Update the aggregate cluster to point to a single DNS cluster.
+	resources.Clusters = []*v3clusterpb.Cluster{
+		makeAggregateClusterResource(clusterName, []string{dnsClusterName}),
+		e2e.DefaultCluster(edsServiceName, "", e2e.SecurityLevelNone),
+		makeLogicalDNSClusterResource(dnsClusterName, dnsHostName, dnsPort),
+	}
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Ensure that the DNS resolver is started for the expected target.
+	select {
+	case <-ctx.Done():
+		t.Fatal("Timeout when waiting for DNS resolver to be started")
+	case target := <-dnsTargetCh:
+		got, want := target.Endpoint(), fmt.Sprintf("%s:%d", dnsHostName, dnsPort)
+		if got != want {
+			t.Fatalf("DNS resolution started for target %q, want %q", got, want)
+		}
+	}
+
+	// Update DNS resolver with test backend addresses.
+	dnsR.UpdateState(resolver.State{Addresses: addrs[1:]})
+
+	// Ensure that start getting routed to the backend corresponding to the
+	// LOGICAL_DNS cluster.
+	for ; ctx.Err() == nil; <-time.After(defaultTestShortTimeout) {
+		client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer))
+		if peer.Addr.String() == addrs[1].Addr {
+			break
+		}
+	}
+	if ctx.Err() != nil {
+		t.Fatalf("Timeout when waiting for RPCs to be routed to backend %q in the DNS cluster", addrs[1].Addr)
+	}
+}
+
+// TestAggregateCluster_BadEDS_GoodToBadDNS tests the case where the top-level
+// cluster is an aggregate cluster that resolves to an EDS and LOGICAL_DNS
+// cluster. The test first asserts that no RPCs can be made after receiving an
+// EDS response with zero endpoints because no update has been received from the
+// DNS resolver yet. Once the DNS resolver pushes an update, the test verifies
+// that we switch to the DNS cluster and can make a successful RPC. At this
+// point when the DNS cluster returns an error, the test verifies that RPCs are
+// still successful. This is the expected behavior because pick_first (the leaf
+// policy) ignores resolver errors when it is not in TransientFailure.
+func (s) TestAggregateCluster_BadEDS_GoodToBadDNS(t *testing.T) {
+	dnsTargetCh, _, _, dnsR, cleanup1 := setupDNS()
+	defer cleanup1()
+
+	// Start an xDS management server.
+	managementServer, nodeID, bootstrapContents, _, cleanup2 := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{AllowResourceSubset: true})
+	defer cleanup2()
+
+	// Start two test backends.
+	servers, cleanup3 := startTestServiceBackends(t, 2)
+	defer cleanup3()
+	addrs, _ := backendAddressesAndPorts(t, servers)
+
+	// Configure an aggregate cluster pointing to an EDS and LOGICAL_DNS
+	// cluster. Also configure an empty endpoints resource for the EDS cluster
+	// that contains no endpoints.
+	const (
+		edsClusterName = clusterName + "-eds"
+		dnsClusterName = clusterName + "-dns"
+		dnsHostName    = "dns_host"
+		dnsPort        = uint32(8080)
+	)
+	emptyEndpointResource := e2e.DefaultEndpoint(edsServiceName, "localhost", nil)
+	resources := e2e.UpdateOptions{
+		NodeID: nodeID,
+		Clusters: []*v3clusterpb.Cluster{
+			makeAggregateClusterResource(clusterName, []string{edsClusterName, dnsClusterName}),
+			e2e.DefaultCluster(edsClusterName, edsServiceName, e2e.SecurityLevelNone),
+			makeLogicalDNSClusterResource(dnsClusterName, dnsHostName, dnsPort),
+		},
+		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{emptyEndpointResource},
+		SkipValidation: true,
+	}
+	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
+	defer cancel()
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Create xDS client, configure cds_experimental LB policy with a manual
+	// resolver, and dial the test backends.
+	cc, cleanup := setupAndDial(t, bootstrapContents)
+	defer cleanup()
+
+	// Make an RPC with a short deadline. We expect this RPC to not succeed
+	// because the EDS resource came back with no endpoints, and we are yet to
+	// push an update through the DNS resolver.
+	client := testgrpc.NewTestServiceClient(cc)
+	sCtx, sCancel := context.WithTimeout(ctx, defaultTestShortTimeout)
+	defer sCancel()
+	if _, err := client.EmptyCall(sCtx, &testpb.Empty{}); status.Code(err) != codes.DeadlineExceeded {
+		t.Fatalf("EmptyCall() code %s, want %s", status.Code(err), codes.DeadlineExceeded)
+	}
+
+	// Ensure that the DNS resolver is started for the expected target.
+	select {
+	case <-ctx.Done():
+		t.Fatal("Timeout when waiting for DNS resolver to be started")
+	case target := <-dnsTargetCh:
+		got, want := target.Endpoint(), fmt.Sprintf("%s:%d", dnsHostName, dnsPort)
+		if got != want {
+			t.Fatalf("DNS resolution started for target %q, want %q", got, want)
+		}
+	}
+
+	// Update DNS resolver with test backend addresses.
+	dnsR.UpdateState(resolver.State{Addresses: addrs})
+
+	// Ensure that RPCs start getting routed to the first backend since the
+	// child policy for a LOGICAL_DNS cluster is pick_first by default.
+	for ; ctx.Err() == nil; <-time.After(defaultTestShortTimeout) {
+		peer := &peer.Peer{}
+		if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer)); err != nil {
+			t.Logf("EmptyCall() failed: %v", err)
+			continue
+		}
+		if peer.Addr.String() == addrs[0].Addr {
+			break
+		}
+	}
+	if ctx.Err() != nil {
+		t.Fatalf("Timeout when waiting for RPCs to be routed to backend %q in the DNS cluster", addrs[0].Addr)
+	}
+
+	// Push an error from the DNS resolver as well.
+	dnsErr := fmt.Errorf("DNS error")
+	dnsR.ReportError(dnsErr)
+
+	// Ensure that RPCs continue to succeed for the next second.
+	for end := time.Now().Add(time.Second); time.Now().Before(end); <-time.After(defaultTestShortTimeout) {
+		peer := &peer.Peer{}
+		if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer)); err != nil {
+			t.Fatalf("EmptyCall() failed: %v", err)
+		}
+		if peer.Addr.String() != addrs[0].Addr {
+			t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
+		}
+	}
+}
+
+// TestAggregateCluster_BadEDS_BadDNS tests the case where the top-level cluster
+// is an aggregate cluster that resolves to an EDS and LOGICAL_DNS cluster. When
+// the EDS request returns a resource that contains no endpoints, the test
+// verifies that we switch to the DNS cluster. When the DNS cluster returns an
+// error, the test verifies that RPCs fail with the error returned by the DNS
+// resolver, and thus, ensures that pick_first (the leaf policy) does not ignore
+// resolver errors.
+func (s) TestAggregateCluster_BadEDS_BadDNS(t *testing.T) {
+	dnsTargetCh, _, _, dnsR, cleanup1 := setupDNS()
+	defer cleanup1()
+
+	// Start an xDS management server.
+	managementServer, nodeID, bootstrapContents, _, cleanup2 := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{AllowResourceSubset: true})
+	defer cleanup2()
+
+	// Configure an aggregate cluster pointing to an EDS and LOGICAL_DNS
+	// cluster. Also configure an empty endpoints resource for the EDS cluster
+	// that contains no endpoints.
+	const (
+		edsClusterName = clusterName + "-eds"
+		dnsClusterName = clusterName + "-dns"
+		dnsHostName    = "dns_host"
+		dnsPort        = uint32(8080)
+	)
+	emptyEndpointResource := e2e.DefaultEndpoint(edsServiceName, "localhost", nil)
+	resources := e2e.UpdateOptions{
+		NodeID: nodeID,
+		Clusters: []*v3clusterpb.Cluster{
+			makeAggregateClusterResource(clusterName, []string{edsClusterName, dnsClusterName}),
+			e2e.DefaultCluster(edsClusterName, edsServiceName, e2e.SecurityLevelNone),
+			makeLogicalDNSClusterResource(dnsClusterName, dnsHostName, dnsPort),
+		},
+		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{emptyEndpointResource},
+		SkipValidation: true,
+	}
+	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
+	defer cancel()
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Create xDS client, configure cds_experimental LB policy with a manual
+	// resolver, and dial the test backends.
+	cc, cleanup := setupAndDial(t, bootstrapContents)
+	defer cleanup()
+
+	// Make an RPC with a short deadline. We expect this RPC to not succeed
+	// because the EDS resource came back with no endpoints, and we are yet to
+	// push an update through the DNS resolver.
+	client := testgrpc.NewTestServiceClient(cc)
+	sCtx, sCancel := context.WithTimeout(ctx, defaultTestShortTimeout)
+	defer sCancel()
+	if _, err := client.EmptyCall(sCtx, &testpb.Empty{}); status.Code(err) != codes.DeadlineExceeded {
+		t.Fatalf("EmptyCall() code %s, want %s", status.Code(err), codes.DeadlineExceeded)
+	}
+
+	// Ensure that the DNS resolver is started for the expected target.
+	select {
+	case <-ctx.Done():
+		t.Fatal("Timeout when waiting for DNS resolver to be started")
+	case target := <-dnsTargetCh:
+		got, want := target.Endpoint(), fmt.Sprintf("%s:%d", dnsHostName, dnsPort)
+		if got != want {
+			t.Fatalf("DNS resolution started for target %q, want %q", got, want)
+		}
+	}
+
+	// Push an error from the DNS resolver as well.
+	dnsErr := fmt.Errorf("DNS error")
+	dnsR.ReportError(dnsErr)
+
+	// Ensure that the error returned from the DNS resolver is reported to the
+	// caller of the RPC.
+	_, err := client.EmptyCall(ctx, &testpb.Empty{})
+	if code := status.Code(err); code != codes.Unavailable {
+		t.Fatalf("EmptyCall() failed with code %s, want %s", code, codes.Unavailable)
+	}
+	if err == nil || !strings.Contains(err.Error(), dnsErr.Error()) {
+		t.Fatalf("EmptyCall() failed with error %v, want %v", err, dnsErr)
+	}
+}
diff --git a/xds/internal/balancer/clusterresolver/e2e_test/balancer_test.go b/xds/internal/balancer/clusterresolver/e2e_test/balancer_test.go
index 3d0d08a3c..044bbae3d 100644
--- a/xds/internal/balancer/clusterresolver/e2e_test/balancer_test.go
+++ b/xds/internal/balancer/clusterresolver/e2e_test/balancer_test.go
@@ -19,12 +19,10 @@ package e2e_test
 import (
 	"context"
 	"fmt"
-	"sort"
 	"strings"
 	"testing"
 	"time"
 
-	"github.com/google/go-cmp/cmp"
 	"google.golang.org/grpc"
 	"google.golang.org/grpc/codes"
 	"google.golang.org/grpc/connectivity"
@@ -33,19 +31,16 @@ import (
 	"google.golang.org/grpc/internal/stubserver"
 	"google.golang.org/grpc/internal/testutils"
 	"google.golang.org/grpc/internal/testutils/xds/e2e"
-	"google.golang.org/grpc/peer"
 	"google.golang.org/grpc/resolver"
 	"google.golang.org/grpc/resolver/manual"
 	"google.golang.org/grpc/serviceconfig"
 	"google.golang.org/grpc/status"
 	"google.golang.org/grpc/xds/internal/xdsclient"
 	"google.golang.org/grpc/xds/internal/xdsclient/xdsresource/version"
-	"google.golang.org/protobuf/types/known/wrapperspb"
 
 	v3clusterpb "github.com/envoyproxy/go-control-plane/envoy/config/cluster/v3"
 	v3corepb "github.com/envoyproxy/go-control-plane/envoy/config/core/v3"
 	v3endpointpb "github.com/envoyproxy/go-control-plane/envoy/config/endpoint/v3"
-	v3aggregateclusterpb "github.com/envoyproxy/go-control-plane/envoy/extensions/clusters/aggregate/v3"
 	v3discoverypb "github.com/envoyproxy/go-control-plane/envoy/service/discovery/v3"
 	testgrpc "google.golang.org/grpc/interop/grpc_testing"
 	testpb "google.golang.org/grpc/interop/grpc_testing"
@@ -53,81 +48,6 @@ import (
 	_ "google.golang.org/grpc/xds/internal/balancer/cdsbalancer" // Register the "cds_experimental" LB policy.
 )
 
-// makeAggregateClusterResource returns an aggregate cluster resource with the
-// given name and list of child names.
-func makeAggregateClusterResource(name string, childNames []string) *v3clusterpb.Cluster {
-	return &v3clusterpb.Cluster{
-		Name: name,
-		ClusterDiscoveryType: &v3clusterpb.Cluster_ClusterType{
-			ClusterType: &v3clusterpb.Cluster_CustomClusterType{
-				Name: "envoy.clusters.aggregate",
-				TypedConfig: testutils.MarshalAny(&v3aggregateclusterpb.ClusterConfig{
-					Clusters: childNames,
-				}),
-			},
-		},
-		LbPolicy: v3clusterpb.Cluster_ROUND_ROBIN,
-	}
-}
-
-// makeLogicalDNSClusterResource returns a LOGICAL_DNS cluster resource with the
-// given name and given DNS host and port.
-func makeLogicalDNSClusterResource(name, dnsHost string, dnsPort uint32) *v3clusterpb.Cluster {
-	return &v3clusterpb.Cluster{
-		Name:                 name,
-		ClusterDiscoveryType: &v3clusterpb.Cluster_Type{Type: v3clusterpb.Cluster_LOGICAL_DNS},
-		LbPolicy:             v3clusterpb.Cluster_ROUND_ROBIN,
-		LoadAssignment: &v3endpointpb.ClusterLoadAssignment{
-			Endpoints: []*v3endpointpb.LocalityLbEndpoints{{
-				LbEndpoints: []*v3endpointpb.LbEndpoint{{
-					HostIdentifier: &v3endpointpb.LbEndpoint_Endpoint{
-						Endpoint: &v3endpointpb.Endpoint{
-							Address: &v3corepb.Address{
-								Address: &v3corepb.Address_SocketAddress{
-									SocketAddress: &v3corepb.SocketAddress{
-										Address: dnsHost,
-										PortSpecifier: &v3corepb.SocketAddress_PortValue{
-											PortValue: dnsPort,
-										},
-									},
-								},
-							},
-						},
-					},
-				}},
-			}},
-		},
-	}
-}
-
-// setupDNS unregisters the DNS resolver and registers a manual resolver for the
-// same scheme. This allows the test to mock the DNS resolution by supplying the
-// addresses of the test backends.
-//
-// Returns the following:
-//   - a channel onto which the DNS target being resolved is written to by the
-//     mock DNS resolver
-//   - a channel to notify close of the DNS resolver
-//   - a channel to notify re-resolution requests to the DNS resolver
-//   - a manual resolver which is used to mock the actual DNS resolution
-//   - a cleanup function which re-registers the original DNS resolver
-func setupDNS() (chan resolver.Target, chan struct{}, chan resolver.ResolveNowOptions, *manual.Resolver, func()) {
-	targetCh := make(chan resolver.Target, 1)
-	closeCh := make(chan struct{}, 1)
-	resolveNowCh := make(chan resolver.ResolveNowOptions, 1)
-
-	mr := manual.NewBuilderWithScheme("dns")
-	mr.BuildCallback = func(target resolver.Target, _ resolver.ClientConn, _ resolver.BuildOptions) { targetCh <- target }
-	mr.CloseCallback = func() { closeCh <- struct{}{} }
-	mr.ResolveNowCallback = func(opts resolver.ResolveNowOptions) { resolveNowCh <- opts }
-
-	dnsResolverBuilder := resolver.Get("dns")
-	resolver.UnregisterForTesting("dns")
-	resolver.Register(mr)
-
-	return targetCh, closeCh, resolveNowCh, mr, func() { resolver.Register(dnsResolverBuilder) }
-}
-
 // setupAndDial performs common setup across all tests
 //
 //   - creates an xDS client with the passed in bootstrap contents
@@ -382,946 +302,3 @@ func (s) TestErrorFromParentLB_ResourceNotFound(t *testing.T) {
 		t.Fatalf("RPCs did not fail after removal of Cluster resource")
 	}
 }
-
-// TestEDS_ResourceRemoved tests the case where the EDS resource requested by
-// the clusterresolver LB policy is removed from the management server. The test
-// verifies that the EDS watch is not canceled and that RPCs continue to succeed
-// with the previously received configuration.
-func (s) TestEDS_ResourceRemoved(t *testing.T) {
-	// Start an xDS management server that uses a couple of channels to
-	// notify the test about the following events:
-	// - an EDS requested with the expected resource name is requested
-	// - EDS resource is unrequested, i.e, an EDS request with no resource name
-	//   is received, which indicates that we are not longer interested in that
-	//   resource.
-	edsResourceRequestedCh := make(chan struct{}, 1)
-	edsResourceCanceledCh := make(chan struct{}, 1)
-	managementServer, nodeID, bootstrapContents, _, cleanup := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{
-		OnStreamRequest: func(_ int64, req *v3discoverypb.DiscoveryRequest) error {
-			if req.GetTypeUrl() == version.V3EndpointsURL {
-				switch len(req.GetResourceNames()) {
-				case 0:
-					select {
-					case edsResourceCanceledCh <- struct{}{}:
-					default:
-					}
-				case 1:
-					if req.GetResourceNames()[0] == edsServiceName {
-						select {
-						case edsResourceRequestedCh <- struct{}{}:
-						default:
-						}
-					}
-				default:
-					t.Errorf("Unexpected number of resources, %d, in an EDS request", len(req.GetResourceNames()))
-				}
-			}
-			return nil
-		},
-	})
-	defer cleanup()
-
-	server := stubserver.StartTestService(t, nil)
-	defer server.Stop()
-
-	// Configure cluster and endpoints resources in the management server.
-	resources := e2e.UpdateOptions{
-		NodeID:         nodeID,
-		Clusters:       []*v3clusterpb.Cluster{e2e.DefaultCluster(clusterName, edsServiceName, e2e.SecurityLevelNone)},
-		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{e2e.DefaultEndpoint(edsServiceName, "localhost", []uint32{testutils.ParsePort(t, server.Address)})},
-		SkipValidation: true,
-	}
-	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
-	defer cancel()
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Create xDS client, configure cds_experimental LB policy with a manual
-	// resolver, and dial the test backends.
-	cc, cleanup := setupAndDial(t, bootstrapContents)
-	defer cleanup()
-
-	client := testgrpc.NewTestServiceClient(cc)
-	if _, err := client.EmptyCall(ctx, &testpb.Empty{}); err != nil {
-		t.Fatalf("EmptyCall() failed: %v", err)
-	}
-
-	// Delete the endpoints resource from the mangement server.
-	resources.Endpoints = nil
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Ensure that RPCs continue to succeed for the next second, and that the
-	// EDS watch is not canceled.
-	for end := time.Now().Add(time.Second); time.Now().Before(end); <-time.After(defaultTestShortTimeout) {
-		if _, err := client.EmptyCall(ctx, &testpb.Empty{}); err != nil {
-			t.Fatalf("EmptyCall() failed: %v", err)
-		}
-		select {
-		case <-edsResourceCanceledCh:
-			t.Fatal("EDS watch canceled when not expected to be canceled")
-		default:
-		}
-	}
-}
-
-// TestEDS_ClusterResourceDoesNotContainEDSServiceName tests the case where the
-// Cluster resource sent by the management server does not contain an EDS
-// service name. The test verifies that the cluster_resolver LB policy uses the
-// cluster name for the EDS resource.
-func (s) TestEDS_ClusterResourceDoesNotContainEDSServiceName(t *testing.T) {
-	edsResourceCh := make(chan string, 1)
-	managementServer, nodeID, bootstrapContents, _, cleanup := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{
-		OnStreamRequest: func(_ int64, req *v3discoverypb.DiscoveryRequest) error {
-			if req.GetTypeUrl() != version.V3EndpointsURL {
-				return nil
-			}
-			if len(req.GetResourceNames()) > 0 {
-				select {
-				case edsResourceCh <- req.GetResourceNames()[0]:
-				default:
-				}
-			}
-			return nil
-		},
-	})
-	defer cleanup()
-
-	server := stubserver.StartTestService(t, nil)
-	defer server.Stop()
-
-	// Configure cluster and endpoints resources with the same name in the management server. The cluster resource does not specify an EDS service name.
-	resources := e2e.UpdateOptions{
-		NodeID:         nodeID,
-		Clusters:       []*v3clusterpb.Cluster{e2e.DefaultCluster(clusterName, "", e2e.SecurityLevelNone)},
-		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{e2e.DefaultEndpoint(clusterName, "localhost", []uint32{testutils.ParsePort(t, server.Address)})},
-		SkipValidation: true,
-	}
-	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
-	defer cancel()
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Create xDS client, configure cds_experimental LB policy with a manual
-	// resolver, and dial the test backends.
-	cc, cleanup := setupAndDial(t, bootstrapContents)
-	defer cleanup()
-
-	client := testgrpc.NewTestServiceClient(cc)
-	if _, err := client.EmptyCall(ctx, &testpb.Empty{}); err != nil {
-		t.Fatalf("EmptyCall() failed: %v", err)
-	}
-
-	select {
-	case <-ctx.Done():
-		t.Fatal("Timeout when waiting for EDS request to be received on the management server")
-	case name := <-edsResourceCh:
-		if name != clusterName {
-			t.Fatalf("Received EDS request with resource name %q, want %q", name, clusterName)
-		}
-	}
-}
-
-// TestEDS_ClusterResourceUpdates verifies different scenarios with regards to
-// cluster resource updates.
-//
-//   - The first cluster resource contains an eds_service_name. The test verifies
-//     that an EDS request is sent for the received eds_service_name. It also
-//     verifies that a subsequent RPC gets routed to a backend belonging to that
-//     service name.
-//   - The next cluster resource update contains no eds_service_name. The test
-//     verifies that a subsequent EDS request is sent for the cluster_name and
-//     that the previously received eds_service_name is no longer requested. It
-//     also verifies that a subsequent RPC gets routed to a backend belonging to
-//     the service represented by the cluster_name.
-//   - The next cluster resource update changes the circuit breaking
-//     configuration, but does not change the service name. The test verifies
-//     that a subsequent RPC gets routed to the same backend as before.
-func (s) TestEDS_ClusterResourceUpdates(t *testing.T) {
-	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
-	defer cancel()
-
-	// Start an xDS management server that pushes the EDS resource names onto a
-	// channel.
-	edsResourceNameCh := make(chan []string, 1)
-	managementServer, nodeID, bootstrapContents, _, cleanup := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{
-		OnStreamRequest: func(_ int64, req *v3discoverypb.DiscoveryRequest) error {
-			if req.GetTypeUrl() != version.V3EndpointsURL {
-				return nil
-			}
-			if len(req.GetResourceNames()) == 0 {
-				// This is the case for ACKs. Do nothing here.
-				return nil
-			}
-			select {
-			case <-ctx.Done():
-			case edsResourceNameCh <- req.GetResourceNames():
-			}
-			return nil
-		},
-		AllowResourceSubset: true,
-	})
-	defer cleanup()
-
-	// Start two test backends and extract their host and port. The first
-	// backend is used for the EDS resource identified by the eds_service_name,
-	// and the second backend is used for the EDS resource identified by the
-	// cluster_name.
-	servers, cleanup2 := startTestServiceBackends(t, 2)
-	defer cleanup2()
-	addrs, ports := backendAddressesAndPorts(t, servers)
-
-	// Configure cluster and endpoints resources in the management server.
-	resources := e2e.UpdateOptions{
-		NodeID:   nodeID,
-		Clusters: []*v3clusterpb.Cluster{e2e.DefaultCluster(clusterName, edsServiceName, e2e.SecurityLevelNone)},
-		Endpoints: []*v3endpointpb.ClusterLoadAssignment{
-			e2e.DefaultEndpoint(edsServiceName, "localhost", []uint32{uint32(ports[0])}),
-			e2e.DefaultEndpoint(clusterName, "localhost", []uint32{uint32(ports[1])}),
-		},
-		SkipValidation: true,
-	}
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Create xDS client, configure cds_experimental LB policy with a manual
-	// resolver, and dial the test backends.
-	cc, cleanup := setupAndDial(t, bootstrapContents)
-	defer cleanup()
-
-	client := testgrpc.NewTestServiceClient(cc)
-	peer := &peer.Peer{}
-	if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer)); err != nil {
-		t.Fatalf("EmptyCall() failed: %v", err)
-	}
-	if peer.Addr.String() != addrs[0].Addr {
-		t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
-	}
-
-	// Ensure EDS watch is registered for eds_service_name.
-	select {
-	case <-ctx.Done():
-		t.Fatal("Timeout when waiting for EDS request to be received on the management server")
-	case names := <-edsResourceNameCh:
-		if !cmp.Equal(names, []string{edsServiceName}) {
-			t.Fatalf("Received EDS request with resource names %v, want %v", names, []string{edsServiceName})
-		}
-	}
-
-	// Change the cluster resource to not contain an eds_service_name.
-	resources.Clusters = []*v3clusterpb.Cluster{e2e.DefaultCluster(clusterName, "", e2e.SecurityLevelNone)}
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Ensure that an EDS watch for eds_service_name is canceled and new watch
-	// for cluster_name is registered. The actual order in which this happens is
-	// not deterministic, i.e the watch for old resource could be canceled
-	// before the new one is registered or vice-versa. In either case,
-	// eventually, we want to see a request to the management server for just
-	// the cluster_name.
-	for ; ctx.Err() == nil; <-time.After(defaultTestShortTimeout) {
-		names := <-edsResourceNameCh
-		if cmp.Equal(names, []string{clusterName}) {
-			break
-		}
-	}
-	if ctx.Err() != nil {
-		t.Fatalf("Timeout when waiting for old EDS watch %q to be canceled and new one %q to be registered", edsServiceName, clusterName)
-	}
-
-	// Make a RPC, and ensure that it gets routed to second backend,
-	// corresponding to the cluster_name.
-	for ; ctx.Err() == nil; <-time.After(defaultTestShortTimeout) {
-		if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer)); err != nil {
-			continue
-		}
-		if peer.Addr.String() == addrs[1].Addr {
-			break
-		}
-	}
-	if ctx.Err() != nil {
-		t.Fatalf("Timeout when waiting for EmptyCall() to be routed to correct backend %q", addrs[1].Addr)
-	}
-
-	// Change cluster resource circuit breaking count.
-	resources.Clusters[0].CircuitBreakers = &v3clusterpb.CircuitBreakers{
-		Thresholds: []*v3clusterpb.CircuitBreakers_Thresholds{
-			{
-				Priority:    v3corepb.RoutingPriority_DEFAULT,
-				MaxRequests: wrapperspb.UInt32(512),
-			},
-		},
-	}
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Ensure that RPCs continue to get routed to the second backend for the
-	// next second.
-	for end := time.Now().Add(time.Second); time.Now().Before(end); <-time.After(defaultTestShortTimeout) {
-		if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer)); err != nil {
-			t.Fatalf("EmptyCall() failed: %v", err)
-		}
-		if peer.Addr.String() != addrs[1].Addr {
-			t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[1].Addr)
-		}
-	}
-}
-
-// TestAggregateCluster_WithTwoEDSClusters tests the case where the top-level
-// cluster resource is an aggregate cluster. It verifies that RPCs fail when the
-// management server has not responded to all requested EDS resources, and also
-// that RPCs are routed to the highest priority cluster once all requested EDS
-// resources have been sent by the management server.
-func (s) TestAggregateCluster_WithTwoEDSClusters(t *testing.T) {
-	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
-	defer cancel()
-
-	// Start an xDS management server that pushes the EDS resource names onto a
-	// channel when requested.
-	edsResourceNameCh := make(chan []string, 1)
-	managementServer, nodeID, bootstrapContents, _, cleanup := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{
-		OnStreamRequest: func(_ int64, req *v3discoverypb.DiscoveryRequest) error {
-			if req.GetTypeUrl() != version.V3EndpointsURL {
-				return nil
-			}
-			if len(req.GetResourceNames()) == 0 {
-				// This is the case for ACKs. Do nothing here.
-				return nil
-			}
-			select {
-			case edsResourceNameCh <- req.GetResourceNames():
-			case <-ctx.Done():
-			}
-			return nil
-		},
-		AllowResourceSubset: true,
-	})
-	defer cleanup()
-
-	// Start two test backends and extract their host and port. The first
-	// backend belongs to EDS cluster "cluster-1", while the second backend
-	// belongs to EDS cluster "cluster-2".
-	servers, cleanup2 := startTestServiceBackends(t, 2)
-	defer cleanup2()
-	addrs, ports := backendAddressesAndPorts(t, servers)
-
-	// Configure an aggregate cluster, two EDS clusters and only one endpoints
-	// resource (corresponding to the first EDS cluster) in the management
-	// server.
-	const clusterName1 = clusterName + "-cluster-1"
-	const clusterName2 = clusterName + "-cluster-2"
-	resources := e2e.UpdateOptions{
-		NodeID: nodeID,
-		Clusters: []*v3clusterpb.Cluster{
-			makeAggregateClusterResource(clusterName, []string{clusterName1, clusterName2}),
-			e2e.DefaultCluster(clusterName1, "", e2e.SecurityLevelNone),
-			e2e.DefaultCluster(clusterName2, "", e2e.SecurityLevelNone),
-		},
-		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{e2e.DefaultEndpoint(clusterName1, "localhost", []uint32{uint32(ports[0])})},
-		SkipValidation: true,
-	}
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Create xDS client, configure cds_experimental LB policy with a manual
-	// resolver, and dial the test backends.
-	cc, cleanup := setupAndDial(t, bootstrapContents)
-	defer cleanup()
-
-	// Wait for both EDS resources to be requested.
-	func() {
-		for ; ctx.Err() == nil; <-time.After(defaultTestShortTimeout) {
-			select {
-			case names := <-edsResourceNameCh:
-				// Copy and sort the sortedNames to avoid racing with an
-				// OnStreamRequest call.
-				sortedNames := make([]string, len(names))
-				copy(sortedNames, names)
-				sort.Strings(sortedNames)
-				if cmp.Equal(sortedNames, []string{clusterName1, clusterName2}) {
-					return
-				}
-			default:
-			}
-		}
-	}()
-	if ctx.Err() != nil {
-		t.Fatalf("Timeout when waiting for all EDS resources %v to be requested", []string{clusterName1, clusterName2})
-	}
-
-	// Make an RPC with a short deadline. We expect this RPC to not succeed
-	// because the management server has not responded with all EDS resources
-	// requested.
-	client := testgrpc.NewTestServiceClient(cc)
-	sCtx, sCancel := context.WithTimeout(ctx, defaultTestShortTimeout)
-	defer sCancel()
-	if _, err := client.EmptyCall(sCtx, &testpb.Empty{}); status.Code(err) != codes.DeadlineExceeded {
-		t.Fatalf("EmptyCall() code %s, want %s", status.Code(err), codes.DeadlineExceeded)
-	}
-
-	// Update the management server with the second EDS resource.
-	resources.Endpoints = append(resources.Endpoints, e2e.DefaultEndpoint(clusterName2, "localhost", []uint32{uint32(ports[1])}))
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Make an RPC and ensure that it gets routed to cluster-1, implicitly
-	// higher priority than cluster-2.
-	peer := &peer.Peer{}
-	if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer), grpc.WaitForReady(true)); err != nil {
-		t.Fatalf("EmptyCall() failed: %v", err)
-	}
-	if peer.Addr.String() != addrs[0].Addr {
-		t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
-	}
-}
-
-// TestAggregateCluster_WithTwoEDSClusters_PrioritiesChange tests the case where
-// the top-level cluster resource is an aggregate cluster. It verifies that RPCs
-// are routed to the highest priority EDS cluster.
-func (s) TestAggregateCluster_WithTwoEDSClusters_PrioritiesChange(t *testing.T) {
-	// Start an xDS management server.
-	managementServer, nodeID, bootstrapContents, _, cleanup := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{AllowResourceSubset: true})
-	defer cleanup()
-
-	// Start two test backends and extract their host and port. The first
-	// backend belongs to EDS cluster "cluster-1", while the second backend
-	// belongs to EDS cluster "cluster-2".
-	servers, cleanup2 := startTestServiceBackends(t, 2)
-	defer cleanup2()
-	addrs, ports := backendAddressesAndPorts(t, servers)
-
-	// Configure an aggregate cluster, two EDS clusters and the corresponding
-	// endpoints resources in the management server.
-	const clusterName1 = clusterName + "cluster-1"
-	const clusterName2 = clusterName + "cluster-2"
-	resources := e2e.UpdateOptions{
-		NodeID: nodeID,
-		Clusters: []*v3clusterpb.Cluster{
-			makeAggregateClusterResource(clusterName, []string{clusterName1, clusterName2}),
-			e2e.DefaultCluster(clusterName1, "", e2e.SecurityLevelNone),
-			e2e.DefaultCluster(clusterName2, "", e2e.SecurityLevelNone),
-		},
-		Endpoints: []*v3endpointpb.ClusterLoadAssignment{
-			e2e.DefaultEndpoint(clusterName1, "localhost", []uint32{uint32(ports[0])}),
-			e2e.DefaultEndpoint(clusterName2, "localhost", []uint32{uint32(ports[1])}),
-		},
-		SkipValidation: true,
-	}
-	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
-	defer cancel()
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Create xDS client, configure cds_experimental LB policy with a manual
-	// resolver, and dial the test backends.
-	cc, cleanup := setupAndDial(t, bootstrapContents)
-	defer cleanup()
-
-	// Make an RPC and ensure that it gets routed to cluster-1, implicitly
-	// higher priority than cluster-2.
-	client := testgrpc.NewTestServiceClient(cc)
-	peer := &peer.Peer{}
-	if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer), grpc.WaitForReady(true)); err != nil {
-		t.Fatalf("EmptyCall() failed: %v", err)
-	}
-	if peer.Addr.String() != addrs[0].Addr {
-		t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
-	}
-
-	// Swap the priorities of the EDS clusters in the aggregate cluster.
-	resources.Clusters = []*v3clusterpb.Cluster{
-		makeAggregateClusterResource(clusterName, []string{clusterName2, clusterName1}),
-		e2e.DefaultCluster(clusterName1, "", e2e.SecurityLevelNone),
-		e2e.DefaultCluster(clusterName2, "", e2e.SecurityLevelNone),
-	}
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Wait for RPCs to get routed to cluster-2, which is now implicitly higher
-	// priority than cluster-1, after the priority switch above.
-	for ; ctx.Err() == nil; <-time.After(defaultTestShortTimeout) {
-		if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer), grpc.WaitForReady(true)); err != nil {
-			t.Fatalf("EmptyCall() failed: %v", err)
-		}
-		if peer.Addr.String() == addrs[1].Addr {
-			break
-		}
-	}
-	if ctx.Err() != nil {
-		t.Fatal("Timeout waiting for RPCs to be routed to cluster-2 after priority switch")
-	}
-}
-
-// TestAggregateCluster_WithOneDNSCluster tests the case where the top-level
-// cluster resource is an aggregate cluster that resolves to a single
-// LOGICAL_DNS cluster. The test verifies that RPCs can be made to backends that
-// make up the LOGICAL_DNS cluster.
-func (s) TestAggregateCluster_WithOneDNSCluster(t *testing.T) {
-	dnsTargetCh, _, _, dnsR, cleanup1 := setupDNS()
-	defer cleanup1()
-
-	// Start an xDS management server.
-	managementServer, nodeID, bootstrapContents, _, cleanup2 := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{AllowResourceSubset: true})
-	defer cleanup2()
-
-	// Start two test backends.
-	servers, cleanup3 := startTestServiceBackends(t, 2)
-	defer cleanup3()
-	addrs, _ := backendAddressesAndPorts(t, servers)
-
-	// Configure an aggregate cluster pointing to a single LOGICAL_DNS cluster.
-	const (
-		dnsClusterName = clusterName + "-dns"
-		dnsHostName    = "dns_host"
-		dnsPort        = uint32(8080)
-	)
-	resources := e2e.UpdateOptions{
-		NodeID: nodeID,
-		Clusters: []*v3clusterpb.Cluster{
-			makeAggregateClusterResource(clusterName, []string{dnsClusterName}),
-			makeLogicalDNSClusterResource(dnsClusterName, dnsHostName, dnsPort),
-		},
-		SkipValidation: true,
-	}
-	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
-	defer cancel()
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Create xDS client, configure cds_experimental LB policy with a manual
-	// resolver, and dial the test backends.
-	cc, cleanup := setupAndDial(t, bootstrapContents)
-	defer cleanup()
-
-	// Ensure that the DNS resolver is started for the expected target.
-	select {
-	case <-ctx.Done():
-		t.Fatal("Timeout when waiting for DNS resolver to be started")
-	case target := <-dnsTargetCh:
-		got, want := target.Endpoint(), fmt.Sprintf("%s:%d", dnsHostName, dnsPort)
-		if got != want {
-			t.Fatalf("DNS resolution started for target %q, want %q", got, want)
-		}
-	}
-
-	// Update DNS resolver with test backend addresses.
-	dnsR.UpdateState(resolver.State{Addresses: addrs})
-
-	// Make an RPC and ensure that it gets routed to the first backend since the
-	// child policy for a LOGICAL_DNS cluster is pick_first by default.
-	client := testgrpc.NewTestServiceClient(cc)
-	peer := &peer.Peer{}
-	if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer), grpc.WaitForReady(true)); err != nil {
-		t.Fatalf("EmptyCall() failed: %v", err)
-	}
-	if peer.Addr.String() != addrs[0].Addr {
-		t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
-	}
-}
-
-// TestAggregateCluster_WithEDSAndDNS tests the case where the top-level cluster
-// resource is an aggregate cluster that resolves to an EDS and a LOGICAL_DNS
-// cluster. The test verifies that RPCs fail until both clusters are resolved to
-// endpoints, and RPCs are routed to the higher priority EDS cluster.
-func (s) TestAggregateCluster_WithEDSAndDNS(t *testing.T) {
-	dnsTargetCh, _, _, dnsR, cleanup1 := setupDNS()
-	defer cleanup1()
-
-	// Start an xDS management server that pushes the name of the requested EDS
-	// resource onto a channel.
-	edsResourceCh := make(chan string, 1)
-	managementServer, nodeID, bootstrapContents, _, cleanup2 := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{
-		OnStreamRequest: func(_ int64, req *v3discoverypb.DiscoveryRequest) error {
-			if req.GetTypeUrl() != version.V3EndpointsURL {
-				return nil
-			}
-			if len(req.GetResourceNames()) > 0 {
-				select {
-				case edsResourceCh <- req.GetResourceNames()[0]:
-				default:
-				}
-			}
-			return nil
-		},
-		AllowResourceSubset: true,
-	})
-	defer cleanup2()
-
-	// Start two test backends and extract their host and port. The first
-	// backend is used for the EDS cluster and the second backend is used for
-	// the LOGICAL_DNS cluster.
-	servers, cleanup3 := startTestServiceBackends(t, 2)
-	defer cleanup3()
-	addrs, ports := backendAddressesAndPorts(t, servers)
-
-	// Configure an aggregate cluster pointing to an EDS and DNS cluster. Also
-	// configure an endpoints resource for the EDS cluster.
-	const (
-		edsClusterName = clusterName + "-eds"
-		dnsClusterName = clusterName + "-dns"
-		dnsHostName    = "dns_host"
-		dnsPort        = uint32(8080)
-	)
-	resources := e2e.UpdateOptions{
-		NodeID: nodeID,
-		Clusters: []*v3clusterpb.Cluster{
-			makeAggregateClusterResource(clusterName, []string{edsClusterName, dnsClusterName}),
-			e2e.DefaultCluster(edsClusterName, "", e2e.SecurityLevelNone),
-			makeLogicalDNSClusterResource(dnsClusterName, dnsHostName, dnsPort),
-		},
-		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{e2e.DefaultEndpoint(edsClusterName, "localhost", []uint32{uint32(ports[0])})},
-		SkipValidation: true,
-	}
-	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
-	defer cancel()
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Create xDS client, configure cds_experimental LB policy with a manual
-	// resolver, and dial the test backends.
-	cc, cleanup := setupAndDial(t, bootstrapContents)
-	defer cleanup()
-
-	// Ensure that an EDS request is sent for the expected resource name.
-	select {
-	case <-ctx.Done():
-		t.Fatal("Timeout when waiting for EDS request to be received on the management server")
-	case name := <-edsResourceCh:
-		if name != edsClusterName {
-			t.Fatalf("Received EDS request with resource name %q, want %q", name, edsClusterName)
-		}
-	}
-
-	// Ensure that the DNS resolver is started for the expected target.
-	select {
-	case <-ctx.Done():
-		t.Fatal("Timeout when waiting for DNS resolver to be started")
-	case target := <-dnsTargetCh:
-		got, want := target.Endpoint(), fmt.Sprintf("%s:%d", dnsHostName, dnsPort)
-		if got != want {
-			t.Fatalf("DNS resolution started for target %q, want %q", got, want)
-		}
-	}
-
-	// Make an RPC with a short deadline. We expect this RPC to not succeed
-	// because the DNS resolver has not responded with endpoint addresses.
-	client := testgrpc.NewTestServiceClient(cc)
-	sCtx, sCancel := context.WithTimeout(ctx, defaultTestShortTimeout)
-	defer sCancel()
-	if _, err := client.EmptyCall(sCtx, &testpb.Empty{}); status.Code(err) != codes.DeadlineExceeded {
-		t.Fatalf("EmptyCall() code %s, want %s", status.Code(err), codes.DeadlineExceeded)
-	}
-
-	// Update DNS resolver with test backend addresses.
-	dnsR.UpdateState(resolver.State{Addresses: addrs[1:]})
-
-	// Make an RPC and ensure that it gets routed to the first backend since the
-	// EDS cluster is of higher priority than the LOGICAL_DNS cluster.
-	peer := &peer.Peer{}
-	if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer), grpc.WaitForReady(true)); err != nil {
-		t.Fatalf("EmptyCall() failed: %v", err)
-	}
-	if peer.Addr.String() != addrs[0].Addr {
-		t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
-	}
-}
-
-// TestAggregateCluster_SwitchEDSAndDNS tests the case where the top-level
-// cluster resource is an aggregate cluster. It initially resolves to a single
-// EDS cluster. The test verifies that RPCs are routed to backends in the EDS
-// cluster. Subsequently, the aggregate cluster resolves to a single DNS
-// cluster. The test verifies that RPCs are successful, this time to backends in
-// the DNS cluster.
-func (s) TestAggregateCluster_SwitchEDSAndDNS(t *testing.T) {
-	dnsTargetCh, _, _, dnsR, cleanup1 := setupDNS()
-	defer cleanup1()
-
-	// Start an xDS management server.
-	managementServer, nodeID, bootstrapContents, _, cleanup2 := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{AllowResourceSubset: true})
-	defer cleanup2()
-
-	// Start two test backends and extract their host and port. The first
-	// backend is used for the EDS cluster and the second backend is used for
-	// the LOGICAL_DNS cluster.
-	servers, cleanup3 := startTestServiceBackends(t, 2)
-	defer cleanup3()
-	addrs, ports := backendAddressesAndPorts(t, servers)
-
-	// Configure an aggregate cluster pointing to a single EDS cluster. Also,
-	// configure the underlying EDS cluster (and the corresponding endpoints
-	// resource) and DNS cluster (will be used later in the test).
-	const (
-		dnsClusterName = clusterName + "-dns"
-		dnsHostName    = "dns_host"
-		dnsPort        = uint32(8080)
-	)
-	resources := e2e.UpdateOptions{
-		NodeID: nodeID,
-		Clusters: []*v3clusterpb.Cluster{
-			makeAggregateClusterResource(clusterName, []string{edsServiceName}),
-			e2e.DefaultCluster(edsServiceName, "", e2e.SecurityLevelNone),
-			makeLogicalDNSClusterResource(dnsClusterName, dnsHostName, dnsPort),
-		},
-		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{e2e.DefaultEndpoint(edsServiceName, "localhost", []uint32{uint32(ports[0])})},
-		SkipValidation: true,
-	}
-	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
-	defer cancel()
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Create xDS client, configure cds_experimental LB policy with a manual
-	// resolver, and dial the test backends.
-	cc, cleanup := setupAndDial(t, bootstrapContents)
-	defer cleanup()
-
-	// Ensure that the RPC is routed to the appropriate backend.
-	client := testgrpc.NewTestServiceClient(cc)
-	peer := &peer.Peer{}
-	if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer), grpc.WaitForReady(true)); err != nil {
-		t.Fatalf("EmptyCall() failed: %v", err)
-	}
-	if peer.Addr.String() != addrs[0].Addr {
-		t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
-	}
-
-	// Update the aggregate cluster to point to a single DNS cluster.
-	resources.Clusters = []*v3clusterpb.Cluster{
-		makeAggregateClusterResource(clusterName, []string{dnsClusterName}),
-		e2e.DefaultCluster(edsServiceName, "", e2e.SecurityLevelNone),
-		makeLogicalDNSClusterResource(dnsClusterName, dnsHostName, dnsPort),
-	}
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Ensure that the DNS resolver is started for the expected target.
-	select {
-	case <-ctx.Done():
-		t.Fatal("Timeout when waiting for DNS resolver to be started")
-	case target := <-dnsTargetCh:
-		got, want := target.Endpoint(), fmt.Sprintf("%s:%d", dnsHostName, dnsPort)
-		if got != want {
-			t.Fatalf("DNS resolution started for target %q, want %q", got, want)
-		}
-	}
-
-	// Update DNS resolver with test backend addresses.
-	dnsR.UpdateState(resolver.State{Addresses: addrs[1:]})
-
-	// Ensure that start getting routed to the backend corresponding to the
-	// LOGICAL_DNS cluster.
-	for ; ctx.Err() == nil; <-time.After(defaultTestShortTimeout) {
-		client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer))
-		if peer.Addr.String() == addrs[1].Addr {
-			break
-		}
-	}
-	if ctx.Err() != nil {
-		t.Fatalf("Timeout when waiting for RPCs to be routed to backend %q in the DNS cluster", addrs[1].Addr)
-	}
-}
-
-// TestAggregateCluster_BadEDS_GoodToBadDNS tests the case where the top-level
-// cluster is an aggregate cluster that resolves to an EDS and LOGICAL_DNS
-// cluster. The test first asserts that no RPCs can be made after receiving an
-// EDS response with zero endpoints because no update has been received from the
-// DNS resolver yet. Once the DNS resolver pushes an update, the test verifies
-// that we switch to the DNS cluster and can make a successful RPC. At this
-// point when the DNS cluster returns an error, the test verifies that RPCs are
-// still successful. This is the expected behavior because pick_first (the leaf
-// policy) ignores resolver errors when it is not in TransientFailure.
-func (s) TestAggregateCluster_BadEDS_GoodToBadDNS(t *testing.T) {
-	dnsTargetCh, _, _, dnsR, cleanup1 := setupDNS()
-	defer cleanup1()
-
-	// Start an xDS management server.
-	managementServer, nodeID, bootstrapContents, _, cleanup2 := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{AllowResourceSubset: true})
-	defer cleanup2()
-
-	// Start two test backends.
-	servers, cleanup3 := startTestServiceBackends(t, 2)
-	defer cleanup3()
-	addrs, _ := backendAddressesAndPorts(t, servers)
-
-	// Configure an aggregate cluster pointing to an EDS and LOGICAL_DNS
-	// cluster. Also configure an empty endpoints resource for the EDS cluster
-	// that contains no endpoints.
-	const (
-		edsClusterName = clusterName + "-eds"
-		dnsClusterName = clusterName + "-dns"
-		dnsHostName    = "dns_host"
-		dnsPort        = uint32(8080)
-	)
-	emptyEndpointResource := e2e.DefaultEndpoint(edsServiceName, "localhost", nil)
-	resources := e2e.UpdateOptions{
-		NodeID: nodeID,
-		Clusters: []*v3clusterpb.Cluster{
-			makeAggregateClusterResource(clusterName, []string{edsClusterName, dnsClusterName}),
-			e2e.DefaultCluster(edsClusterName, edsServiceName, e2e.SecurityLevelNone),
-			makeLogicalDNSClusterResource(dnsClusterName, dnsHostName, dnsPort),
-		},
-		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{emptyEndpointResource},
-		SkipValidation: true,
-	}
-	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
-	defer cancel()
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Create xDS client, configure cds_experimental LB policy with a manual
-	// resolver, and dial the test backends.
-	cc, cleanup := setupAndDial(t, bootstrapContents)
-	defer cleanup()
-
-	// Make an RPC with a short deadline. We expect this RPC to not succeed
-	// because the EDS resource came back with no endpoints, and we are yet to
-	// push an update through the DNS resolver.
-	client := testgrpc.NewTestServiceClient(cc)
-	sCtx, sCancel := context.WithTimeout(ctx, defaultTestShortTimeout)
-	defer sCancel()
-	if _, err := client.EmptyCall(sCtx, &testpb.Empty{}); status.Code(err) != codes.DeadlineExceeded {
-		t.Fatalf("EmptyCall() code %s, want %s", status.Code(err), codes.DeadlineExceeded)
-	}
-
-	// Ensure that the DNS resolver is started for the expected target.
-	select {
-	case <-ctx.Done():
-		t.Fatal("Timeout when waiting for DNS resolver to be started")
-	case target := <-dnsTargetCh:
-		got, want := target.Endpoint(), fmt.Sprintf("%s:%d", dnsHostName, dnsPort)
-		if got != want {
-			t.Fatalf("DNS resolution started for target %q, want %q", got, want)
-		}
-	}
-
-	// Update DNS resolver with test backend addresses.
-	dnsR.UpdateState(resolver.State{Addresses: addrs})
-
-	// Ensure that RPCs start getting routed to the first backend since the
-	// child policy for a LOGICAL_DNS cluster is pick_first by default.
-	for ; ctx.Err() == nil; <-time.After(defaultTestShortTimeout) {
-		peer := &peer.Peer{}
-		if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer)); err != nil {
-			t.Logf("EmptyCall() failed: %v", err)
-			continue
-		}
-		if peer.Addr.String() == addrs[0].Addr {
-			break
-		}
-	}
-	if ctx.Err() != nil {
-		t.Fatalf("Timeout when waiting for RPCs to be routed to backend %q in the DNS cluster", addrs[0].Addr)
-	}
-
-	// Push an error from the DNS resolver as well.
-	dnsErr := fmt.Errorf("DNS error")
-	dnsR.ReportError(dnsErr)
-
-	// Ensure that RPCs continue to succeed for the next second.
-	for end := time.Now().Add(time.Second); time.Now().Before(end); <-time.After(defaultTestShortTimeout) {
-		peer := &peer.Peer{}
-		if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer)); err != nil {
-			t.Fatalf("EmptyCall() failed: %v", err)
-		}
-		if peer.Addr.String() != addrs[0].Addr {
-			t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
-		}
-	}
-}
-
-// TestAggregateCluster_BadEDS_BadDNS tests the case where the top-level cluster
-// is an aggregate cluster that resolves to an EDS and LOGICAL_DNS cluster. When
-// the EDS request returns a resource that contains no endpoints, the test
-// verifies that we switch to the DNS cluster. When the DNS cluster returns an
-// error, the test verifies that RPCs fail with the error returned by the DNS
-// resolver, and thus, ensures that pick_first (the leaf policy) does not ignore
-// resolver errors.
-func (s) TestAggregateCluster_BadEDS_BadDNS(t *testing.T) {
-	dnsTargetCh, _, _, dnsR, cleanup1 := setupDNS()
-	defer cleanup1()
-
-	// Start an xDS management server.
-	managementServer, nodeID, bootstrapContents, _, cleanup2 := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{AllowResourceSubset: true})
-	defer cleanup2()
-
-	// Configure an aggregate cluster pointing to an EDS and LOGICAL_DNS
-	// cluster. Also configure an empty endpoints resource for the EDS cluster
-	// that contains no endpoints.
-	const (
-		edsClusterName = clusterName + "-eds"
-		dnsClusterName = clusterName + "-dns"
-		dnsHostName    = "dns_host"
-		dnsPort        = uint32(8080)
-	)
-	emptyEndpointResource := e2e.DefaultEndpoint(edsServiceName, "localhost", nil)
-	resources := e2e.UpdateOptions{
-		NodeID: nodeID,
-		Clusters: []*v3clusterpb.Cluster{
-			makeAggregateClusterResource(clusterName, []string{edsClusterName, dnsClusterName}),
-			e2e.DefaultCluster(edsClusterName, edsServiceName, e2e.SecurityLevelNone),
-			makeLogicalDNSClusterResource(dnsClusterName, dnsHostName, dnsPort),
-		},
-		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{emptyEndpointResource},
-		SkipValidation: true,
-	}
-	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
-	defer cancel()
-	if err := managementServer.Update(ctx, resources); err != nil {
-		t.Fatal(err)
-	}
-
-	// Create xDS client, configure cds_experimental LB policy with a manual
-	// resolver, and dial the test backends.
-	cc, cleanup := setupAndDial(t, bootstrapContents)
-	defer cleanup()
-
-	// Make an RPC with a short deadline. We expect this RPC to not succeed
-	// because the EDS resource came back with no endpoints, and we are yet to
-	// push an update through the DNS resolver.
-	client := testgrpc.NewTestServiceClient(cc)
-	sCtx, sCancel := context.WithTimeout(ctx, defaultTestShortTimeout)
-	defer sCancel()
-	if _, err := client.EmptyCall(sCtx, &testpb.Empty{}); status.Code(err) != codes.DeadlineExceeded {
-		t.Fatalf("EmptyCall() code %s, want %s", status.Code(err), codes.DeadlineExceeded)
-	}
-
-	// Ensure that the DNS resolver is started for the expected target.
-	select {
-	case <-ctx.Done():
-		t.Fatal("Timeout when waiting for DNS resolver to be started")
-	case target := <-dnsTargetCh:
-		got, want := target.Endpoint(), fmt.Sprintf("%s:%d", dnsHostName, dnsPort)
-		if got != want {
-			t.Fatalf("DNS resolution started for target %q, want %q", got, want)
-		}
-	}
-
-	// Push an error from the DNS resolver as well.
-	dnsErr := fmt.Errorf("DNS error")
-	dnsR.ReportError(dnsErr)
-
-	// Ensure that the error returned from the DNS resolver is reported to the
-	// caller of the RPC.
-	_, err := client.EmptyCall(ctx, &testpb.Empty{})
-	if code := status.Code(err); code != codes.Unavailable {
-		t.Fatalf("EmptyCall() failed with code %s, want %s", code, codes.Unavailable)
-	}
-	if err == nil || !strings.Contains(err.Error(), dnsErr.Error()) {
-		t.Fatalf("EmptyCall() failed with error %v, want %v", err, dnsErr)
-	}
-}
diff --git a/xds/internal/balancer/clusterresolver/e2e_test/eds_impl_test.go b/xds/internal/balancer/clusterresolver/e2e_test/eds_impl_test.go
index 0be84f7b7..b45084eda 100644
--- a/xds/internal/balancer/clusterresolver/e2e_test/eds_impl_test.go
+++ b/xds/internal/balancer/clusterresolver/e2e_test/eds_impl_test.go
@@ -24,6 +24,7 @@ import (
 	"testing"
 	"time"
 
+	"github.com/google/go-cmp/cmp"
 	"google.golang.org/grpc"
 	"google.golang.org/grpc/codes"
 	"google.golang.org/grpc/credentials/insecure"
@@ -34,16 +35,20 @@ import (
 	"google.golang.org/grpc/internal/testutils"
 	rrutil "google.golang.org/grpc/internal/testutils/roundrobin"
 	"google.golang.org/grpc/internal/testutils/xds/e2e"
+	"google.golang.org/grpc/peer"
 	"google.golang.org/grpc/resolver"
 	"google.golang.org/grpc/resolver/manual"
 	"google.golang.org/grpc/serviceconfig"
 	"google.golang.org/grpc/status"
 	"google.golang.org/grpc/xds/internal/balancer/priority"
 	"google.golang.org/grpc/xds/internal/xdsclient"
+	"google.golang.org/grpc/xds/internal/xdsclient/xdsresource/version"
+	"google.golang.org/protobuf/types/known/wrapperspb"
 
+	v3clusterpb "github.com/envoyproxy/go-control-plane/envoy/config/cluster/v3"
 	v3corepb "github.com/envoyproxy/go-control-plane/envoy/config/core/v3"
 	v3endpointpb "github.com/envoyproxy/go-control-plane/envoy/config/endpoint/v3"
-	wrapperspb "github.com/golang/protobuf/ptypes/wrappers"
+	v3discoverypb "github.com/envoyproxy/go-control-plane/envoy/service/discovery/v3"
 	testgrpc "google.golang.org/grpc/interop/grpc_testing"
 	testpb "google.golang.org/grpc/interop/grpc_testing"
 
@@ -125,7 +130,7 @@ func endpointResource(clusterName string, localities []localityInfo) *v3endpoint
 		localityEndpoints = append(localityEndpoints, &v3endpointpb.LocalityLbEndpoints{
 			Locality:            &v3corepb.Locality{SubZone: locality.name},
 			LbEndpoints:         endpoints,
-			LoadBalancingWeight: &wrapperspb.UInt32Value{Value: locality.weight},
+			LoadBalancingWeight: wrapperspb.UInt32(locality.weight),
 		})
 	}
 	return &v3endpointpb.ClusterLoadAssignment{
@@ -534,6 +539,296 @@ func (s) TestEDS_EmptyUpdate(t *testing.T) {
 	}
 }
 
+// TestEDS_ResourceRemoved tests the case where the EDS resource requested by
+// the clusterresolver LB policy is removed from the management server. The test
+// verifies that the EDS watch is not canceled and that RPCs continue to succeed
+// with the previously received configuration.
+func (s) TestEDS_ResourceRemoved(t *testing.T) {
+	// Start an xDS management server that uses a couple of channels to
+	// notify the test about the following events:
+	// - an EDS requested with the expected resource name is requested
+	// - EDS resource is unrequested, i.e, an EDS request with no resource name
+	//   is received, which indicates that we are not longer interested in that
+	//   resource.
+	edsResourceRequestedCh := make(chan struct{}, 1)
+	edsResourceCanceledCh := make(chan struct{}, 1)
+	managementServer, nodeID, bootstrapContents, _, cleanup := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{
+		OnStreamRequest: func(_ int64, req *v3discoverypb.DiscoveryRequest) error {
+			if req.GetTypeUrl() == version.V3EndpointsURL {
+				switch len(req.GetResourceNames()) {
+				case 0:
+					select {
+					case edsResourceCanceledCh <- struct{}{}:
+					default:
+					}
+				case 1:
+					if req.GetResourceNames()[0] == edsServiceName {
+						select {
+						case edsResourceRequestedCh <- struct{}{}:
+						default:
+						}
+					}
+				default:
+					t.Errorf("Unexpected number of resources, %d, in an EDS request", len(req.GetResourceNames()))
+				}
+			}
+			return nil
+		},
+	})
+	defer cleanup()
+
+	server := stubserver.StartTestService(t, nil)
+	defer server.Stop()
+
+	// Configure cluster and endpoints resources in the management server.
+	resources := e2e.UpdateOptions{
+		NodeID:         nodeID,
+		Clusters:       []*v3clusterpb.Cluster{e2e.DefaultCluster(clusterName, edsServiceName, e2e.SecurityLevelNone)},
+		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{e2e.DefaultEndpoint(edsServiceName, "localhost", []uint32{testutils.ParsePort(t, server.Address)})},
+		SkipValidation: true,
+	}
+	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
+	defer cancel()
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Create xDS client, configure cds_experimental LB policy with a manual
+	// resolver, and dial the test backends.
+	cc, cleanup := setupAndDial(t, bootstrapContents)
+	defer cleanup()
+
+	client := testgrpc.NewTestServiceClient(cc)
+	if _, err := client.EmptyCall(ctx, &testpb.Empty{}); err != nil {
+		t.Fatalf("EmptyCall() failed: %v", err)
+	}
+
+	// Delete the endpoints resource from the mangement server.
+	resources.Endpoints = nil
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Ensure that RPCs continue to succeed for the next second, and that the
+	// EDS watch is not canceled.
+	for end := time.Now().Add(time.Second); time.Now().Before(end); <-time.After(defaultTestShortTimeout) {
+		if _, err := client.EmptyCall(ctx, &testpb.Empty{}); err != nil {
+			t.Fatalf("EmptyCall() failed: %v", err)
+		}
+		select {
+		case <-edsResourceCanceledCh:
+			t.Fatal("EDS watch canceled when not expected to be canceled")
+		default:
+		}
+	}
+}
+
+// TestEDS_ClusterResourceDoesNotContainEDSServiceName tests the case where the
+// Cluster resource sent by the management server does not contain an EDS
+// service name. The test verifies that the cluster_resolver LB policy uses the
+// cluster name for the EDS resource.
+func (s) TestEDS_ClusterResourceDoesNotContainEDSServiceName(t *testing.T) {
+	edsResourceCh := make(chan string, 1)
+	managementServer, nodeID, bootstrapContents, _, cleanup := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{
+		OnStreamRequest: func(_ int64, req *v3discoverypb.DiscoveryRequest) error {
+			if req.GetTypeUrl() != version.V3EndpointsURL {
+				return nil
+			}
+			if len(req.GetResourceNames()) > 0 {
+				select {
+				case edsResourceCh <- req.GetResourceNames()[0]:
+				default:
+				}
+			}
+			return nil
+		},
+	})
+	defer cleanup()
+
+	server := stubserver.StartTestService(t, nil)
+	defer server.Stop()
+
+	// Configure cluster and endpoints resources with the same name in the management server. The cluster resource does not specify an EDS service name.
+	resources := e2e.UpdateOptions{
+		NodeID:         nodeID,
+		Clusters:       []*v3clusterpb.Cluster{e2e.DefaultCluster(clusterName, "", e2e.SecurityLevelNone)},
+		Endpoints:      []*v3endpointpb.ClusterLoadAssignment{e2e.DefaultEndpoint(clusterName, "localhost", []uint32{testutils.ParsePort(t, server.Address)})},
+		SkipValidation: true,
+	}
+	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
+	defer cancel()
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Create xDS client, configure cds_experimental LB policy with a manual
+	// resolver, and dial the test backends.
+	cc, cleanup := setupAndDial(t, bootstrapContents)
+	defer cleanup()
+
+	client := testgrpc.NewTestServiceClient(cc)
+	if _, err := client.EmptyCall(ctx, &testpb.Empty{}); err != nil {
+		t.Fatalf("EmptyCall() failed: %v", err)
+	}
+
+	select {
+	case <-ctx.Done():
+		t.Fatal("Timeout when waiting for EDS request to be received on the management server")
+	case name := <-edsResourceCh:
+		if name != clusterName {
+			t.Fatalf("Received EDS request with resource name %q, want %q", name, clusterName)
+		}
+	}
+}
+
+// TestEDS_ClusterResourceUpdates verifies different scenarios with regards to
+// cluster resource updates.
+//
+//   - The first cluster resource contains an eds_service_name. The test verifies
+//     that an EDS request is sent for the received eds_service_name. It also
+//     verifies that a subsequent RPC gets routed to a backend belonging to that
+//     service name.
+//   - The next cluster resource update contains no eds_service_name. The test
+//     verifies that a subsequent EDS request is sent for the cluster_name and
+//     that the previously received eds_service_name is no longer requested. It
+//     also verifies that a subsequent RPC gets routed to a backend belonging to
+//     the service represented by the cluster_name.
+//   - The next cluster resource update changes the circuit breaking
+//     configuration, but does not change the service name. The test verifies
+//     that a subsequent RPC gets routed to the same backend as before.
+func (s) TestEDS_ClusterResourceUpdates(t *testing.T) {
+	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
+	defer cancel()
+
+	// Start an xDS management server that pushes the EDS resource names onto a
+	// channel.
+	edsResourceNameCh := make(chan []string, 1)
+	managementServer, nodeID, bootstrapContents, _, cleanup := e2e.SetupManagementServer(t, e2e.ManagementServerOptions{
+		OnStreamRequest: func(_ int64, req *v3discoverypb.DiscoveryRequest) error {
+			if req.GetTypeUrl() != version.V3EndpointsURL {
+				return nil
+			}
+			if len(req.GetResourceNames()) == 0 {
+				// This is the case for ACKs. Do nothing here.
+				return nil
+			}
+			select {
+			case <-ctx.Done():
+			case edsResourceNameCh <- req.GetResourceNames():
+			}
+			return nil
+		},
+		AllowResourceSubset: true,
+	})
+	defer cleanup()
+
+	// Start two test backends and extract their host and port. The first
+	// backend is used for the EDS resource identified by the eds_service_name,
+	// and the second backend is used for the EDS resource identified by the
+	// cluster_name.
+	servers, cleanup2 := startTestServiceBackends(t, 2)
+	defer cleanup2()
+	addrs, ports := backendAddressesAndPorts(t, servers)
+
+	// Configure cluster and endpoints resources in the management server.
+	resources := e2e.UpdateOptions{
+		NodeID:   nodeID,
+		Clusters: []*v3clusterpb.Cluster{e2e.DefaultCluster(clusterName, edsServiceName, e2e.SecurityLevelNone)},
+		Endpoints: []*v3endpointpb.ClusterLoadAssignment{
+			e2e.DefaultEndpoint(edsServiceName, "localhost", []uint32{uint32(ports[0])}),
+			e2e.DefaultEndpoint(clusterName, "localhost", []uint32{uint32(ports[1])}),
+		},
+		SkipValidation: true,
+	}
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Create xDS client, configure cds_experimental LB policy with a manual
+	// resolver, and dial the test backends.
+	cc, cleanup := setupAndDial(t, bootstrapContents)
+	defer cleanup()
+
+	client := testgrpc.NewTestServiceClient(cc)
+	peer := &peer.Peer{}
+	if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer)); err != nil {
+		t.Fatalf("EmptyCall() failed: %v", err)
+	}
+	if peer.Addr.String() != addrs[0].Addr {
+		t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[0].Addr)
+	}
+
+	// Ensure EDS watch is registered for eds_service_name.
+	select {
+	case <-ctx.Done():
+		t.Fatal("Timeout when waiting for EDS request to be received on the management server")
+	case names := <-edsResourceNameCh:
+		if !cmp.Equal(names, []string{edsServiceName}) {
+			t.Fatalf("Received EDS request with resource names %v, want %v", names, []string{edsServiceName})
+		}
+	}
+
+	// Change the cluster resource to not contain an eds_service_name.
+	resources.Clusters = []*v3clusterpb.Cluster{e2e.DefaultCluster(clusterName, "", e2e.SecurityLevelNone)}
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Ensure that an EDS watch for eds_service_name is canceled and new watch
+	// for cluster_name is registered. The actual order in which this happens is
+	// not deterministic, i.e the watch for old resource could be canceled
+	// before the new one is registered or vice-versa. In either case,
+	// eventually, we want to see a request to the management server for just
+	// the cluster_name.
+	for ; ctx.Err() == nil; <-time.After(defaultTestShortTimeout) {
+		names := <-edsResourceNameCh
+		if cmp.Equal(names, []string{clusterName}) {
+			break
+		}
+	}
+	if ctx.Err() != nil {
+		t.Fatalf("Timeout when waiting for old EDS watch %q to be canceled and new one %q to be registered", edsServiceName, clusterName)
+	}
+
+	// Make a RPC, and ensure that it gets routed to second backend,
+	// corresponding to the cluster_name.
+	for ; ctx.Err() == nil; <-time.After(defaultTestShortTimeout) {
+		if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer)); err != nil {
+			continue
+		}
+		if peer.Addr.String() == addrs[1].Addr {
+			break
+		}
+	}
+	if ctx.Err() != nil {
+		t.Fatalf("Timeout when waiting for EmptyCall() to be routed to correct backend %q", addrs[1].Addr)
+	}
+
+	// Change cluster resource circuit breaking count.
+	resources.Clusters[0].CircuitBreakers = &v3clusterpb.CircuitBreakers{
+		Thresholds: []*v3clusterpb.CircuitBreakers_Thresholds{
+			{
+				Priority:    v3corepb.RoutingPriority_DEFAULT,
+				MaxRequests: wrapperspb.UInt32(512),
+			},
+		},
+	}
+	if err := managementServer.Update(ctx, resources); err != nil {
+		t.Fatal(err)
+	}
+
+	// Ensure that RPCs continue to get routed to the second backend for the
+	// next second.
+	for end := time.Now().Add(time.Second); time.Now().Before(end); <-time.After(defaultTestShortTimeout) {
+		if _, err := client.EmptyCall(ctx, &testpb.Empty{}, grpc.Peer(peer)); err != nil {
+			t.Fatalf("EmptyCall() failed: %v", err)
+		}
+		if peer.Addr.String() != addrs[1].Addr {
+			t.Fatalf("EmptyCall() routed to backend %q, want %q", peer.Addr, addrs[1].Addr)
+		}
+	}
+}
+
 // waitForAllPrioritiesRemovedError repeatedly makes RPCs using the
 // TestServiceClient until they fail with an error which indicates that all
 // priorities have been removed. A non-nil error is returned if the context