diff --git a/xds/internal/balancer/balancergroup/balancergroup.go b/xds/internal/balancer/balancergroup/balancergroup.go
index 2ec576a4b..5b6d42a25 100644
--- a/xds/internal/balancer/balancergroup/balancergroup.go
+++ b/xds/internal/balancer/balancergroup/balancergroup.go
@@ -479,6 +479,10 @@ func (bg *BalancerGroup) Close() {
 	}
 	bg.incomingMu.Unlock()
 
+	// Clear(true) runs clear function to close sub-balancers in cache. It
+	// must be called out of outgoing mutex.
+	bg.balancerCache.Clear(true)
+
 	bg.outgoingMu.Lock()
 	if bg.outgoingStarted {
 		bg.outgoingStarted = false
@@ -487,9 +491,6 @@ func (bg *BalancerGroup) Close() {
 		}
 	}
 	bg.outgoingMu.Unlock()
-	// Clear(true) runs clear function to close sub-balancers in cache. It
-	// must be called out of outgoing mutex.
-	bg.balancerCache.Clear(true)
 }
 
 const (
diff --git a/xds/internal/balancer/balancergroup/balancergroup_test.go b/xds/internal/balancer/balancergroup/balancergroup_test.go
index 0ad4bf8df..ab6ac3913 100644
--- a/xds/internal/balancer/balancergroup/balancergroup_test.go
+++ b/xds/internal/balancer/balancergroup/balancergroup_test.go
@@ -938,6 +938,36 @@ func (s) TestBalancerGroup_locality_caching_readd_with_different_builder(t *test
 	}
 }
 
+// After removing a sub-balancer, it will be kept in cache. Make sure that this
+// sub-balancer's Close is called when the balancer group is closed.
+func (s) TestBalancerGroup_CloseStopsBalancerInCache(t *testing.T) {
+	const balancerName = "stub-TestBalancerGroup_check_close"
+	closed := make(chan struct{})
+	stub.Register(balancerName, stub.BalancerFuncs{Close: func(_ *stub.BalancerData) {
+		close(closed)
+	}})
+	builder := balancer.Get(balancerName)
+
+	defer replaceDefaultSubBalancerCloseTimeout(time.Second)()
+	gator, bg, _, _ := initBalancerGroupForCachingTest(t)
+
+	// Add balancer, and remove
+	gator.Add(testBalancerIDs[2], 1)
+	bg.Add(testBalancerIDs[2], builder)
+	gator.Remove(testBalancerIDs[2])
+	bg.Remove(testBalancerIDs[2])
+
+	// Immediately close balancergroup, before the cache timeout.
+	bg.Close()
+
+	// Make sure the removed child balancer is closed eventually.
+	select {
+	case <-closed:
+	case <-time.After(time.Second * 2):
+		t.Fatalf("timeout waiting for the child balancer in cache to be closed")
+	}
+}
+
 // TestBalancerGroupBuildOptions verifies that the balancer.BuildOptions passed
 // to the balancergroup at creation time is passed to child policies.
 func (s) TestBalancerGroupBuildOptions(t *testing.T) {