diff --git a/xds/src/main/java/io/grpc/xds/XdsClient.java b/xds/src/main/java/io/grpc/xds/XdsClient.java
index 8eb9068c78..befb82600a 100644
--- a/xds/src/main/java/io/grpc/xds/XdsClient.java
+++ b/xds/src/main/java/io/grpc/xds/XdsClient.java
@@ -182,6 +182,28 @@ abstract class XdsClient {
               .toString();
     }
 
+    @Override
+    public int hashCode() {
+      return Objects.hash(
+          clusterName, edsServiceName, lbPolicy, lrsServerName, upstreamTlsContext);
+    }
+
+    @Override
+    public boolean equals(Object o) {
+      if (this == o) {
+        return true;
+      }
+      if (o == null || getClass() != o.getClass()) {
+        return false;
+      }
+      ClusterUpdate that = (ClusterUpdate) o;
+      return Objects.equals(clusterName, that.clusterName)
+          && Objects.equals(edsServiceName, that.edsServiceName)
+          && Objects.equals(lbPolicy, that.lbPolicy)
+          && Objects.equals(lrsServerName, that.lrsServerName)
+          && Objects.equals(upstreamTlsContext, that.upstreamTlsContext);
+    }
+
     static Builder newBuilder() {
       return new Builder();
     }
@@ -287,9 +309,9 @@ abstract class XdsClient {
         return false;
       }
       EndpointUpdate that = (EndpointUpdate) o;
-      return clusterName.equals(that.clusterName)
-          && localityLbEndpointsMap.equals(that.localityLbEndpointsMap)
-          && dropPolicies.equals(that.dropPolicies);
+      return Objects.equals(clusterName, that.clusterName)
+          && Objects.equals(localityLbEndpointsMap, that.localityLbEndpointsMap)
+          && Objects.equals(dropPolicies, that.dropPolicies);
     }
 
     @Override
diff --git a/xds/src/main/java/io/grpc/xds/XdsClientImpl.java b/xds/src/main/java/io/grpc/xds/XdsClientImpl.java
index ef16e6e17b..c5c90c8bbb 100644
--- a/xds/src/main/java/io/grpc/xds/XdsClientImpl.java
+++ b/xds/src/main/java/io/grpc/xds/XdsClientImpl.java
@@ -1022,13 +1022,15 @@ final class XdsClientImpl extends XdsClient {
 
     // Update local CDS cache with data in this response.
     absentCdsResources.removeAll(clusterUpdates.keySet());
-    for (String clusterName : clusterNamesToClusterUpdates.keySet()) {
-      if (!clusterUpdates.containsKey(clusterName)) {
+    for (Map.Entry<String, ClusterUpdate> entry : clusterNamesToClusterUpdates.entrySet()) {
+      if (!clusterUpdates.containsKey(entry.getKey())) {
         // Some previously existing resource no longer exists.
-        absentCdsResources.add(clusterName);
+        absentCdsResources.add(entry.getKey());
+      } else if (clusterUpdates.get(entry.getKey()).equals(entry.getValue())) {
+        clusterUpdates.remove(entry.getKey());
       }
     }
-    clusterNamesToClusterUpdates.clear();
+    clusterNamesToClusterUpdates.keySet().removeAll(absentCdsResources);
     clusterNamesToClusterUpdates.putAll(clusterUpdates);
 
     // Remove EDS cache entries for ClusterLoadAssignments not referenced by this CDS response.
@@ -1056,12 +1058,13 @@ final class XdsClientImpl extends XdsClient {
     // Notify watchers if clusters interested in present in this CDS response.
     for (Map.Entry<String, Set<ClusterWatcher>> entry : clusterWatchers.entrySet()) {
       String clusterName = entry.getKey();
-      if (clusterUpdates.containsKey(clusterName)) {
+      if (clusterUpdates.containsKey(entry.getKey())) {
         ClusterUpdate clusterUpdate = clusterUpdates.get(clusterName);
         for (ClusterWatcher watcher : entry.getValue()) {
           watcher.onClusterChanged(clusterUpdate);
         }
-      } else if (!cdsRespTimers.containsKey(clusterName)) {
+      } else if (!clusterNamesToClusterUpdates.containsKey(entry.getKey())
+          && !cdsRespTimers.containsKey(clusterName)) {
         // Update for previously present resource being removed.
         for (ClusterWatcher watcher : entry.getValue()) {
           watcher.onResourceDoesNotExist(entry.getKey());
@@ -1192,6 +1195,8 @@ final class XdsClientImpl extends XdsClient {
     absentEdsResources.removeAll(endpointUpdates.keySet());
 
     // Notify watchers waiting for updates of endpoint information received in this EDS response.
+    // Based on xDS protocol, the management server should not send endpoint data again if
+    // nothing has changed.
     for (Map.Entry<String, EndpointUpdate> entry : endpointUpdates.entrySet()) {
       String clusterName = entry.getKey();
       // Cancel and delete response timeout timer.
diff --git a/xds/src/test/java/io/grpc/xds/XdsClientImplTest.java b/xds/src/test/java/io/grpc/xds/XdsClientImplTest.java
index b9fb294969..6b5e2a3780 100644
--- a/xds/src/test/java/io/grpc/xds/XdsClientImplTest.java
+++ b/xds/src/test/java/io/grpc/xds/XdsClientImplTest.java
@@ -1573,24 +1573,7 @@ public class XdsClientImplTest {
                     ImmutableList.of("cluster-foo.googleapis.com", "cluster-bar.googleapis.com"),
                     XdsClientImpl.ADS_TYPE_URL_CDS, "0001")));
 
-    // All watchers received notification for cluster update.
-    verify(watcher1, times(2)).onClusterChanged(clusterUpdateCaptor1.capture());
-    clusterUpdate1 = clusterUpdateCaptor1.getValue();
-    assertThat(clusterUpdate1.getClusterName()).isEqualTo("cluster-foo.googleapis.com");
-    assertThat(clusterUpdate1.getClusterName()).isEqualTo("cluster-foo.googleapis.com");
-    assertThat(clusterUpdate1.getEdsServiceName()).isNull();
-    assertThat(clusterUpdate1.getLbPolicy()).isEqualTo("round_robin");
-    assertThat(clusterUpdate1.getLrsServerName()).isNull();
-
-    clusterUpdateCaptor2 = ArgumentCaptor.forClass(null);
-    verify(watcher2, times(2)).onClusterChanged(clusterUpdateCaptor2.capture());
-    clusterUpdate2 = clusterUpdateCaptor2.getValue();
-    assertThat(clusterUpdate2.getClusterName()).isEqualTo("cluster-foo.googleapis.com");
-    assertThat(clusterUpdate2.getClusterName()).isEqualTo("cluster-foo.googleapis.com");
-    assertThat(clusterUpdate2.getEdsServiceName()).isNull();
-    assertThat(clusterUpdate2.getLbPolicy()).isEqualTo("round_robin");
-    assertThat(clusterUpdate2.getLrsServerName()).isNull();
-
+    verifyNoMoreInteractions(watcher1, watcher2); // resource has no change
     ArgumentCaptor<ClusterUpdate> clusterUpdateCaptor3 = ArgumentCaptor.forClass(null);
     verify(watcher3).onClusterChanged(clusterUpdateCaptor3.capture());
     ClusterUpdate clusterUpdate3 = clusterUpdateCaptor3.getValue();
@@ -1728,14 +1711,7 @@ public class XdsClientImplTest {
                 new DiscoveryRequestMatcher("1",
                     ImmutableList.of("cluster-foo.googleapis.com", "cluster-bar.googleapis.com"),
                     XdsClientImpl.ADS_TYPE_URL_CDS, "0001")));
-
-    verify(watcher1, times(2)).onClusterChanged(clusterUpdateCaptor1.capture());
-    clusterUpdate1 = clusterUpdateCaptor1.getValue();
-    assertThat(clusterUpdate1.getClusterName()).isEqualTo("cluster-foo.googleapis.com");
-    assertThat(clusterUpdate1.getEdsServiceName()).isNull();
-    assertThat(clusterUpdate1.getLbPolicy()).isEqualTo("round_robin");
-    assertThat(clusterUpdate1.getLrsServerName()).isNull();
-
+    verifyNoMoreInteractions(watcher1);  // resource has no change
     ArgumentCaptor<ClusterUpdate> clusterUpdateCaptor2 = ArgumentCaptor.forClass(null);
     verify(watcher2).onClusterChanged(clusterUpdateCaptor2.capture());
     ClusterUpdate clusterUpdate2 = clusterUpdateCaptor2.getValue();