diff --git a/core/src/main/java/io/grpc/internal/ManagedChannelImpl.java b/core/src/main/java/io/grpc/internal/ManagedChannelImpl.java
index 5b164c14ea..05dee80c6e 100644
--- a/core/src/main/java/io/grpc/internal/ManagedChannelImpl.java
+++ b/core/src/main/java/io/grpc/internal/ManagedChannelImpl.java
@@ -1369,7 +1369,6 @@ final class ManagedChannelImpl extends ManagedChannel implements
               "Resolved address: {0}, config={1}",
               servers,
               resolutionResult.getAttributes());
-          ResolutionState lastResolutionStateCopy = lastResolutionState;
 
           if (lastResolutionState != ResolutionState.SUCCESS) {
             channelLogger.log(ChannelLogLevel.INFO, "Address resolved: {0}", servers);
@@ -1457,14 +1456,7 @@ final class ManagedChannelImpl extends ManagedChannel implements
                     .build());
 
             if (!handleResult.isOk()) {
-              if (servers.isEmpty() && lastResolutionStateCopy == ResolutionState.SUCCESS) {
-                // lb doesn't expose that it needs address or not, because for some LB it is not
-                // deterministic. Assuming lb needs address if LB returns error when the address is
-                // empty and it is not the first resolution.
-                scheduleExponentialBackOffInSyncContext();
-              } else {
-                handleErrorInSyncContext(handleResult.augmentDescription(resolver + " was used"));
-              }
+              handleErrorInSyncContext(handleResult.augmentDescription(resolver + " was used"));
             }
           }
         }
diff --git a/core/src/test/java/io/grpc/internal/ServiceConfigErrorHandlingTest.java b/core/src/test/java/io/grpc/internal/ServiceConfigErrorHandlingTest.java
index f81a4c5a73..7e61213f86 100644
--- a/core/src/test/java/io/grpc/internal/ServiceConfigErrorHandlingTest.java
+++ b/core/src/test/java/io/grpc/internal/ServiceConfigErrorHandlingTest.java
@@ -274,17 +274,19 @@ public class ServiceConfigErrorHandlingTest {
     assertThat(channel.getState(true)).isEqualTo(ConnectivityState.IDLE);
 
     reset(mockLoadBalancer);
-    Map<String, ?> ignoredServiceConfig =
-        parseJson("{\"loadBalancingConfig\": [{\"round_robin\": {}}]}");
-    nameResolverFactory.nextRawServiceConfig.set(ignoredServiceConfig);
     nameResolverFactory.servers.clear();
 
     // 2nd resolution
     nameResolverFactory.allResolved();
 
-    // 2nd service config without address should be ignored
+    // 2nd service config without addresses
+    ArgumentCaptor<Status> statusCaptor = ArgumentCaptor.forClass(Status.class);
     verify(mockLoadBalancer, never()).handleResolvedAddresses(any(ResolvedAddresses.class));
-    verify(mockLoadBalancer, never()).handleNameResolutionError(any(Status.class));
+    verify(mockLoadBalancer).handleNameResolutionError(statusCaptor.capture());
+    assertThat(statusCaptor.getValue().getCode()).isEqualTo(Status.Code.UNAVAILABLE);
+    assertThat(statusCaptor.getValue().getDescription())
+        .contains("NameResolver returned no usable address.");
+    assertThat(channel.getState(true)).isEqualTo(ConnectivityState.TRANSIENT_FAILURE);
     assertWithMessage("Empty address should schedule NameResolver retry")
         .that(getNameResolverRefresh())
         .isNotNull();