diff --git a/xds/src/main/java/io/grpc/xds/XdsClientWrapperForServerSds.java b/xds/src/main/java/io/grpc/xds/XdsClientWrapperForServerSds.java
index 50233b6cdb..0cf349a6d0 100644
--- a/xds/src/main/java/io/grpc/xds/XdsClientWrapperForServerSds.java
+++ b/xds/src/main/java/io/grpc/xds/XdsClientWrapperForServerSds.java
@@ -104,7 +104,6 @@ public final class XdsClientWrapperForServerSds {
         throw new XdsInitializationException("No management server provided by bootstrap");
       }
     } catch (XdsInitializationException e) {
-      reportError(Status.fromThrowable(e));
       throw new IOException(e);
     }
     Node node = bootstrapInfo.getNode();
@@ -116,9 +115,7 @@ public final class XdsClientWrapperForServerSds {
     newServerApi = serverInfo.isUseProtocolV3() && experimentalNewServerApiEnvVar;
     String grpcServerResourceId = bootstrapInfo.getGrpcServerResourceId();
     if (newServerApi && grpcServerResourceId == null) {
-      reportError(
-          Status.INVALID_ARGUMENT.withDescription("missing grpc_server_resource_name_id value"));
-      throw new IOException("missing grpc_server_resource_name_id value");
+      throw new IOException("missing grpc_server_resource_name_id value in xds bootstrap");
     }
     XdsClient xdsClientImpl =
         new ServerXdsClient(
@@ -152,14 +149,14 @@ public final class XdsClientWrapperForServerSds {
           public void onResourceDoesNotExist(String resourceName) {
             logger.log(Level.WARNING, "Resource {0} is unavailable", resourceName);
             curListener = null;
-            reportError(Status.NOT_FOUND.withDescription(resourceName));
+            reportError(Status.NOT_FOUND.withDescription(resourceName).asException());
           }
 
           @Override
           public void onError(Status error) {
             logger.log(
                 Level.WARNING, "ListenerWatcher in XdsClientWrapperForServerSds: {0}", error);
-            reportError(error);
+            reportError(error.asException());
           }
         };
     xdsClient.watchListenerData(port, listenerWatcher);
@@ -225,9 +222,9 @@ public final class XdsClientWrapperForServerSds {
     }
   }
 
-  private void reportError(Status status) {
+  private void reportError(Throwable throwable) {
     for (ServerWatcher watcher : getServerWatchers()) {
-      watcher.onError(status);
+      watcher.onError(throwable);
     }
   }
 
@@ -249,7 +246,7 @@ public final class XdsClientWrapperForServerSds {
   public interface ServerWatcher {
 
     /** Called to report errors from the control plane including "not found". */
-    void onError(Status error);
+    void onError(Throwable throwable);
 
     /** Called to report successful receipt of server config. */
     void onSuccess(DownstreamTlsContext downstreamTlsContext);
diff --git a/xds/src/main/java/io/grpc/xds/XdsServerBuilder.java b/xds/src/main/java/io/grpc/xds/XdsServerBuilder.java
index a5e5640f62..99a04c514d 100644
--- a/xds/src/main/java/io/grpc/xds/XdsServerBuilder.java
+++ b/xds/src/main/java/io/grpc/xds/XdsServerBuilder.java
@@ -16,6 +16,7 @@
 
 package io.grpc.xds;
 
+import static com.google.common.base.Preconditions.checkNotNull;
 import static com.google.common.base.Preconditions.checkState;
 
 import com.google.common.annotations.VisibleForTesting;
@@ -26,7 +27,6 @@ import io.grpc.Internal;
 import io.grpc.Server;
 import io.grpc.ServerBuilder;
 import io.grpc.ServerCredentials;
-import io.grpc.Status;
 import io.grpc.netty.InternalNettyServerBuilder;
 import io.grpc.netty.NettyServerBuilder;
 import io.grpc.xds.internal.sds.SdsProtocolNegotiators;
@@ -42,12 +42,13 @@ public final class XdsServerBuilder extends ForwardingServerBuilder<XdsServerBui
 
   private final NettyServerBuilder delegate;
   private final int port;
-  private ErrorNotifier errorNotifier;
+  private XdsServingStatusListener xdsServingStatusListener;
   private AtomicBoolean isServerBuilt = new AtomicBoolean(false);
 
   private XdsServerBuilder(NettyServerBuilder nettyDelegate, int port) {
     this.delegate = nettyDelegate;
     this.port = port;
+    xdsServingStatusListener = new DefaultListener("port:" + port);
   }
 
   @Override
@@ -56,9 +57,11 @@ public final class XdsServerBuilder extends ForwardingServerBuilder<XdsServerBui
     return delegate;
   }
 
-  /** Set the {@link ErrorNotifier}. Pass null to unset a previously set value. */
-  public XdsServerBuilder errorNotifier(ErrorNotifier errorNotifier) {
-    this.errorNotifier = errorNotifier;
+  /** Set the {@link XdsServingStatusListener}. */
+  public XdsServerBuilder xdsServingStatusListener(
+      XdsServingStatusListener xdsServingStatusListener) {
+    this.xdsServingStatusListener =
+        checkNotNull(xdsServingStatusListener, "xdsServingStatusListener");
     return this;
   }
 
@@ -91,7 +94,7 @@ public final class XdsServerBuilder extends ForwardingServerBuilder<XdsServerBui
     InternalNettyServerBuilder.eagAttributes(delegate, Attributes.newBuilder()
         .set(SdsProtocolNegotiators.SERVER_XDS_CLIENT, xdsClient)
         .build());
-    return new ServerWrapperForXds(delegate.build(), xdsClient, errorNotifier);
+    return new ServerWrapperForXds(delegate.build(), xdsClient, xdsServingStatusListener);
   }
 
   public ServerBuilder<?> transportBuilder() {
@@ -99,8 +102,40 @@ public final class XdsServerBuilder extends ForwardingServerBuilder<XdsServerBui
   }
 
   /** Watcher to receive error notifications from xDS control plane during {@code start()}. */
-  public interface ErrorNotifier {
+  public interface XdsServingStatusListener {
 
-    void onError(Status error);
+    /** Callback invoked when server begins serving. */
+    void onServing();
+
+    /** Callback invoked when server is forced to be "not serving" due to an error.
+     * @param throwable cause of the error
+     */
+    void onNotServing(Throwable throwable);
+  }
+
+  /** Default implementation that logs at WARNING level. */
+  private static class DefaultListener implements XdsServingStatusListener {
+    XdsLogger xdsLogger;
+    boolean notServing;
+
+    DefaultListener(String prefix) {
+      xdsLogger = XdsLogger.withPrefix(prefix);
+      notServing = true;
+    }
+
+    /** Log calls to onServing() following a call to onNotServing() at WARNING level. */
+    @Override
+    public void onServing() {
+      if (notServing) {
+        notServing = false;
+        xdsLogger.log(XdsLogger.XdsLogLevel.WARNING, "Entering serving state.");
+      }
+    }
+
+    @Override
+    public void onNotServing(Throwable throwable) {
+      xdsLogger.log(XdsLogger.XdsLogLevel.WARNING, throwable.getMessage());
+      notServing = true;
+    }
   }
 }
diff --git a/xds/src/main/java/io/grpc/xds/internal/sds/ServerWrapperForXds.java b/xds/src/main/java/io/grpc/xds/internal/sds/ServerWrapperForXds.java
index 24f3e19dfa..5eb9379d56 100644
--- a/xds/src/main/java/io/grpc/xds/internal/sds/ServerWrapperForXds.java
+++ b/xds/src/main/java/io/grpc/xds/internal/sds/ServerWrapperForXds.java
@@ -23,7 +23,6 @@ import com.google.common.annotations.VisibleForTesting;
 import com.google.common.util.concurrent.SettableFuture;
 import io.grpc.Server;
 import io.grpc.ServerServiceDefinition;
-import io.grpc.Status;
 import io.grpc.xds.EnvoyServerProtoData;
 import io.grpc.xds.XdsClientWrapperForServerSds;
 import io.grpc.xds.XdsServerBuilder;
@@ -45,7 +44,7 @@ import javax.annotation.Nullable;
 public final class ServerWrapperForXds extends Server {
   private final Server delegate;
   private final XdsClientWrapperForServerSds xdsClientWrapperForServerSds;
-  @Nullable XdsServerBuilder.ErrorNotifier errorNotifier;
+  private XdsServerBuilder.XdsServingStatusListener xdsServingStatusListener;
   @Nullable XdsClientWrapperForServerSds.ServerWatcher serverWatcher;
   private AtomicBoolean started = new AtomicBoolean();
 
@@ -53,11 +52,12 @@ public final class ServerWrapperForXds extends Server {
   public ServerWrapperForXds(
       Server delegate,
       XdsClientWrapperForServerSds xdsClientWrapperForServerSds,
-      @Nullable XdsServerBuilder.ErrorNotifier errorNotifier) {
+      XdsServerBuilder.XdsServingStatusListener xdsServingStatusListener) {
     this.delegate = checkNotNull(delegate, "delegate");
     this.xdsClientWrapperForServerSds =
         checkNotNull(xdsClientWrapperForServerSds, "xdsClientWrapperForServerSds");
-    this.errorNotifier = errorNotifier;
+    this.xdsServingStatusListener =
+        checkNotNull(xdsServingStatusListener, "xdsServingStatusListener");
   }
 
   @Override
@@ -77,6 +77,7 @@ public final class ServerWrapperForXds extends Server {
       throw new RuntimeException(ex);
     }
     delegate.start();
+    xdsServingStatusListener.onServing();
     return this;
   }
 
@@ -86,15 +87,12 @@ public final class ServerWrapperForXds extends Server {
     serverWatcher =
         new XdsClientWrapperForServerSds.ServerWatcher() {
           @Override
-          public void onError(Status error) {
-            if (errorNotifier != null) {
-              errorNotifier.onError(error);
-            }
+          public void onError(Throwable throwable) {
+            xdsServingStatusListener.onNotServing(throwable);
           }
 
           @Override
           public void onSuccess(EnvoyServerProtoData.DownstreamTlsContext downstreamTlsContext) {
-            removeServerWatcher();
             settableFuture.set(downstreamTlsContext);
           }
         };
diff --git a/xds/src/test/java/io/grpc/xds/XdsClientWrapperForServerSdsTestMisc.java b/xds/src/test/java/io/grpc/xds/XdsClientWrapperForServerSdsTestMisc.java
index 4bd8e8a68b..9d02b6bc84 100644
--- a/xds/src/test/java/io/grpc/xds/XdsClientWrapperForServerSdsTestMisc.java
+++ b/xds/src/test/java/io/grpc/xds/XdsClientWrapperForServerSdsTestMisc.java
@@ -28,6 +28,7 @@ import static org.mockito.Mockito.verify;
 import static org.mockito.Mockito.when;
 
 import io.grpc.Status;
+import io.grpc.StatusException;
 import io.grpc.inprocess.InProcessSocketAddress;
 import io.grpc.xds.EnvoyServerProtoData.DownstreamTlsContext;
 import io.grpc.xds.internal.sds.CommonTlsContextTestsUtil;
@@ -171,12 +172,19 @@ public class XdsClientWrapperForServerSdsTestMisc {
         mock(XdsClientWrapperForServerSds.ServerWatcher.class);
     xdsClientWrapperForServerSds.addServerWatcher(mockServerWatcher);
     registeredWatcher.onError(Status.INTERNAL);
-    verify(mockServerWatcher).onError(eq(Status.INTERNAL));
+    ArgumentCaptor<Throwable> argCaptor = ArgumentCaptor.forClass(null);
+    verify(mockServerWatcher).onError(argCaptor.capture());
+    Throwable throwable = argCaptor.getValue();
+    assertThat(throwable).isInstanceOf(StatusException.class);
+    Status captured = ((StatusException)throwable).getStatus();
+    assertThat(captured.getCode()).isEqualTo(Status.Code.INTERNAL);
     reset(mockServerWatcher);
     registeredWatcher.onResourceDoesNotExist("not-found Error");
-    ArgumentCaptor<Status> argCaptor = ArgumentCaptor.forClass(null);
-    verify(mockServerWatcher).onError(argCaptor.capture());
-    Status captured = argCaptor.getValue();
+    ArgumentCaptor<Throwable> argCaptor1 = ArgumentCaptor.forClass(null);
+    verify(mockServerWatcher).onError(argCaptor1.capture());
+    throwable = argCaptor1.getValue();
+    assertThat(throwable).isInstanceOf(StatusException.class);
+    captured = ((StatusException)throwable).getStatus();
     assertThat(captured.getCode()).isEqualTo(Status.Code.NOT_FOUND);
     assertThat(captured.getDescription()).isEqualTo("not-found Error");
     InetAddress ipLocalAddress = InetAddress.getByName("10.1.2.3");
@@ -203,14 +211,7 @@ public class XdsClientWrapperForServerSdsTestMisc {
               .hasMessageThat()
               .contains("Cannot find bootstrap configuration");
     }
-    ArgumentCaptor<Status> argCaptor = ArgumentCaptor.forClass(null);
-    verify(mockServerWatcher).onError(argCaptor.capture());
-    Status captured = argCaptor.getValue();
-    assertThat(captured.getCode()).isEqualTo(Status.Code.UNKNOWN);
-    assertThat(captured.getCause()).isInstanceOf(XdsInitializationException.class);
-    assertThat(captured.getCause())
-        .hasMessageThat()
-        .contains("Cannot find bootstrap configuration");
+    verify(mockServerWatcher, never()).onError(any(Throwable.class));
   }
 
   private DownstreamTlsContext sendListenerUpdate(
diff --git a/xds/src/test/java/io/grpc/xds/XdsServerBuilderTest.java b/xds/src/test/java/io/grpc/xds/XdsServerBuilderTest.java
index f54df8bec4..43eab4ea0d 100644
--- a/xds/src/test/java/io/grpc/xds/XdsServerBuilderTest.java
+++ b/xds/src/test/java/io/grpc/xds/XdsServerBuilderTest.java
@@ -28,6 +28,7 @@ import static org.mockito.Mockito.verify;
 import com.google.common.util.concurrent.SettableFuture;
 import io.grpc.InsecureServerCredentials;
 import io.grpc.Status;
+import io.grpc.StatusException;
 import io.grpc.testing.GrpcCleanupRule;
 import io.grpc.xds.internal.sds.CommonTlsContextTestsUtil;
 import io.grpc.xds.internal.sds.ServerWrapperForXds;
@@ -62,14 +63,15 @@ public class XdsServerBuilderTest {
   private XdsClientWrapperForServerSds xdsClientWrapperForServerSds;
 
   private XdsServerBuilder buildServer(
-      XdsServerBuilder.ErrorNotifier errorNotifier, boolean injectMockXdsClient)
+      XdsServerBuilder.XdsServingStatusListener xdsServingStatusListener,
+      boolean injectMockXdsClient)
       throws IOException {
     port = XdsServerTestHelper.findFreePort();
     XdsServerBuilder builder =
         XdsServerBuilder.forPort(
             port, XdsServerCredentials.create(InsecureServerCredentials.create()));
-    if (errorNotifier != null) {
-      builder = builder.errorNotifier(errorNotifier);
+    if (xdsServingStatusListener != null) {
+      builder = builder.xdsServingStatusListener(xdsServingStatusListener);
     }
     xdsClientWrapperForServerSds = new XdsClientWrapperForServerSds(port);
     if (injectMockXdsClient) {
@@ -82,7 +84,9 @@ public class XdsServerBuilderTest {
   }
 
   private void verifyServer(
-      Future<Throwable> future, XdsServerBuilder.ErrorNotifier mockErrorNotifier)
+      Future<Throwable> future,
+      XdsServerBuilder.XdsServingStatusListener mockXdsServingStatusListener,
+      Status notServingStatus)
       throws InterruptedException, ExecutionException, TimeoutException {
     if (future != null) {
       Throwable exception = future.get(5, TimeUnit.SECONDS);
@@ -93,10 +97,18 @@ public class XdsServerBuilderTest {
     InetSocketAddress socketAddress = (InetSocketAddress) list.get(0);
     assertThat(socketAddress.getAddress().isAnyLocalAddress()).isTrue();
     assertThat(socketAddress.getPort()).isEqualTo(port);
-    if (mockErrorNotifier != null) {
-      verify(mockErrorNotifier, never()).onError(any(Status.class));
+    if (mockXdsServingStatusListener != null) {
+      if (notServingStatus != null) {
+        ArgumentCaptor<Throwable> argCaptor = ArgumentCaptor.forClass(null);
+        verify(mockXdsServingStatusListener, times(1)).onNotServing(argCaptor.capture());
+        Throwable throwable = argCaptor.getValue();
+        assertThat(throwable).isInstanceOf(StatusException.class);
+        assertThat(((StatusException) throwable).getStatus()).isEqualTo(notServingStatus);
+      } else {
+        verify(mockXdsServingStatusListener, never()).onNotServing(any(Throwable.class));
+        verify(mockXdsServingStatusListener, times(1)).onServing();
+      }
     }
-    assertThat(xdsClientWrapperForServerSds.serverWatchers).isEmpty();
   }
 
   private void verifyShutdown() throws InterruptedException {
@@ -135,7 +147,7 @@ public class XdsServerBuilderTest {
         port,
             CommonTlsContextTestsUtil.buildTestInternalDownstreamTlsContext("CERT1", "VA1"),
         null);
-    verifyServer(future, null);
+    verifyServer(future, null, null);
     verifyShutdown();
   }
 
@@ -155,125 +167,128 @@ public class XdsServerBuilderTest {
     } catch (IllegalStateException expected) {
       assertThat(expected).hasMessageThat().contains("Already started");
     }
-    verifyServer(null,null);
+    verifyServer(null,null, null);
     verifyShutdown();
   }
 
   @Test
-  public void xdsServerStartAndShutdownWithErrorNotifier()
+  public void xdsServerStartAndShutdownWithXdsServingStatusListener()
       throws IOException, InterruptedException, TimeoutException, ExecutionException {
-    XdsServerBuilder.ErrorNotifier mockErrorNotifier = mock(XdsServerBuilder.ErrorNotifier.class);
-    buildServer(mockErrorNotifier, true);
+    XdsServerBuilder.XdsServingStatusListener mockXdsServingStatusListener =
+        mock(XdsServerBuilder.XdsServingStatusListener.class);
+    buildServer(mockXdsServingStatusListener, true);
     Future<Throwable> future = startServerAsync();
     XdsServerTestHelper.generateListenerUpdate(
         listenerWatcher,
         port,
-            CommonTlsContextTestsUtil.buildTestInternalDownstreamTlsContext("CERT1", "VA1"),
+        CommonTlsContextTestsUtil.buildTestInternalDownstreamTlsContext("CERT1", "VA1"),
         null);
-    verifyServer(future, mockErrorNotifier);
+    verifyServer(future, mockXdsServingStatusListener, null);
     verifyShutdown();
   }
 
   @Test
   public void xdsServer_serverWatcher()
       throws IOException, InterruptedException, TimeoutException, ExecutionException {
-    XdsServerBuilder.ErrorNotifier mockErrorNotifier = mock(XdsServerBuilder.ErrorNotifier.class);
-    buildServer(mockErrorNotifier, true);
+    XdsServerBuilder.XdsServingStatusListener mockXdsServingStatusListener =
+        mock(XdsServerBuilder.XdsServingStatusListener.class);
+    buildServer(mockXdsServingStatusListener, true);
     Future<Throwable> future = startServerAsync();
     listenerWatcher.onError(Status.ABORTED);
-    verify(mockErrorNotifier).onError(Status.ABORTED);
+    ArgumentCaptor<Throwable> argCaptor = ArgumentCaptor.forClass(null);
+    verify(mockXdsServingStatusListener).onNotServing(argCaptor.capture());
+    Throwable throwable = argCaptor.getValue();
+    assertThat(throwable).isInstanceOf(StatusException.class);
+    Status captured = ((StatusException) throwable).getStatus();
+    assertThat(captured.getCode()).isEqualTo(Status.Code.ABORTED);
     assertThat(xdsClientWrapperForServerSds.serverWatchers).hasSize(1);
     assertThat(future.isDone()).isFalse();
-    reset(mockErrorNotifier);
+    reset(mockXdsServingStatusListener);
     listenerWatcher.onResourceDoesNotExist("not found error");
-    ArgumentCaptor<Status> argCaptor = ArgumentCaptor.forClass(null);
-    verify(mockErrorNotifier).onError(argCaptor.capture());
-    Status captured = argCaptor.getValue();
+    argCaptor = ArgumentCaptor.forClass(null);
+    verify(mockXdsServingStatusListener).onNotServing(argCaptor.capture());
+    throwable = argCaptor.getValue();
+    assertThat(throwable).isInstanceOf(StatusException.class);
+    captured = ((StatusException) throwable).getStatus();
     assertThat(captured.getCode()).isEqualTo(Status.Code.NOT_FOUND);
     assertThat(captured.getDescription()).isEqualTo("not found error");
     assertThat(xdsClientWrapperForServerSds.serverWatchers).hasSize(1);
     assertThat(future.isDone()).isFalse();
-    reset(mockErrorNotifier);
+    reset(mockXdsServingStatusListener);
     XdsServerTestHelper.generateListenerUpdate(
         listenerWatcher,
         port,
-            CommonTlsContextTestsUtil.buildTestInternalDownstreamTlsContext("CERT1", "VA1"),
+        CommonTlsContextTestsUtil.buildTestInternalDownstreamTlsContext("CERT1", "VA1"),
         null);
-    verifyServer(future, mockErrorNotifier);
+    verifyServer(future, mockXdsServingStatusListener, null);
     verifyShutdown();
   }
 
   @Test
   public void xdsServer_startError()
       throws IOException, InterruptedException, TimeoutException, ExecutionException {
-    XdsServerBuilder.ErrorNotifier mockErrorNotifier = mock(XdsServerBuilder.ErrorNotifier.class);
-    buildServer(mockErrorNotifier, true);
+    XdsServerBuilder.XdsServingStatusListener mockXdsServingStatusListener =
+        mock(XdsServerBuilder.XdsServingStatusListener.class);
+    buildServer(mockXdsServingStatusListener, true);
     Future<Throwable> future = startServerAsync();
     // create port conflict for start to fail
     ServerSocket serverSocket = new ServerSocket(port);
     XdsServerTestHelper.generateListenerUpdate(
         listenerWatcher,
         port,
-            CommonTlsContextTestsUtil.buildTestInternalDownstreamTlsContext("CERT1", "VA1"),
+        CommonTlsContextTestsUtil.buildTestInternalDownstreamTlsContext("CERT1", "VA1"),
         null);
     Throwable exception = future.get(5, TimeUnit.SECONDS);
     assertThat(exception).isInstanceOf(IOException.class);
     assertThat(exception).hasMessageThat().contains("Failed to bind");
-    verify(mockErrorNotifier, never()).onError(any(Status.class));
+    verify(mockXdsServingStatusListener, never()).onNotServing(any(Throwable.class));
     serverSocket.close();
   }
 
   @Test
   public void xdsServerWithoutMockXdsClient_startError()
-          throws IOException, InterruptedException, TimeoutException, ExecutionException {
-    XdsServerBuilder.ErrorNotifier mockErrorNotifier = mock(XdsServerBuilder.ErrorNotifier.class);
-    buildServer(mockErrorNotifier, false);
+      throws IOException, InterruptedException, TimeoutException, ExecutionException {
+    XdsServerBuilder.XdsServingStatusListener mockXdsServingStatusListener =
+        mock(XdsServerBuilder.XdsServingStatusListener.class);
+    buildServer(mockXdsServingStatusListener, false);
     try {
       xdsServer.start();
       fail("exception expected");
     } catch (IOException expected) {
-      assertThat(expected)
-              .hasMessageThat()
-              .contains("Cannot find bootstrap configuration");
+      assertThat(expected).hasMessageThat().contains("Cannot find bootstrap configuration");
     }
-    ArgumentCaptor<Status> argCaptor = ArgumentCaptor.forClass(null);
-    verify(mockErrorNotifier).onError(argCaptor.capture());
-    Status captured = argCaptor.getValue();
-    assertThat(captured.getCode()).isEqualTo(Status.Code.UNKNOWN);
-    assertThat(captured.getCause()).isInstanceOf(XdsInitializationException.class);
-    assertThat(captured.getCause())
-            .hasMessageThat()
-            .contains("Cannot find bootstrap configuration");
+    verify(mockXdsServingStatusListener, never()).onNotServing(any(Throwable.class));
   }
 
   @Test
   public void xdsServerStartSecondUpdateAndError()
       throws IOException, InterruptedException, TimeoutException, ExecutionException {
-    XdsServerBuilder.ErrorNotifier mockErrorNotifier = mock(XdsServerBuilder.ErrorNotifier.class);
-    buildServer(mockErrorNotifier, true);
+    XdsServerBuilder.XdsServingStatusListener mockXdsServingStatusListener =
+        mock(XdsServerBuilder.XdsServingStatusListener.class);
+    buildServer(mockXdsServingStatusListener, true);
     Future<Throwable> future = startServerAsync();
     XdsServerTestHelper.generateListenerUpdate(
         listenerWatcher,
         port,
-            CommonTlsContextTestsUtil.buildTestInternalDownstreamTlsContext("CERT1", "VA1"),
+        CommonTlsContextTestsUtil.buildTestInternalDownstreamTlsContext("CERT1", "VA1"),
         null);
     XdsServerTestHelper.generateListenerUpdate(
         listenerWatcher,
         port,
-            CommonTlsContextTestsUtil.buildTestInternalDownstreamTlsContext("CERT1", "VA1"),
+        CommonTlsContextTestsUtil.buildTestInternalDownstreamTlsContext("CERT1", "VA1"),
         null);
-    verify(mockErrorNotifier, never()).onError(any(Status.class));
-    verifyServer(future, mockErrorNotifier);
+    verify(mockXdsServingStatusListener, never()).onNotServing(any(Throwable.class));
+    verifyServer(future, mockXdsServingStatusListener, null);
     listenerWatcher.onError(Status.ABORTED);
-    verify(mockErrorNotifier, never()).onError(any(Status.class));
-    verifyServer(null, mockErrorNotifier);
+    verifyServer(null, mockXdsServingStatusListener, Status.ABORTED);
     verifyShutdown();
   }
 
   @Test
   public void xdsServer_2ndBuild_expectException() throws IOException {
-    XdsServerBuilder.ErrorNotifier mockErrorNotifier = mock(XdsServerBuilder.ErrorNotifier.class);
-    XdsServerBuilder builder = buildServer(mockErrorNotifier, true);
+    XdsServerBuilder.XdsServingStatusListener mockXdsServingStatusListener =
+        mock(XdsServerBuilder.XdsServingStatusListener.class);
+    XdsServerBuilder builder = buildServer(mockXdsServingStatusListener, true);
     try {
       builder.build();
       fail("exception expected");