diff --git a/core/src/main/java/io/grpc/internal/PickFirstLoadBalancer.java b/core/src/main/java/io/grpc/internal/PickFirstLoadBalancer.java
index e9c4d79150..742e5d2f24 100644
--- a/core/src/main/java/io/grpc/internal/PickFirstLoadBalancer.java
+++ b/core/src/main/java/io/grpc/internal/PickFirstLoadBalancer.java
@@ -39,6 +39,7 @@ import java.util.concurrent.atomic.AtomicBoolean;
 final class PickFirstLoadBalancer extends LoadBalancer {
   private final Helper helper;
   private Subchannel subchannel;
+  private ConnectivityState currentState = IDLE;
 
   PickFirstLoadBalancer(Helper helper) {
     this.helper = checkNotNull(helper, "helper");
@@ -69,7 +70,7 @@ final class PickFirstLoadBalancer extends LoadBalancer {
 
       // The channel state does not get updated when doing name resolving today, so for the moment
       // let LB report CONNECTION and call subchannel.requestConnection() immediately.
-      helper.updateBalancingState(CONNECTING, new Picker(PickResult.withSubchannel(subchannel)));
+      updateBalancingState(CONNECTING, new Picker(PickResult.withSubchannel(subchannel)));
       subchannel.requestConnection();
     } else {
       subchannel.updateAddresses(servers);
@@ -86,20 +87,34 @@ final class PickFirstLoadBalancer extends LoadBalancer {
     }
     // NB(lukaszx0) Whether we should propagate the error unconditionally is arguable. It's fine
     // for time being.
-    helper.updateBalancingState(TRANSIENT_FAILURE, new Picker(PickResult.withError(error)));
+    updateBalancingState(TRANSIENT_FAILURE, new Picker(PickResult.withError(error)));
   }
 
   private void processSubchannelState(Subchannel subchannel, ConnectivityStateInfo stateInfo) {
-    ConnectivityState currentState = stateInfo.getState();
-    if (currentState == SHUTDOWN) {
+    ConnectivityState newState = stateInfo.getState();
+    if (newState == SHUTDOWN) {
       return;
     }
-    if (stateInfo.getState() == TRANSIENT_FAILURE || stateInfo.getState() == IDLE) {
+    if (newState == TRANSIENT_FAILURE || newState == IDLE) {
       helper.refreshNameResolution();
     }
 
+    // If we are transitioning from a TRANSIENT_FAILURE to CONNECTING or IDLE we ignore this state
+    // transition and still keep the LB in TRANSIENT_FAILURE state. This is referred to as "sticky
+    // transient failure". Only a subchannel state change to READY will get the LB out of
+    // TRANSIENT_FAILURE. If the state is IDLE we additionally request a new connection so that we
+    // keep retrying for a connection.
+    if (currentState == TRANSIENT_FAILURE) {
+      if (newState == CONNECTING) {
+        return;
+      } else if (newState == IDLE) {
+        requestConnection();
+        return;
+      }
+    }
+
     SubchannelPicker picker;
-    switch (currentState) {
+    switch (newState) {
       case IDLE:
         picker = new RequestConnectionPicker(subchannel);
         break;
@@ -115,9 +130,15 @@ final class PickFirstLoadBalancer extends LoadBalancer {
         picker = new Picker(PickResult.withError(stateInfo.getStatus()));
         break;
       default:
-        throw new IllegalArgumentException("Unsupported state:" + currentState);
+        throw new IllegalArgumentException("Unsupported state:" + newState);
     }
-    helper.updateBalancingState(currentState, picker);
+
+    updateBalancingState(newState, picker);
+  }
+
+  private void updateBalancingState(ConnectivityState state, SubchannelPicker picker) {
+    currentState = state;
+    helper.updateBalancingState(state, picker);
   }
 
   @Override
diff --git a/core/src/test/java/io/grpc/internal/PickFirstLoadBalancerTest.java b/core/src/test/java/io/grpc/internal/PickFirstLoadBalancerTest.java
index 8bace28958..d9eab84aaa 100644
--- a/core/src/test/java/io/grpc/internal/PickFirstLoadBalancerTest.java
+++ b/core/src/test/java/io/grpc/internal/PickFirstLoadBalancerTest.java
@@ -260,17 +260,17 @@ public class PickFirstLoadBalancerTest {
     reset(mockHelper);
     when(mockHelper.getSynchronizationContext()).thenReturn(syncContext);
 
+    stateListener.onSubchannelState(ConnectivityStateInfo.forNonError(IDLE));
+    inOrder.verify(mockHelper).refreshNameResolution();
+    inOrder.verify(mockHelper).updateBalancingState(eq(IDLE), pickerCaptor.capture());
+    assertEquals(Status.OK, pickerCaptor.getValue().pickSubchannel(mockArgs).getStatus());
+
     Status error = Status.UNAVAILABLE.withDescription("boom!");
     stateListener.onSubchannelState(ConnectivityStateInfo.forTransientFailure(error));
     inOrder.verify(mockHelper).refreshNameResolution();
     inOrder.verify(mockHelper).updateBalancingState(eq(TRANSIENT_FAILURE), pickerCaptor.capture());
     assertEquals(error, pickerCaptor.getValue().pickSubchannel(mockArgs).getStatus());
 
-    stateListener.onSubchannelState(ConnectivityStateInfo.forNonError(IDLE));
-    inOrder.verify(mockHelper).refreshNameResolution();
-    inOrder.verify(mockHelper).updateBalancingState(eq(IDLE), pickerCaptor.capture());
-    assertEquals(Status.OK, pickerCaptor.getValue().pickSubchannel(mockArgs).getStatus());
-
     stateListener.onSubchannelState(ConnectivityStateInfo.forNonError(READY));
     inOrder.verify(mockHelper).updateBalancingState(eq(READY), pickerCaptor.capture());
     assertEquals(subchannel, pickerCaptor.getValue().pickSubchannel(mockArgs).getSubchannel());
@@ -279,6 +279,43 @@ public class PickFirstLoadBalancerTest {
     verifyNoMoreInteractions(mockHelper);
   }
 
+  @Test
+  public void pickAfterResolutionAfterTransientValue() throws Exception {
+    InOrder inOrder = inOrder(mockHelper);
+
+    loadBalancer.acceptResolvedAddresses(
+        ResolvedAddresses.newBuilder().setAddresses(servers).setAttributes(affinity).build());
+    inOrder.verify(mockHelper).createSubchannel(createArgsCaptor.capture());
+    CreateSubchannelArgs args = createArgsCaptor.getValue();
+    assertThat(args.getAddresses()).isEqualTo(servers);
+    verify(mockSubchannel).start(stateListenerCaptor.capture());
+    SubchannelStateListener stateListener = stateListenerCaptor.getValue();
+    verify(mockHelper).updateBalancingState(eq(CONNECTING), pickerCaptor.capture());
+    verify(mockSubchannel).requestConnection();
+    reset(mockHelper);
+    when(mockHelper.getSynchronizationContext()).thenReturn(syncContext);
+
+    // An error has happened.
+    Status error = Status.UNAVAILABLE.withDescription("boom!");
+    stateListener.onSubchannelState(ConnectivityStateInfo.forTransientFailure(error));
+    inOrder.verify(mockHelper).refreshNameResolution();
+    inOrder.verify(mockHelper).updateBalancingState(eq(TRANSIENT_FAILURE), pickerCaptor.capture());
+    assertEquals(error, pickerCaptor.getValue().pickSubchannel(mockArgs).getStatus());
+
+    // But a subsequent IDLE update should be ignored and the LB state not updated. Additionally,
+    // a request for a new connection should be made keep the subchannel trying to connect.
+    stateListener.onSubchannelState(ConnectivityStateInfo.forNonError(IDLE));
+    inOrder.verify(mockHelper).refreshNameResolution();
+    verifyNoMoreInteractions(mockHelper);
+    assertEquals(error, pickerCaptor.getValue().pickSubchannel(mockArgs).getStatus());
+    verify(mockSubchannel, times(2)).requestConnection();
+
+    // Transition from TRANSIENT_ERROR to CONNECTING should also be ignored.
+    stateListener.onSubchannelState(ConnectivityStateInfo.forNonError(CONNECTING));
+    verifyNoMoreInteractions(mockHelper);
+    assertEquals(error, pickerCaptor.getValue().pickSubchannel(mockArgs).getStatus());
+  }
+
   @Test
   public void nameResolutionError() throws Exception {
     Status error = Status.NOT_FOUND.withDescription("nameResolutionError");