diff --git a/xds/src/main/java/io/grpc/xds/ClusterImplLoadBalancer.java b/xds/src/main/java/io/grpc/xds/ClusterImplLoadBalancer.java
index b225b01af7a..0106da79028 100644
--- a/xds/src/main/java/io/grpc/xds/ClusterImplLoadBalancer.java
+++ b/xds/src/main/java/io/grpc/xds/ClusterImplLoadBalancer.java
@@ -35,6 +35,7 @@
 import io.grpc.internal.ObjectPool;
 import io.grpc.util.ForwardingLoadBalancerHelper;
 import io.grpc.util.ForwardingSubchannel;
+import io.grpc.util.GracefulSwitchLoadBalancer;
 import io.grpc.xds.Bootstrapper.ServerInfo;
 import io.grpc.xds.ClusterImplLoadBalancerProvider.ClusterImplConfig;
 import io.grpc.xds.Endpoints.DropOverload;
@@ -87,7 +88,7 @@ final class ClusterImplLoadBalancer extends LoadBalancer {
   private CallCounterProvider callCounterProvider;
   private ClusterDropStats dropStats;
   private ClusterImplLbHelper childLbHelper;
-  private LoadBalancer childLb;
+  private GracefulSwitchLoadBalancer childSwitchLb;
 
   ClusterImplLoadBalancer(Helper helper) {
     this(helper, ThreadSafeRandomImpl.instance);
@@ -120,7 +121,7 @@ public boolean acceptResolvedAddresses(ResolvedAddresses resolvedAddresses) {
       childLbHelper = new ClusterImplLbHelper(
           callCounterProvider.getOrCreate(config.cluster, config.edsServiceName),
           config.lrsServerInfo);
-      childLb = config.childPolicy.getProvider().newLoadBalancer(childLbHelper);
+      childSwitchLb = new GracefulSwitchLoadBalancer(childLbHelper);
       // Assume load report server does not change throughout cluster lifetime.
       if (config.lrsServerInfo != null) {
         dropStats = xdsClient.addClusterDropStats(config.lrsServerInfo, cluster, edsServiceName);
@@ -129,7 +130,9 @@ public boolean acceptResolvedAddresses(ResolvedAddresses resolvedAddresses) {
     childLbHelper.updateDropPolicies(config.dropCategories);
     childLbHelper.updateMaxConcurrentRequests(config.maxConcurrentRequests);
     childLbHelper.updateSslContextProviderSupplier(config.tlsContext);
-    childLb.handleResolvedAddresses(
+
+    childSwitchLb.switchTo(config.childPolicy.getProvider());
+    childSwitchLb.handleResolvedAddresses(
         resolvedAddresses.toBuilder()
             .setAttributes(attributes)
             .setLoadBalancingPolicyConfig(config.childPolicy.getConfig())
@@ -139,8 +142,8 @@ public boolean acceptResolvedAddresses(ResolvedAddresses resolvedAddresses) {
 
   @Override
   public void handleNameResolutionError(Status error) {
-    if (childLb != null) {
-      childLb.handleNameResolutionError(error);
+    if (childSwitchLb != null) {
+      childSwitchLb.handleNameResolutionError(error);
     } else {
       helper.updateBalancingState(ConnectivityState.TRANSIENT_FAILURE, new ErrorPicker(error));
     }
@@ -151,8 +154,8 @@ public void shutdown() {
     if (dropStats != null) {
       dropStats.release();
     }
-    if (childLb != null) {
-      childLb.shutdown();
+    if (childSwitchLb != null) {
+      childSwitchLb.shutdown();
       if (childLbHelper != null) {
         childLbHelper.updateSslContextProviderSupplier(null);
         childLbHelper = null;
diff --git a/xds/src/test/java/io/grpc/xds/ClusterImplLoadBalancerTest.java b/xds/src/test/java/io/grpc/xds/ClusterImplLoadBalancerTest.java
index f553b558c9f..00ecd05e399 100644
--- a/xds/src/test/java/io/grpc/xds/ClusterImplLoadBalancerTest.java
+++ b/xds/src/test/java/io/grpc/xds/ClusterImplLoadBalancerTest.java
@@ -165,6 +165,41 @@ public void handleResolvedAddresses_propagateToChildPolicy() {
         .isSameInstanceAs(xdsClientPool);
   }
 
+  /**
+   * If the control plane switches from using the legacy lb_policy field in the xDS Cluster proto
+   * to the newer load_balancing_policy then the child policy can switch from weighted_target to
+   * xds_wrr_locality (this could happen the opposite way as well). This test assures that this
+   * results in the child LB changing if this were to happen. If this is not done correctly the new
+   * configuration would be given to the old LB implementation which would cause a channel panic.
+   */
+  @Test
+  public void handleResolvedAddresses_childPolicyChanges() {
+    FakeLoadBalancerProvider weightedTargetProvider =
+        new FakeLoadBalancerProvider(XdsLbPolicies.WEIGHTED_TARGET_POLICY_NAME);
+    Object weightedTargetConfig = new Object();
+    ClusterImplConfig configWithWeightedTarget = new ClusterImplConfig(CLUSTER, EDS_SERVICE_NAME,
+        LRS_SERVER_INFO,
+        null, Collections.<DropOverload>emptyList(),
+        new PolicySelection(weightedTargetProvider, weightedTargetConfig), null);
+    EquivalentAddressGroup endpoint = makeAddress("endpoint-addr", locality);
+    deliverAddressesAndConfig(Collections.singletonList(endpoint), configWithWeightedTarget);
+    FakeLoadBalancer childBalancer = Iterables.getOnlyElement(downstreamBalancers);
+    assertThat(childBalancer.name).isEqualTo(XdsLbPolicies.WEIGHTED_TARGET_POLICY_NAME);
+    assertThat(childBalancer.config).isSameInstanceAs(weightedTargetConfig);
+
+    FakeLoadBalancerProvider wrrLocalityProvider =
+        new FakeLoadBalancerProvider(XdsLbPolicies.WRR_LOCALITY_POLICY_NAME);
+    Object wrrLocalityConfig = new Object();
+    ClusterImplConfig configWithWrrLocality = new ClusterImplConfig(CLUSTER, EDS_SERVICE_NAME,
+        LRS_SERVER_INFO,
+        null, Collections.<DropOverload>emptyList(),
+        new PolicySelection(wrrLocalityProvider, wrrLocalityConfig), null);
+    deliverAddressesAndConfig(Collections.singletonList(endpoint), configWithWrrLocality);
+    childBalancer = Iterables.getOnlyElement(downstreamBalancers);
+    assertThat(childBalancer.name).isEqualTo(XdsLbPolicies.WRR_LOCALITY_POLICY_NAME);
+    assertThat(childBalancer.config).isSameInstanceAs(wrrLocalityConfig);
+  }
+
   @Test
   public void nameResolutionError_beforeChildPolicyInstantiated_returnErrorPickerToUpstream() {
     loadBalancer.handleNameResolutionError(Status.UNIMPLEMENTED.withDescription("not found"));