diff --git a/core/src/main/java/io/grpc/internal/ManagedChannelImpl.java b/core/src/main/java/io/grpc/internal/ManagedChannelImpl.java
index ff46cca6385..52eeef97542 100644
--- a/core/src/main/java/io/grpc/internal/ManagedChannelImpl.java
+++ b/core/src/main/java/io/grpc/internal/ManagedChannelImpl.java
@@ -211,7 +211,10 @@ void handleUncaughtThrowable(Throwable t) {
   @CheckForNull
   private final ChannelTracer channelTracer;
   private final Channelz channelz;
-  private Boolean zeroBackends; // a flag for doing channel tracing when flipped
+  @CheckForNull
+  private Boolean haveBackends; // a flag for doing channel tracing when flipped
+  @Nullable
+  private Map<String, Object> lastServiceConfig; // used for channel tracing when value changed
 
   // One instance per channel.
   private final ChannelBufferMeter channelBufferUsed = new ChannelBufferMeter();
@@ -1250,13 +1253,24 @@ public void onAddresses(final List<EquivalentAddressGroup> servers, final Attrib
             new Object[]{getLogId(), servers, config});
       }
 
-      if (channelTracer != null && (zeroBackends == null || zeroBackends)) {
+      if (channelTracer != null && (haveBackends == null || !haveBackends)) {
         channelTracer.reportEvent(new ChannelTrace.Event.Builder()
             .setDescription("Address resolved: " + servers)
             .setSeverity(ChannelTrace.Event.Severity.CT_INFO)
             .setTimestampNanos(timeProvider.currentTimeNanos())
             .build());
-        zeroBackends = false;
+        haveBackends = true;
+      }
+      final Map<String, Object> serviceConfig =
+          config.get(GrpcAttributes.NAME_RESOLVER_SERVICE_CONFIG);
+      if (channelTracer != null && serviceConfig != null
+          && !serviceConfig.equals(lastServiceConfig)) {
+        channelTracer.reportEvent(new ChannelTrace.Event.Builder()
+            .setDescription("Service config changed")
+            .setSeverity(ChannelTrace.Event.Severity.CT_INFO)
+            .setTimestampNanos(timeProvider.currentTimeNanos())
+            .build());
+        lastServiceConfig = serviceConfig;
       }
 
       final class NamesResolved implements Runnable {
@@ -1269,8 +1283,6 @@ public void run() {
 
           nameResolverBackoffPolicy = null;
 
-          Map<String, Object> serviceConfig =
-              config.get(GrpcAttributes.NAME_RESOLVER_SERVICE_CONFIG);
           if (serviceConfig != null) {
             try {
               serviceConfigInterceptor.handleUpdate(serviceConfig);
@@ -1297,13 +1309,13 @@ public void onError(final Status error) {
       checkArgument(!error.isOk(), "the error status must not be OK");
       logger.log(Level.WARNING, "[{0}] Failed to resolve name. status={1}",
           new Object[] {getLogId(), error});
-      if (channelTracer != null && (zeroBackends == null || !zeroBackends)) {
+      if (channelTracer != null && (haveBackends == null || haveBackends)) {
         channelTracer.reportEvent(new ChannelTrace.Event.Builder()
             .setDescription("Failed to resolve name")
             .setSeverity(ChannelTrace.Event.Severity.CT_WARNING)
             .setTimestampNanos(timeProvider.currentTimeNanos())
             .build());
-        zeroBackends = true;
+        haveBackends = false;
       }
       channelExecutor
           .executeLater(
diff --git a/core/src/test/java/io/grpc/internal/ManagedChannelImplTest.java b/core/src/test/java/io/grpc/internal/ManagedChannelImplTest.java
index f8e72e63c3b..6c883463ca4 100644
--- a/core/src/test/java/io/grpc/internal/ManagedChannelImplTest.java
+++ b/core/src/test/java/io/grpc/internal/ManagedChannelImplTest.java
@@ -2216,6 +2216,62 @@ public void channelTracing_nameResolvedEvent_zeorAndNonzeroBackends() throws Exc
     assertThat(getStats(channel).channelTrace.events).hasSize(prevSize + 1);
   }
 
+  @Test
+  public void channelTracing_serviceConfigChange() throws Exception {
+    timer.forwardNanos(1234);
+    channelBuilder.maxTraceEvents(10);
+    List<EquivalentAddressGroup> servers = new ArrayList<EquivalentAddressGroup>();
+    servers.add(new EquivalentAddressGroup(socketAddress));
+    FakeNameResolverFactory nameResolverFactory =
+        new FakeNameResolverFactory.Builder(expectedUri).setServers(servers).build();
+    channelBuilder.nameResolverFactory(nameResolverFactory);
+    createChannel();
+
+    int prevSize = getStats(channel).channelTrace.events.size();
+    Attributes attributes =
+        Attributes.newBuilder()
+            .set(GrpcAttributes.NAME_RESOLVER_SERVICE_CONFIG, new HashMap<String, Object>())
+            .build();
+    nameResolverFactory.resolvers.get(0).listener.onAddresses(
+        Collections.singletonList(new EquivalentAddressGroup(
+            Arrays.asList(new SocketAddress() {}, new SocketAddress() {}))),
+        attributes);
+    assertThat(getStats(channel).channelTrace.events).hasSize(prevSize + 1);
+    assertThat(getStats(channel).channelTrace.events.get(prevSize))
+        .isEqualTo(new ChannelTrace.Event.Builder()
+            .setDescription("Service config changed")
+            .setSeverity(ChannelTrace.Event.Severity.CT_INFO)
+            .setTimestampNanos(timer.getTicker().read())
+            .build());
+
+    prevSize = getStats(channel).channelTrace.events.size();
+    nameResolverFactory.resolvers.get(0).listener.onAddresses(
+        Collections.singletonList(new EquivalentAddressGroup(
+            Arrays.asList(new SocketAddress() {}, new SocketAddress() {}))),
+        attributes);
+    assertThat(getStats(channel).channelTrace.events).hasSize(prevSize);
+
+    prevSize = getStats(channel).channelTrace.events.size();
+    Map<String, Object> serviceConfig = new HashMap<String, Object>();
+    serviceConfig.put("methodConfig", new HashMap<String, Object>());
+    attributes =
+        Attributes.newBuilder()
+            .set(GrpcAttributes.NAME_RESOLVER_SERVICE_CONFIG, serviceConfig)
+            .build();
+    timer.forwardNanos(1234);
+    nameResolverFactory.resolvers.get(0).listener.onAddresses(
+        Collections.singletonList(new EquivalentAddressGroup(
+            Arrays.asList(new SocketAddress() {}, new SocketAddress() {}))),
+        attributes);
+    assertThat(getStats(channel).channelTrace.events).hasSize(prevSize + 1);
+    assertThat(getStats(channel).channelTrace.events.get(prevSize))
+        .isEqualTo(new ChannelTrace.Event.Builder()
+            .setDescription("Service config changed")
+            .setSeverity(ChannelTrace.Event.Severity.CT_INFO)
+            .setTimestampNanos(timer.getTicker().read())
+            .build());
+  }
+
   @Test
   public void channelTracing_stateChangeEvent() throws Exception {
     channelBuilder.maxTraceEvents(10);