diff --git a/server/jetstream_cluster_3_test.go b/server/jetstream_cluster_3_test.go
index 9dc0618446b..df84e460696 100644
--- a/server/jetstream_cluster_3_test.go
+++ b/server/jetstream_cluster_3_test.go
@@ -3403,3 +3403,106 @@ func TestJetStreamInterestLeakOnDisableJetStream(t *testing.T) {
 		t.Fatalf("unexpected dangling interests for JetStream assets after shutdown (%d $JSC, %d $NRG)", danglingJSC, danglingRaft)
 	}
 }
+
+func TestJetStreamNoLeadersDuringLameDuck(t *testing.T) {
+	c := createJetStreamClusterExplicit(t, "R3S", 3)
+	defer c.shutdown()
+
+	// Grab the first server and set lameduck option directly.
+	s := c.servers[0]
+	s.optsMu.Lock()
+	s.opts.LameDuckDuration = 5 * time.Second
+	s.opts.LameDuckGracePeriod = -5 * time.Second
+	s.optsMu.Unlock()
+
+	// Connect to the third server.
+	nc, js := jsClientConnect(t, c.servers[2])
+	defer nc.Close()
+
+	allServersHaveLeaders := func() bool {
+		haveLeader := make(map[*Server]bool)
+		for _, s := range c.servers {
+			s.rnMu.RLock()
+			for _, n := range s.raftNodes {
+				if n.Leader() {
+					haveLeader[s] = true
+					break
+				}
+			}
+			s.rnMu.RUnlock()
+		}
+		return len(haveLeader) == len(c.servers)
+	}
+
+	// Create streams until we have a leader on all the servers.
+	var index int
+	checkFor(t, 10*time.Second, time.Millisecond, func() error {
+		if allServersHaveLeaders() {
+			return nil
+		}
+		index++
+		_, err := js.AddStream(&nats.StreamConfig{
+			Name:     fmt.Sprintf("TEST_%d", index),
+			Subjects: []string{fmt.Sprintf("foo.%d", index)},
+			Replicas: 3,
+		})
+		require_NoError(t, err)
+		return fmt.Errorf("All servers do not have at least one leader")
+	})
+
+	// Put our server into lameduck mode.
+	// Need a client.
+	dummy, _ := jsClientConnect(t, s)
+	defer dummy.Close()
+	go s.lameDuckMode()
+
+	// Wait for all leaders to move off.
+	checkFor(t, 2*time.Second, 50*time.Millisecond, func() error {
+		s.rnMu.RLock()
+		defer s.rnMu.RUnlock()
+		for _, n := range s.raftNodes {
+			if n.Leader() {
+				return fmt.Errorf("Server still has a leader")
+			}
+		}
+		return nil
+	})
+
+	// All leader evacuated.
+
+	// Create a go routine that will create streams constantly.
+	qch := make(chan bool)
+	go func() {
+		var index int
+		for {
+			select {
+			case <-time.After(time.Millisecond):
+				index++
+				_, err := js.AddStream(&nats.StreamConfig{
+					Name:     fmt.Sprintf("NEW_TEST_%d", index),
+					Subjects: []string{fmt.Sprintf("bar.%d", index)},
+					Replicas: 3,
+				})
+				if err != nil {
+					return
+				}
+			case <-qch:
+				return
+			}
+		}
+	}()
+	defer close(qch)
+
+	// Make sure we do not have any leaders placed on the lameduck server.
+	for s.isRunning() {
+		var hasLeader bool
+		s.rnMu.RLock()
+		for _, n := range s.raftNodes {
+			hasLeader = hasLeader || n.Leader()
+		}
+		s.rnMu.RUnlock()
+		if hasLeader {
+			t.Fatalf("Server had a leader when it should not due to lameduck mode")
+		}
+	}
+}
diff --git a/server/raft.go b/server/raft.go
index 11100b0e744..3daaa63f8b3 100644
--- a/server/raft.go
+++ b/server/raft.go
@@ -485,6 +485,12 @@ func (s *Server) startRaftNode(accName string, cfg *RaftConfig) (RaftNode, error
 
 	n.debug("Started")
 
+	// Check if we need to start in observer mode due to lame duck status.
+	if s.isLameDuckMode() {
+		n.debug("Will start in observer mode due to lame duck status")
+		n.SetObserver(true)
+	}
+
 	n.Lock()
 	n.resetElectionTimeout()
 	n.llqrt = time.Now()
@@ -611,6 +617,9 @@ func (s *Server) shutdownRaftNodes() {
 	}
 }
 
+// Used in lameduck mode to move off the leaders.
+// We also put all nodes in observer mode so new leaders
+// can not be placed on this server.
 func (s *Server) transferRaftLeaders() bool {
 	if s == nil {
 		return false
@@ -631,6 +640,7 @@ func (s *Server) transferRaftLeaders() bool {
 			node.StepDown()
 			didTransfer = true
 		}
+		node.SetObserver(true)
 	}
 	return didTransfer
 }