diff --git a/server/src/main/java/org/elasticsearch/reservedstate/service/ReservedClusterStateService.java b/server/src/main/java/org/elasticsearch/reservedstate/service/ReservedClusterStateService.java
index 8f86a41d44709..20a115a484ab5 100644
--- a/server/src/main/java/org/elasticsearch/reservedstate/service/ReservedClusterStateService.java
+++ b/server/src/main/java/org/elasticsearch/reservedstate/service/ReservedClusterStateService.java
@@ -41,6 +41,7 @@
 import static org.elasticsearch.cluster.metadata.ReservedStateMetadata.EMPTY_VERSION;
 import static org.elasticsearch.core.Strings.format;
 import static org.elasticsearch.reservedstate.service.ReservedStateErrorTask.checkErrorVersion;
+import static org.elasticsearch.reservedstate.service.ReservedStateErrorTask.isNewError;
 import static org.elasticsearch.reservedstate.service.ReservedStateUpdateTask.checkMetadataVersion;
 import static org.elasticsearch.reservedstate.service.ReservedStateUpdateTask.keysForHandler;
 
@@ -151,7 +152,6 @@ public void initEmpty(String namespace, ActionListener<ActionResponse.Empty> lis
             new ReservedStateUpdateTask(
                 namespace,
                 emptyState,
-                List.of(),
                 Map.of(),
                 List.of(),
                 // error state should not be possible since there is no metadata being parsed or processed
@@ -212,7 +212,37 @@ public void process(String namespace, ReservedStateChunk reservedStateChunk, Con
 
         if (error != null) {
             errorListener.accept(error);
+            return;
         }
+        updateTaskQueue.submitTask(
+            "reserved cluster state [" + namespace + "]",
+            new ReservedStateUpdateTask(
+                namespace,
+                reservedStateChunk,
+                handlers,
+                orderedHandlers,
+                ReservedClusterStateService.this::updateErrorState,
+                new ActionListener<>() {
+                    @Override
+                    public void onResponse(ActionResponse.Empty empty) {
+                        logger.info("Successfully applied new reserved cluster state for namespace [{}]", namespace);
+                        errorListener.accept(null);
+                    }
+
+                    @Override
+                    public void onFailure(Exception e) {
+                        // Don't spam the logs on repeated errors
+                        if (isNewError(existingMetadata, reservedStateVersion.version())) {
+                            logger.debug("Failed to apply reserved cluster state", e);
+                            errorListener.accept(e);
+                        } else {
+                            errorListener.accept(null);
+                        }
+                    }
+                }
+            ),
+            null
+        );
     }
 
     // package private for testing
diff --git a/server/src/main/java/org/elasticsearch/reservedstate/service/ReservedStateUpdateTask.java b/server/src/main/java/org/elasticsearch/reservedstate/service/ReservedStateUpdateTask.java
index 1ac42a91736c3..93d3619889a48 100644
--- a/server/src/main/java/org/elasticsearch/reservedstate/service/ReservedStateUpdateTask.java
+++ b/server/src/main/java/org/elasticsearch/reservedstate/service/ReservedStateUpdateTask.java
@@ -20,7 +20,6 @@
 import org.elasticsearch.cluster.metadata.ReservedStateHandlerMetadata;
 import org.elasticsearch.cluster.metadata.ReservedStateMetadata;
 import org.elasticsearch.gateway.GatewayService;
-import org.elasticsearch.reservedstate.NonStateTransformResult;
 import org.elasticsearch.reservedstate.ReservedClusterStateHandler;
 import org.elasticsearch.reservedstate.TransformState;
 
@@ -51,12 +50,10 @@ public class ReservedStateUpdateTask implements ClusterStateTaskListener {
     private final Collection<String> orderedHandlers;
     private final Consumer<ErrorState> errorReporter;
     private final ActionListener<ActionResponse.Empty> listener;
-    private final Collection<NonStateTransformResult> nonStateTransformResults;
 
     public ReservedStateUpdateTask(
         String namespace,
         ReservedStateChunk stateChunk,
-        Collection<NonStateTransformResult> nonStateTransformResults,
         Map<String, ReservedClusterStateHandler<?>> handlers,
         Collection<String> orderedHandlers,
         Consumer<ErrorState> errorReporter,
@@ -64,7 +61,6 @@ public ReservedStateUpdateTask(
     ) {
         this.namespace = namespace;
         this.stateChunk = stateChunk;
-        this.nonStateTransformResults = nonStateTransformResults;
         this.handlers = handlers;
         this.orderedHandlers = orderedHandlers;
         this.errorReporter = errorReporter;
@@ -115,12 +111,6 @@ protected ClusterState execute(final ClusterState currentState) {
 
         checkAndThrowOnError(errors, reservedStateVersion);
 
-        // Once we have set all of the handler state from the cluster state update tasks, we add the reserved keys
-        // from the non cluster state transforms.
-        for (var transform : nonStateTransformResults) {
-            reservedMetadataBuilder.putHandler(new ReservedStateHandlerMetadata(transform.handlerName(), transform.updatedKeys()));
-        }
-
         // Remove the last error if we had previously encountered any in prior processing of reserved state
         reservedMetadataBuilder.errorMetadata(null);
 
diff --git a/server/src/test/java/org/elasticsearch/reservedstate/service/ReservedClusterStateServiceTests.java b/server/src/test/java/org/elasticsearch/reservedstate/service/ReservedClusterStateServiceTests.java
index a46b85505a262..0c0fd4183022f 100644
--- a/server/src/test/java/org/elasticsearch/reservedstate/service/ReservedClusterStateServiceTests.java
+++ b/server/src/test/java/org/elasticsearch/reservedstate/service/ReservedClusterStateServiceTests.java
@@ -176,7 +176,7 @@ public void testUpdateStateTasks() throws Exception {
         AtomicBoolean successCalled = new AtomicBoolean(false);
 
         ReservedStateUpdateTask task = spy(
-            new ReservedStateUpdateTask("test", null, List.of(), Map.of(), Set.of(), errorState -> {}, ActionListener.noop())
+            new ReservedStateUpdateTask("test", null, Map.of(), Set.of(), errorState -> {}, ActionListener.noop())
         );
 
         doReturn(state).when(task).execute(any());
@@ -389,7 +389,6 @@ public Map<String, Object> fromXContent(XContentParser parser) throws IOExceptio
         ReservedStateUpdateTask task = new ReservedStateUpdateTask(
             "namespace_one",
             chunk,
-            List.of(),
             Map.of(exceptionThrower.name(), exceptionThrower, newStateMaker.name(), newStateMaker),
             orderedHandlers,
             errorState -> assertFalse(ReservedStateErrorTask.isNewError(operatorMetadata, errorState.version())),
diff --git a/server/src/test/java/org/elasticsearch/reservedstate/service/ReservedStateUpdateTaskTests.java b/server/src/test/java/org/elasticsearch/reservedstate/service/ReservedStateUpdateTaskTests.java
index d887d7edb19f2..72d2310a098cf 100644
--- a/server/src/test/java/org/elasticsearch/reservedstate/service/ReservedStateUpdateTaskTests.java
+++ b/server/src/test/java/org/elasticsearch/reservedstate/service/ReservedStateUpdateTaskTests.java
@@ -22,7 +22,7 @@
 
 public class ReservedStateUpdateTaskTests extends ESTestCase {
     public void testBlockedClusterState() {
-        var task = new ReservedStateUpdateTask("dummy", null, List.of(), Map.of(), List.of(), e -> {}, ActionListener.noop());
+        var task = new ReservedStateUpdateTask("dummy", null, Map.of(), List.of(), e -> {}, ActionListener.noop());
         ClusterState notRecoveredClusterState = ClusterState.builder(ClusterName.DEFAULT)
             .blocks(ClusterBlocks.builder().addGlobalBlock(GatewayService.STATE_NOT_RECOVERED_BLOCK))
             .build();