diff --git a/pickfirst.go b/pickfirst.go
index fc91b4d266d..89e54196e1e 100644
--- a/pickfirst.go
+++ b/pickfirst.go
@@ -119,7 +119,6 @@ func (b *pickfirstBalancer) UpdateSubConnState(subConn balancer.SubConn, state b
 		}
 		return
 	}
-	b.state = state.ConnectivityState
 	if state.ConnectivityState == connectivity.Shutdown {
 		b.subConn = nil
 		return
@@ -132,11 +131,21 @@ func (b *pickfirstBalancer) UpdateSubConnState(subConn balancer.SubConn, state b
 			Picker:            &picker{result: balancer.PickResult{SubConn: subConn}},
 		})
 	case connectivity.Connecting:
+		if b.state == connectivity.TransientFailure {
+			// We stay in TransientFailure until we are Ready. See A62.
+			return
+		}
 		b.cc.UpdateState(balancer.State{
 			ConnectivityState: state.ConnectivityState,
 			Picker:            &picker{err: balancer.ErrNoSubConnAvailable},
 		})
 	case connectivity.Idle:
+		if b.state == connectivity.TransientFailure {
+			// We stay in TransientFailure until we are Ready. Also kick the
+			// subConn out of Idle into Connecting. See A62.
+			b.subConn.Connect()
+			return
+		}
 		b.cc.UpdateState(balancer.State{
 			ConnectivityState: state.ConnectivityState,
 			Picker:            &idlePicker{subConn: subConn},
@@ -147,6 +156,7 @@ func (b *pickfirstBalancer) UpdateSubConnState(subConn balancer.SubConn, state b
 			Picker:            &picker{err: state.ConnectionError},
 		})
 	}
+	b.state = state.ConnectivityState
 }
 
 func (b *pickfirstBalancer) Close() {
diff --git a/test/pickfirst_test.go b/test/pickfirst_test.go
index 800d2f4178c..75cb2a659ed 100644
--- a/test/pickfirst_test.go
+++ b/test/pickfirst_test.go
@@ -20,15 +20,18 @@ package test
 
 import (
 	"context"
+	"sync"
 	"testing"
 	"time"
 
 	"google.golang.org/grpc"
+	"google.golang.org/grpc/backoff"
 	"google.golang.org/grpc/codes"
 	"google.golang.org/grpc/connectivity"
 	"google.golang.org/grpc/credentials/insecure"
 	"google.golang.org/grpc/internal/channelz"
 	"google.golang.org/grpc/internal/stubserver"
+	"google.golang.org/grpc/internal/testutils"
 	"google.golang.org/grpc/internal/testutils/pickfirst"
 	"google.golang.org/grpc/resolver"
 	"google.golang.org/grpc/resolver/manual"
@@ -293,3 +296,86 @@ func (s) TestPickFirst_NewAddressWhileBlocking(t *testing.T) {
 	case <-doneCh:
 	}
 }
+
+func (s) TestPickFirst_StickyTransientFailure(t *testing.T) {
+	// Spin up a local server which closes the connection as soon as it receives
+	// one. It also sends a signal on a channel whenver it received a connection.
+	lis, err := testutils.LocalTCPListener()
+	if err != nil {
+		t.Fatalf("Failed to create listener: %v", err)
+	}
+	t.Cleanup(func() { lis.Close() })
+
+	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
+	defer cancel()
+	connCh := make(chan struct{}, 1)
+	go func() {
+		for {
+			conn, err := lis.Accept()
+			if err != nil {
+				return
+			}
+			select {
+			case connCh <- struct{}{}:
+				conn.Close()
+			case <-ctx.Done():
+				return
+			}
+		}
+	}()
+
+	// Dial the above server with a ConnectParams that does a constant backoff
+	// of defaultTestShortTimeout duration.
+	dopts := []grpc.DialOption{
+		grpc.WithTransportCredentials(insecure.NewCredentials()),
+		grpc.WithDefaultServiceConfig(pickFirstServiceConfig),
+		grpc.WithConnectParams(grpc.ConnectParams{
+			Backoff: backoff.Config{
+				BaseDelay:  defaultTestShortTimeout,
+				Multiplier: float64(0),
+				Jitter:     float64(0),
+				MaxDelay:   defaultTestShortTimeout,
+			},
+		}),
+	}
+	cc, err := grpc.Dial(lis.Addr().String(), dopts...)
+	if err != nil {
+		t.Fatalf("Failed to dial server at %q: %v", lis.Addr(), err)
+	}
+	t.Cleanup(func() { cc.Close() })
+
+	var wg sync.WaitGroup
+	wg.Add(2)
+	// Spin up a goroutine that waits for the channel to move to
+	// TransientFailure. After that it checks that the channel stays in
+	// TransientFailure, until Shutdown.
+	go func() {
+		defer wg.Done()
+		for state := cc.GetState(); state != connectivity.TransientFailure; state = cc.GetState() {
+			if !cc.WaitForStateChange(ctx, state) {
+				t.Errorf("Timeout when waiting for state to change to TransientFailure. Current state is %s", state)
+				return
+			}
+		}
+
+		// TODO(easwars): this waits for 10s. Need shorter deadline here. Basically once the second goroutine exits, we should exit from here too.
+		if cc.WaitForStateChange(ctx, connectivity.TransientFailure) {
+			if state := cc.GetState(); state != connectivity.Shutdown {
+				t.Errorf("Unexpected state change from TransientFailure to %s", cc.GetState())
+			}
+		}
+	}()
+	// Spin up a goroutine which ensures that the pick_first LB policy is
+	// constantly trying to reconnect.
+	go func() {
+		defer wg.Done()
+		for i := 0; i < 10; i++ {
+			select {
+			case <-connCh:
+			case <-time.After(2 * defaultTestShortTimeout):
+				t.Error("Timeout when waiting for pick_first to reconnect")
+			}
+		}
+	}()
+	wg.Wait()
+}