diff --git a/source/common/config/grpc_mux_impl.cc b/source/common/config/grpc_mux_impl.cc
index 1e495a2a7f94c..f7598a02b6126 100644
--- a/source/common/config/grpc_mux_impl.cc
+++ b/source/common/config/grpc_mux_impl.cc
@@ -221,6 +221,10 @@ void GrpcMuxImpl::onEstablishmentFailure() {
       watch->callbacks_.onConfigUpdateFailed(
           Envoy::Config::ConfigUpdateFailureReason::ConnectionFailure, nullptr);
     }
+    if (api_state.second.paused_) {
+      ENVOY_LOG(trace, "API {} paused during onEstablishmentFailure(), resuming.", api_state.first);
+      resume(api_state.first);
+    }
   }
 }
 
@@ -244,4 +248,4 @@ void GrpcMuxImpl::drainRequests() {
 }
 
 } // namespace Config
-} // namespace Envoy
\ No newline at end of file
+} // namespace Envoy
diff --git a/test/common/config/grpc_mux_impl_test.cc b/test/common/config/grpc_mux_impl_test.cc
index 536836e534450..d060207896520 100644
--- a/test/common/config/grpc_mux_impl_test.cc
+++ b/test/common/config/grpc_mux_impl_test.cc
@@ -193,6 +193,47 @@ TEST_F(GrpcMuxImplTest, PauseResume) {
   grpc_mux_->pause("foo");
 }
 
+// Validate behavior when multiple type URL watches are maintained and the stream is reset
+// even when paused.
+TEST_F(GrpcMuxImplTest, ResetStreamWithPauseResume) {
+  InSequence s;
+
+  Event::MockTimer* timer = nullptr;
+  Event::TimerCb timer_cb;
+  EXPECT_CALL(dispatcher_, createTimer_(_)).WillOnce(Invoke([&timer, &timer_cb](Event::TimerCb cb) {
+    timer_cb = cb;
+    EXPECT_EQ(nullptr, timer);
+    timer = new Event::MockTimer();
+    return timer;
+  }));
+
+  setup();
+  auto foo_sub = grpc_mux_->addWatch("foo", {"x", "y"}, callbacks_);
+  grpc_mux_->pause("foo");
+  EXPECT_CALL(*async_client_, startRaw(_, _, _, _)).WillOnce(Return(&async_stream_));
+  grpc_mux_->start();
+  expectSendMessage("foo", {"x", "y"}, "", true);
+  grpc_mux_->resume("foo");
+
+  grpc_mux_->pause("foo"); // never resumed prior to stream termination.
+  EXPECT_CALL(callbacks_,
+              onConfigUpdateFailed(Envoy::Config::ConfigUpdateFailureReason::ConnectionFailure, _))
+      .Times(1);
+  EXPECT_CALL(random_, random());
+  ASSERT_TRUE(timer != nullptr); // initialized from dispatcher mock.
+  EXPECT_CALL(*timer, enableTimer(_, _));
+  grpc_mux_->grpcStreamForTest().onRemoteClose(Grpc::Status::WellKnownGrpcStatus::Internal, "");
+  EXPECT_EQ(0, control_plane_connected_state_.value());
+
+  grpc_mux_->pause("foo");
+  EXPECT_CALL(*async_client_, startRaw(_, _, _, _)).WillOnce(Return(&async_stream_));
+  expectSendMessage("foo", {"x", "y"}, "", true);
+  timer_cb();
+  grpc_mux_->resume("foo");
+
+  expectSendMessage("foo", {}, "");
+}
+
 // Validate behavior when type URL mismatches occur.
 TEST_F(GrpcMuxImplTest, TypeUrlMismatch) {
   setup();