diff --git a/.changelog/16673.txt b/.changelog/16673.txt
new file mode 100644
index 00000000000..f72eedc61c8
--- /dev/null
+++ b/.changelog/16673.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+peering: Fixes a bug where the importing partition was not added to peered failover targets, which causes issues when the importing partition is a non-default partition.
+```
diff --git a/agent/proxycfg/upstreams.go b/agent/proxycfg/upstreams.go
index 7c16e9f7cf7..074463a54f5 100644
--- a/agent/proxycfg/upstreams.go
+++ b/agent/proxycfg/upstreams.go
@@ -447,6 +447,9 @@ func (s *handlerUpstreams) watchUpstreamTarget(ctx context.Context, snap *Config
 
 	if opts.peer != "" {
 		uid = NewUpstreamIDFromTargetID(opts.chainID)
+		// chainID has the partition stripped. However, when a target is in a cluster peer, the partition should be set
+		// to the local partition (i.e chain.Partition), since the peered target is imported into the local partition.
+		uid.OverridePartition(opts.entMeta.PartitionOrDefault())
 		correlationID = upstreamPeerWatchIDPrefix + uid.String()
 	}
 
diff --git a/agent/xds/clusters.go b/agent/xds/clusters.go
index 3e4d4e5e376..d85865dda77 100644
--- a/agent/xds/clusters.go
+++ b/agent/xds/clusters.go
@@ -1282,6 +1282,11 @@ func (s *ResourceGenerator) makeUpstreamClustersForDiscoveryChain(
 
 			targetUID := proxycfg.NewUpstreamIDFromTargetID(targetData.targetID)
 			if targetUID.Peer != "" {
+				// targetID has the partition stripped, so targetUID will not have a partition either. However,
+				// when a failover target is in a cluster peer, the partition should be set to the local partition (i.e
+				// chain.Partition), since the peered failover target is imported into the local partition.
+				targetUID.OverridePartition(chain.Partition)
+
 				peerMeta, found := upstreamsSnapshot.UpstreamPeerMeta(targetUID)
 				if !found {
 					s.Logger.Warn("failed to fetch upstream peering metadata for cluster", "target", targetUID)