diff --git a/server/jetstream_cluster.go b/server/jetstream_cluster.go
index 1eabc7dfcb6..8753f363fd4 100644
--- a/server/jetstream_cluster.go
+++ b/server/jetstream_cluster.go
@@ -5590,6 +5590,13 @@ func (js *jetStream) processLeaderChange(isLeader bool) {
 	js.mu.Lock()
 	defer js.mu.Unlock()
 
+	if isLeader {
+		if meta := js.cluster.meta; meta != nil && meta.IsObserver() {
+			meta.StepDown()
+			return
+		}
+	}
+
 	if isLeader {
 		js.startUpdatesSub()
 	} else {
diff --git a/server/jetstream_cluster_4_test.go b/server/jetstream_cluster_4_test.go
index 698bb5916d5..774e9dc70f8 100644
--- a/server/jetstream_cluster_4_test.go
+++ b/server/jetstream_cluster_4_test.go
@@ -5256,3 +5256,68 @@ func TestJetStreamClusterServerPeerRemovePeersDrift(t *testing.T) {
 		return nil
 	})
 }
+
+func TestJetStreamClusterObserverNotElectedMetaLeader(t *testing.T) {
+	c := createJetStreamClusterExplicit(t, "R3S", 3)
+	defer c.shutdown()
+
+	c.waitOnLeader()
+
+	getMeta := func(s *Server) *raft {
+		if js := s.getJetStream(); js != nil {
+			if mg := js.getMetaGroup(); mg != nil {
+				return mg.(*raft)
+			}
+		}
+		return nil
+	}
+
+	setToObserverAndStepDown := func(s *Server) {
+		if meta := getMeta(s); meta != nil {
+			meta.setObserver(true, extExtended)
+			meta.StepDown()
+		}
+	}
+
+	var wg sync.WaitGroup
+
+	for range 10 {
+		// Pick what will be the new leader since we are going to switch
+		// the 2 other servers to observer mode and make them step down.
+		newLeader := c.randomNonLeader()
+		leader := c.leader()
+
+		var other *Server
+		for _, s := range c.servers {
+			if s != newLeader && s != leader {
+				other = s
+				break
+			}
+		}
+
+		wg.Add(1)
+		go func() {
+			defer wg.Done()
+			// Add some random delay before changing state and stepping down.
+			time.Sleep(time.Duration(rand.Intn(25)) * time.Millisecond)
+			setToObserverAndStepDown(other)
+		}()
+		setToObserverAndStepDown(leader)
+		wg.Wait()
+
+		// Wait for the newLeader to really be elected.
+		checkFor(t, 10*time.Second, 50*time.Millisecond, func() error {
+			if !newLeader.JetStreamIsLeader() {
+				return fmt.Errorf("Server %q is still not leader", newLeader)
+			}
+			return nil
+		})
+
+		// Change the observer back to false.
+		for _, s := range []*Server{leader, other} {
+			if meta := getMeta(s); meta != nil {
+				meta.SetObserver(false)
+			}
+		}
+	}
+}