diff --git a/go/vt/topo/shard.go b/go/vt/topo/shard.go
index 44f165b1e52..c3f71632122 100644
--- a/go/vt/topo/shard.go
+++ b/go/vt/topo/shard.go
@@ -342,7 +342,7 @@ func (ts *Server) GetOrCreateShard(ctx context.Context, keyspace, shard, cell st
 
 	// make sure a valid vschema has been loaded
 	log.Info("EnsureVSchema %s/%s", keyspace, shard)
-	if err = ts.EnsureVSchema(ctx, keyspace, []string{cell}); err != nil {
+	if err = ts.EnsureVSchema(ctx, keyspace); err != nil {
 		return nil, vterrors.Wrapf(err, "EnsureVSchema(%v) failed", keyspace)
 	}
 
diff --git a/go/vt/topo/vschema.go b/go/vt/topo/vschema.go
index 40837595c8d..34a6739e9ba 100644
--- a/go/vt/topo/vschema.go
+++ b/go/vt/topo/vschema.go
@@ -72,7 +72,7 @@ func (ts *Server) GetVSchema(ctx context.Context, keyspace string) (*vschemapb.K
 }
 
 // EnsureVSchema makes sure that a vschema is present for this keyspace or creates a blank one if it is missing
-func (ts *Server) EnsureVSchema(ctx context.Context, keyspace string, cells []string) error {
+func (ts *Server) EnsureVSchema(ctx context.Context, keyspace string) error {
 	vschema, err := ts.GetVSchema(ctx, keyspace)
 	if err != nil && !IsErrType(err, NoNode) {
 		log.Info("error in getting vschema for keyspace %s: %v", keyspace, err)
@@ -88,12 +88,6 @@ func (ts *Server) EnsureVSchema(ctx context.Context, keyspace string, cells []st
 			return err
 		}
 	}
-
-	err = ts.RebuildSrvVSchema(ctx, cells)
-	if err != nil {
-		log.Errorf("could not rebuild SrvVschema after creating keyspace: %v", err)
-		return err
-	}
 	return nil
 }
 
diff --git a/go/vt/vtctl/vtctl.go b/go/vt/vtctl/vtctl.go
index cf19f6707cb..2acf9a970f9 100644
--- a/go/vt/vtctl/vtctl.go
+++ b/go/vt/vtctl/vtctl.go
@@ -1666,18 +1666,14 @@ func commandCreateKeyspace(ctx context.Context, wr *wrangler.Wrangler, subFlags
 		wr.Logger().Infof("keyspace %v already exists (ignoring error with -force)", keyspace)
 		err = nil
 	}
+	if err != nil {
+		return err
+	}
 
 	if !*allowEmptyVSchema {
-		cells, err := wr.TopoServer().GetKnownCells(ctx)
-		if err != nil {
-			return fmt.Errorf("GetKnownCells failed: %v", err)
+		if err := wr.TopoServer().EnsureVSchema(ctx, keyspace); err != nil {
+			return err
 		}
-
-		err = wr.TopoServer().EnsureVSchema(ctx, keyspace, cells)
-	}
-
-	if err != nil {
-		return err
 	}
 
 	if ktype == topodatapb.KeyspaceType_SNAPSHOT {
@@ -1703,9 +1699,9 @@ func commandCreateKeyspace(ctx context.Context, wr *wrangler.Wrangler, subFlags
 			wr.Logger().Infof("error from SaveVSchema %v:%v", vs, err)
 			return err
 		}
-		return wr.TopoServer().RebuildSrvVSchema(ctx, []string{} /* cells */)
 	}
-	return nil
+
+	return wr.TopoServer().RebuildSrvVSchema(ctx, []string{} /* cells */)
 }
 
 func commandDeleteKeyspace(ctx context.Context, wr *wrangler.Wrangler, subFlags *flag.FlagSet, args []string) error {
diff --git a/go/vt/vttablet/tabletmanager/init_tablet.go b/go/vt/vttablet/tabletmanager/init_tablet.go
index cb029fa854f..ea4edc985a6 100644
--- a/go/vt/vttablet/tabletmanager/init_tablet.go
+++ b/go/vt/vttablet/tabletmanager/init_tablet.go
@@ -155,10 +155,30 @@ func (agent *ActionAgent) InitTablet(port, gRPCPort int32) error {
 	case err == nil:
 		// NOOP
 	case topo.IsErrType(err, topo.NoNode):
-		// try to RebuildKeyspace here but ignore errors if it fails
+		// Try to RebuildKeyspace here but ignore errors if it fails.
+		// It will fail until at least one tablet is up for every shard.
 		topotools.RebuildKeyspace(ctx, logutil.NewConsoleLogger(), agent.TopoServer, *initKeyspace, []string{agent.TabletAlias.Cell})
 	default:
-		return vterrors.Wrap(err, "InitTablet failed to read srvKeyspace")
+		return vterrors.Wrap(err, "InitTablet failed to read SrvKeyspace")
+	}
+
+	// Rebuild vschema graph if this is the first tablet in this keyspace/cell.
+	srvVSchema, err := agent.TopoServer.GetSrvVSchema(ctx, agent.TabletAlias.Cell)
+	switch {
+	case err == nil:
+		// Check if vschema was rebuilt after the initial creation of the keyspace.
+		if _, keyspaceExists := srvVSchema.GetKeyspaces()[*initKeyspace]; !keyspaceExists {
+			if err := agent.TopoServer.RebuildSrvVSchema(ctx, []string{agent.TabletAlias.Cell}); err != nil {
+				return vterrors.Wrap(err, "InitTablet failed to RebuildSrvVSchema")
+			}
+		}
+	case topo.IsErrType(err, topo.NoNode):
+		// There is no SrvSchema in this cell at all, so we definitely need to rebuild.
+		if err := agent.TopoServer.RebuildSrvVSchema(ctx, []string{agent.TabletAlias.Cell}); err != nil {
+			return vterrors.Wrap(err, "InitTablet failed to RebuildSrvVSchema")
+		}
+	default:
+		return vterrors.Wrap(err, "InitTablet failed to read SrvVSchema")
 	}
 
 	log.Infof("Initializing the tablet for type %v", tabletType)