diff --git a/internal/xds/clients/xdsclient/ads_stream.go b/internal/xds/clients/xdsclient/ads_stream.go
index 83f8a5df03f1..911e02a67f3c 100644
--- a/internal/xds/clients/xdsclient/ads_stream.go
+++ b/internal/xds/clients/xdsclient/ads_stream.go
@@ -22,7 +22,6 @@ import (
 	"context"
 	"fmt"
 	"sync"
-	"sync/atomic"
 	"time"
 
 	"google.golang.org/grpc/grpclog"
@@ -103,11 +102,11 @@ type adsStreamImpl struct {
 	requestCh    *buffer.Unbounded   // Subscriptions and unsubscriptions are pushed here.
 	runnerDoneCh chan struct{}       // Notify completion of runner goroutine.
 	cancel       context.CancelFunc  // To cancel the context passed to the runner goroutine.
+	fc           *adsFlowControl     // Flow control for ADS stream.
 
 	// Guards access to the below fields (and to the contents of the map).
 	mu                sync.Mutex
 	resourceTypeState map[ResourceType]*resourceTypeState // Map of resource types to their state.
-	fc                *adsFlowControl                     // Flow control for ADS stream.
 	firstRequest      bool                                // False after the first request is sent out.
 }
 
@@ -135,6 +134,7 @@ func newADSStreamImpl(opts adsStreamOpts) *adsStreamImpl {
 		streamCh:          make(chan clients.Stream, 1),
 		requestCh:         buffer.NewUnbounded(),
 		runnerDoneCh:      make(chan struct{}),
+		fc:                newADSFlowControl(),
 		resourceTypeState: make(map[ResourceType]*resourceTypeState),
 	}
 
@@ -150,6 +150,7 @@ func newADSStreamImpl(opts adsStreamOpts) *adsStreamImpl {
 // Stop blocks until the stream is closed and all spawned goroutines exit.
 func (s *adsStreamImpl) Stop() {
 	s.cancel()
+	s.fc.stop()
 	s.requestCh.Close()
 	<-s.runnerDoneCh
 	s.logger.Infof("Shutdown ADS stream")
@@ -240,9 +241,6 @@ func (s *adsStreamImpl) runner(ctx context.Context) {
 		}
 
 		s.mu.Lock()
-		// Flow control is a property of the underlying streaming RPC call and
-		// needs to be initialized everytime a new one is created.
-		s.fc = newADSFlowControl(s.logger)
 		s.firstRequest = true
 		s.mu.Unlock()
 
@@ -256,7 +254,7 @@ func (s *adsStreamImpl) runner(ctx context.Context) {
 
 		// Backoff state is reset upon successful receipt of at least one
 		// message from the server.
-		if s.recv(ctx, stream) {
+		if s.recv(stream) {
 			return backoff.ErrResetBackoff
 		}
 		return nil
@@ -318,11 +316,13 @@ func (s *adsStreamImpl) sendNew(stream clients.Stream, typ ResourceType) error {
 	// This allows us to batch writes for requests which are generated as part
 	// of local processing of a received response.
 	state := s.resourceTypeState[typ]
-	if s.fc.pending.Load() {
+	bufferRequest := func() {
 		select {
 		case state.bufferedRequests <- struct{}{}:
 		default:
 		}
+	}
+	if s.fc.runIfPending(bufferRequest) {
 		return nil
 	}
 
@@ -477,18 +477,19 @@ func (s *adsStreamImpl) sendMessageLocked(stream clients.Stream, names []string,
 //
 // It returns a boolean indicating whether at least one message was received
 // from the server.
-func (s *adsStreamImpl) recv(ctx context.Context, stream clients.Stream) bool {
+func (s *adsStreamImpl) recv(stream clients.Stream) bool {
 	msgReceived := false
 	for {
-		// Wait for ADS stream level flow control to be available, and send out
-		// a request if anything was buffered while we were waiting for local
-		// processing of the previous response to complete.
-		if !s.fc.wait(ctx) {
+		// Wait for ADS stream level flow control to be available.
+		if s.fc.wait() {
 			if s.logger.V(2) {
-				s.logger.Infof("ADS stream context canceled")
+				s.logger.Infof("ADS stream stopped while waiting for flow control")
 			}
 			return msgReceived
 		}
+
+		// Send out a request if anything was buffered while we were waiting for
+		// local processing of the previous response to complete.
 		s.sendBuffered(stream)
 
 		resources, url, version, nonce, err := s.recvMessage(stream)
@@ -508,8 +509,8 @@ func (s *adsStreamImpl) recv(ctx context.Context, stream clients.Stream) bool {
 		}
 		var resourceNames []string
 		var nackErr error
-		s.fc.setPending()
-		resourceNames, nackErr = s.eventHandler.onResponse(resp, s.fc.onDone)
+		s.fc.setPending(true)
+		resourceNames, nackErr = s.eventHandler.onResponse(resp, sync.OnceFunc(func() { s.fc.setPending(false) }))
 		if xdsresource.ErrType(nackErr) == xdsresource.ErrorTypeResourceTypeUnsupported {
 			// A general guiding principle is that if the server sends
 			// something the client didn't actually subscribe to, then the
@@ -707,69 +708,84 @@ func resourceNames(m map[string]*xdsresource.ResourceWatchState) []string {
 	return ret
 }
 
-// adsFlowControl implements ADS stream level flow control that enables the
-// transport to block the reading of the next message off of the stream until
-// the previous update is consumed by all watchers.
+// adsFlowControl implements ADS stream level flow control that enables the ADS
+// stream to block the reading of the next message until the previous update is
+// consumed by all watchers.
 //
-// The lifetime of the flow control is tied to the lifetime of the stream.
+// The lifetime of the flow control is tied to the lifetime of the stream. When
+// the stream is closed, it is the responsibility of the caller to stop the flow
+// control. This ensures that any goroutine blocked on the flow control's wait
+// method is unblocked.
 type adsFlowControl struct {
-	logger *igrpclog.PrefixLogger
-
-	// Whether the most recent update is pending consumption by all watchers.
-	pending atomic.Bool
-	// Channel used to notify when all the watchers have consumed the most
-	// recent update. Wait() blocks on reading a value from this channel.
-	readyCh chan struct{}
+	mu sync.Mutex
+	// cond is used to signal when the most recent update has been consumed, or
+	// the flow control has been stopped (in which case, waiters should be
+	// unblocked as well).
+	cond    *sync.Cond
+	pending bool // indicates if the most recent update is pending consumption
+	stopped bool // indicates if the ADS stream has been stopped
 }
 
 // newADSFlowControl returns a new adsFlowControl.
-func newADSFlowControl(logger *igrpclog.PrefixLogger) *adsFlowControl {
-	return &adsFlowControl{
-		logger:  logger,
-		readyCh: make(chan struct{}, 1),
-	}
+func newADSFlowControl() *adsFlowControl {
+	fc := &adsFlowControl{}
+	fc.cond = sync.NewCond(&fc.mu)
+	return fc
 }
 
-// setPending changes the internal state to indicate that there is an update
-// pending consumption by all watchers.
-func (fc *adsFlowControl) setPending() {
-	fc.pending.Store(true)
+// stop marks the flow control as stopped and signals the condition variable to
+// unblock any goroutine waiting on it.
+func (fc *adsFlowControl) stop() {
+	fc.mu.Lock()
+	defer fc.mu.Unlock()
+
+	fc.stopped = true
+	fc.cond.Broadcast()
 }
 
-// wait blocks until all the watchers have consumed the most recent update and
-// returns true. If the context expires before that, it returns false.
-func (fc *adsFlowControl) wait(ctx context.Context) bool {
-	// If there is no pending update, there is no need to block.
-	if !fc.pending.Load() {
-		// If all watchers finished processing the most recent update before the
-		// `recv` goroutine made the next call to `Wait()`, there would be an
-		// entry in the readyCh channel that needs to be drained to ensure that
-		// the next call to `Wait()` doesn't unblock before it actually should.
-		select {
-		case <-fc.readyCh:
-		default:
-		}
-		return true
+// setPending changes the internal state to indicate whether there is an update
+// pending consumption by all watchers. If there is no longer a pending update,
+// the condition variable is signaled to allow the recv method to proceed.
+func (fc *adsFlowControl) setPending(pending bool) {
+	fc.mu.Lock()
+	defer fc.mu.Unlock()
+
+	if fc.stopped {
+		return
 	}
 
-	select {
-	case <-ctx.Done():
+	fc.pending = pending
+	if !pending {
+		fc.cond.Broadcast()
+	}
+}
+
+func (fc *adsFlowControl) runIfPending(f func()) bool {
+	fc.mu.Lock()
+	defer fc.mu.Unlock()
+
+	if fc.stopped {
 		return false
-	case <-fc.readyCh:
-		return true
 	}
+
+	// If there's a pending update, run the function while still holding the
+	// lock. This ensures that the pending state does not change between the
+	// check and the function call.
+	if fc.pending {
+		f()
+	}
+	return fc.pending
 }
 
-// onDone indicates that all watchers have consumed the most recent update.
-func (fc *adsFlowControl) onDone() {
-	select {
-	// Writes to the readyCh channel should not block ideally. The default
-	// branch here is to appease the paranoid mind.
-	case fc.readyCh <- struct{}{}:
-	default:
-		if fc.logger.V(2) {
-			fc.logger.Infof("ADS stream flow control readyCh is full")
-		}
+// wait blocks until all the watchers have consumed the most recent update.
+// Returns true if the flow control was stopped while waiting, false otherwise.
+func (fc *adsFlowControl) wait() bool {
+	fc.mu.Lock()
+	defer fc.mu.Unlock()
+
+	for fc.pending && !fc.stopped {
+		fc.cond.Wait()
 	}
-	fc.pending.Store(false)
+
+	return fc.stopped
 }
diff --git a/internal/xds/clients/xdsclient/test/ads_stream_flow_control_test.go b/internal/xds/clients/xdsclient/test/ads_stream_flow_control_test.go
index 9c417a14b28d..83155a992438 100644
--- a/internal/xds/clients/xdsclient/test/ads_stream_flow_control_test.go
+++ b/internal/xds/clients/xdsclient/test/ads_stream_flow_control_test.go
@@ -20,7 +20,6 @@ package xdsclient_test
 
 import (
 	"context"
-	"errors"
 	"fmt"
 	"slices"
 	"sort"
@@ -125,7 +124,6 @@ func (t *transport) NewStream(ctx context.Context, method string) (clients.Strea
 	stream := &stream{
 		stream: s,
 		recvCh: make(chan struct{}, 1),
-		doneCh: make(chan struct{}),
 	}
 	t.adsStreamCh <- stream
 
@@ -138,9 +136,7 @@ func (t *transport) Close() {
 
 type stream struct {
 	stream grpc.ClientStream
-
 	recvCh chan struct{}
-	doneCh <-chan struct{}
 }
 
 func (s *stream) Send(msg []byte) error {
@@ -150,8 +146,8 @@ func (s *stream) Send(msg []byte) error {
 func (s *stream) Recv() ([]byte, error) {
 	select {
 	case s.recvCh <- struct{}{}:
-	case <-s.doneCh:
-		return nil, errors.New("Recv() called after the test has finished")
+	case <-s.stream.Context().Done():
+		// Unblock the recv() once the stream is done.
 	}
 
 	var typedRes []byte
diff --git a/internal/xds/clients/xdsclient/xdsclient.go b/internal/xds/clients/xdsclient/xdsclient.go
index cc7d5c4e264d..b1c6955484dc 100644
--- a/internal/xds/clients/xdsclient/xdsclient.go
+++ b/internal/xds/clients/xdsclient/xdsclient.go
@@ -319,7 +319,7 @@ func (c *XDSClient) releaseChannel(serverConfig *ServerConfig, state *channelSta
 		c.channelsMu.Lock()
 
 		if c.logger.V(2) {
-			c.logger.Infof("Received request to release a reference to an xdsChannel for server config %q", serverConfig)
+			c.logger.Infof("Received request to release a reference to an xdsChannel for server config %+v", serverConfig)
 		}
 		deInitLocked(state)
 
diff --git a/internal/xds/xdsclient/tests/dump_test.go b/internal/xds/xdsclient/tests/dump_test.go
index a476c29bca7c..11a43c1275a9 100644
--- a/internal/xds/xdsclient/tests/dump_test.go
+++ b/internal/xds/xdsclient/tests/dump_test.go
@@ -63,7 +63,7 @@ func makeGenericXdsConfig(typeURL, name, version string, status v3adminpb.Client
 }
 
 func checkResourceDump(ctx context.Context, want *v3statuspb.ClientStatusResponse, pool *xdsclient.Pool) error {
-	var cmpOpts = cmp.Options{
+	cmpOpts := cmp.Options{
 		protocmp.Transform(),
 		protocmp.IgnoreFields((*v3statuspb.ClientConfig_GenericXdsConfig)(nil), "last_updated"),
 		protocmp.IgnoreFields((*v3adminpb.UpdateFailureState)(nil), "last_update_attempt", "details"),
@@ -89,7 +89,7 @@ func checkResourceDump(ctx context.Context, want *v3statuspb.ClientStatusRespons
 		if diff == "" {
 			return nil
 		}
-		lastErr = fmt.Errorf("received unexpected resource dump, diff (-got, +want):\n%s, got: %s\n want:%s", diff, pretty.ToJSON(got), pretty.ToJSON(want))
+		lastErr = fmt.Errorf("received unexpected resource dump, diff (-want, +got):\n%s, got: %s\n want:%s", diff, pretty.ToJSON(got), pretty.ToJSON(want))
 	}
 	return fmt.Errorf("timeout when waiting for resource dump to reach expected state: %v", lastErr)
 }