diff --git a/pimd/pim_instance.h b/pimd/pim_instance.h
index ec331332cfca..b21d472066c0 100644
--- a/pimd/pim_instance.h
+++ b/pimd/pim_instance.h
@@ -60,7 +60,9 @@ enum pim_mlag_flags {
 	/* initial dump of data done post peerlink flap */
 	PIM_MLAGF_PEER_REPLAY_DONE = (1 << 3),
 	/* zebra is up on the peer */
-	PIM_MLAGF_PEER_ZEBRA_UP = (1 << 4)
+	PIM_MLAGF_PEER_ZEBRA_UP = (1 << 4),
+	/* Local MLAGD session is not up*/
+	PIM_MLAGF_PEER_ZEBRA_UP_NOTIFY_RECEIVE_PENDING = (1 << 5)
 };
 
 struct pim_router {
diff --git a/pimd/pim_mlag.c b/pimd/pim_mlag.c
index dcef2d0d33ab..216e34ead91a 100644
--- a/pimd/pim_mlag.c
+++ b/pimd/pim_mlag.c
@@ -552,6 +552,23 @@ static inline void pim_mlag_vxlan_state_update(void)
 
 
 /********************API to process PIM MLAG Data ************************/
+static void pim_mlag_peer_zebra_flag_set(void)
+{
+	if (CHECK_FLAG(router->mlag_flags,
+		       PIM_MLAGF_PEER_ZEBRA_UP_NOTIFY_RECEIVE_PENDING)) {
+		if (!(CHECK_FLAG(router->mlag_flags,
+				 PIM_MLAGF_PEER_ZEBRA_UP))) {
+			if (PIM_DEBUG_MLAG)
+				zlog_debug(
+					"%s: update Mlag flag with PIM_MLAGF_PEER_ZEBRA_UP",
+					__func__);
+			SET_FLAG(router->mlag_flags, PIM_MLAGF_PEER_ZEBRA_UP);
+			UNSET_FLAG(
+				router->mlag_flags,
+				PIM_MLAGF_PEER_ZEBRA_UP_NOTIFY_RECEIVE_PENDING);
+		}
+	}
+}
 
 static void pim_mlag_process_mlagd_state_change(struct mlag_status msg)
 {
@@ -612,6 +629,7 @@ static void pim_mlag_process_mlagd_state_change(struct mlag_status msg)
 		router->connected_to_mlag = false;
 	}
 
+	pim_mlag_peer_zebra_flag_set();
 	/* apply the changes */
 	/* when connection to mlagd comes up we hold send mroutes till we have
 	 * rxed the status and had a chance to re-valuate DF state
@@ -620,7 +638,7 @@ static void pim_mlag_process_mlagd_state_change(struct mlag_status msg)
 		router->mlag_flags |= PIM_MLAGF_STATUS_RXED;
 		pim_mlag_vxlan_state_update();
 		/* on session up re-eval DF status */
-		pim_mlag_up_local_reeval(false /*mlagd_send*/, "mlagd_up");
+		pim_mlag_up_local_reeval(true /*mlagd_send*/, "mlagd_up");
 		/* replay all the upstream entries to the local MLAG daemon */
 		pim_mlag_up_local_replay();
 		return;
@@ -657,9 +675,13 @@ static void pim_mlag_process_peer_frr_state_change(struct mlag_frr_status msg)
 			(msg.frr_state == MLAG_FRR_STATE_UP ? "UP" : "DOWN"));
 
 	if (!(router->mlag_flags & PIM_MLAGF_LOCAL_CONN_UP)) {
+		SET_FLAG(router->mlag_flags,
+			 PIM_MLAGF_PEER_ZEBRA_UP_NOTIFY_RECEIVE_PENDING);
 		if (PIM_DEBUG_MLAG)
-			zlog_debug("%s: msg ignored mlagd process state down",
-					__func__);
+			zlog_debug(
+				"%s: msg ignored mlagd process state down, \
+			        Setting Local MLAG Pending flag",
+				__func__);
 		return;
 	}
 	++router->mlag_stats.msg.peer_zebra_status_updates;
@@ -668,6 +690,10 @@ static void pim_mlag_process_peer_frr_state_change(struct mlag_frr_status msg)
 	if (msg.frr_state == MLAG_FRR_STATE_UP) {
 		if (!(router->mlag_flags & PIM_MLAGF_PEER_ZEBRA_UP)) {
 			router->mlag_flags |= PIM_MLAGF_PEER_ZEBRA_UP;
+			if (PIM_DEBUG_MLAG)
+				zlog_debug(
+					"%s:%d: Mlag Peer FRR state is UP Setting PIM_MLAGF_PEER_ZEBRA_UP mlag flag %0x",
+					__func__, __LINE__, router->mlag_flags);
 			/* XXX - when peer zebra comes up we need to wait for
 			 * for some time to let the peer setup MDTs before
 			 * before relinquishing DF status
@@ -679,6 +705,10 @@ static void pim_mlag_process_peer_frr_state_change(struct mlag_frr_status msg)
 		if (router->mlag_flags & PIM_MLAGF_PEER_ZEBRA_UP) {
 			++router->mlag_stats.peer_zebra_downs;
 			router->mlag_flags &= ~PIM_MLAGF_PEER_ZEBRA_UP;
+			if (PIM_DEBUG_MLAG)
+				zlog_debug(
+					"%s:%d: Mlag Peer FRR state is DOWN unsetting PIM_MLAGF_PEER_ZEBRA_UP mlag flag %0x",
+					__func__, __LINE__, router->mlag_flags);
 			/* when a peer zebra goes down we assume DF role */
 			pim_mlag_up_local_reeval(true /*mlagd_send*/,
 					"zebra_down");
@@ -881,6 +911,12 @@ int pim_zebra_mlag_process_up(ZAPI_CALLBACK_ARGS)
 	 */
 	router->connected_to_mlag = true;
 	router->mlag_flags |= PIM_MLAGF_LOCAL_CONN_UP;
+	/*
+	 * Handle when local mlag session comes up later,
+	 * Update the Peer Zebra status once the local MLAG connection is
+	 * restored based on peer connection status.
+	 */
+	pim_mlag_peer_zebra_flag_set();
 	return 0;
 }