diff --git a/controller/binding.c b/controller/binding.c
index e5ba56b25..d917d8775 100644
--- a/controller/binding.c
+++ b/controller/binding.c
@@ -657,11 +657,15 @@ local_binding_get_lport_ofport(const struct shash *local_bindings,
 }
 
 bool
-local_binding_is_up(struct shash *local_bindings, const char *pb_name)
+local_binding_is_up(struct shash *local_bindings, const char *pb_name,
+                    const struct sbrec_chassis *chassis_rec)
 {
     struct local_binding *lbinding =
         local_binding_find(local_bindings, pb_name);
     struct binding_lport *b_lport = local_binding_get_primary_lport(lbinding);
+    if (b_lport && b_lport->pb->chassis != chassis_rec) {
+        return false;
+    }
     if (lbinding && b_lport && lbinding->iface) {
         if (b_lport->pb->n_up && !b_lport->pb->up[0]) {
             return false;
@@ -673,13 +677,23 @@ local_binding_is_up(struct shash *local_bindings, const char *pb_name)
 }
 
 bool
-local_binding_is_down(struct shash *local_bindings, const char *pb_name)
+local_binding_is_down(struct shash *local_bindings, const char *pb_name,
+                      const struct sbrec_chassis *chassis_rec)
 {
     struct local_binding *lbinding =
         local_binding_find(local_bindings, pb_name);
 
     struct binding_lport *b_lport = local_binding_get_primary_lport(lbinding);
 
+    if (b_lport) {
+        if (b_lport->pb->chassis == chassis_rec) {
+            return false;
+        } else if (b_lport->pb->chassis) {
+            VLOG_DBG("lport %s already claimed by other chassis",
+                     b_lport->pb->logical_port);
+        }
+    }
+
     if (!lbinding) {
         return true;
     }
@@ -894,6 +908,48 @@ get_lport_type_str(enum en_lport_type lport_type)
     OVS_NOT_REACHED();
 }
 
+static void set_pb_chassis_in_sbrec(const struct sbrec_port_binding *pb,
+                          const struct sbrec_chassis *chassis_rec)
+{
+    if (pb->chassis != chassis_rec) {
+        if (pb->chassis) {
+            VLOG_INFO("Changing chassis for lport %s from %s to %s.",
+                    pb->logical_port, pb->chassis->name,
+                    chassis_rec->name);
+        } else {
+            VLOG_INFO("Claiming lport %s for this chassis.", pb->logical_port);
+        }
+        for (int i = 0; i < pb->n_mac; i++) {
+            VLOG_INFO("%s: Claiming %s", pb->logical_port, pb->mac[i]);
+        }
+        sbrec_port_binding_set_chassis(pb, chassis_rec);
+    }
+}
+
+static void clear_pb_chassis_in_sbrec(const struct sbrec_port_binding *pb)
+{
+    if (pb->chassis) {
+        sbrec_port_binding_set_chassis(pb, NULL);
+    }
+}
+
+void
+local_binding_set_pb(struct shash *local_bindings, const char *pb_name,
+                    const struct sbrec_chassis *chassis_rec)
+{
+    struct local_binding *lbinding =
+        local_binding_find(local_bindings, pb_name);
+    struct binding_lport *b_lport = local_binding_get_primary_lport(lbinding);
+
+    if (b_lport) {
+        if (chassis_rec) {
+            set_pb_chassis_in_sbrec(b_lport->pb, chassis_rec);
+        } else {
+            clear_pb_chassis_in_sbrec(b_lport->pb);
+        }
+    }
+}
+
 /* For newly claimed ports, if 'notify_up' is 'false':
  * - set the 'pb.up' field to true if 'pb' has no 'parent_pb'.
  * - set the 'pb.up' field to true if 'parent_pb.up' is 'true' (e.g., for
@@ -906,23 +962,37 @@ get_lport_type_str(enum en_lport_type lport_type)
  *   it's explicitly set to 'false'.
  *   This is to ensure compatibility with older versions of ovn-northd.
  */
-static void
+static bool
 claimed_lport_set_up(const struct sbrec_port_binding *pb,
                      const struct sbrec_port_binding *parent_pb,
                      const struct sbrec_chassis *chassis_rec,
-                     bool notify_up, struct if_status_mgr *if_mgr)
+                     bool notify_up, struct if_status_mgr *if_mgr,
+                     bool sb_readonly)
 {
+
     if (!notify_up) {
         bool up = true;
         if (!parent_pb || (parent_pb->n_up && parent_pb->up[0])) {
-            sbrec_port_binding_set_up(pb, &up, 1);
+            if (!sb_readonly) {
+                sbrec_port_binding_set_up(pb, &up, 1);
+            } else if (pb->n_up && !pb->up[0]) {
+                return false;
+            }
         }
-        return;
+        if (sb_readonly && (pb->chassis != chassis_rec)) {
+            /* Handle the cases where if_status_mgr does not claim the
+             * interface.In those cases, if we do not set pb->chassis in sb
+             * now (as readonly), we might not do it later ...
+             */
+            return false;
+        }
+        return true;
     }
 
     if (pb->chassis != chassis_rec || (pb->n_up && !pb->up[0])) {
         if_status_mgr_claim_iface(if_mgr, pb->logical_port);
     }
+    return true;
 }
 
 /* Returns false if lport is not claimed due to 'sb_readonly'.
@@ -937,27 +1007,15 @@ claim_lport(const struct sbrec_port_binding *pb,
             struct hmap *tracked_datapaths,
             struct if_status_mgr *if_mgr)
 {
-    if (!sb_readonly) {
-        claimed_lport_set_up(pb, parent_pb, chassis_rec, notify_up, if_mgr);
-    }
 
+    if (!claimed_lport_set_up(pb, parent_pb, chassis_rec, notify_up,
+           if_mgr, sb_readonly)) {
+        return false;
+    }
     if (pb->chassis != chassis_rec) {
-        if (sb_readonly) {
-            return false;
-        }
-
-        if (pb->chassis) {
-            VLOG_INFO("Changing chassis for lport %s from %s to %s.",
-                    pb->logical_port, pb->chassis->name,
-                    chassis_rec->name);
-        } else {
-            VLOG_INFO("Claiming lport %s for this chassis.", pb->logical_port);
+        if (!sb_readonly) {
+            set_pb_chassis_in_sbrec(pb, chassis_rec);
         }
-        for (int i = 0; i < pb->n_mac; i++) {
-            VLOG_INFO("%s: Claiming %s", pb->logical_port, pb->mac[i]);
-        }
-
-        sbrec_port_binding_set_chassis(pb, chassis_rec);
 
         if (tracked_datapaths) {
             update_lport_tracking(pb, tracked_datapaths, true);
@@ -974,7 +1032,6 @@ claim_lport(const struct sbrec_port_binding *pb,
         }
         sbrec_port_binding_set_encap(pb, encap_rec);
     }
-
     return true;
 }
 
@@ -986,7 +1043,8 @@ claim_lport(const struct sbrec_port_binding *pb,
  * Caller should make sure that this is the case.
  */
 static bool
-release_lport_(const struct sbrec_port_binding *pb, bool sb_readonly)
+release_lport_(const struct sbrec_port_binding *pb, bool sb_readonly,
+               struct if_status_mgr *if_mgr)
 {
     if (pb->encap) {
         if (sb_readonly) {
@@ -995,11 +1053,13 @@ release_lport_(const struct sbrec_port_binding *pb, bool sb_readonly)
         sbrec_port_binding_set_encap(pb, NULL);
     }
 
+    /* if sb readonly, pb->chassis unset through if-status if present */
     if (pb->chassis) {
-        if (sb_readonly) {
+        if (!sb_readonly) {
+            sbrec_port_binding_set_chassis(pb, NULL);
+        } else if (!if_status_mgr_iface_is_present(if_mgr, pb->logical_port)) {
             return false;
         }
-        sbrec_port_binding_set_chassis(pb, NULL);
     }
 
     if (pb->virtual_parent) {
@@ -1009,7 +1069,8 @@ release_lport_(const struct sbrec_port_binding *pb, bool sb_readonly)
         sbrec_port_binding_set_virtual_parent(pb, NULL);
     }
 
-    VLOG_INFO("Releasing lport %s from this chassis.", pb->logical_port);
+    VLOG_INFO("Releasing lport %s from this chassis (sb_readonly=%d)",
+              pb->logical_port, sb_readonly);
     return true;
 }
 
@@ -1017,7 +1078,7 @@ static bool
 release_lport(const struct sbrec_port_binding *pb, bool sb_readonly,
               struct hmap *tracked_datapaths, struct if_status_mgr *if_mgr)
 {
-    if (!release_lport_(pb, sb_readonly)) {
+    if (!release_lport_(pb, sb_readonly, if_mgr)) {
         return false;
     }
 
@@ -1342,10 +1403,9 @@ consider_localport(const struct sbrec_port_binding *pb,
     /* If the port binding is claimed, then release it as localport is claimed
      * by any ovn-controller. */
     if (pb->chassis == b_ctx_in->chassis_rec) {
-        if (!release_lport_(pb, !b_ctx_in->ovnsb_idl_txn)) {
+        if (!release_lport_(pb, !b_ctx_in->ovnsb_idl_txn, b_ctx_out->if_mgr)) {
             return false;
         }
-
         remove_related_lport(pb, b_ctx_out);
     }
 
diff --git a/controller/binding.h b/controller/binding.h
index 430a8d9b1..45202a321 100644
--- a/controller/binding.h
+++ b/controller/binding.h
@@ -151,14 +151,17 @@ const struct sbrec_port_binding *local_binding_get_primary_pb(
 ofp_port_t local_binding_get_lport_ofport(const struct shash *local_bindings,
                                           const char *pb_name);
 
-bool local_binding_is_up(struct shash *local_bindings, const char *pb_name);
-bool local_binding_is_down(struct shash *local_bindings, const char *pb_name);
+bool local_binding_is_up(struct shash *local_bindings, const char *pb_name,
+                         const struct sbrec_chassis *);
+bool local_binding_is_down(struct shash *local_bindings, const char *pb_name,
+                         const struct sbrec_chassis *);
 void local_binding_set_up(struct shash *local_bindings, const char *pb_name,
                           const char *ts_now_str, bool sb_readonly,
                           bool ovs_readonly);
 void local_binding_set_down(struct shash *local_bindings, const char *pb_name,
                             bool sb_readonly, bool ovs_readonly);
-
+void local_binding_set_pb(struct shash *local_bindings, const char *pb_name,
+                         const struct sbrec_chassis *chassis_rec);
 void binding_register_ovs_idl(struct ovsdb_idl *);
 void binding_run(struct binding_ctx_in *, struct binding_ctx_out *);
 bool binding_cleanup(struct ovsdb_idl_txn *ovnsb_idl_txn,
diff --git a/controller/if-status.c b/controller/if-status.c
index dbdf8b66f..e36df22a0 100644
--- a/controller/if-status.c
+++ b/controller/if-status.c
@@ -115,6 +115,7 @@ static void ovs_iface_set_state(struct if_status_mgr *, struct ovs_iface *,
 
 static void if_status_mgr_update_bindings(
     struct if_status_mgr *mgr, struct local_binding_data *binding_data,
+    const struct sbrec_chassis *chassis_rec,
     bool sb_readonly, bool ovs_readonly);
 
 struct if_status_mgr *
@@ -181,6 +182,13 @@ if_status_mgr_claim_iface(struct if_status_mgr *mgr, const char *iface_id)
     }
 }
 
+bool
+if_status_mgr_iface_is_present(struct if_status_mgr *mgr, const char *iface_id)
+{
+    struct ovs_iface *iface = shash_find_data(&mgr->ifaces, iface_id);
+    return (!!iface);
+}
+
 void
 if_status_mgr_release_iface(struct if_status_mgr *mgr, const char *iface_id)
 {
@@ -247,7 +255,8 @@ if_status_mgr_delete_iface(struct if_status_mgr *mgr, const char *iface_id)
 
 void
 if_status_mgr_update(struct if_status_mgr *mgr,
-                     struct local_binding_data *binding_data)
+                     struct local_binding_data *binding_data,
+                     const struct sbrec_chassis *chassis_rec)
 {
     if (!binding_data) {
         return;
@@ -262,7 +271,7 @@ if_status_mgr_update(struct if_status_mgr *mgr,
     HMAPX_FOR_EACH_SAFE (node, &mgr->ifaces_per_state[OIF_MARK_UP]) {
         struct ovs_iface *iface = node->data;
 
-        if (local_binding_is_up(bindings, iface->id)) {
+        if (local_binding_is_up(bindings, iface->id, chassis_rec)) {
             ovs_iface_set_state(mgr, iface, OIF_INSTALLED);
         }
     }
@@ -273,7 +282,7 @@ if_status_mgr_update(struct if_status_mgr *mgr,
     HMAPX_FOR_EACH_SAFE (node, &mgr->ifaces_per_state[OIF_MARK_DOWN]) {
         struct ovs_iface *iface = node->data;
 
-        if (local_binding_is_down(bindings, iface->id)) {
+        if (local_binding_is_down(bindings, iface->id, chassis_rec)) {
             ovs_iface_destroy(mgr, iface);
         }
     }
@@ -306,6 +315,7 @@ if_status_mgr_update(struct if_status_mgr *mgr,
 void
 if_status_mgr_run(struct if_status_mgr *mgr,
                   struct local_binding_data *binding_data,
+                  const struct sbrec_chassis *chassis_rec,
                   bool sb_readonly, bool ovs_readonly)
 {
     struct ofctrl_acked_seqnos *acked_seqnos =
@@ -328,8 +338,8 @@ if_status_mgr_run(struct if_status_mgr *mgr,
     ofctrl_acked_seqnos_destroy(acked_seqnos);
 
     /* Update binding states. */
-    if_status_mgr_update_bindings(mgr, binding_data, sb_readonly,
-                                  ovs_readonly);
+    if_status_mgr_update_bindings(mgr, binding_data, chassis_rec,
+                                  sb_readonly, ovs_readonly);
 }
 
 static void
@@ -390,6 +400,7 @@ ovs_iface_set_state(struct if_status_mgr *mgr, struct ovs_iface *iface,
 static void
 if_status_mgr_update_bindings(struct if_status_mgr *mgr,
                               struct local_binding_data *binding_data,
+                              const struct sbrec_chassis *chassis_rec,
                               bool sb_readonly, bool ovs_readonly)
 {
     if (!binding_data) {
@@ -404,6 +415,9 @@ if_status_mgr_update_bindings(struct if_status_mgr *mgr,
      */
     HMAPX_FOR_EACH (node, &mgr->ifaces_per_state[OIF_INSTALL_FLOWS]) {
         struct ovs_iface *iface = node->data;
+        if (!sb_readonly) {
+            local_binding_set_pb(bindings, iface->id, chassis_rec);
+        }
 
         local_binding_set_down(bindings, iface->id, sb_readonly, ovs_readonly);
     }
@@ -415,7 +429,9 @@ if_status_mgr_update_bindings(struct if_status_mgr *mgr,
     char *ts_now_str = xasprintf("%lld", time_wall_msec());
     HMAPX_FOR_EACH (node, &mgr->ifaces_per_state[OIF_MARK_UP]) {
         struct ovs_iface *iface = node->data;
-
+        if (!sb_readonly) {
+            local_binding_set_pb(bindings, iface->id, chassis_rec);
+        }
         local_binding_set_up(bindings, iface->id, ts_now_str,
                              sb_readonly, ovs_readonly);
     }
@@ -426,6 +442,9 @@ if_status_mgr_update_bindings(struct if_status_mgr *mgr,
      */
     HMAPX_FOR_EACH (node, &mgr->ifaces_per_state[OIF_MARK_DOWN]) {
         struct ovs_iface *iface = node->data;
+        if (!sb_readonly) {
+            local_binding_set_pb(bindings, iface->id, NULL);
+        }
 
         local_binding_set_down(bindings, iface->id, sb_readonly, ovs_readonly);
     }
diff --git a/controller/if-status.h b/controller/if-status.h
index ff4aa760e..2c55eb18e 100644
--- a/controller/if-status.h
+++ b/controller/if-status.h
@@ -31,10 +31,14 @@ void if_status_mgr_claim_iface(struct if_status_mgr *, const char *iface_id);
 void if_status_mgr_release_iface(struct if_status_mgr *, const char *iface_id);
 void if_status_mgr_delete_iface(struct if_status_mgr *, const char *iface_id);
 
-void if_status_mgr_update(struct if_status_mgr *, struct local_binding_data *);
+void if_status_mgr_update(struct if_status_mgr *, struct local_binding_data *,
+                          const struct sbrec_chassis *chassis);
 void if_status_mgr_run(struct if_status_mgr *mgr, struct local_binding_data *,
+                       const struct sbrec_chassis *chassis,
                        bool sb_readonly, bool ovs_readonly);
 void if_status_mgr_get_memory_usage(struct if_status_mgr *mgr,
                                     struct simap *usage);
+bool if_status_mgr_iface_is_present(struct if_status_mgr *mgr,
+                                    const char *iface_id);
 
 # endif /* controller/if-status.h */
diff --git a/controller/ovn-controller.c b/controller/ovn-controller.c
index 5a6274eb2..994aebdfb 100644
--- a/controller/ovn-controller.c
+++ b/controller/ovn-controller.c
@@ -3912,7 +3912,7 @@ main(int argc, char *argv[])
                         runtime_data ? &runtime_data->lbinding_data : NULL;
                     stopwatch_start(IF_STATUS_MGR_UPDATE_STOPWATCH_NAME,
                                     time_msec());
-                    if_status_mgr_update(if_mgr, binding_data);
+                    if_status_mgr_update(if_mgr, binding_data, chassis);
                     stopwatch_stop(IF_STATUS_MGR_UPDATE_STOPWATCH_NAME,
                                    time_msec());
 
@@ -3938,8 +3938,8 @@ main(int argc, char *argv[])
                                    time_msec());
                     stopwatch_start(IF_STATUS_MGR_RUN_STOPWATCH_NAME,
                                     time_msec());
-                    if_status_mgr_run(if_mgr, binding_data, !ovnsb_idl_txn,
-                                      !ovs_idl_txn);
+                    if_status_mgr_run(if_mgr, binding_data, chassis,
+                                      !ovnsb_idl_txn, !ovs_idl_txn);
                     stopwatch_stop(IF_STATUS_MGR_RUN_STOPWATCH_NAME,
                                    time_msec());
                 }
diff --git a/tests/ovn.at b/tests/ovn.at
index 6a0a169c1..403fbc85f 100644
--- a/tests/ovn.at
+++ b/tests/ovn.at
@@ -13934,6 +13934,7 @@ ovn_attach n1 br-phys 192.168.0.11
 ovs-vsctl -- add-port br-int hv1-vif0 -- \
 set Interface hv1-vif0 ofport-request=1
 
+
 sim_add hv2
 as hv2
 ovs-vsctl add-br br-phys
@@ -13983,7 +13984,10 @@ AT_CHECK([as hv1 ovs-ofctl dump-flows br-int table=65 | grep actions=output:1],
 echo "verifying that lsp0 binding moves when requested-chassis is changed"
 
 ovn-nbctl lsp-set-options lsp0 requested-chassis=hv2
-OVS_WAIT_UNTIL([test 1 = $(grep -c "Releasing lport lsp0 from this chassis" hv1/ovn-controller.log)])
+
+# We might see multiple "Releasing lport ...", when sb is read only
+OVS_WAIT_UNTIL([test 1 -le $(grep -c "Releasing lport lsp0 from this chassis" hv1/ovn-controller.log)])
+
 wait_column "$hv2_uuid" Port_Binding chassis logical_port=lsp0
 
 # (6) Chassis hv2 should add flows and hv1 should not.
@@ -14029,7 +14033,7 @@ AT_CHECK([as hv1 ovs-ofctl dump-flows br-int table=0 | grep in_port=1], [0], [ig
 AT_CHECK([as hv1 ovs-ofctl dump-flows br-int table=65 | grep actions=output:1], [0], [ignore])
 
 check ovn-nbctl --wait=hv lsp-set-options lsp0 requested-chassis=non-existant-chassis
-OVS_WAIT_UNTIL([test 1 = $(grep -c "Releasing lport lsp0 from this chassis" hv1/ovn-controller.log)])
+OVS_WAIT_UNTIL([test 1 -le $(grep -c "Releasing lport lsp0 from this chassis" hv1/ovn-controller.log)])
 check ovn-nbctl --wait=hv sync
 wait_column '' Port_Binding chasssi logical_port=lsp0
 AT_CHECK([as hv1 ovs-ofctl dump-flows br-int table=0 | grep in_port=1], [1], [])
@@ -30595,3 +30599,50 @@ test_mac_binding_flows hv2 00\:00\:00\:00\:10\:10 1
 OVN_CLEANUP([hv1], [hv2])
 AT_CLEANUP
 ])
+
+OVN_FOR_EACH_NORTHD([
+AT_SETUP([recomputes])
+ovn_start
+
+# Add chassis
+net_add n1
+sim_add hv1
+as hv1
+ovs-vsctl add-br br-phys
+ovs-vsctl set open . external-ids:ovn-bridge-mappings=phys:br-phys
+ovn_attach n1 br-phys 192.168.0.1
+
+add_switch_ports() {
+    for port in $(seq $1 $2); do
+        logical_switch_port=lsp${port}
+        check ovn-nbctl lsp-add ls1 $logical_switch_port
+        check ovn-nbctl lsp-set-addresses $logical_switch_port dynamic
+
+        as hv1 ovs-vsctl \
+            -- add-port br-int vif${port} \
+            -- set Interface vif${port} external_ids:iface-id=$logical_switch_port
+    done
+
+    check ovn-nbctl --wait=hv sync
+    AT_CHECK([test $(ovn-appctl -t ovn-controller coverage/read-counter lflow_run) == $lflow_run])
+}
+
+check ovn-nbctl ls-add ls1
+check ovn-nbctl set Logical_Switch ls1 other_config:subnet=10.1.0.0/16
+check ovn-nbctl set Logical_Switch ls1 other_config:exclude_ips=10.1.255.254
+
+check ovn-nbctl lr-add lr1
+check ovn-nbctl lsp-add ls1 lsp0 -- set Logical_Switch_Port lsp0 type=router options:router-port=lrp0 addresses=dynamic
+check ovn-nbctl lrp-add lr1 lrp0 "f0:00:00:01:00:01" 10.1.255.254/16
+check ovn-nbctl lr-nat-add lr1 snat 10.2.0.1 10.1.0.0/16
+
+check ovn-nbctl --wait=hv sync
+lflow_run=$(ovn-appctl -t ovn-controller coverage/read-counter lflow_run)
+
+add_switch_ports 1 50
+add_switch_ports 51 100
+add_switch_ports 101 150
+
+OVN_CLEANUP([hv1])
+AT_CLEANUP
+])
