diff --git a/core/src/main/java/io/grpc/internal/DelayedClientTransport.java b/core/src/main/java/io/grpc/internal/DelayedClientTransport.java
index 2ff94b7804a..f3faa92d4a0 100644
--- a/core/src/main/java/io/grpc/internal/DelayedClientTransport.java
+++ b/core/src/main/java/io/grpc/internal/DelayedClientTransport.java
@@ -140,9 +140,15 @@ public final ClientStream newStream(
           ClientTransport transport = GrpcUtil.getTransportFromPickResult(pickResult,
               callOptions.isWaitForReady());
           if (transport != null) {
-            return transport.newStream(
+            ClientStream stream = transport.newStream(
                 args.getMethodDescriptor(), args.getHeaders(), callOptions,
                 tracers);
+            // User code provided authority takes precedence over the LB provided one; this will be
+            // overwritten by ClientCallImpl if the application sets an authority override
+            if (pickResult.getAuthorityOverride() != null) {
+              stream.setAuthority(pickResult.getAuthorityOverride());
+            }
+            return stream;
           }
         }
         // This picker's conclusion is "buffer".  If there hasn't been a newer picker set (possible
@@ -287,10 +293,6 @@ final void reprocess(@Nullable SubchannelPicker picker) {
     for (final PendingStream stream : toProcess) {
       PickResult pickResult = picker.pickSubchannel(stream.args);
       CallOptions callOptions = stream.args.getCallOptions();
-      // User code provided authority takes precedence over the LB provided one.
-      if (callOptions.getAuthority() == null && pickResult.getAuthorityOverride() != null) {
-        stream.setAuthority(pickResult.getAuthorityOverride());
-      }
       final ClientTransport transport = GrpcUtil.getTransportFromPickResult(pickResult,
           callOptions.isWaitForReady());
       if (transport != null) {
@@ -301,7 +303,7 @@ final void reprocess(@Nullable SubchannelPicker picker) {
         if (callOptions.getExecutor() != null) {
           executor = callOptions.getExecutor();
         }
-        Runnable runnable = stream.createRealStream(transport);
+        Runnable runnable = stream.createRealStream(transport, pickResult.getAuthorityOverride());
         if (runnable != null) {
           executor.execute(runnable);
         }
@@ -354,7 +356,7 @@ private PendingStream(PickSubchannelArgs args, ClientStreamTracer[] tracers) {
     }
 
     /** Runnable may be null. */
-    private Runnable createRealStream(ClientTransport transport) {
+    private Runnable createRealStream(ClientTransport transport, String authorityOverride) {
       ClientStream realStream;
       Context origContext = context.attach();
       try {
@@ -364,6 +366,13 @@ private Runnable createRealStream(ClientTransport transport) {
       } finally {
         context.detach(origContext);
       }
+      if (authorityOverride != null) {
+        // User code provided authority takes precedence over the LB provided one; this will be
+        // overwritten by an enqueud call from ClientCallImpl if the application sets an authority
+        // override. We must call the real stream directly because stream.start() has likely already
+        // been called on the delayed stream.
+        realStream.setAuthority(authorityOverride);
+      }
       return setStream(realStream);
     }
 
diff --git a/core/src/test/java/io/grpc/internal/DelayedClientTransportTest.java b/core/src/test/java/io/grpc/internal/DelayedClientTransportTest.java
index a5160552a9e..f65e6abcf1b 100644
--- a/core/src/test/java/io/grpc/internal/DelayedClientTransportTest.java
+++ b/core/src/test/java/io/grpc/internal/DelayedClientTransportTest.java
@@ -503,26 +503,11 @@ public void uncaughtException(Thread t, Throwable e) {
   }
 
   @Test
-  public void reprocess_authorityOverridePresentInCallOptions_authorityOverrideFromLbIsIgnored() {
-    DelayedStream delayedStream = (DelayedStream) delayedTransport.newStream(
-        method, headers, callOptions, tracers);
-    delayedStream.start(mock(ClientStreamListener.class));
-    SubchannelPicker picker = mock(SubchannelPicker.class);
-    PickResult pickResult = PickResult.withSubchannel(
-        mockSubchannel, null, "authority-override-hostname-from-lb");
-    when(picker.pickSubchannel(any(PickSubchannelArgs.class))).thenReturn(pickResult);
-
-    delayedTransport.reprocess(picker);
-    fakeExecutor.runDueTasks();
-
-    verify(mockRealStream, never()).setAuthority("authority-override-hostname-from-lb");
-  }
-
-  @Test
-  public void
-        reprocess_authorityOverrideNotInCallOptions_authorityOverrideFromLbIsSetIntoStream() {
+  public void reprocess_authorityOverrideFromLb() {
+    InOrder inOrder = inOrder(mockRealStream);
     DelayedStream delayedStream = (DelayedStream) delayedTransport.newStream(
         method, headers, callOptions.withAuthority(null), tracers);
+    delayedStream.setAuthority("authority-override-from-calloptions");
     delayedStream.start(mock(ClientStreamListener.class));
     SubchannelPicker picker = mock(SubchannelPicker.class);
     PickResult pickResult = PickResult.withSubchannel(
@@ -536,7 +521,10 @@ public void reprocess_authorityOverridePresentInCallOptions_authorityOverrideFro
     delayedTransport.reprocess(picker);
     fakeExecutor.runDueTasks();
 
-    verify(mockRealStream).setAuthority("authority-override-hostname-from-lb");
+    // Must be set before start(), and may be overwritten
+    inOrder.verify(mockRealStream).setAuthority("authority-override-hostname-from-lb");
+    inOrder.verify(mockRealStream).setAuthority("authority-override-from-calloptions");
+    inOrder.verify(mockRealStream).start(any(ClientStreamListener.class));
   }
 
   @Test
@@ -563,28 +551,26 @@ public void reprocess_NoPendingStream() {
   }
 
   @Test
-  public void newStream_assignsTransport_authorityFromCallOptionsSupersedesAuthorityFromLB() {
+  public void newStream_authorityOverrideFromLb() {
+    InOrder inOrder = inOrder(mockRealStream);
     SubchannelPicker picker = mock(SubchannelPicker.class);
-    AbstractSubchannel subchannel = mock(AbstractSubchannel.class);
-    when(subchannel.getInternalSubchannel()).thenReturn(mockInternalSubchannel);
     PickResult pickResult = PickResult.withSubchannel(
-        subchannel, null, "authority-override-hostname-from-lb");
+        mockSubchannel, null, "authority-override-hostname-from-lb");
     when(picker.pickSubchannel(any(PickSubchannelArgs.class))).thenReturn(pickResult);
-    ArgumentCaptor<CallOptions> callOptionsArgumentCaptor =
-        ArgumentCaptor.forClass(CallOptions.class);
     when(mockRealTransport.newStream(
-        any(MethodDescriptor.class), any(Metadata.class), callOptionsArgumentCaptor.capture(),
-        ArgumentMatchers.<ClientStreamTracer[]>any()))
+        any(MethodDescriptor.class), any(Metadata.class), any(CallOptions.class), any()))
         .thenReturn(mockRealStream);
     delayedTransport.reprocess(picker);
-    verifyNoMoreInteractions(picker);
-    verifyNoMoreInteractions(transportListener);
 
-    CallOptions callOptions =
-        CallOptions.DEFAULT.withAuthority("authority-override-hosstname-from-calloptions");
-    delayedTransport.newStream(method, headers, callOptions, tracers);
-    assertThat(callOptionsArgumentCaptor.getValue().getAuthority()).isEqualTo(
-        "authority-override-hosstname-from-calloptions");
+    ClientStream stream = delayedTransport.newStream(method, headers, callOptions, tracers);
+    assertThat(stream).isSameInstanceAs(mockRealStream);
+    stream.setAuthority("authority-override-from-calloptions");
+    stream.start(mock(ClientStreamListener.class));
+
+    // Must be set before start(), and may be overwritten
+    inOrder.verify(mockRealStream).setAuthority("authority-override-hostname-from-lb");
+    inOrder.verify(mockRealStream).setAuthority("authority-override-from-calloptions");
+    inOrder.verify(mockRealStream).start(any(ClientStreamListener.class));
   }
 
   @Test