diff --git a/server/jetstream_cluster_2_test.go b/server/jetstream_cluster_2_test.go
index 55d9f365..36361f18 100644
--- a/server/jetstream_cluster_2_test.go
+++ b/server/jetstream_cluster_2_test.go
@@ -6065,6 +6065,34 @@ func TestJetStreamClusterLeafNodeSPOFMigrateLeaders(t *testing.T) {
 		_, err = nc.Request(dsubj, nil, 500*time.Millisecond)
 		return err
 	})
+
+	nc, _ = jsClientConnect(t, lnc.randomServer())
+	defer nc.Close()
+
+	// Now make sure the consumer, or any other asset, can not become a leader on this node while the leafnode
+	// is disconnected.
+	csd := fmt.Sprintf(JSApiConsumerLeaderStepDownT, "TEST", "d")
+	for i := 0; i < 10; i++ {
+		nc.Request(csd, nil, time.Second)
+		lnc.waitOnConsumerLeader(globalAccountName, "TEST", "d")
+		if lnc.consumerLeader(globalAccountName, "TEST", "d") == cl {
+			t.Fatalf("Consumer leader should not migrate to server without a leafnode connection")
+		}
+	}
+
+	// Now make sure once leafnode is back we can have leaders on this server.
+	cl.reEnableLeafnodes()
+	checkLeafNodeConnectedCount(t, cl, 2)
+
+	// Make sure we can migrate back to this server now that we are connected.
+	checkFor(t, 5*time.Second, 100*time.Millisecond, func() error {
+		nc.Request(csd, nil, time.Second)
+		lnc.waitOnConsumerLeader(globalAccountName, "TEST", "d")
+		if lnc.consumerLeader(globalAccountName, "TEST", "d") == cl {
+			return nil
+		}
+		return fmt.Errorf("Not this server yet")
+	})
 }
 
 func TestJetStreamClusterStreamCatchupWithTruncateAndPriorSnapshot(t *testing.T) {
diff --git a/server/jetstream_helpers_test.go b/server/jetstream_helpers_test.go
index a5eb1ced..9b9a8230 100644
--- a/server/jetstream_helpers_test.go
+++ b/server/jetstream_helpers_test.go
@@ -1027,6 +1027,14 @@ func (s *Server) closeAndDisableLeafnodes() {
 	}
 }
 
+// Helper function to re-enable leafnode connections.
+func (s *Server) reEnableLeafnodes() {
+	s.mu.Lock()
+	// Re-enable leafnodes.
+	s.leafDisableConnect = false
+	s.mu.Unlock()
+}
+
 // Helper to set the remote migrate feature.
 func (s *Server) setJetStreamMigrateOnRemoteLeaf() {
 	s.mu.Lock()
diff --git a/server/leafnode.go b/server/leafnode.go
index 7bd046d4..89acd7f7 100644
--- a/server/leafnode.go
+++ b/server/leafnode.go
@@ -528,10 +528,45 @@ func (s *Server) connectToRemoteLeafNode(remote *leafNodeCfg, firstConnect bool)
 		// We have a connection here to a remote server.
 		// Go ahead and create our leaf node and return.
 		s.createLeafNode(conn, rURL, remote, nil)
+
+		// Clear any observer states if we had them.
+		s.clearObserverState(remote)
+
 		return
 	}
 }
 
+// This will clear any observer state such that stream or consumer assets on this server can become leaders again.
+func (s *Server) clearObserverState(remote *leafNodeCfg) {
+	s.mu.RLock()
+	accName := remote.LocalAccount
+	s.mu.RUnlock()
+
+	acc, err := s.LookupAccount(accName)
+	if err != nil {
+		s.Warnf("Error looking up account [%s] checking for JetStream clear observer state on a leafnode", accName)
+		return
+	}
+
+	// Walk all streams looking for any clustered stream, skip otherwise.
+	for _, mset := range acc.streams() {
+		node := mset.raftNode()
+		if node == nil {
+			// Not R>1
+			continue
+		}
+		// Check consumers
+		for _, o := range mset.getConsumers() {
+			if n := o.raftNode(); n != nil {
+				// Ensure we can become a leader again.
+				n.SetObserver(false)
+			}
+		}
+		// Ensure we can not become a leader again.
+		node.SetObserver(false)
+	}
+}
+
 // Check to see if we should migrate any assets from this account.
 func (s *Server) checkJetStreamMigrate(remote *leafNodeCfg) {
 	s.mu.RLock()
@@ -544,7 +579,7 @@ func (s *Server) checkJetStreamMigrate(remote *leafNodeCfg) {
 
 	acc, err := s.LookupAccount(accName)
 	if err != nil {
-		s.Debugf("Error looking up account [%s] checking for JetStream migration on a leafnode", accName)
+		s.Warnf("Error looking up account [%s] checking for JetStream migration on a leafnode", accName)
 		return
 	}
 
@@ -558,14 +593,20 @@ func (s *Server) checkJetStreamMigrate(remote *leafNodeCfg) {
 		}
 		// Collect any consumers
 		for _, o := range mset.getConsumers() {
-			if n := o.raftNode(); n != nil && n.Leader() {
-				n.StepDown()
+			if n := o.raftNode(); n != nil {
+				if n.Leader() {
+					n.StepDown()
+				}
+				// Ensure we can not become a leader while in this state.
+				n.SetObserver(true)
 			}
 		}
 		// Stepdown if this stream was leader.
 		if node.Leader() {
 			node.StepDown()
 		}
+		// Ensure we can not become a leader while in this state.
+		node.SetObserver(true)
 	}
 }
 
@@ -1340,7 +1381,7 @@ func (s *Server) addLeafNodeConnection(c *client, srvName, clusterName string, c
 			c.mergeDenyPermissionsLocked(both, denyAllJs)
 			// When a remote with a system account is present in a server, unless otherwise disabled, the server will be
 			// started in observer mode. Now that it is clear that this not used, turn the observer mode off.
-			if solicited && meta != nil && meta.isObserver() {
+			if solicited && meta != nil && meta.IsObserver() {
 				meta.setObserver(false, extNotExtended)
 				c.Debugf("Turning JetStream metadata controller Observer Mode off")
 				// Take note that the domain was not extended to avoid this state from startup.
@@ -1361,7 +1402,7 @@ func (s *Server) addLeafNodeConnection(c *client, srvName, clusterName string, c
 			myRemoteDomain, srvDecorated())
 		// In an extension use case, pin leadership to server remotes connect to.
 		// Therefore, server with a remote that are not already in observer mode, need to be put into it.
-		if solicited && meta != nil && !meta.isObserver() {
+		if solicited && meta != nil && !meta.IsObserver() {
 			meta.setObserver(true, extExtended)
 			c.Debugf("Turning JetStream metadata controller Observer Mode on - System Account Connected")
 			// Take note that the domain was not extended to avoid this state next startup.
diff --git a/server/raft.go b/server/raft.go
index 7f0ad3fb..88077360 100644
--- a/server/raft.go
+++ b/server/raft.go
@@ -51,6 +51,8 @@ type RaftNode interface {
 	GroupLeader() string
 	HadPreviousLeader() bool
 	StepDown(preferred ...string) error
+	SetObserver(isObserver bool)
+	IsObserver() bool
 	Campaign() error
 	ID() string
 	Group() string
@@ -1663,12 +1665,17 @@ func (n *raft) electTimer() *time.Timer {
 	return n.elect
 }
 
-func (n *raft) isObserver() bool {
+func (n *raft) IsObserver() bool {
 	n.RLock()
 	defer n.RUnlock()
 	return n.observer
 }
 
+// Sets the state to observer only.
+func (n *raft) SetObserver(isObserver bool) {
+	n.setObserver(isObserver, extUndetermined)
+}
+
 func (n *raft) setObserver(isObserver bool, extSt extensionState) {
 	n.Lock()
 	defer n.Unlock()
@@ -1717,7 +1724,7 @@ func (n *raft) runAsFollower() {
 			if n.outOfResources() {
 				n.resetElectionTimeoutWithLock()
 				n.debug("Not switching to candidate, no resources")
-			} else if n.isObserver() {
+			} else if n.IsObserver() {
 				n.resetElectWithLock(48 * time.Hour)
 				n.debug("Not switching to candidate, observer only")
 			} else if n.isCatchingUp() {