diff --git a/controller/binding.c b/controller/binding.c
index 19b28369f..d4fe4210b 100644
--- a/controller/binding.c
+++ b/controller/binding.c
@@ -646,11 +646,17 @@ 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;
@@ -662,13 +668,23 @@ 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;
     }
@@ -886,37 +902,95 @@ get_lport_type_str(enum en_lport_type lport_type)
     OVS_NOT_REACHED();
 }
 
-/* For newly claimed ports, if 'notify_up' is 'false':
+void
+set_pb_chassis_in_sbrec(const struct sbrec_port_binding *pb,
+                        const struct sbrec_chassis *chassis_rec,
+                        bool is_set)
+{
+    if (pb->chassis != chassis_rec) {
+         if (is_set) {
+            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);
+        }
+    } else if (!is_set) {
+        sbrec_port_binding_set_chassis(pb, NULL);
+    }
+}
+
+bool
+local_bindings_pb_chassis_is_set(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 && b_lport->pb->chassis == chassis_rec) {
+        return true;
+    }
+    return false;
+}
+
+void
+local_binding_set_pb(struct shash *local_bindings, const char *pb_name,
+                     const struct sbrec_chassis *chassis_rec,
+                     struct hmap *tracked_datapaths, bool is_set)
+{
+    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) {
+        set_pb_chassis_in_sbrec(b_lport->pb, chassis_rec, is_set);
+        if (tracked_datapaths) {
+            update_lport_tracking(b_lport->pb, tracked_datapaths, true);
+        }
+    }
+}
+
+/* For newly claimed ports:
  * - 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
  *   container and virtual ports).
- * Otherwise request a notification to be sent when the OVS flows
- * corresponding to 'pb' have been installed.
+ *
+ * Returns false if lport is not claimed due to 'sb_readonly'.
+ * Returns true otherwise.
  *
  * Note:
- *   Updates (directly or through a notification) the 'pb->up' field only if
- *   it's explicitly set to 'false'.
+ *   Updates the 'pb->up' field only if 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 sb_readonly)
 {
-    if (!notify_up) {
-        bool up = true;
-        if (!parent_pb || (parent_pb->n_up && parent_pb->up[0])) {
+    /* When notify_up is false in claim_port(), no state is created
+     * by if_status_mgr. In such cases, return false (i.e. trigger recompute)
+     * if we can't update sb (because it is readonly).
+     */
+    bool up = true;
+    if (!parent_pb || (parent_pb->n_up && parent_pb->up[0])) {
+        if (!sb_readonly) {
             if (pb->n_up) {
                 sbrec_port_binding_set_up(pb, &up, 1);
             }
+        } else if (pb->n_up && !pb->up[0]) {
+            return false;
         }
-        return;
-    }
-
-    if (pb->chassis != chassis_rec || (pb->n_up && !pb->up[0])) {
-        if_status_mgr_claim_iface(if_mgr, pb->logical_port);
     }
+    return true;
 }
 
 typedef void (*set_func)(const struct sbrec_port_binding *pb,
@@ -1008,37 +1082,35 @@ 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);
-    }
-
     enum can_bind can_bind = lport_can_bind_on_this_chassis(chassis_rec, pb);
     bool update_tracked = false;
 
     if (can_bind == CAN_BIND_AS_MAIN) {
         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);
-            }
-            for (size_t 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 (is_additional_chassis(pb, chassis_rec)) {
+                if (sb_readonly) {
+                    return false;
+                }
                 remove_additional_chassis(pb, chassis_rec);
             }
             update_tracked = true;
         }
+        if (!notify_up) {
+            if (!claimed_lport_set_up(pb, parent_pb, sb_readonly)) {
+                return false;
+            }
+            if (pb->chassis != chassis_rec) {
+                if (sb_readonly) {
+                    return false;
+                }
+                set_pb_chassis_in_sbrec(pb, chassis_rec, true);
+            }
+        } else {
+            if ((pb->chassis != chassis_rec) || (pb->n_up && !pb->up[0])) {
+                if_status_mgr_claim_iface(if_mgr, pb, chassis_rec,
+                                          sb_readonly);
+            }
+        }
     } else if (can_bind == CAN_BIND_AS_ADDITIONAL) {
         if (!is_additional_chassis(pb, chassis_rec)) {
             if (sb_readonly) {
@@ -1084,7 +1156,8 @@ claim_lport(const struct sbrec_port_binding *pb,
  */
 static bool
 release_lport_main_chassis(const struct sbrec_port_binding *pb,
-                           bool sb_readonly)
+                           bool sb_readonly,
+                           struct if_status_mgr *if_mgr)
 {
     if (pb->encap) {
         if (sb_readonly) {
@@ -1093,11 +1166,13 @@ release_lport_main_chassis(const struct sbrec_port_binding *pb,
         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) {
@@ -1107,7 +1182,8 @@ release_lport_main_chassis(const struct sbrec_port_binding *pb,
         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;
 }
 
@@ -1141,7 +1217,7 @@ release_lport(const struct sbrec_port_binding *pb,
               struct hmap *tracked_datapaths, struct if_status_mgr *if_mgr)
 {
     if (pb->chassis == chassis_rec) {
-        if (!release_lport_main_chassis(pb, sb_readonly)) {
+        if (!release_lport_main_chassis(pb, sb_readonly, if_mgr)) {
             return false;
         }
     } else if (is_additional_chassis(pb, chassis_rec)) {
@@ -1223,7 +1299,7 @@ consider_vif_lport_(const struct sbrec_port_binding *pb,
                              b_lport->lbinding->iface,
                              !b_ctx_in->ovnsb_idl_txn,
                              !parent_pb, b_ctx_out->tracked_dp_bindings,
-                             b_ctx_out->if_mgr)){
+                             b_ctx_out->if_mgr)) {
                 return false;
             }
 
@@ -1479,7 +1555,8 @@ consider_localport(const struct sbrec_port_binding *pb,
     enum can_bind can_bind = lport_can_bind_on_this_chassis(
         b_ctx_in->chassis_rec, pb);
     if (can_bind == CAN_BIND_AS_MAIN) {
-        if (!release_lport_main_chassis(pb, !b_ctx_in->ovnsb_idl_txn)) {
+        if (!release_lport_main_chassis(pb, !b_ctx_in->ovnsb_idl_txn,
+            b_ctx_out->if_mgr)) {
             return false;
         }
     } else if (can_bind == CAN_BIND_AS_ADDITIONAL) {
diff --git a/controller/binding.h b/controller/binding.h
index 1fed06674..2b54628eb 100644
--- a/controller/binding.h
+++ b/controller/binding.h
@@ -151,8 +151,10 @@ 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 struct sbrec_chassis *chassis_rec,
                           const char *ts_now_str, bool sb_readonly,
@@ -160,7 +162,13 @@ void local_binding_set_up(struct shash *local_bindings, const char *pb_name,
 void local_binding_set_down(struct shash *local_bindings, const char *pb_name,
                             const struct sbrec_chassis *chassis_rec,
                             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,
+                          struct hmap *tracked_datapaths,
+                          bool is_set);
+bool local_bindings_pb_chassis_is_set(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,
@@ -178,6 +186,10 @@ void binding_dump_local_bindings(struct local_binding_data *, struct ds *);
 bool is_additional_chassis(const struct sbrec_port_binding *pb,
                            const struct sbrec_chassis *chassis_rec);
 
+void set_pb_chassis_in_sbrec(const struct sbrec_port_binding *pb,
+                             const struct sbrec_chassis *chassis_rec,
+                             bool is_set);
+
 /* Corresponds to each Port_Binding.type. */
 enum en_lport_type {
     LP_UNKNOWN,
diff --git a/controller/if-status.c b/controller/if-status.c
index ad61844d8..ec5fdf0f9 100644
--- a/controller/if-status.c
+++ b/controller/if-status.c
@@ -24,6 +24,7 @@
 #include "lib/util.h"
 #include "timeval.h"
 #include "openvswitch/vlog.h"
+#include "lib/ovn-sb-idl.h"
 
 VLOG_DEFINE_THIS_MODULE(if_status);
 
@@ -53,9 +54,11 @@ VLOG_DEFINE_THIS_MODULE(if_status);
  */
 
 enum if_state {
-    OIF_CLAIMED,       /* Newly claimed interface. */
-    OIF_INSTALL_FLOWS, /* Already claimed interface for which flows are still
-                        * being installed.
+    OIF_CLAIMED,       /* Newly claimed interface. pb->chassis not yet updated.
+                        */
+    OIF_INSTALL_FLOWS, /* Claimed interface with pb->chassis successfully
+                        * updated in SB and for which flows are still being
+                        * installed.
                         */
     OIF_MARK_UP,       /* Interface with flows successfully installed in OVS
                         * but not yet marked "up" in the binding module (in
@@ -78,6 +81,62 @@ static const char *if_state_names[] = {
     [OIF_INSTALLED]     = "INSTALLED",
 };
 
+/*
+ *       +----------------------+
+ * +---> |                      |
+ * | +-> |         NULL         | <--------------------------------------+++-+
+ * | |   +----------------------+                                            |
+ * | |     ^ release_iface   | claim_iface()                                 |
+ * | |     |                 V - sbrec_update_chassis(if sb is rw)           |
+ * | |   +----------------------+                                            |
+ * | |   |                      | <----------------------------------------+ |
+ * | |   |       CLAIMED        | <--------------------------------------+ | |
+ * | |   +----------------------+                                        | | |
+ * | |                 |  V  ^                                           | | |
+ * | |                 |  |  | handle_claims()                           | | |
+ * | |                 |  |  | - sbrec_update_chassis(if sb is rw)       | | |
+ * | |                 |  +--+                                           | | |
+ * | |                 |                                                 | | |
+ * | |                 | mgr_update(when sb is rw i.e. pb->chassis)      | | |
+ * | |                 |            has been updated                     | | |
+ * | | release_iface   | - request seqno                                 | | |
+ * | |                 |                                                 | | |
+ * | |                 V                                                 | | |
+ * | |   +----------------------+                                        | | |
+ * | +-- |                      |  mgr_run(seqno not rcvd)               | | |
+ * |     |    INSTALL_FLOWS     |   - set port down in sb                | | |
+ * |     |                      |   - remove ovn-installed from ovsdb    | | |
+ * |     |                      |  mgr_update()                          | | |
+ * |     +----------------------+   - sbrec_update_chassis if needed     | | |
+ * |                    |                                                | | |
+ * |                    |  mgr_run(seqno rcvd)                           | | |
+ * |                    |  - set port up in sb                           | | |
+ * | release_iface      |  - set ovn-installed in ovs                    | | |
+ * |                    V                                                | | |
+ * |   +----------------------+                                          | | |
+ * |   |                      |  mgr_run()                               | | |
+ * +-- |       MARK_UP        |  - set port up in sb                     | | |
+ *     |                      |  - set ovn-installed in ovs              | | |
+ *     |                      |  mgr_update()                            | | |
+ *     +----------------------+  - sbrec_update_chassis if needed        | | |
+ *              |                                                        | | |
+ *              | mgr_update(rcvd port up / ovn_installed & chassis set) | | |
+ *              V                                                        | | |
+ *     +----------------------+                                          | | |
+ *     |      INSTALLED       | ------------> claim_iface ---------------+ | |
+ *     +----------------------+                                            | |
+ *              |                                                          | |
+ *              | release_iface                                            | |
+ *              V                                                          | |
+ *     +----------------------+                                            | |
+ *     |                      | ------------> claim_iface -----------------+ |
+ *     |      MARK_DOWN       | ------> mgr_update(rcvd port down) ----------+
+ *     |                      | mgr_run()
+ *     |                      | - set port down in sb
+ *     |                      | mgr_update()
+ *     +----------------------+ - sbrec_update_chassis(NULL)
+ */
+
 struct ovs_iface {
     char *id;               /* Extracted from OVS external_ids.iface_id. */
     enum if_state state;    /* State of the interface in the state machine. */
@@ -158,14 +217,20 @@ if_status_mgr_destroy(struct if_status_mgr *mgr)
 }
 
 void
-if_status_mgr_claim_iface(struct if_status_mgr *mgr, const char *iface_id)
+if_status_mgr_claim_iface(struct if_status_mgr *mgr,
+                          const struct sbrec_port_binding *pb,
+                          const struct sbrec_chassis *chassis_rec,
+                          bool sb_readonly)
 {
+    const char *iface_id = pb->logical_port;
     struct ovs_iface *iface = shash_find_data(&mgr->ifaces, iface_id);
 
     if (!iface) {
         iface = ovs_iface_create(mgr, iface_id, OIF_CLAIMED);
     }
-
+    if (!sb_readonly) {
+        set_pb_chassis_in_sbrec(pb, chassis_rec, true);
+    }
     switch (iface->state) {
     case OIF_CLAIMED:
     case OIF_INSTALL_FLOWS:
@@ -182,6 +247,12 @@ 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)
+{
+    return !!shash_find_data(&mgr->ifaces, iface_id);
+}
+
 void
 if_status_mgr_release_iface(struct if_status_mgr *mgr, const char *iface_id)
 {
@@ -246,9 +317,36 @@ if_status_mgr_delete_iface(struct if_status_mgr *mgr, const char *iface_id)
     }
 }
 
+bool
+if_status_handle_claims(struct if_status_mgr *mgr,
+                        struct local_binding_data *binding_data,
+                        const struct sbrec_chassis *chassis_rec,
+                        struct hmap *tracked_datapath,
+                        bool sb_readonly)
+{
+    if (!binding_data || sb_readonly) {
+        return false;
+    }
+
+    struct shash *bindings = &binding_data->bindings;
+    struct hmapx_node *node;
+
+    bool rc = false;
+    HMAPX_FOR_EACH (node, &mgr->ifaces_per_state[OIF_CLAIMED]) {
+        struct ovs_iface *iface = node->data;
+        VLOG_INFO("if_status_handle_claims for %s", iface->id);
+        local_binding_set_pb(bindings, iface->id, chassis_rec,
+                             tracked_datapath, true);
+        rc = true;
+    }
+    return rc;
+}
+
 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,
+                     bool sb_readonly)
 {
     if (!binding_data) {
         return;
@@ -257,13 +355,27 @@ if_status_mgr_update(struct if_status_mgr *mgr,
     struct shash *bindings = &binding_data->bindings;
     struct hmapx_node *node;
 
+    /* Interfaces in OIF_MARK_UP/INSTALL_FLOWS state have already set their
+     * pb->chassis. However, the update might still be in fly (confirmation
+     * not received yet) or pb->chassis was overwitten by another chassis.
+     */
+
     /* Move all interfaces that have been confirmed "up" by the binding module,
      * from OIF_MARK_UP to OIF_INSTALLED.
      */
     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_bindings_pb_chassis_is_set(bindings, iface->id,
+            chassis_rec)) {
+            if (!sb_readonly) {
+                local_binding_set_pb(bindings, iface->id, chassis_rec,
+                                     NULL, true);
+            } else {
+                continue;
+            }
+        }
+        if (local_binding_is_up(bindings, iface->id, chassis_rec)) {
             ovs_iface_set_state(mgr, iface, OIF_INSTALLED);
         }
     }
@@ -274,27 +386,59 @@ 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 (!sb_readonly) {
+            local_binding_set_pb(bindings, iface->id, chassis_rec,
+                                 NULL, false);
+        }
+        if (local_binding_is_down(bindings, iface->id, chassis_rec)) {
             ovs_iface_destroy(mgr, iface);
         }
     }
 
-    /* Register for a notification about flows being installed in OVS for all
-     * newly claimed interfaces.
-     *
-     * Move them from OIF_CLAIMED to OIF_INSTALL_FLOWS.
+    /* Update pb->chassis in case it's not set (previous update still in fly
+     * or pb->chassis was overwitten by another chassis.
+     */
+    if (!sb_readonly) {
+        HMAPX_FOR_EACH_SAFE (node, &mgr->ifaces_per_state[OIF_INSTALL_FLOWS]) {
+            struct ovs_iface *iface = node->data;
+
+            if (!local_bindings_pb_chassis_is_set(bindings, iface->id,
+                chassis_rec)) {
+                local_binding_set_pb(bindings, iface->id, chassis_rec,
+                                     NULL, true);
+            }
+        }
+    }
+
+    /* Move newly claimed interfaces from OIF_CLAIMED to OIF_INSTALL_FLOWS.
      */
-    bool new_ifaces = false;
-    HMAPX_FOR_EACH_SAFE (node, &mgr->ifaces_per_state[OIF_CLAIMED]) {
-        struct ovs_iface *iface = node->data;
 
-        ovs_iface_set_state(mgr, iface, OIF_INSTALL_FLOWS);
-        iface->install_seqno = mgr->iface_seqno + 1;
-        new_ifaces = true;
+    bool new_ifaces = false;
+    if (!sb_readonly) {
+        HMAPX_FOR_EACH_SAFE (node, &mgr->ifaces_per_state[OIF_CLAIMED]) {
+            struct ovs_iface *iface = node->data;
+            /* No need to to update pb->chassis as already done
+             * in if_status_handle_claims or if_status_mgr_claim_iface
+             */
+            ovs_iface_set_state(mgr, iface, OIF_INSTALL_FLOWS);
+            iface->install_seqno = mgr->iface_seqno + 1;
+            new_ifaces = true;
+        }
+    } else {
+        HMAPX_FOR_EACH_SAFE (node, &mgr->ifaces_per_state[OIF_CLAIMED]) {
+            struct ovs_iface *iface = node->data;
+            static struct vlog_rate_limit rl = VLOG_RATE_LIMIT_INIT(5, 1);
+            VLOG_INFO_RL(&rl,
+                         "Not updating pb chassis for %s now as "
+                         "sb is readonly", iface->id);
+        }
     }
 
-    /* Request a seqno update when the flows for new interfaces have been
+    /* Register for a notification about flows being installed in OVS for all
+     * newly claimed interfaces for which pb->chassis has been updated.
+     * Request a seqno update when the flows for new interfaces have been
      * installed in OVS.
+     *
      */
     if (new_ifaces) {
         mgr->iface_seqno++;
@@ -403,7 +547,7 @@ if_status_mgr_update_bindings(struct if_status_mgr *mgr,
     struct hmapx_node *node;
 
     /* Notify the binding module to set "down" all bindings that are still
-     * in the process of being installed in OVS, i.e., are not yet instsalled.
+     * in the process of being installed in OVS, i.e., are not yet installed.
      */
     HMAPX_FOR_EACH (node, &mgr->ifaces_per_state[OIF_INSTALL_FLOWS]) {
         struct ovs_iface *iface = node->data;
diff --git a/controller/if-status.h b/controller/if-status.h
index bb8a3950d..f9b05d30d 100644
--- a/controller/if-status.h
+++ b/controller/if-status.h
@@ -27,15 +27,27 @@ struct if_status_mgr *if_status_mgr_create(void);
 void if_status_mgr_clear(struct if_status_mgr *);
 void if_status_mgr_destroy(struct if_status_mgr *);
 
-void if_status_mgr_claim_iface(struct if_status_mgr *, const char *iface_id);
+void if_status_mgr_claim_iface(struct if_status_mgr *,
+                               const struct sbrec_port_binding *pb,
+                               const struct sbrec_chassis *chassis_rec,
+                               bool sb_readonly);
 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,
+                          bool sb_readonly);
 void if_status_mgr_run(struct if_status_mgr *mgr, struct local_binding_data *,
                        const struct sbrec_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);
+bool if_status_handle_claims(struct if_status_mgr *mgr,
+                             struct local_binding_data *binding_data,
+                             const struct sbrec_chassis *chassis_rec,
+                             struct hmap *tracked_datapath,
+                             bool sb_readonly);
 
 # endif /* controller/if-status.h */
diff --git a/controller/ovn-controller.c b/controller/ovn-controller.c
index 5449743e8..073894e0f 100644
--- a/controller/ovn-controller.c
+++ b/controller/ovn-controller.c
@@ -1464,6 +1464,73 @@ en_runtime_data_run(struct engine_node *node, void *data)
     engine_set_node_state(node, EN_UPDATED);
 }
 
+struct ed_type_sb_ro {
+    bool sb_readonly;
+};
+
+static void *
+en_sb_ro_init(struct engine_node *node OVS_UNUSED,
+              struct engine_arg *arg OVS_UNUSED)
+{
+    struct ed_type_sb_ro *data = xzalloc(sizeof *data);
+    return data;
+}
+
+static void
+en_sb_ro_run(struct engine_node *node, void *data)
+{
+    struct ed_type_sb_ro *sb_ro_data = data;
+    bool sb_readonly = !engine_get_context()->ovnsb_idl_txn;
+    if (sb_ro_data->sb_readonly != sb_readonly) {
+        sb_ro_data->sb_readonly = sb_readonly;
+        if (!sb_ro_data->sb_readonly) {
+            engine_set_node_state(node, EN_UPDATED);
+        }
+    }
+}
+
+static void
+en_sb_ro_cleanup(void *data OVS_UNUSED)
+{
+}
+
+static bool
+runtime_data_sb_ro_handler(struct engine_node *node, void *data)
+{
+    const struct sbrec_chassis *chassis = NULL;
+
+    struct ovsrec_open_vswitch_table *ovs_table =
+        (struct ovsrec_open_vswitch_table *)EN_OVSDB_GET(
+            engine_get_input("OVS_open_vswitch", node));
+
+    const char *chassis_id = get_ovs_chassis_id(ovs_table);
+
+    struct ovsdb_idl_index *sbrec_chassis_by_name =
+        engine_ovsdb_node_get_index(
+                engine_get_input("SB_chassis", node),
+                "name");
+
+    if (chassis_id) {
+        chassis = chassis_lookup_by_name(sbrec_chassis_by_name, chassis_id);
+    }
+    if (chassis) {
+        struct ed_type_runtime_data *rt_data = data;
+        bool sb_readonly = !engine_get_context()->ovnsb_idl_txn;
+        struct controller_engine_ctx *ctrl_ctx =
+            engine_get_context()->client_ctx;
+
+        if (if_status_handle_claims(ctrl_ctx->if_mgr,
+                                    &rt_data->lbinding_data,
+                                    chassis,
+                                    &rt_data->tracked_dp_bindings,
+                                    sb_readonly)) {
+            engine_set_node_state(node, EN_UPDATED);
+            rt_data->tracked = true;
+        }
+    }
+    return true;
+}
+
 static bool
 runtime_data_ovs_interface_shadow_handler(struct engine_node *node, void *data)
 {
@@ -3534,6 +3601,7 @@ main(int argc, char *argv[])
     stopwatch_create(VIF_PLUG_RUN_STOPWATCH_NAME, SW_MS);
 
     /* Define inc-proc-engine nodes. */
+    ENGINE_NODE(sb_ro, "sb_ro");
     ENGINE_NODE_WITH_CLEAR_TRACK_DATA_IS_VALID(ct_zones, "ct_zones");
     ENGINE_NODE_WITH_CLEAR_TRACK_DATA(ovs_interface_shadow,
                                       "ovs_interface_shadow");
@@ -3670,6 +3738,7 @@ main(int argc, char *argv[])
     engine_add_input(&en_ovs_interface_shadow, &en_ovs_interface,
                      ovs_interface_shadow_ovs_interface_handler);
 
+    engine_add_input(&en_runtime_data, &en_sb_ro, runtime_data_sb_ro_handler);
     engine_add_input(&en_runtime_data, &en_ofctrl_is_connected, NULL);
 
     engine_add_input(&en_runtime_data, &en_ovs_open_vswitch, NULL);
@@ -4104,7 +4173,8 @@ 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,
+                                         !ovnsb_idl_txn);
                     stopwatch_stop(IF_STATUS_MGR_UPDATE_STOPWATCH_NAME,
                                    time_msec());
 
diff --git a/tests/ovn-macros.at b/tests/ovn-macros.at
index 2ba930a85..9b7d971c8 100644
--- a/tests/ovn-macros.at
+++ b/tests/ovn-macros.at
@@ -814,3 +814,15 @@ m4_define([OVN_FOR_EACH_NORTHD],
      [m4_foreach([NORTHD_USE_PARALLELIZATION], [yes, no],
        [m4_foreach([OVN_MONITOR_ALL], [yes, no], [$1
 ])])])])
+
+# OVN_NBCTL(NBCTL_COMMAND) adds NBCTL_COMMAND to list of commands to be run by RUN_OVN_NBCTL().
+m4_define([OVN_NBCTL], [
+    command="${command} -- $1"
+])
+
+# RUN_OVN_NBCTL() executes list of commands built by the OVN_NBCTL() macro.
+m4_define([RUN_OVN_NBCTL], [
+    check ovn-nbctl ${command}
+    unset command
+])
+
diff --git a/tests/ovn.at b/tests/ovn.at
index 23b205791..7c59854ee 100644
--- a/tests/ovn.at
+++ b/tests/ovn.at
@@ -105,6 +105,18 @@ m4_divert_text([PREPARE_TESTS],
          test 1 -le $(as $hv1 ovs-ofctl dump-flows br-int | grep -c "output:$ofport")
      ])
    }
+
+   ovn_wait_remote_input_flows () {
+     hv1=$1
+     hv2=$2
+     echo "$3: waiting for flows for remote input on $hv1"
+     # Wait for a flow outputing  to remote input
+     OVS_WAIT_UNTIL([
+         ofport=$(as $hv1 ovs-vsctl --bare --columns ofport find Interface name=ovn-${hv2}-0)
+         echo "tunnel port=$ofport"
+         test 1 -le $(as $hv1 ovs-ofctl dump-flows br-int | grep -c "in_port=$ofport")
+     ])
+   }
 ])
 
 m4_define([OVN_CHECK_PACKETS],
@@ -130,6 +142,8 @@ m4_define([OVN_WAIT_PATCH_PORT_FLOWS],
 m4_define([OVN_WAIT_REMOTE_OUTPUT_FLOWS],
   [ovn_wait_remote_output_flows "$1" "$2" "__file__:__line__"])
 
+m4_define([OVN_WAIT_REMOTE_INPUT_FLOWS],
+  [ovn_wait_remote_input_flows "$1" "$2" "__file__:__line__"])
 
 AT_BANNER([OVN components])
 
@@ -13936,6 +13950,11 @@ wait_column "$hv1_uuid" Port_Binding requested_chassis logical_port=lsp0
 wait_column "$hv2_uuid" Port_Binding additional_chassis logical_port=lsp0
 wait_column "$hv2_uuid" Port_Binding requested_additional_chassis logical_port=lsp0
 
+# Check ovn-installed updated for main chassis
+wait_for_ports_up
+OVS_WAIT_UNTIL([test `as hv1 ovs-vsctl get Interface lsp0 external_ids:ovn-installed` = '"true"'])
+OVS_WAIT_UNTIL([test x`as hv2 ovs-vsctl get Interface lsp0 external_ids:ovn-installed` = x])
+
 # Check that setting iface:encap-ip populates Port_Binding:additional_encap
 wait_row_count Encap 2 chassis_name=hv1
 wait_row_count Encap 2 chassis_name=hv2
@@ -13961,6 +13980,11 @@ wait_column "$hv2_uuid" Port_Binding requested_chassis logical_port=lsp0
 wait_column "" Port_Binding additional_chassis logical_port=lsp0
 wait_column "" Port_Binding requested_additional_chassis logical_port=lsp0
 
+# Check ovn-installed updated for main chassis and not for other chassis
+wait_for_ports_up
+OVS_WAIT_UNTIL([test `as hv2 ovs-vsctl get Interface lsp0 external_ids:ovn-installed` = '"true"'])
+OVS_WAIT_UNTIL([test x`as hv1 ovs-vsctl get Interface lsp0 external_ids:ovn-installed` = x])
+
 # Check that additional_encap is cleared
 wait_column "" Port_Binding additional_encap logical_port=lsp0
 
@@ -15259,7 +15283,10 @@ 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.
@@ -15305,7 +15332,7 @@ 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], [])
@@ -32363,3 +32390,119 @@ AT_CHECK([test $(ovn-sbctl list fdb | grep -c "00:00:00:00:10:30") = 0])
 OVN_CLEANUP([hv1])
 AT_CLEANUP
 ])
+
+OVN_FOR_EACH_NORTHD([
+AT_SETUP([recomputes])
+ovn_start
+
+n_hv=4
+
+# Add chassis
+net_add n1
+for i in $(seq 1 $n_hv); do
+    sim_add hv$i
+    as hv$i
+    check ovs-vsctl add-br br-phys
+    ovs-vsctl set open . external-ids:ovn-bridge-mappings=phys:br-phys
+    ovn_attach n1 br-phys 192.168.0.$i 24 geneve
+done
+
+add_switch_ports() {
+    start_port=$1
+    end_port=$2
+    nb_hv=$3
+    bulk_size=$4
+    for ((i=start_port; i<end_port; )) do
+        start_bulk=$i
+        for hv in $(seq 1 $nb_hv); do
+            end_bulk=$((start_bulk+bulk_size-1))
+            for port in $(seq $start_bulk $end_bulk); do
+                logical_switch_port=lsp${port}
+                OVN_NBCTL(lsp-add ls1 $logical_switch_port)
+                OVN_NBCTL(lsp-set-addresses $logical_switch_port dynamic)
+            done
+            start_bulk=$((end_bulk+1))
+        done
+        RUN_OVN_NBCTL()
+
+        start_bulk=$i
+        for hv in $(seq 1 $nb_hv); do
+            end_bulk=$((start_bulk+bulk_size-1))
+            for port in $(seq $start_bulk $end_bulk); do
+                logical_switch_port=lsp${port}
+                as hv$hv ovs-vsctl \
+                    --no-wait -- add-port br-int vif${port} \
+                    -- set Interface vif${port} external_ids:iface-id=$logical_switch_port
+            done
+            start_bulk=$((end_bulk+1))
+        done
+        i=$((end_bulk+1))
+    done
+}
+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
+
+lflow_run=0
+check ovn-nbctl --wait=hv sync
+
+# Tunnel ports might not be added (yet) at this point on slow system.
+# Wait for flows related to such ports to ensure those ports have been added
+# before we measure recomputes. Otherwise, ovs_interface handler might be run
+# afterwards for tunnel ports, causing recomputes.
+for i in $(seq 1 $n_hv); do
+    for j in $(seq 1 $n_hv); do
+        if test $i != $j; then
+            OVN_WAIT_REMOTE_INPUT_FLOWS(["hv$i"],["hv$j"])
+        fi
+    done
+done
+
+for i in $(seq 1 $n_hv); do
+    as hv$i
+    lflow_run1=$(ovn-appctl -t ovn-controller coverage/read-counter lflow_run)
+    lflow_run=`expr $lflow_run1 + $lflow_run`
+done
+
+add_switch_ports 1 1000 $n_hv 5
+
+wait_for_ports_up
+check ovn-nbctl --wait=hv sync
+
+for i in $(seq 1 $n_hv); do
+    pid=$(cat hv${i}/ovn-controller.pid)
+    u=$((u+$(cat "/proc/$pid/stat" | awk '{print $14}')))
+    s=$((s+$(cat "/proc/$pid/stat" | awk '{print $15}')))
+done
+
+n_pid=$(cat northd/ovn-northd.pid)
+n_u=$(cat "/proc/$pid/stat" | awk '{print $14}')
+n_s=$(cat "/proc/$pid/stat" | awk '{print $15}')
+
+echo "Total Northd User Time: $n_u"
+echo "Total Northd System Time: $n_s"
+echo "Total Controller User Time: $u"
+echo "Total Controller System Time: $s"
+
+lflow_run_end=0
+for i in $(seq 1 $n_hv); do
+    as hv$i
+    lflow_run1=$(ovn-appctl -t ovn-controller coverage/read-counter lflow_run)
+    lflow_run_end=`expr $lflow_run1 + $lflow_run_end`
+done
+n_recomputes=`expr $lflow_run_end - $lflow_run`
+echo "$n_recomputes recomputes"
+
+AT_CHECK([test $lflow_run_end == $lflow_run])
+
+for i in $(seq 2 $n_hv); do
+    OVN_CLEANUP_SBOX([hv$i])
+done
+OVN_CLEANUP([hv1])
+AT_CLEANUP
+])
diff --git a/tests/perf-northd.at b/tests/perf-northd.at
index 74b69e9d4..6ec196b36 100644
--- a/tests/perf-northd.at
+++ b/tests/perf-northd.at
@@ -76,23 +76,6 @@ m4_define([PERF_RECORD_STOP], [
     PERF_RECORD_STOPWATCH(ovn-northd-loop, ["Short term average"], [Average (northd-loop in msec)])
 ])
 
-# OVN_NBCTL([NBCTL_COMMAND])
-#
-# Add NBCTL_COMMAND to list of commands to be run by RUN_OVN_NBCTL().
-#
-m4_define([OVN_NBCTL], [
-    command="${command} -- $1"
-])
-
-# RUN_OVN_NBCTL()
-#
-# Execute list of commands built by the OVN_NBCTL() macro.
-#
-m4_define([RUN_OVN_NBCTL], [
-    check ovn-nbctl ${command}
-    unset command
-])
-
 OVS_START_SHELL_HELPERS
 generate_subnet () {
     local a=$(printf %d $(expr $1 / 256 + 10))
