diff --git a/agent/consul/catalog_endpoint_test.go b/agent/consul/catalog_endpoint_test.go
index 7873fb745..a44a9e477 100644
--- a/agent/consul/catalog_endpoint_test.go
+++ b/agent/consul/catalog_endpoint_test.go
@@ -1467,11 +1467,18 @@ func TestCatalog_ListServices_Timeout(t *testing.T) {
 
 func TestCatalog_ListServices_Stale(t *testing.T) {
 	t.Parallel()
-	dir1, s1 := testServer(t)
+	dir1, s1 := testServerWithConfig(t, func(c *Config) {
+		c.ACLDatacenter = "dc1"
+	})
 	defer os.RemoveAll(dir1)
 	defer s1.Shutdown()
-	codec := rpcClient(t, s1)
-	defer codec.Close()
+
+	dir2, s2 := testServerWithConfig(t, func(c *Config) {
+		c.ACLDatacenter = "dc1" // Enable ACLs!
+		c.Bootstrap = false     // Disable bootstrap
+	})
+	defer os.RemoveAll(dir2)
+	defer s2.Shutdown()
 
 	args := structs.DCSpecificRequest{
 		Datacenter: "dc1",
@@ -1479,27 +1486,62 @@ func TestCatalog_ListServices_Stale(t *testing.T) {
 	args.AllowStale = true
 	var out structs.IndexedServices
 
-	// Inject a fake service
-	if err := s1.fsm.State().EnsureNode(1, &structs.Node{Node: "foo", Address: "127.0.0.1"}); err != nil {
-		t.Fatalf("err: %v", err)
-	}
-	if err := s1.fsm.State().EnsureService(2, "foo", &structs.NodeService{ID: "db", Service: "db", Tags: []string{"primary"}, Address: "127.0.0.1", Port: 5000}); err != nil {
+	// Inject a node
+	if err := s1.fsm.State().EnsureNode(3, &structs.Node{Node: "foo", Address: "127.0.0.1"}); err != nil {
 		t.Fatalf("err: %v", err)
 	}
 
-	// Run the query, do not wait for leader!
+	codec := rpcClient(t, s2)
+	defer codec.Close()
+
+	// Run the query, do not wait for leader, never any contact with leader, should fail
+	if err := msgpackrpc.CallWithCodec(codec, "Catalog.ListServices", &args, &out); err == nil || err.Error() != structs.ErrNoLeader.Error() {
+		t.Fatalf("expected %v but got err: %v and %v", structs.ErrNoLeader, err, out)
+	}
+
+	// Try to join
+	joinLAN(t, s2, s1)
+	retry.Run(t, func(r *retry.R) { r.Check(wantRaft([]*Server{s1, s2})) })
+	waitForLeader(s1, s2)
+
+	testrpc.WaitForLeader(t, s2.RPC, "dc1")
 	if err := msgpackrpc.CallWithCodec(codec, "Catalog.ListServices", &args, &out); err != nil {
 		t.Fatalf("err: %v", err)
 	}
 
-	// Should find the service
+	// Should find the services
 	if len(out.Services) != 1 {
-		t.Fatalf("bad: %v", out)
+		t.Fatalf("bad: %#v", out.Services)
+	}
+
+	if !out.KnownLeader {
+		t.Fatalf("should have a leader: %v", out)
+	}
+
+	s1.Leave()
+	s1.Shutdown()
+
+	testrpc.WaitUntilNoLeader(t, s2.RPC, "dc1")
+
+	args.AllowStale = false
+	// Since the leader is now down, non-stale query should fail now
+	if err := msgpackrpc.CallWithCodec(codec, "Catalog.ListServices", &args, &out); err == nil || err.Error() != structs.ErrNoLeader.Error() {
+		t.Fatalf("expected %v but got err: %v and %v", structs.ErrNoLeader, err, out)
+	}
+
+	// With stale, request should still work
+	args.AllowStale = true
+	if err := msgpackrpc.CallWithCodec(codec, "Catalog.ListServices", &args, &out); err != nil {
+		t.Fatalf("err: %v", err)
+	}
+
+	// Should find old service
+	if len(out.Services) != 1 {
+		t.Fatalf("bad: %#v", out)
 	}
 
-	// Should not have a leader! Stale read
 	if out.KnownLeader {
-		t.Fatalf("bad: %v", out)
+		t.Fatalf("should not have a leader anymore: %#v", out)
 	}
 }
 
diff --git a/agent/consul/rpc.go b/agent/consul/rpc.go
index 3bd26f430..b584cf7c1 100644
--- a/agent/consul/rpc.go
+++ b/agent/consul/rpc.go
@@ -204,8 +204,8 @@ func (s *Server) forward(method string, info structs.RPCInfo, args interface{},
 		return true, err
 	}
 
-	// Check if we can allow a stale read
-	if info.IsRead() && info.AllowStaleRead() {
+	// Check if we can allow a stale read, ensure our local DB is initialized
+	if info.IsRead() && info.AllowStaleRead() && !s.raft.LastContact().IsZero() {
 		return false, nil
 	}
 
diff --git a/agent/consul/rpc_test.go b/agent/consul/rpc_test.go
index 62ae3ae24..cd4e3d0aa 100644
--- a/agent/consul/rpc_test.go
+++ b/agent/consul/rpc_test.go
@@ -48,6 +48,48 @@ func TestRPC_NoLeader_Fail(t *testing.T) {
 	}
 }
 
+func TestRPC_NoLeader_Fail_on_stale_read(t *testing.T) {
+	t.Parallel()
+	dir1, s1 := testServerWithConfig(t, func(c *Config) {
+		c.RPCHoldTimeout = 1 * time.Millisecond
+	})
+	defer os.RemoveAll(dir1)
+	defer s1.Shutdown()
+	codec := rpcClient(t, s1)
+	defer codec.Close()
+
+	arg := structs.RegisterRequest{
+		Datacenter: "dc1",
+		Node:       "foo",
+		Address:    "127.0.0.1",
+	}
+	var out struct{}
+
+	// Make sure we eventually fail with a no leader error, which we should
+	// see given the short timeout.
+	err := msgpackrpc.CallWithCodec(codec, "Catalog.Register", &arg, &out)
+	if err == nil || err.Error() != structs.ErrNoLeader.Error() {
+		t.Fatalf("bad: %v", err)
+	}
+
+	// Until leader has never been known, stale should fail
+	getKeysReq := structs.KeyListRequest{
+		Datacenter:   "dc1",
+		Prefix:       "",
+		Seperator:    "/",
+		QueryOptions: structs.QueryOptions{AllowStale: true},
+	}
+	var keyList structs.IndexedKeyList
+	if err := msgpackrpc.CallWithCodec(codec, "KVS.ListKeys", &getKeysReq, &keyList); err.Error() != structs.ErrNoLeader.Error() {
+		t.Fatalf("expected %v but got err: %v", structs.ErrNoLeader, err)
+	}
+
+	testrpc.WaitForLeader(t, s1.RPC, "dc1")
+	if err := msgpackrpc.CallWithCodec(codec, "KVS.ListKeys", &getKeysReq, &keyList); err != nil {
+		t.Fatalf("Did not expect any error but got err: %v", err)
+	}
+}
+
 func TestRPC_NoLeader_Retry(t *testing.T) {
 	t.Parallel()
 	dir1, s1 := testServerWithConfig(t, func(c *Config) {
diff --git a/testrpc/wait.go b/testrpc/wait.go
index 90d7481bc..b0e6e2ec0 100644
--- a/testrpc/wait.go
+++ b/testrpc/wait.go
@@ -26,6 +26,20 @@ func WaitForLeader(t *testing.T, rpc rpcFn, dc string) {
 	})
 }
 
+// WaitUntilNoLeader ensures no leader is present, useful for testing lost leadership.
+func WaitUntilNoLeader(t *testing.T, rpc rpcFn, dc string) {
+	var out structs.IndexedNodes
+	retry.Run(t, func(r *retry.R) {
+		args := &structs.DCSpecificRequest{Datacenter: dc}
+		if err := rpc("Catalog.ListNodes", args, &out); err == nil {
+			r.Fatalf("It still has a leader: %#q", out)
+		}
+		if out.QueryMeta.KnownLeader {
+			r.Fatalf("Has still a leader")
+		}
+	})
+}
+
 // WaitForTestAgent ensures we have a node with serfHealth check registered
 func WaitForTestAgent(t *testing.T, rpc rpcFn, dc string) {
 	var nodes structs.IndexedNodes