diff --git a/USERS.md b/USERS.md
index 944b4ad722..f3c04b35fa 100644
--- a/USERS.md
+++ b/USERS.md
@@ -38,3 +38,4 @@ Organizations below are **officially** using Argo Rollouts. Please send a PR wit
 1. [Twilio SendGrid](https://sendgrid.com)
 1. [Ubie](https://ubie.life/)
 1. [VISITS Technologies](https://visits.world/en)
+1. [Plaid](https://plaid.com)
diff --git a/rollout/canary_test.go b/rollout/canary_test.go
index 56445f3978..29cdd298bb 100644
--- a/rollout/canary_test.go
+++ b/rollout/canary_test.go
@@ -19,6 +19,8 @@ import (
 
 	"github.com/argoproj/argo-rollouts/pkg/apis/rollouts/v1alpha1"
 	"github.com/argoproj/argo-rollouts/pkg/client/clientset/versioned/fake"
+	"github.com/argoproj/argo-rollouts/rollout/mocks"
+	"github.com/argoproj/argo-rollouts/rollout/trafficrouting"
 	"github.com/argoproj/argo-rollouts/utils/annotations"
 	"github.com/argoproj/argo-rollouts/utils/conditions"
 	"github.com/argoproj/argo-rollouts/utils/hash"
@@ -60,6 +62,125 @@ func bumpVersion(rollout *v1alpha1.Rollout) *v1alpha1.Rollout {
 	return newRollout
 }
 
+func TestCanaryRollout(t *testing.T) {
+	newrsVal := "new-rs-xxx"
+	for _, tc := range []struct {
+		canaryReplicas      int32
+		canaryAvailReplicas int32
+
+		shouldRouteTraffic bool
+	}{
+		{0, 0, false},
+		{2, 0, false},
+		{2, 1, false},
+		{2, 2, true},
+	} {
+		namespace := "namespace"
+		selectorNewRSVal := newrsVal
+		stableService := &corev1.Service{
+			ObjectMeta: metav1.ObjectMeta{
+				Name:      "stable",
+				Namespace: namespace,
+			},
+		}
+		canaryService := &corev1.Service{
+			ObjectMeta: metav1.ObjectMeta{
+				Name:      "canary",
+				Namespace: namespace,
+			},
+		}
+		canaryReplicaset := &v1.ReplicaSet{
+			ObjectMeta: metav1.ObjectMeta{
+				Name:      "canary",
+				Namespace: namespace,
+				Labels: map[string]string{
+					v1alpha1.DefaultRolloutUniqueLabelKey: selectorNewRSVal,
+				},
+			},
+			Spec: v1.ReplicaSetSpec{
+				Replicas: pointer.Int32Ptr(tc.canaryReplicas),
+			},
+			Status: v1.ReplicaSetStatus{
+				AvailableReplicas: tc.canaryAvailReplicas,
+			},
+		}
+
+		stableReplicaset := &v1.ReplicaSet{
+			ObjectMeta: metav1.ObjectMeta{
+				Name:      "stable",
+				Namespace: namespace,
+			},
+			Spec: v1.ReplicaSetSpec{
+				Replicas: pointer.Int32Ptr(0),
+			},
+		}
+
+		fake := fake.Clientset{}
+		kubeclient := k8sfake.NewSimpleClientset(
+			stableService, canaryService, canaryReplicaset, stableReplicaset)
+		informers := k8sinformers.NewSharedInformerFactory(kubeclient, 0)
+		servicesLister := informers.Core().V1().Services().Lister()
+
+		rollout := &v1alpha1.Rollout{
+			ObjectMeta: metav1.ObjectMeta{
+				Name:      "selector-labels-test",
+				Namespace: namespace,
+			},
+			Spec: v1alpha1.RolloutSpec{
+				Strategy: v1alpha1.RolloutStrategy{
+					Canary: &v1alpha1.CanaryStrategy{
+						DynamicStableScale: true,
+						StableService:      stableService.Name,
+						CanaryService:      canaryService.Name,
+					},
+				},
+			},
+		}
+
+		rollout.Status.CurrentStepHash = conditions.ComputeStepHash(rollout)
+		trafficRouter := mocks.NewTrafficRoutingReconciler(t)
+		trafficRouter.On("Type").Return("mock")
+		trafficRouter.On("RemoveManagedRoutes").Return(nil)
+		trafficRouter.On("UpdateHash", newrsVal, "").Return(nil)
+		if tc.shouldRouteTraffic {
+			trafficRouter.On("SetWeight", int32(0)).Return(nil)
+			trafficRouter.On("VerifyWeight", int32(0)).Return(nil, nil)
+		}
+		mocks.NewTrafficRoutingReconciler(t)
+		rc := rolloutContext{
+			log: logutil.WithRollout(rollout),
+			reconcilerBase: reconcilerBase{
+				argoprojclientset: &fake,
+				servicesLister:    servicesLister,
+				kubeclientset:     kubeclient,
+				recorder:          record.NewFakeEventRecorder(),
+
+				newTrafficRoutingReconciler: func(roCtx *rolloutContext) ([]trafficrouting.TrafficRoutingReconciler, error) {
+					return []trafficrouting.TrafficRoutingReconciler{
+						trafficRouter,
+					}, nil
+				},
+			},
+
+			rollout: rollout,
+			pauseContext: &pauseContext{
+				rollout: rollout,
+			},
+			newRS:    canaryReplicaset,
+			stableRS: stableReplicaset,
+		}
+		stopchan := make(chan struct{})
+		defer close(stopchan)
+		informers.Start(stopchan)
+		informers.WaitForCacheSync(stopchan)
+		err := rc.rolloutCanary()
+		assert.NoError(t, err)
+		if !tc.shouldRouteTraffic {
+			trafficRouter.AssertNotCalled(t, "SetWeight", int32(0))
+		}
+	}
+}
+
 // TestCanaryRolloutBumpVersion verifies we correctly bump revision of Rollout and new ReplicaSet
 func TestCanaryRolloutBumpVersion(t *testing.T) {
 	f := newFixture(t)
diff --git a/rollout/context.go b/rollout/context.go
index f8fa5b5f03..14283e3a83 100644
--- a/rollout/context.go
+++ b/rollout/context.go
@@ -49,6 +49,10 @@ type rolloutContext struct {
 	// (e.g. a setWeight step, after a blue-green active switch, after stable service switch),
 	// since we do not want to continually verify weight in case it could incur rate-limiting or other expenses.
 	targetsVerified *bool
+
+	// skippedSelectorSwap indicates that we have skipped swapping selectors
+	// and are not ready to perform any final actions of moving to 100%
+	skippedSelectorSwap *bool
 }
 
 func (c *rolloutContext) reconcile() error {
diff --git a/rollout/service.go b/rollout/service.go
index a2861be0c2..1f929049be 100644
--- a/rollout/service.go
+++ b/rollout/service.go
@@ -282,8 +282,10 @@ func (c *rolloutContext) ensureSVCTargets(svcName string, rs *appsv1.ReplicaSet,
 		if checkRsAvailability && !replicasetutil.IsReplicaSetAvailable(rs) {
 			logCtx := c.log.WithField(logutil.ServiceKey, svc.Name)
 			logCtx.Infof("delaying service switch from %s to %s: ReplicaSet not fully available", currSelector, desiredSelector)
+			c.skippedSelectorSwap = pointer.BoolPtr(true)
 			return nil
 		}
+		c.skippedSelectorSwap = pointer.BoolPtr(false)
 		err = c.switchServiceSelector(svc, desiredSelector, c.rollout)
 		if err != nil {
 			return err
diff --git a/rollout/service_test.go b/rollout/service_test.go
index 8a402d001c..c14506ab3c 100644
--- a/rollout/service_test.go
+++ b/rollout/service_test.go
@@ -786,6 +786,11 @@ func TestDelayCanaryStableServiceLabelInjection(t *testing.T) {
 		assert.False(t, canaryInjected)
 		_, stableInjected := stableSvc.Spec.Selector[v1alpha1.DefaultRolloutUniqueLabelKey]
 		assert.False(t, stableInjected)
+
+		assert.NotNil(t, roCtx.skippedSelectorSwap)
+		if roCtx.skippedSelectorSwap != nil {
+			assert.True(t, *roCtx.skippedSelectorSwap)
+		}
 	}
 	{
 		// next ensure we do update service because new/stable are now available
diff --git a/rollout/trafficrouting.go b/rollout/trafficrouting.go
index ebc22b9704..163d41767c 100644
--- a/rollout/trafficrouting.go
+++ b/rollout/trafficrouting.go
@@ -220,6 +220,14 @@ func (c *rolloutContext) reconcileTrafficRouting() error {
 			return err
 		}
 
+		// if we haven't swapped selectors and dynamic stable scale is set then
+		// we might switch weights to a set of pods that are not ready (importantly this is the case
+		// where canary: 100, stable: 0 -> canary: 0, stable: 100).
+		if c.skippedSelectorSwap != nil && *c.skippedSelectorSwap && c.rollout.Spec.Strategy.Canary.DynamicStableScale {
+			c.log.Infof("Skipping weight changes since replica set is not ready and dynamicStableScale is set")
+			return nil
+		}
+
 		err = reconciler.SetWeight(desiredWeight, weightDestinations...)
 		if err != nil {
 			c.recorder.Warnf(c.rollout, record.EventOptions{EventReason: "TrafficRoutingError"}, err.Error())