diff --git a/.changelog/14981.txt b/.changelog/14981.txt
new file mode 100644
index 0000000000..ef1b4d6014
--- /dev/null
+++ b/.changelog/14981.txt
@@ -0,0 +1,3 @@
+```release-note:feature
+peering: add support for routine peering control-plane traffic through mesh gateways
+```
\ No newline at end of file
diff --git a/acl/acl_oss.go b/acl/acl_oss.go
index 6932808831..48f671ac7a 100644
--- a/acl/acl_oss.go
+++ b/acl/acl_oss.go
@@ -4,7 +4,8 @@
 package acl
 
 const (
-	DefaultPartitionName = ""
+	WildcardPartitionName = ""
+	DefaultPartitionName  = ""
 )
 
 // Reviewer Note: This is a little bit strange; one might want it to be "" like partition name
diff --git a/agent/consul/leader_peering.go b/agent/consul/leader_peering.go
index 5bdcfe500c..bfa24c6ce1 100644
--- a/agent/consul/leader_peering.go
+++ b/agent/consul/leader_peering.go
@@ -243,11 +243,22 @@ func (s *Server) syncPeeringsAndBlock(ctx context.Context, logger hclog.Logger,
 			continue
 		}
 
-		status, found := s.peerStreamServer.StreamStatus(peer.ID)
+		// We may have written this peering to the store to trigger xDS updates, but still in the process of establishing.
+		// If there isn't a secret yet, we're still trying to reach the other server.
+		logger.Trace("reading peering secret", "sequence_id", seq)
+		secret, err := s.fsm.State().PeeringSecretsRead(ws, peer.ID)
+		if err != nil {
+			return fmt.Errorf("failed to read secret for peering: %w", err)
+		}
+		if secret.GetStream().GetActiveSecretID() == "" {
+			continue
+		}
 
-		// TODO(peering): If there is new peering data and a connected stream, should we tear down the stream?
+		status, found := s.peerStreamServer.StreamStatus(peer.ID)
 		if found && status.Connected {
 			// Nothing to do when we already have an active stream to the peer.
+			// Updated data will only be used if the stream becomes disconnected
+			// since there's no need to tear down an active stream.
 			continue
 		}
 		logger.Trace("ensuring stream to peer", "peer_id", peer.ID, "sequence_id", seq)
@@ -259,7 +270,7 @@ func (s *Server) syncPeeringsAndBlock(ctx context.Context, logger hclog.Logger,
 			cancel()
 		}
 
-		if err := s.establishStream(ctx, logger, ws, peer, cancelFns); err != nil {
+		if err := s.establishStream(ctx, logger, peer, secret, cancelFns); err != nil {
 			// TODO(peering): These errors should be reported in the peer status, otherwise they're only in the logs.
 			//                Lockable status isn't available here though. Could report it via the peering.Service?
 			logger.Error("error establishing peering stream", "peer_id", peer.ID, "error", err)
@@ -273,7 +284,6 @@ func (s *Server) syncPeeringsAndBlock(ctx context.Context, logger hclog.Logger,
 	logger.Trace("checking connected streams", "streams", connectedStreams, "sequence_id", seq)
 
 	// Clean up active streams of peerings that were deleted from the state store.
-	// TODO(peering): This is going to trigger shutting down peerings we generated a token for. Is that OK?
 	for stream, doneCh := range connectedStreams {
 		if _, ok := stored[stream]; ok {
 			// Active stream is in the state store, nothing to do.
@@ -298,7 +308,11 @@ func (s *Server) syncPeeringsAndBlock(ctx context.Context, logger hclog.Logger,
 	return merr.ErrorOrNil()
 }
 
-func (s *Server) establishStream(ctx context.Context, logger hclog.Logger, ws memdb.WatchSet, peer *pbpeering.Peering, cancelFns map[string]context.CancelFunc) error {
+func (s *Server) establishStream(ctx context.Context,
+	logger hclog.Logger,
+	peer *pbpeering.Peering,
+	secret *pbpeering.PeeringSecrets,
+	cancelFns map[string]context.CancelFunc) error {
 	logger = logger.With("peer_name", peer.Name, "peer_id", peer.ID)
 
 	if peer.PeerID == "" {
@@ -310,10 +324,6 @@ func (s *Server) establishStream(ctx context.Context, logger hclog.Logger, ws me
 		return fmt.Errorf("failed to build TLS dial option from peering: %w", err)
 	}
 
-	secret, err := s.fsm.State().PeeringSecretsRead(ws, peer.ID)
-	if err != nil {
-		return fmt.Errorf("failed to read secret for peering: %w", err)
-	}
 	if secret.GetStream().GetActiveSecretID() == "" {
 		return errors.New("missing stream secret for peering stream authorization, peering must be re-established")
 	}
@@ -331,15 +341,21 @@ func (s *Server) establishStream(ctx context.Context, logger hclog.Logger, ws me
 	// Start a goroutine to watch for updates to peer server addresses.
 	// The latest valid server address can be received from nextServerAddr.
 	nextServerAddr := make(chan string)
-	go s.watchPeerServerAddrs(streamCtx, peer, nextServerAddr)
+	go s.watchAddresses(streamCtx, peer.ID, nextServerAddr)
 
 	// Establish a stream-specific retry so that retrying stream/conn errors isn't dependent on state store changes.
 	go retryLoopBackoffPeering(streamCtx, logger, func() error {
 		// Try a new address on each iteration by advancing the ring buffer on errors.
-		addr := <-nextServerAddr
+		addr, stillOpen := <-nextServerAddr
+		if !stillOpen {
+			// If the channel was closed that means the context was canceled, so we return.
+			return streamCtx.Err()
+		}
 
 		opts := []grpc.DialOption{
 			tlsOption,
+			// TODO(peering): Use a grpc.WithStatsHandler here.
+			//				  This should wait until the grpc-external server is wired up with a stats handler in NET-50.
 			// For keep alive parameters there is a larger comment in ClientConnPool.dial about that.
 			grpc.WithKeepaliveParams(keepalive.ClientParameters{
 				Time:    30 * time.Second,
@@ -349,7 +365,7 @@ func (s *Server) establishStream(ctx context.Context, logger hclog.Logger, ws me
 			}),
 			grpc.WithDefaultCallOptions(grpc.MaxCallSendMsgSize(50 * 1024 * 1024)),
 		}
-		// TODO(peering): use a grpc.WithStatsHandler here?)
+
 		logger.Trace("dialing peer", "addr", addr)
 		conn, err := grpc.DialContext(streamCtx, addr, opts...)
 
@@ -400,83 +416,75 @@ func (s *Server) establishStream(ctx context.Context, logger hclog.Logger, ws me
 	}, func(err error) {
 		// TODO(peering): why are we using TrackSendError here? This could also be a receive error.
 		streamStatus.TrackSendError(err.Error())
-		if isErrCode(err, codes.FailedPrecondition) {
+
+		switch {
+		case isErrCode(err, codes.FailedPrecondition):
 			logger.Debug("stream disconnected due to 'failed precondition' error; reconnecting",
 				"error", err)
-			return
-		} else if isErrCode(err, codes.ResourceExhausted) {
+
+		case isErrCode(err, codes.ResourceExhausted):
 			logger.Debug("stream disconnected due to 'resource exhausted' error; reconnecting",
 				"error", err)
-			return
+
+		case errors.Is(err, context.Canceled) || errors.Is(err, context.DeadlineExceeded):
+			logger.Debug("stream context was canceled", "error", err)
+
+		case err != nil:
+			logger.Error("error managing peering stream", "error", err)
 		}
-		logger.Error("error managing peering stream", "error", err)
 	}, peeringRetryTimeout)
 
 	return nil
 }
 
-// watchPeerServerAddrs sends an up-to-date peer server address to nextServerAddr.
-// It loads the server addresses into a ring buffer and cycles through them until:
-//  1. streamCtx is cancelled (peer is deleted)
-//  2. the peer is modified and the watchset fires.
+// watchAddresses sends an up-to-date address to nextServerAddr.
+// These could be either remote peer server addresses, or local mesh gateways.
+// The function loads the addresses into a ring buffer and cycles through them until:
+//  1. streamCtx is cancelled (peer is deleted or we're re-establishing the stream with new data)
+//  2. the peer, Mesh config entry, or (optionally) mesh gateway address set is modified, and the watchset fires.
 //
-// In case (2) we refetch the peering and rebuild the ring buffer.
-func (s *Server) watchPeerServerAddrs(ctx context.Context, peer *pbpeering.Peering, nextServerAddr chan<- string) {
+// In case (2) we re-fetch all the data sources and rebuild the ring buffer.
+// In the event that the PeerThroughMeshGateways is set in the Mesh entry, we front-load the ring buffer with
+// local mesh gateway addresses, so we can try those first, with the option to fall back to remote server addresses.
+func (s *Server) watchAddresses(ctx context.Context, peerID string, nextServerAddr chan<- string) {
 	defer close(nextServerAddr)
 
-	// we initialize the ring buffer with the peer passed to `establishStream`
-	// because the caller has pre-checked `peer.ShouldDial`, guaranteeing
-	// at least one server address.
-	//
-	// IMPORTANT: ringbuf must always be length > 0 or else `<-nextServerAddr` may block.
-	ringbuf := ring.New(len(peer.PeerServerAddresses))
-	for _, addr := range peer.PeerServerAddresses {
-		ringbuf.Value = addr
-		ringbuf = ringbuf.Next()
-	}
-	innerWs := memdb.NewWatchSet()
-	_, _, err := s.fsm.State().PeeringReadByID(innerWs, peer.ID)
-	if err != nil {
-		s.logger.Warn("failed to watch for changes to peer; server addresses may become stale over time.",
-			"peer_id", peer.ID,
-			"error", err)
-	}
+	var ringbuf *ring.Ring
+	var ws memdb.WatchSet
 
-	fetchAddrs := func() error {
-		// reinstantiate innerWs to prevent it from growing indefinitely
-		innerWs = memdb.NewWatchSet()
-		_, peering, err := s.fsm.State().PeeringReadByID(innerWs, peer.ID)
+	fetchAddresses := func() error {
+		// Re-instantiate ws since it can only be watched once.
+		ws = memdb.NewWatchSet()
+
+		newRing, _, err := s.peeringBackend.GetDialAddresses(s.logger, ws, peerID)
 		if err != nil {
-			return fmt.Errorf("failed to fetch peer %q: %w", peer.ID, err)
-		}
-		if !peering.IsActive() {
-			return fmt.Errorf("peer %q is no longer active", peer.ID)
-		}
-		if len(peering.PeerServerAddresses) == 0 {
-			return fmt.Errorf("peer %q has no addresses to dial", peer.ID)
+			return fmt.Errorf("failed to fetch updated addresses to dial peer: %w", err)
 		}
+		ringbuf = newRing
 
-		ringbuf = ring.New(len(peering.PeerServerAddresses))
-		for _, addr := range peering.PeerServerAddresses {
-			ringbuf.Value = addr
-			ringbuf = ringbuf.Next()
-		}
 		return nil
 	}
 
+	// Initialize the first ring buffer.
+	if err := fetchAddresses(); err != nil {
+		s.logger.Warn("error fetching addresses", "peer_id", peerID, "error", err)
+	}
+
 	for {
 		select {
 		case nextServerAddr <- ringbuf.Value.(string):
 			ringbuf = ringbuf.Next()
-		case err := <-innerWs.WatchCh(ctx):
+
+		case err := <-ws.WatchCh(ctx):
 			if err != nil {
-				// context was cancelled
+				// Context was cancelled.
 				return
 			}
-			// watch fired so we refetch the peering and rebuild the ring buffer
-			if err := fetchAddrs(); err != nil {
-				s.logger.Warn("watchset for peer was fired but failed to update server addresses",
-					"peer_id", peer.ID,
+
+			// Watch fired so we re-fetch the necessary addresses and replace the ring buffer.
+			if err := fetchAddresses(); err != nil {
+				s.logger.Warn("watch for new addresses fired but the address list to dial may not have been updated",
+					"peer_id", peerID,
 					"error", err)
 			}
 		}
diff --git a/agent/consul/leader_peering_test.go b/agent/consul/leader_peering_test.go
index 5f59787764..fca4bfeaae 100644
--- a/agent/consul/leader_peering_test.go
+++ b/agent/consul/leader_peering_test.go
@@ -8,10 +8,12 @@ import (
 	"fmt"
 	"io/ioutil"
 	"math"
+	"net"
 	"testing"
 	"time"
 
 	"github.com/armon/go-metrics"
+	"github.com/google/tcpproxy"
 	msgpackrpc "github.com/hashicorp/consul-net-rpc/net-rpc-msgpackrpc"
 	"github.com/hashicorp/go-hclog"
 	"github.com/stretchr/testify/assert"
@@ -567,7 +569,7 @@ func testLeader_PeeringSync_failsForTLSError(t *testing.T, tokenMutateFn func(to
 	}
 
 	// Since the Establish RPC dials the remote cluster, it will yield the TLS error.
-	ctx, cancel = context.WithTimeout(context.Background(), 3*time.Second)
+	ctx, cancel = context.WithTimeout(context.Background(), 10*time.Second)
 	t.Cleanup(cancel)
 	_, err = s2Client.Establish(ctx, &establishReq)
 	require.Contains(t, err.Error(), expectErr)
@@ -1861,3 +1863,239 @@ func Test_Leader_PeeringSync_ServerAddressUpdates(t *testing.T) {
 		})
 	})
 }
+
+func Test_Leader_PeeringSync_PeerThroughMeshGateways_ServerFallBack(t *testing.T) {
+	if testing.Short() {
+		t.Skip("too slow for testing.Short")
+	}
+
+	ca := connect.TestCA(t, nil)
+	_, acceptor := testServerWithConfig(t, func(c *Config) {
+		c.NodeName = "acceptor"
+		c.Datacenter = "dc1"
+		c.TLSConfig.Domain = "consul"
+		c.GRPCTLSPort = freeport.GetOne(t)
+		c.CAConfig = &structs.CAConfiguration{
+			ClusterID: connect.TestClusterID,
+			Provider:  structs.ConsulCAProvider,
+			Config: map[string]interface{}{
+				"PrivateKey": ca.SigningKey,
+				"RootCert":   ca.RootCert,
+			},
+		}
+	})
+	testrpc.WaitForLeader(t, acceptor.RPC, "dc1")
+
+	// Create a peering by generating a token
+	ctx, cancel := context.WithTimeout(context.Background(), 3*time.Second)
+	t.Cleanup(cancel)
+
+	conn, err := grpc.DialContext(ctx, acceptor.config.RPCAddr.String(),
+		grpc.WithContextDialer(newServerDialer(acceptor.config.RPCAddr.String())),
+		grpc.WithInsecure(),
+		grpc.WithBlock())
+	require.NoError(t, err)
+	defer conn.Close()
+
+	acceptorClient := pbpeering.NewPeeringServiceClient(conn)
+
+	req := pbpeering.GenerateTokenRequest{
+		PeerName: "my-peer-dialer",
+	}
+	resp, err := acceptorClient.GenerateToken(ctx, &req)
+	require.NoError(t, err)
+
+	// Bring up dialer and establish a peering with acceptor's token so that it attempts to dial.
+	_, dialer := testServerWithConfig(t, func(c *Config) {
+		c.NodeName = "dialer"
+		c.Datacenter = "dc2"
+		c.PrimaryDatacenter = "dc2"
+	})
+	testrpc.WaitForLeader(t, dialer.RPC, "dc2")
+
+	// Configure peering to go through mesh gateways
+	store := dialer.fsm.State()
+	require.NoError(t, store.EnsureConfigEntry(1, &structs.MeshConfigEntry{
+		Peering: &structs.PeeringMeshConfig{
+			PeerThroughMeshGateways: true,
+		},
+	}))
+
+	// Register a gateway that isn't actually listening.
+	require.NoError(t, store.EnsureRegistration(2, &structs.RegisterRequest{
+		ID:      types.NodeID(testUUID()),
+		Node:    "gateway-node-1",
+		Address: "127.0.0.1",
+		Service: &structs.NodeService{
+			Kind:    structs.ServiceKindMeshGateway,
+			ID:      "mesh-gateway-1",
+			Service: "mesh-gateway",
+			Port:    freeport.GetOne(t),
+		},
+	}))
+
+	// Create a peering at dialer by establishing a peering with acceptor's token
+	ctx, cancel = context.WithTimeout(context.Background(), 3*time.Second)
+	t.Cleanup(cancel)
+
+	conn, err = grpc.DialContext(ctx, dialer.config.RPCAddr.String(),
+		grpc.WithContextDialer(newServerDialer(dialer.config.RPCAddr.String())),
+		grpc.WithInsecure(),
+		grpc.WithBlock())
+	require.NoError(t, err)
+	defer conn.Close()
+
+	dialerClient := pbpeering.NewPeeringServiceClient(conn)
+
+	establishReq := pbpeering.EstablishRequest{
+		PeerName:     "my-peer-acceptor",
+		PeeringToken: resp.PeeringToken,
+	}
+	_, err = dialerClient.Establish(ctx, &establishReq)
+	require.NoError(t, err)
+
+	p, err := dialerClient.PeeringRead(ctx, &pbpeering.PeeringReadRequest{Name: "my-peer-acceptor"})
+	require.NoError(t, err)
+
+	// The peering should eventually connect because we fall back to the token's server addresses.
+	retry.Run(t, func(r *retry.R) {
+		status, found := dialer.peerStreamServer.StreamStatus(p.Peering.ID)
+		require.True(r, found)
+		require.True(r, status.Connected)
+	})
+}
+
+func Test_Leader_PeeringSync_PeerThroughMeshGateways_Success(t *testing.T) {
+	if testing.Short() {
+		t.Skip("too slow for testing.Short")
+	}
+
+	ca := connect.TestCA(t, nil)
+	_, acceptor := testServerWithConfig(t, func(c *Config) {
+		c.NodeName = "acceptor"
+		c.Datacenter = "dc1"
+		c.TLSConfig.Domain = "consul"
+		c.GRPCTLSPort = freeport.GetOne(t)
+		c.CAConfig = &structs.CAConfiguration{
+			ClusterID: connect.TestClusterID,
+			Provider:  structs.ConsulCAProvider,
+			Config: map[string]interface{}{
+				"PrivateKey": ca.SigningKey,
+				"RootCert":   ca.RootCert,
+			},
+		}
+	})
+	testrpc.WaitForLeader(t, acceptor.RPC, "dc1")
+
+	// Create a peering by generating a token
+	ctx, cancel := context.WithTimeout(context.Background(), 3*time.Second)
+	t.Cleanup(cancel)
+
+	conn, err := grpc.DialContext(ctx, acceptor.config.RPCAddr.String(),
+		grpc.WithContextDialer(newServerDialer(acceptor.config.RPCAddr.String())),
+		grpc.WithInsecure(),
+		grpc.WithBlock())
+	require.NoError(t, err)
+	defer conn.Close()
+
+	acceptorClient := pbpeering.NewPeeringServiceClient(conn)
+
+	req := pbpeering.GenerateTokenRequest{
+		PeerName: "my-peer-dialer",
+	}
+	resp, err := acceptorClient.GenerateToken(ctx, &req)
+	require.NoError(t, err)
+
+	// Bring up dialer and establish a peering with acceptor's token so that it attempts to dial.
+	_, dialer := testServerWithConfig(t, func(c *Config) {
+		c.NodeName = "dialer"
+		c.Datacenter = "dc2"
+		c.PrimaryDatacenter = "dc2"
+	})
+	testrpc.WaitForLeader(t, dialer.RPC, "dc2")
+
+	// Configure peering to go through mesh gateways
+	store := dialer.fsm.State()
+	require.NoError(t, store.EnsureConfigEntry(1, &structs.MeshConfigEntry{
+		Peering: &structs.PeeringMeshConfig{
+			PeerThroughMeshGateways: true,
+		},
+	}))
+
+	// Register a mesh gateway and a tcpproxy listening at its address.
+	gatewayPort := freeport.GetOne(t)
+	gatewayAddr := fmt.Sprintf("127.0.0.1:%d", gatewayPort)
+
+	require.NoError(t, store.EnsureRegistration(3, &structs.RegisterRequest{
+		ID:      types.NodeID(testUUID()),
+		Node:    "gateway-node-2",
+		Address: "127.0.0.1",
+		Service: &structs.NodeService{
+			Kind:    structs.ServiceKindMeshGateway,
+			ID:      "mesh-gateway-2",
+			Service: "mesh-gateway",
+			Port:    gatewayPort,
+		},
+	}))
+
+	// Configure a TCP proxy with an SNI route corresponding to the acceptor cluster.
+	var proxy tcpproxy.Proxy
+	target := &connWrapper{
+		proxy: tcpproxy.DialProxy{
+			Addr: fmt.Sprintf("127.0.0.1:%d", acceptor.config.GRPCTLSPort),
+		},
+	}
+	proxy.AddSNIRoute(gatewayAddr, "server.dc1.peering.11111111-2222-3333-4444-555555555555.consul", target)
+	proxy.AddStopACMESearch(gatewayAddr)
+
+	require.NoError(t, proxy.Start())
+	t.Cleanup(func() {
+		proxy.Close()
+		proxy.Wait()
+	})
+
+	// Create a peering at dialer by establishing a peering with acceptor's token
+	ctx, cancel = context.WithTimeout(context.Background(), 3*time.Second)
+	t.Cleanup(cancel)
+
+	conn, err = grpc.DialContext(ctx, dialer.config.RPCAddr.String(),
+		grpc.WithContextDialer(newServerDialer(dialer.config.RPCAddr.String())),
+		grpc.WithInsecure(),
+		grpc.WithBlock())
+	require.NoError(t, err)
+	defer conn.Close()
+
+	dialerClient := pbpeering.NewPeeringServiceClient(conn)
+
+	establishReq := pbpeering.EstablishRequest{
+		PeerName:     "my-peer-acceptor",
+		PeeringToken: resp.PeeringToken,
+	}
+	_, err = dialerClient.Establish(ctx, &establishReq)
+	require.NoError(t, err)
+
+	p, err := dialerClient.PeeringRead(ctx, &pbpeering.PeeringReadRequest{Name: "my-peer-acceptor"})
+	require.NoError(t, err)
+
+	// The peering should eventually connect through the gateway address.
+	retry.Run(t, func(r *retry.R) {
+		status, found := dialer.peerStreamServer.StreamStatus(p.Peering.ID)
+		require.True(r, found)
+		require.True(r, status.Connected)
+	})
+
+	// target.called is true when the tcproxy's conn handler was invoked.
+	// This lets us know that the "Establish" success flowed through the proxy masquerading as a gateway.
+	require.True(t, target.called)
+}
+
+// connWrapper is a wrapper around tcpproxy.DialProxy to enable tracking whether the proxy handled a connection.
+type connWrapper struct {
+	proxy  tcpproxy.DialProxy
+	called bool
+}
+
+func (w *connWrapper) HandleConn(src net.Conn) {
+	w.called = true
+	w.proxy.HandleConn(src)
+}
diff --git a/agent/consul/peering_backend.go b/agent/consul/peering_backend.go
index 26c2f19436..d9daeaea15 100644
--- a/agent/consul/peering_backend.go
+++ b/agent/consul/peering_backend.go
@@ -1,12 +1,16 @@
 package consul
 
 import (
+	"container/ring"
 	"encoding/base64"
 	"encoding/json"
 	"fmt"
 	"strconv"
 	"sync"
 
+	"github.com/hashicorp/go-hclog"
+	"github.com/hashicorp/go-memdb"
+
 	"github.com/hashicorp/consul/acl"
 	"github.com/hashicorp/consul/acl/resolver"
 	"github.com/hashicorp/consul/agent/connect"
@@ -85,29 +89,114 @@ func (b *PeeringBackend) GetTLSMaterials(generatingToken bool) (string, []string
 	return serverName, caPems, nil
 }
 
-// GetServerAddresses looks up server or mesh gateway addresses from the state store.
-func (b *PeeringBackend) GetServerAddresses() ([]string, error) {
-	_, rawEntry, err := b.srv.fsm.State().ConfigEntry(nil, structs.MeshConfig, structs.MeshConfigMesh, acl.DefaultEnterpriseMeta())
-	if err != nil {
-		return nil, fmt.Errorf("failed to read mesh config entry: %w", err)
-	}
+// GetLocalServerAddresses looks up server or mesh gateway addresses from the state store for a peer to dial.
+func (b *PeeringBackend) GetLocalServerAddresses() ([]string, error) {
+	store := b.srv.fsm.State()
 
-	meshConfig, ok := rawEntry.(*structs.MeshConfigEntry)
-	if ok && meshConfig.Peering != nil && meshConfig.Peering.PeerThroughMeshGateways {
-		return meshGatewayAdresses(b.srv.fsm.State())
+	useGateways, err := b.PeerThroughMeshGateways(nil)
+	if err != nil {
+		// For inbound traffic we prefer to fail fast if we can't determine whether we should peer through MGW.
+		// This prevents unexpectedly sharing local server addresses when a user only intended to peer through gateways.
+		return nil, fmt.Errorf("failed to determine if peering should happen through mesh gateways: %w", err)
 	}
-	return serverAddresses(b.srv.fsm.State())
+	if useGateways {
+		return meshGatewayAdresses(store, nil, true)
+	}
+	return serverAddresses(store)
 }
 
-func meshGatewayAdresses(state *state.Store) ([]string, error) {
-	_, nodes, err := state.ServiceDump(nil, structs.ServiceKindMeshGateway, true, acl.DefaultEnterpriseMeta(), structs.DefaultPeerKeyword)
+// GetDialAddresses returns: the addresses to cycle through when dialing a peer's servers,
+// a boolean indicating whether mesh gateways are present, and an optional error.
+// The resulting ring buffer is front-loaded with the local mesh gateway addresses if they are present.
+func (b *PeeringBackend) GetDialAddresses(logger hclog.Logger, ws memdb.WatchSet, peerID string) (*ring.Ring, bool, error) {
+	newRing, err := b.fetchPeerServerAddresses(ws, peerID)
+	if err != nil {
+		return nil, false, fmt.Errorf("failed to refresh peer server addresses, will continue to use initial addresses: %w", err)
+	}
+
+	gatewayRing, err := b.maybeFetchGatewayAddresses(ws)
+	if err != nil {
+		// If we couldn't fetch the mesh gateway addresses we fall back to dialing the remote server addresses.
+		logger.Warn("failed to refresh local gateway addresses, will attempt to dial peer directly: %w", "error", err)
+		return newRing, false, nil
+	}
+	if gatewayRing != nil {
+		// The ordering is important here. We always want to start with the mesh gateway
+		// addresses and fallback to the remote addresses, so we append the server addresses
+		// in newRing to gatewayRing.
+		newRing = gatewayRing.Link(newRing)
+	}
+	return newRing, gatewayRing != nil, nil
+}
+
+// fetchPeerServerAddresses will return a ring buffer with the latest peer server addresses.
+// If the peering is no longer active or does not have addresses, then we return an error.
+func (b *PeeringBackend) fetchPeerServerAddresses(ws memdb.WatchSet, peerID string) (*ring.Ring, error) {
+	_, peering, err := b.Store().PeeringReadByID(ws, peerID)
+	if err != nil {
+		return nil, fmt.Errorf("failed to fetch peer %q: %w", peerID, err)
+	}
+	if !peering.IsActive() {
+		return nil, fmt.Errorf("there is no active peering for %q", peerID)
+	}
+	return bufferFromAddresses(peering.PeerServerAddresses)
+}
+
+// maybeFetchGatewayAddresses will return a ring buffer with the latest gateway addresses if the
+// local datacenter is configured to peer through mesh gateways and there are local gateways registered.
+// If neither of these are true then we return a nil buffer.
+func (b *PeeringBackend) maybeFetchGatewayAddresses(ws memdb.WatchSet) (*ring.Ring, error) {
+	useGateways, err := b.PeerThroughMeshGateways(ws)
+	if err != nil {
+		return nil, fmt.Errorf("failed to determine if peering should happen through mesh gateways: %w", err)
+	}
+	if useGateways {
+		addresses, err := meshGatewayAdresses(b.srv.fsm.State(), ws, false)
+		if err != nil {
+			return nil, fmt.Errorf("error fetching local mesh gateway addresses: %w", err)
+		}
+		return bufferFromAddresses(addresses)
+	}
+	return nil, nil
+}
+
+// PeerThroughMeshGateways determines if the config entry to enable peering control plane
+// traffic through a mesh gateway is set to enable.
+func (b *PeeringBackend) PeerThroughMeshGateways(ws memdb.WatchSet) (bool, error) {
+	_, rawEntry, err := b.srv.fsm.State().ConfigEntry(ws, structs.MeshConfig, structs.MeshConfigMesh, acl.DefaultEnterpriseMeta())
+	if err != nil {
+		return false, fmt.Errorf("failed to read mesh config entry: %w", err)
+	}
+	mesh, ok := rawEntry.(*structs.MeshConfigEntry)
+	if rawEntry != nil && !ok {
+		return false, fmt.Errorf("got unexpected type for mesh config entry: %T", rawEntry)
+	}
+	return mesh.PeerThroughMeshGateways(), nil
+
+}
+
+func bufferFromAddresses(addresses []string) (*ring.Ring, error) {
+	// IMPORTANT: The address ring buffer must always be length > 0
+	if len(addresses) == 0 {
+		return nil, fmt.Errorf("no known addresses")
+	}
+	ring := ring.New(len(addresses))
+	for _, addr := range addresses {
+		ring.Value = addr
+		ring = ring.Next()
+	}
+	return ring, nil
+}
+
+func meshGatewayAdresses(state *state.Store, ws memdb.WatchSet, wan bool) ([]string, error) {
+	_, nodes, err := state.ServiceDump(ws, structs.ServiceKindMeshGateway, true, acl.DefaultEnterpriseMeta(), structs.DefaultPeerKeyword)
 	if err != nil {
 		return nil, fmt.Errorf("failed to dump gateway addresses: %w", err)
 	}
 
 	var addrs []string
 	for _, node := range nodes {
-		_, addr, port := node.BestAddress(true)
+		_, addr, port := node.BestAddress(wan)
 		addrs = append(addrs, ipaddr.FormatAddressPort(addr, port))
 	}
 	if len(addrs) == 0 {
diff --git a/agent/consul/peering_backend_test.go b/agent/consul/peering_backend_test.go
index 0d834c09a9..a962bdefc0 100644
--- a/agent/consul/peering_backend_test.go
+++ b/agent/consul/peering_backend_test.go
@@ -10,6 +10,7 @@ import (
 	gogrpc "google.golang.org/grpc"
 
 	"github.com/hashicorp/consul/agent/connect"
+	"github.com/hashicorp/consul/agent/consul/state"
 	"github.com/hashicorp/consul/agent/pool"
 	"github.com/hashicorp/consul/agent/structs"
 	"github.com/hashicorp/consul/proto/pbpeering"
@@ -76,7 +77,7 @@ func TestPeeringBackend_ForwardToLeader(t *testing.T) {
 	})
 }
 
-func TestPeeringBackend_GetServerAddresses(t *testing.T) {
+func TestPeeringBackend_GetLocalServerAddresses(t *testing.T) {
 	if testing.Short() {
 		t.Skip("too slow for testing.Short")
 	}
@@ -91,7 +92,7 @@ func TestPeeringBackend_GetServerAddresses(t *testing.T) {
 	backend := NewPeeringBackend(srv)
 
 	testutil.RunStep(t, "peer to servers", func(t *testing.T) {
-		addrs, err := backend.GetServerAddresses()
+		addrs, err := backend.GetLocalServerAddresses()
 		require.NoError(t, err)
 
 		expect := fmt.Sprintf("127.0.0.1:%d", srv.config.GRPCTLSPort)
@@ -107,7 +108,7 @@ func TestPeeringBackend_GetServerAddresses(t *testing.T) {
 		}
 
 		require.NoError(t, srv.fsm.State().EnsureConfigEntry(1, &mesh))
-		addrs, err := backend.GetServerAddresses()
+		addrs, err := backend.GetLocalServerAddresses()
 		require.NoError(t, err)
 
 		// Still expect server address because PeerThroughMeshGateways was not enabled.
@@ -121,7 +122,7 @@ func TestPeeringBackend_GetServerAddresses(t *testing.T) {
 		}
 		require.NoError(t, srv.fsm.State().EnsureConfigEntry(1, &mesh))
 
-		addrs, err := backend.GetServerAddresses()
+		addrs, err := backend.GetLocalServerAddresses()
 		require.Nil(t, addrs)
 		testutil.RequireErrorContains(t, err,
 			"servers are configured to PeerThroughMeshGateways, but no mesh gateway instances are registered")
@@ -147,12 +148,221 @@ func TestPeeringBackend_GetServerAddresses(t *testing.T) {
 		}
 		require.NoError(t, srv.fsm.State().EnsureRegistration(2, &reg))
 
-		addrs, err := backend.GetServerAddresses()
+		addrs, err := backend.GetLocalServerAddresses()
 		require.NoError(t, err)
 		require.Equal(t, []string{"154.238.12.252:8443"}, addrs)
 	})
 }
 
+func TestPeeringBackend_GetDialAddresses(t *testing.T) {
+	if testing.Short() {
+		t.Skip("too slow for testing.Short")
+	}
+
+	_, cfg := testServerConfig(t)
+	cfg.GRPCTLSPort = freeport.GetOne(t)
+
+	srv, err := newServer(t, cfg)
+	require.NoError(t, err)
+	testrpc.WaitForLeader(t, srv.RPC, "dc1")
+
+	backend := NewPeeringBackend(srv)
+
+	dialerPeerID := testUUID()
+	acceptorPeerID := testUUID()
+
+	type expectation struct {
+		addrs        []string
+		haveGateways bool
+		err          string
+	}
+
+	type testCase struct {
+		name   string
+		setup  func(store *state.Store)
+		peerID string
+		expect expectation
+	}
+
+	run := func(t *testing.T, tc testCase) {
+		if tc.setup != nil {
+			tc.setup(srv.fsm.State())
+		}
+
+		ring, haveGateways, err := backend.GetDialAddresses(testutil.Logger(t), nil, tc.peerID)
+		if tc.expect.err != "" {
+			testutil.RequireErrorContains(t, err, tc.expect.err)
+			return
+		}
+		require.Equal(t, tc.expect.haveGateways, haveGateways)
+		require.NotNil(t, ring)
+
+		var addrs []string
+		ring.Do(func(value any) {
+			addr, ok := value.(string)
+
+			require.True(t, ok)
+			addrs = append(addrs, addr)
+		})
+		require.Equal(t, tc.expect.addrs, addrs)
+	}
+
+	// NOTE: The following tests are set up to run serially with RunStep to save on the setup/teardown cost for a test server.
+	tt := []testCase{
+		{
+			name: "unknown peering",
+			setup: func(store *state.Store) {
+				// Test peering is not written during setup
+			},
+			peerID: acceptorPeerID,
+			expect: expectation{
+				err: fmt.Sprintf(`there is no active peering for %q`, acceptorPeerID),
+			},
+		},
+		{
+			name: "no server addresses",
+			setup: func(store *state.Store) {
+				require.NoError(t, store.PeeringWrite(1, &pbpeering.PeeringWriteRequest{
+					Peering: &pbpeering.Peering{
+						Name: "acceptor",
+						ID:   acceptorPeerID,
+						// Acceptor peers do not have PeerServerAddresses populated locally.
+					},
+				}))
+			},
+			peerID: acceptorPeerID,
+			expect: expectation{
+				err: "no known addresses",
+			},
+		},
+		{
+			name: "only server addrs are returned when mesh config does not exist",
+			setup: func(store *state.Store) {
+				require.NoError(t, store.PeeringWrite(2, &pbpeering.PeeringWriteRequest{
+					Peering: &pbpeering.Peering{
+						Name:                "dialer",
+						ID:                  dialerPeerID,
+						PeerServerAddresses: []string{"1.2.3.4:8502", "2.3.4.5:8503"},
+					},
+				}))
+
+				// Mesh config entry does not exist
+			},
+			peerID: dialerPeerID,
+			expect: expectation{
+				haveGateways: false,
+				addrs:        []string{"1.2.3.4:8502", "2.3.4.5:8503"},
+			},
+		},
+		{
+			name: "only server addrs are returned when not peering through gateways",
+			setup: func(store *state.Store) {
+				require.NoError(t, srv.fsm.State().EnsureConfigEntry(3, &structs.MeshConfigEntry{
+					Peering: &structs.PeeringMeshConfig{
+						PeerThroughMeshGateways: false, // Peering through gateways is not enabled
+					},
+				}))
+			},
+			peerID: dialerPeerID,
+			expect: expectation{
+				haveGateways: false,
+				addrs:        []string{"1.2.3.4:8502", "2.3.4.5:8503"},
+			},
+		},
+		{
+			name: "only server addrs are returned when peering through gateways without gateways registered",
+			setup: func(store *state.Store) {
+				require.NoError(t, srv.fsm.State().EnsureConfigEntry(4, &structs.MeshConfigEntry{
+					Peering: &structs.PeeringMeshConfig{
+						PeerThroughMeshGateways: true,
+					},
+				}))
+
+				// No gateways are registered
+			},
+			peerID: dialerPeerID,
+			expect: expectation{
+				haveGateways: false,
+
+				// Fall back to remote server addresses
+				addrs: []string{"1.2.3.4:8502", "2.3.4.5:8503"},
+			},
+		},
+		{
+			name: "gateway addresses are included after gateways are registered",
+			setup: func(store *state.Store) {
+				require.NoError(t, srv.fsm.State().EnsureRegistration(5, &structs.RegisterRequest{
+					ID:      types.NodeID(testUUID()),
+					Node:    "gateway-node-1",
+					Address: "5.6.7.8",
+					Service: &structs.NodeService{
+						Kind:    structs.ServiceKindMeshGateway,
+						ID:      "mesh-gateway-1",
+						Service: "mesh-gateway",
+						Port:    8443,
+						TaggedAddresses: map[string]structs.ServiceAddress{
+							structs.TaggedAddressWAN: {
+								Address: "my-lb-addr.not-aws.com",
+								Port:    443,
+							},
+						},
+					},
+				}))
+				require.NoError(t, srv.fsm.State().EnsureRegistration(6, &structs.RegisterRequest{
+					ID:      types.NodeID(testUUID()),
+					Node:    "gateway-node-2",
+					Address: "6.7.8.9",
+					Service: &structs.NodeService{
+						Kind:    structs.ServiceKindMeshGateway,
+						ID:      "mesh-gateway-2",
+						Service: "mesh-gateway",
+						Port:    8443,
+						TaggedAddresses: map[string]structs.ServiceAddress{
+							structs.TaggedAddressWAN: {
+								Address: "my-other-lb-addr.not-aws.com",
+								Port:    443,
+							},
+						},
+					},
+				}))
+			},
+			peerID: dialerPeerID,
+			expect: expectation{
+				haveGateways: true,
+
+				// Gateways come first, and we use their LAN addresses since this is for outbound communication.
+				addrs: []string{"6.7.8.9:8443", "5.6.7.8:8443", "1.2.3.4:8502", "2.3.4.5:8503"},
+			},
+		},
+		{
+			name: "addresses are not returned if the peering is deleted",
+			setup: func(store *state.Store) {
+				require.NoError(t, store.PeeringWrite(5, &pbpeering.PeeringWriteRequest{
+					Peering: &pbpeering.Peering{
+						Name:                "dialer",
+						ID:                  dialerPeerID,
+						PeerServerAddresses: []string{"1.2.3.4:8502", "2.3.4.5:8503"},
+
+						// Mark as deleted
+						State:     pbpeering.PeeringState_DELETING,
+						DeletedAt: structs.TimeToProto(time.Now()),
+					},
+				}))
+			},
+			peerID: dialerPeerID,
+			expect: expectation{
+				err: fmt.Sprintf(`there is no active peering for %q`, dialerPeerID),
+			},
+		},
+	}
+
+	for _, tc := range tt {
+		testutil.RunStep(t, tc.name, func(t *testing.T) {
+			run(t, tc)
+		})
+	}
+}
+
 func newServerDialer(serverAddr string) func(context.Context, string) (net.Conn, error) {
 	return func(ctx context.Context, addr string) (net.Conn, error) {
 		d := net.Dialer{}
diff --git a/agent/grpc-external/services/peerstream/stream_resources.go b/agent/grpc-external/services/peerstream/stream_resources.go
index 281156a222..bf9d1b791a 100644
--- a/agent/grpc-external/services/peerstream/stream_resources.go
+++ b/agent/grpc-external/services/peerstream/stream_resources.go
@@ -709,7 +709,7 @@ func getTrustDomain(store StateStore, logger hclog.Logger) (string, error) {
 		return "", grpcstatus.Error(codes.Internal, "failed to read Connect CA Config")
 	case cfg == nil:
 		logger.Warn("cannot begin stream because Connect CA is not yet initialized")
-		return "", grpcstatus.Error(codes.FailedPrecondition, "Connect CA is not yet initialized")
+		return "", grpcstatus.Error(codes.Unavailable, "Connect CA is not yet initialized")
 	}
 	return connect.SpiffeIDSigningForCluster(cfg.ClusterID).Host(), nil
 }
diff --git a/agent/proxycfg/mesh_gateway.go b/agent/proxycfg/mesh_gateway.go
index 1378f9b9bf..63747a9404 100644
--- a/agent/proxycfg/mesh_gateway.go
+++ b/agent/proxycfg/mesh_gateway.go
@@ -9,6 +9,7 @@ import (
 	"strings"
 	"time"
 
+	"github.com/hashicorp/consul/acl"
 	"github.com/hashicorp/go-hclog"
 
 	cachetype "github.com/hashicorp/consul/agent/cache-types"
@@ -564,7 +565,7 @@ func (s *handlerMeshGateway) handleUpdate(ctx context.Context, u UpdateEvent, sn
 			peeringListCtx, cancel := context.WithCancel(ctx)
 			err := s.dataSources.PeeringList.Notify(peeringListCtx, &cachetype.PeeringListRequest{
 				Request: &pbpeering.PeeringListRequest{
-					Partition: structs.WildcardSpecifier,
+					Partition: acl.WildcardPartitionName,
 				},
 			}, peerServersWatchID, s.ch)
 			if err != nil {
diff --git a/agent/proxycfg/state_test.go b/agent/proxycfg/state_test.go
index eb41aaaf98..9d884e3014 100644
--- a/agent/proxycfg/state_test.go
+++ b/agent/proxycfg/state_test.go
@@ -247,7 +247,7 @@ func genVerifyPeeringListWatchForMeshGateway() verifyWatchRequest {
 	return func(t testing.TB, request any) {
 		reqReal, ok := request.(*cachetype.PeeringListRequest)
 		require.True(t, ok)
-		require.Equal(t, structs.WildcardSpecifier, reqReal.Request.Partition)
+		require.Equal(t, acl.WildcardPartitionName, reqReal.Request.Partition)
 	}
 }
 
diff --git a/agent/rpc/peering/service.go b/agent/rpc/peering/service.go
index c5abb3d9af..c6eb78dea9 100644
--- a/agent/rpc/peering/service.go
+++ b/agent/rpc/peering/service.go
@@ -1,6 +1,7 @@
 package peering
 
 import (
+	"container/ring"
 	"context"
 	"errors"
 	"fmt"
@@ -8,6 +9,7 @@ import (
 	"time"
 
 	"github.com/armon/go-metrics"
+	"github.com/hashicorp/consul/lib/retry"
 	"github.com/hashicorp/go-hclog"
 	"github.com/hashicorp/go-memdb"
 	"github.com/hashicorp/go-multierror"
@@ -36,6 +38,15 @@ var (
 	errPeeringTokenEmptyPeerID          = errors.New("peering token peer ID value is empty")
 )
 
+const (
+	// meshGatewayWait is the initial wait on calls to exchange a secret with a peer when dialing through a gateway.
+	// This wait provides some time for the first gateway address to configure a route to the peer servers.
+	// Why 350ms? That is roughly the p50 latency we observed in a scale test for proxy config propagation:
+	// https://www.hashicorp.com/cgsb
+	meshGatewayWait      = 350 * time.Millisecond
+	establishmentTimeout = 5 * time.Second
+)
+
 // errPeeringInvalidServerAddress is returned when an establish request contains
 // an invalid server address.
 type errPeeringInvalidServerAddress struct {
@@ -118,9 +129,9 @@ type Backend interface {
 	// It returns the server name to validate, and the CA certificate to validate with.
 	GetTLSMaterials(generatingToken bool) (string, []string, error)
 
-	// GetServerAddresses returns the addresses used for establishing a peering connection.
+	// GetLocalServerAddresses returns the addresses used for establishing a peering connection.
 	// These may be server addresses or mesh gateway addresses if peering through mesh gateways.
-	GetServerAddresses() ([]string, error)
+	GetLocalServerAddresses() ([]string, error)
 
 	// EncodeToken packages a peering token into a slice of bytes.
 	EncodeToken(tok *structs.PeeringToken) ([]byte, error)
@@ -128,6 +139,12 @@ type Backend interface {
 	// DecodeToken unpackages a peering token from a slice of bytes.
 	DecodeToken([]byte) (*structs.PeeringToken, error)
 
+	// GetDialAddresses returns: the addresses to cycle through when dialing a peer's servers,
+	// a boolean indicating whether mesh gateways are present, and an optional error.
+	// The resulting ring buffer is front-loaded with the local mesh gateway addresses if the local
+	// datacenter is configured to dial through mesh gateways.
+	GetDialAddresses(logger hclog.Logger, ws memdb.WatchSet, peerID string) (*ring.Ring, bool, error)
+
 	EnterpriseCheckPartitions(partition string) error
 
 	EnterpriseCheckNamespaces(namespace string) error
@@ -298,7 +315,7 @@ func (s *Server) GenerateToken(
 	if len(req.ServerExternalAddresses) > 0 {
 		serverAddrs = req.ServerExternalAddresses
 	} else {
-		serverAddrs, err = s.Backend.GetServerAddresses()
+		serverAddrs, err = s.Backend.GetLocalServerAddresses()
 		if err != nil {
 			return nil, err
 		}
@@ -419,7 +436,13 @@ func (s *Server) Establish(
 		PeerServerName:      tok.ServerName,
 		PeerID:              tok.PeerID,
 		Meta:                req.Meta,
-		State:               pbpeering.PeeringState_ESTABLISHING,
+
+		// State is intentionally not set until after the secret exchange succeeds.
+		// This is to prevent a scenario where an active peering is re-established,
+		// the secret exchange fails, and the peering state gets stuck in "Establishing"
+		// while the original connection is still active.
+		// State: pbpeering.PeeringState_ESTABLISHING,
+
 		// PartitionOrEmpty is used to avoid writing "default" in OSS.
 		Partition: entMeta.PartitionOrEmpty(),
 		Remote: &pbpeering.RemoteInfo{
@@ -428,39 +451,30 @@ func (s *Server) Establish(
 		},
 	}
 
-	tlsOption, err := peering.TLSDialOption()
-	if err != nil {
-		return nil, fmt.Errorf("failed to build TLS dial option from peering: %w", err)
+	// Write the peering ahead of the ExchangeSecret handshake to give
+	// mesh gateways in the default partition an opportunity
+	// to update their config with an outbound route to this peer server.
+	//
+	// If the request to exchange a secret fails then the peering will continue to exist.
+	// We do not undo this write because this call to establish may actually be a re-establish call
+	// for an active peering.
+	writeReq := &pbpeering.PeeringWriteRequest{
+		Peering: peering,
+	}
+	if err := s.Backend.PeeringWrite(writeReq); err != nil {
+		return nil, fmt.Errorf("failed to write peering: %w", err)
 	}
 
-	exchangeReq := pbpeerstream.ExchangeSecretRequest{
-		PeerID:              peering.PeerID,
-		EstablishmentSecret: tok.EstablishmentSecret,
-	}
-	var exchangeResp *pbpeerstream.ExchangeSecretResponse
-
-	// Loop through the known server addresses once, attempting to fetch the long-lived stream secret.
-	var dialErrors error
-	for _, addr := range serverAddrs {
-		exchangeResp, err = exchangeSecret(ctx, addr, tlsOption, &exchangeReq)
-		if err != nil {
-			dialErrors = multierror.Append(dialErrors, fmt.Errorf("failed to exchange peering secret with %q: %w", addr, err))
-		}
-		if exchangeResp != nil {
-			break
-		}
-	}
+	exchangeResp, dialErrors := s.exchangeSecret(ctx, peering, tok.EstablishmentSecret)
 	if exchangeResp == nil {
 		return nil, dialErrors
 	}
+	peering.State = pbpeering.PeeringState_ESTABLISHING
 
 	// As soon as a peering is written with a non-empty list of ServerAddresses
 	// and an active stream secret, a leader routine will see the peering and
 	// attempt to establish a peering stream with the remote peer.
-	//
-	// This peer now has a record of both the LocalPeerID(ID) and
-	// RemotePeerID(PeerID) but at this point the other peer does not.
-	writeReq := &pbpeering.PeeringWriteRequest{
+	writeReq = &pbpeering.PeeringWriteRequest{
 		Peering: peering,
 		SecretsRequest: &pbpeering.SecretsWriteRequest{
 			PeerID: peering.ID,
@@ -474,7 +488,6 @@ func (s *Server) Establish(
 	if err := s.Backend.PeeringWrite(writeReq); err != nil {
 		return nil, fmt.Errorf("failed to write peering: %w", err)
 	}
-	// TODO(peering): low prio: consider adding response details
 	return resp, nil
 }
 
@@ -493,20 +506,78 @@ func (s *Server) validatePeeringLocality(token *structs.PeeringToken) error {
 	return nil
 }
 
-func exchangeSecret(ctx context.Context, addr string, tlsOption grpc.DialOption, req *pbpeerstream.ExchangeSecretRequest) (*pbpeerstream.ExchangeSecretResponse, error) {
-	dialCtx, cancel := context.WithTimeout(ctx, 10*time.Second)
+// exchangeSecret will continuously attempt to exchange the given establishment secret with the peer, up to a timeout.
+// This function will attempt to dial through mesh gateways if the local DC is configured to peer through gateways,
+// but will fall back to server addresses if not.
+func (s *Server) exchangeSecret(ctx context.Context, peering *pbpeering.Peering, establishmentSecret string) (*pbpeerstream.ExchangeSecretResponse, error) {
+	req := pbpeerstream.ExchangeSecretRequest{
+		PeerID:              peering.PeerID,
+		EstablishmentSecret: establishmentSecret,
+	}
+
+	tlsOption, err := peering.TLSDialOption()
+	if err != nil {
+		return nil, fmt.Errorf("failed to build TLS dial option from peering: %w", err)
+	}
+
+	ringBuf, usingGateways, err := s.Backend.GetDialAddresses(s.Logger, nil, peering.ID)
+	if err != nil {
+		return nil, fmt.Errorf("failed to get addresses to dial peer: %w", err)
+	}
+
+	var (
+		resp       *pbpeerstream.ExchangeSecretResponse
+		dialErrors error
+	)
+
+	retryWait := 150 * time.Millisecond
+	jitter := retry.NewJitter(25)
+
+	if usingGateways {
+		// If we are dialing through local gateways we sleep before issuing the first request.
+		// This gives the local gateways some time to configure a route to the peer servers.
+		time.Sleep(meshGatewayWait)
+	}
+
+	retryCtx, cancel := context.WithTimeout(ctx, establishmentTimeout)
 	defer cancel()
 
-	conn, err := grpc.DialContext(dialCtx, addr,
-		tlsOption,
-	)
-	if err != nil {
-		return nil, fmt.Errorf("failed to dial peer: %w", err)
-	}
-	defer conn.Close()
+	for retryCtx.Err() == nil {
+		addr := ringBuf.Value.(string)
 
-	client := pbpeerstream.NewPeerStreamServiceClient(conn)
-	return client.ExchangeSecret(ctx, req)
+		dialCtx, cancel := context.WithTimeout(ctx, 2*time.Second)
+		defer cancel()
+
+		conn, err := grpc.DialContext(dialCtx, addr,
+			tlsOption,
+		)
+		if err != nil {
+			return nil, fmt.Errorf("failed to dial peer: %w", err)
+		}
+		defer conn.Close()
+
+		client := pbpeerstream.NewPeerStreamServiceClient(conn)
+		resp, err = client.ExchangeSecret(ctx, &req)
+
+		// If we got a permission denied error that means out establishment secret is invalid, so we do not retry.
+		grpcErr, ok := grpcstatus.FromError(err)
+		if ok && grpcErr.Code() == codes.PermissionDenied {
+			return nil, fmt.Errorf("a new peering token must be generated: %w", grpcErr.Err())
+		}
+		if err != nil {
+			dialErrors = multierror.Append(dialErrors, fmt.Errorf("failed to exchange peering secret through address %q: %w", addr, err))
+		}
+		if resp != nil {
+			// Got a valid response. We're done.
+			break
+		}
+
+		time.Sleep(jitter(retryWait))
+
+		// Cycle to the next possible address.
+		ringBuf = ringBuf.Next()
+	}
+	return resp, dialErrors
 }
 
 // OPTIMIZE: Handle blocking queries
diff --git a/agent/rpc/peering/service_test.go b/agent/rpc/peering/service_test.go
index 300e463bee..f2db059e75 100644
--- a/agent/rpc/peering/service_test.go
+++ b/agent/rpc/peering/service_test.go
@@ -12,6 +12,7 @@ import (
 	"testing"
 	"time"
 
+	"github.com/google/tcpproxy"
 	"github.com/hashicorp/go-hclog"
 	"github.com/hashicorp/go-uuid"
 	"github.com/stretchr/testify/require"
@@ -476,6 +477,188 @@ func TestPeeringService_Establish(t *testing.T) {
 	})
 }
 
+func TestPeeringService_Establish_ThroughMeshGateway(t *testing.T) {
+	// This test is timing-sensitive, must not be run in parallel.
+	// t.Parallel()
+
+	acceptor := newTestServer(t, func(conf *consul.Config) {
+		conf.NodeName = "acceptor"
+	})
+	acceptorClient := pbpeering.NewPeeringServiceClient(acceptor.ClientConn(t))
+
+	dialer := newTestServer(t, func(conf *consul.Config) {
+		conf.NodeName = "dialer"
+		conf.Datacenter = "dc2"
+		conf.PrimaryDatacenter = "dc2"
+	})
+	dialerClient := pbpeering.NewPeeringServiceClient(dialer.ClientConn(t))
+
+	var peeringToken string
+
+	testutil.RunStep(t, "retry until timeout on dial errors", func(t *testing.T) {
+		ctx, cancel := context.WithTimeout(context.Background(), 10*time.Second)
+		t.Cleanup(cancel)
+
+		testToken := structs.PeeringToken{
+			ServerAddresses: []string{fmt.Sprintf("127.0.0.1:%d", freeport.GetOne(t))},
+			PeerID:          testUUID(t),
+		}
+		testTokenJSON, _ := json.Marshal(&testToken)
+		testTokenB64 := base64.StdEncoding.EncodeToString(testTokenJSON)
+
+		start := time.Now()
+		_, err := dialerClient.Establish(ctx, &pbpeering.EstablishRequest{
+			PeerName:     "my-peer-acceptor",
+			PeeringToken: testTokenB64,
+		})
+		require.Error(t, err)
+		testutil.RequireErrorContains(t, err, "connection refused")
+
+		require.Greater(t, time.Since(start), 5*time.Second)
+	})
+
+	testutil.RunStep(t, "peering can be established from token", func(t *testing.T) {
+		ctx, cancel := context.WithTimeout(context.Background(), 3*time.Second)
+		t.Cleanup(cancel)
+
+		// Generate a peering token for dialer
+		tokenResp, err := acceptorClient.GenerateToken(ctx, &pbpeering.GenerateTokenRequest{PeerName: "my-peer-dialer"})
+		require.NoError(t, err)
+
+		// Capture peering token for re-use later
+		peeringToken = tokenResp.PeeringToken
+
+		// The context timeout is short, it checks that we do not wait the 350ms that we do when peering through mesh gateways
+		ctx, cancel = context.WithTimeout(context.Background(), 300*time.Millisecond)
+		t.Cleanup(cancel)
+
+		_, err = dialerClient.Establish(ctx, &pbpeering.EstablishRequest{
+			PeerName:     "my-peer-acceptor",
+			PeeringToken: tokenResp.PeeringToken,
+		})
+		require.NoError(t, err)
+	})
+
+	testutil.RunStep(t, "fail fast on permission denied", func(t *testing.T) {
+		// This test case re-uses the previous token since the establishment secret will have been invalidated.
+		// The context timeout is short, it checks that we do not retry.
+		ctx, cancel := context.WithTimeout(context.Background(), 300*time.Millisecond)
+		t.Cleanup(cancel)
+
+		_, err := dialerClient.Establish(ctx, &pbpeering.EstablishRequest{
+			PeerName:     "my-peer-acceptor",
+			PeeringToken: peeringToken,
+		})
+		testutil.RequireErrorContains(t, err, "a new peering token must be generated")
+	})
+
+	gatewayPort := freeport.GetOne(t)
+
+	testutil.RunStep(t, "fail past bad mesh gateway", func(t *testing.T) {
+		ctx, cancel := context.WithTimeout(context.Background(), 1*time.Second)
+		t.Cleanup(cancel)
+
+		// Generate a new peering token for the dialer.
+		tokenResp, err := acceptorClient.GenerateToken(ctx, &pbpeering.GenerateTokenRequest{PeerName: "my-peer-dialer"})
+		require.NoError(t, err)
+
+		store := dialer.Server.FSM().State()
+		require.NoError(t, store.EnsureConfigEntry(1, &structs.MeshConfigEntry{
+			Peering: &structs.PeeringMeshConfig{
+				PeerThroughMeshGateways: true,
+			},
+		}))
+
+		// Register a gateway that isn't actually listening.
+		require.NoError(t, store.EnsureRegistration(2, &structs.RegisterRequest{
+			ID:      types.NodeID(testUUID(t)),
+			Node:    "gateway-node-1",
+			Address: "127.0.0.1",
+			Service: &structs.NodeService{
+				Kind:    structs.ServiceKindMeshGateway,
+				ID:      "mesh-gateway-1",
+				Service: "mesh-gateway",
+				Port:    gatewayPort,
+			},
+		}))
+
+		ctx, cancel = context.WithTimeout(context.Background(), 3*time.Second)
+		t.Cleanup(cancel)
+
+		// Call to establish should succeed when we fall back to remote server address.
+		_, err = dialerClient.Establish(ctx, &pbpeering.EstablishRequest{
+			PeerName:     "my-peer-acceptor",
+			PeeringToken: tokenResp.PeeringToken,
+		})
+		require.NoError(t, err)
+	})
+
+	testutil.RunStep(t, "route through gateway", func(t *testing.T) {
+		// Spin up a proxy listening at the gateway port registered above.
+		gatewayAddr := fmt.Sprintf("127.0.0.1:%d", gatewayPort)
+
+		// Configure a TCP proxy with an SNI route corresponding to the acceptor cluster.
+		var proxy tcpproxy.Proxy
+		target := &connWrapper{
+			proxy: tcpproxy.DialProxy{
+				Addr: acceptor.PublicGRPCAddr,
+			},
+		}
+		proxy.AddSNIRoute(gatewayAddr, "server.dc1.peering.11111111-2222-3333-4444-555555555555.consul", target)
+		proxy.AddStopACMESearch(gatewayAddr)
+
+		require.NoError(t, proxy.Start())
+		t.Cleanup(func() {
+			proxy.Close()
+			proxy.Wait()
+		})
+
+		ctx, cancel := context.WithTimeout(context.Background(), 1*time.Second)
+		t.Cleanup(cancel)
+
+		// Generate a new peering token for the dialer.
+		tokenResp, err := acceptorClient.GenerateToken(ctx, &pbpeering.GenerateTokenRequest{PeerName: "my-peer-dialer"})
+		require.NoError(t, err)
+
+		store := dialer.Server.FSM().State()
+		require.NoError(t, store.EnsureConfigEntry(1, &structs.MeshConfigEntry{
+			Peering: &structs.PeeringMeshConfig{
+				PeerThroughMeshGateways: true,
+			},
+		}))
+
+		ctx, cancel = context.WithTimeout(context.Background(), 1*time.Second)
+		t.Cleanup(cancel)
+
+		start := time.Now()
+
+		// Call to establish should succeed through the proxy.
+		_, err = dialerClient.Establish(ctx, &pbpeering.EstablishRequest{
+			PeerName:     "my-peer-acceptor",
+			PeeringToken: tokenResp.PeeringToken,
+		})
+		require.NoError(t, err)
+
+		// Dialing through a gateway is preceded by a mandatory 350ms sleep.
+		require.Greater(t, time.Since(start), 350*time.Millisecond)
+
+		// target.called is true when the tcproxy's conn handler was invoked.
+		// This lets us know that the "Establish" success flowed through the proxy masquerading as a gateway.
+		require.True(t, target.called)
+	})
+}
+
+// connWrapper is a wrapper around tcpproxy.DialProxy to enable tracking whether the proxy handled a connection.
+type connWrapper struct {
+	proxy  tcpproxy.DialProxy
+	called bool
+}
+
+func (w *connWrapper) HandleConn(src net.Conn) {
+	w.called = true
+	w.proxy.HandleConn(src)
+}
+
 func TestPeeringService_Establish_ACLEnforcement(t *testing.T) {
 	validToken := peering.TestPeeringToken("83474a06-cca4-4ff4-99a4-4152929c8160")
 	validTokenJSON, _ := json.Marshal(&validToken)
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/base.hcl b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/base.hcl
new file mode 100644
index 0000000000..f81ab0edd6
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/base.hcl
@@ -0,0 +1,5 @@
+primary_datacenter = "alpha"
+log_level          = "trace"
+peering {
+  enabled = true
+}
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/config_entries.hcl b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/config_entries.hcl
new file mode 100644
index 0000000000..996df1d213
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/config_entries.hcl
@@ -0,0 +1,32 @@
+config_entries {
+  bootstrap = [
+    {
+      kind = "proxy-defaults"
+      name = "global"
+
+      config {
+        protocol = "tcp"
+      }
+    },
+    {
+      kind = "mesh"
+      peering {
+        peer_through_mesh_gateways = true
+      }
+    },
+    {
+      kind = "exported-services"
+      name = "default"
+      services = [
+        {
+          name = "s2"
+          consumers = [
+            {
+              peer = "alpha-to-primary"
+            }
+          ]
+        }
+      ]
+    }
+  ]
+}
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/service_gateway.hcl b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/service_gateway.hcl
new file mode 100644
index 0000000000..bcdcb2e8b3
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/service_gateway.hcl
@@ -0,0 +1,5 @@
+services {
+  name = "mesh-gateway"
+  kind = "mesh-gateway"
+  port = 4432
+}
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/service_s1.hcl b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/service_s1.hcl
new file mode 100644
index 0000000000..e97ec23666
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/service_s1.hcl
@@ -0,0 +1 @@
+# We don't want an s1 service in this peer
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/service_s2.hcl b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/service_s2.hcl
new file mode 100644
index 0000000000..01d4505c67
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/service_s2.hcl
@@ -0,0 +1,7 @@
+services {
+  name = "s2"
+  port = 8181
+  connect {
+    sidecar_service {}
+  }
+}
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/setup.sh b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/setup.sh
new file mode 100644
index 0000000000..6d341b20a2
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/setup.sh
@@ -0,0 +1,12 @@
+#!/bin/bash
+
+set -euo pipefail
+
+register_services alpha
+
+gen_envoy_bootstrap s2 19002 alpha
+gen_envoy_bootstrap mesh-gateway 19003 alpha true
+
+wait_for_config_entry proxy-defaults global alpha
+wait_for_config_entry exported-services default alpha
+wait_for_config_entry mesh mesh alpha
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/verify.bats b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/verify.bats
new file mode 100644
index 0000000000..06314df903
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/alpha/verify.bats
@@ -0,0 +1,49 @@
+#!/usr/bin/env bats
+
+load helpers
+
+@test "s2 proxy is running correct version" {
+  assert_envoy_version 19002
+}
+
+@test "s2 proxy admin is up on :19002" {
+  retry_default curl -f -s localhost:19002/stats -o /dev/null
+}
+
+@test "gateway-alpha proxy admin is up on :19003" {
+  retry_default curl -f -s localhost:19003/stats -o /dev/null
+}
+
+@test "s2 proxy listener should be up and have right cert" {
+  assert_proxy_presents_cert_uri localhost:21000 s2 alpha
+}
+
+@test "s2 proxy should be healthy" {
+  assert_service_has_healthy_instances s2 1 alpha
+}
+
+@test "gateway-alpha should be up and listening" {
+  retry_long nc -z consul-alpha-client:4432
+}
+
+@test "s2 proxies should be healthy" {
+  assert_service_has_healthy_instances s2 1 alpha
+}
+
+@test "dialer gateway-alpha should have healthy endpoints for alpha servers" {
+  assert_upstream_has_endpoints_in_status 127.0.0.1:19003 server.alpha.peering HEALTHY 1
+}
+
+@test "dialer gateway-alpha should have healthy endpoints for primary servers" {
+  assert_upstream_has_endpoints_in_status 127.0.0.1:19003 server.primary.peering HEALTHY 1
+}
+
+# Re-peering the clusters is a way to have alpha dial out through its own gateway
+# since we know it is configured with endpoints for primary from the first time they peered.
+@test "re-peer the two clusters together" {
+  create_peering primary alpha
+}
+
+@test "alpha servers made connection to primary servers via alpha gateway" {
+  assert_envoy_metric_at_least 127.0.0.1:19003 "cluster.server.primary.peering.*cx_total" 1
+}
\ No newline at end of file
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/bind.hcl b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/bind.hcl
new file mode 100644
index 0000000000..f54393f03e
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/bind.hcl
@@ -0,0 +1,2 @@
+bind_addr = "0.0.0.0"
+advertise_addr = "{{ GetInterfaceIP \"eth0\" }}"
\ No newline at end of file
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/capture.sh b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/capture.sh
new file mode 100644
index 0000000000..f7205ae515
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/capture.sh
@@ -0,0 +1,4 @@
+#!/bin/bash
+
+snapshot_envoy_admin localhost:19001 mesh-gateway primary || true
+snapshot_envoy_admin localhost:19003 mesh-gateway alpha || true
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/base.hcl b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/base.hcl
new file mode 100644
index 0000000000..c1e134d5a2
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/base.hcl
@@ -0,0 +1,3 @@
+peering {
+  enabled = true
+}
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/config_entries.hcl b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/config_entries.hcl
new file mode 100644
index 0000000000..6baeb569f2
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/config_entries.hcl
@@ -0,0 +1,18 @@
+config_entries {
+  bootstrap = [
+    {
+      kind = "proxy-defaults"
+      name = "global"
+
+      config {
+        protocol = "tcp"
+      }
+    },
+    {
+      kind = "mesh"
+      peering {
+        peer_through_mesh_gateways = true
+      }
+    }
+  ]
+}
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/service_gateway.hcl b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/service_gateway.hcl
new file mode 100644
index 0000000000..831a70ff32
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/service_gateway.hcl
@@ -0,0 +1,5 @@
+services {
+  name = "mesh-gateway"
+  kind = "mesh-gateway"
+  port = 4431
+}
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/service_s1.hcl b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/service_s1.hcl
new file mode 100644
index 0000000000..af0773c29a
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/service_s1.hcl
@@ -0,0 +1,20 @@
+services {
+  name = "s1"
+  port = 8080
+  connect {
+    sidecar_service {
+      proxy {
+        upstreams = [
+          {
+            destination_name = "s2"
+            destination_peer = "primary-to-alpha"
+            local_bind_port  = 5000
+            mesh_gateway {
+              mode = "local"
+            }
+          }
+        ]
+      }
+    }
+  }
+}
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/service_s2.hcl b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/service_s2.hcl
new file mode 100644
index 0000000000..77164e722b
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/service_s2.hcl
@@ -0,0 +1 @@
+# We don't want an s2 service in the primary dc
\ No newline at end of file
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/setup.sh b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/setup.sh
new file mode 100644
index 0000000000..3aa37f8cb0
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/setup.sh
@@ -0,0 +1,11 @@
+#!/bin/bash
+
+set -euo pipefail
+
+register_services primary
+
+gen_envoy_bootstrap s1 19000 primary
+gen_envoy_bootstrap mesh-gateway 19001 primary true
+
+wait_for_config_entry proxy-defaults global
+wait_for_config_entry mesh mesh alpha
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/verify.bats b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/verify.bats
new file mode 100644
index 0000000000..bc21d5ee3f
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/primary/verify.bats
@@ -0,0 +1,69 @@
+#!/usr/bin/env bats
+
+load helpers
+
+@test "s1 proxy is running correct version" {
+  assert_envoy_version 19000
+}
+
+@test "s1 proxy admin is up on :19000" {
+  retry_default curl -f -s localhost:19000/stats -o /dev/null
+}
+
+@test "gateway-primary proxy admin is up on :19001" {
+  retry_default curl -f -s localhost:19001/stats -o /dev/null
+}
+
+@test "s1 proxy listener should be up and have right cert" {
+  assert_proxy_presents_cert_uri localhost:21000 s1
+}
+
+@test "s2 proxies should be healthy in alpha" {
+  assert_service_has_healthy_instances s2 1 alpha
+}
+
+@test "gateway-primary should be up and listening" {
+  retry_long nc -z consul-primary-client:4431
+}
+
+@test "gateway-alpha should be up and listening" {
+  retry_long nc -z consul-alpha-client:4432
+}
+
+@test "peer the two clusters together" {
+  create_peering primary alpha
+}
+
+@test "acceptor gateway-primary should have healthy endpoints for primary servers" {
+  assert_upstream_has_endpoints_in_status 127.0.0.1:19001 server.primary.peering HEALTHY 1
+}
+
+@test "alpha servers made connection to primary servers via primary gateway" {
+  assert_envoy_metric_at_least 127.0.0.1:19001 "cluster.server.primary.peering.*cx_total" 1
+}
+
+@test "s2 alpha proxies should be healthy in primary" {
+  assert_service_has_healthy_instances s2 1 primary "" "" primary-to-alpha
+}
+
+@test "gateway-alpha should have healthy endpoints for s2" {
+  assert_upstream_has_endpoints_in_status consul-alpha-client:19003 exported~s2.default.alpha HEALTHY 1
+}
+
+@test "s1 upstream should have healthy endpoints for s2" {
+  assert_upstream_has_endpoints_in_status 127.0.0.1:19000 s2.default.primary-to-alpha.external HEALTHY 1
+}
+
+@test "s1 upstream should be able to connect to s2" {
+  run retry_default curl -s -f -d hello localhost:5000
+  [ "$status" -eq 0 ]
+  [ "$output" = "hello" ]
+}
+
+@test "s1 upstream made 1 connection to s2" {
+  assert_envoy_metric_at_least 127.0.0.1:19000 "cluster.s2.default.primary-to-alpha.external.*cx_total" 1
+}
+
+@test "s1 upstream made 1 connection to s2 through the primary mesh gateway" {
+  assert_envoy_metric_at_least 127.0.0.1:19001 "cluster.s2.default.default.alpha-to-primary.external.*cx_total" 1
+}
diff --git a/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/vars.sh b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/vars.sh
new file mode 100644
index 0000000000..c856de1733
--- /dev/null
+++ b/test/integration/connect/envoy/case-cross-peer-control-plane-mgw/vars.sh
@@ -0,0 +1,4 @@
+#!/bin/bash
+
+export REQUIRED_SERVICES="s1 s1-sidecar-proxy gateway-primary s2-alpha s2-sidecar-proxy-alpha gateway-alpha"
+export REQUIRE_PEERS=1