diff --git a/agent/consul/leader_peering_test.go b/agent/consul/leader_peering_test.go
index df7332300b..1e04f0f43a 100644
--- a/agent/consul/leader_peering_test.go
+++ b/agent/consul/leader_peering_test.go
@@ -43,18 +43,6 @@ const (
 )
 
 func TestLeader_PeeringSync_Lifecycle_ClientDeletion(t *testing.T) {
-	t.Run("without-tls", func(t *testing.T) {
-		testLeader_PeeringSync_Lifecycle_ClientDeletion(t, tlsModeNone)
-	})
-	t.Run("manual-tls", func(t *testing.T) {
-		testLeader_PeeringSync_Lifecycle_ClientDeletion(t, tlsModeManual)
-	})
-	t.Run("auto-tls", func(t *testing.T) {
-		testLeader_PeeringSync_Lifecycle_ClientDeletion(t, tlsModeAuto)
-	})
-}
-
-func testLeader_PeeringSync_Lifecycle_ClientDeletion(t *testing.T, mode tlsMode) {
 	if testing.Short() {
 		t.Skip("too slow for testing.Short")
 	}
@@ -64,22 +52,14 @@ func testLeader_PeeringSync_Lifecycle_ClientDeletion(t *testing.T, mode tlsMode)
 		c.NodeName = "acceptor"
 		c.Datacenter = "dc1"
 		c.TLSConfig.Domain = "consul"
-		if mode == tlsModeManual {
-			c.ConnectEnabled = false
-			c.TLSConfig.GRPC.CAFile = "../../test/hostname/CertAuth.crt"
-			c.TLSConfig.GRPC.CertFile = "../../test/hostname/Bob.crt"
-			c.TLSConfig.GRPC.KeyFile = "../../test/hostname/Bob.key"
-		}
-		if mode == tlsModeAuto {
-			c.CAConfig = &structs.CAConfiguration{
-				ClusterID: connect.TestClusterID,
-				Provider:  structs.ConsulCAProvider,
-				Config: map[string]interface{}{
-					"PrivateKey": ca.SigningKey,
-					"RootCert":   ca.RootCert,
-				},
-			}
-
+		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")
@@ -364,18 +344,6 @@ func TestLeader_PeeringSync_Lifecycle_UnexportWhileDown(t *testing.T) {
 }
 
 func TestLeader_PeeringSync_Lifecycle_ServerDeletion(t *testing.T) {
-	t.Run("without-tls", func(t *testing.T) {
-		testLeader_PeeringSync_Lifecycle_AcceptorDeletion(t, tlsModeNone)
-	})
-	t.Run("manual-tls", func(t *testing.T) {
-		testLeader_PeeringSync_Lifecycle_AcceptorDeletion(t, tlsModeManual)
-	})
-	t.Run("auto-tls", func(t *testing.T) {
-		testLeader_PeeringSync_Lifecycle_AcceptorDeletion(t, tlsModeAuto)
-	})
-}
-
-func testLeader_PeeringSync_Lifecycle_AcceptorDeletion(t *testing.T, mode tlsMode) {
 	if testing.Short() {
 		t.Skip("too slow for testing.Short")
 	}
@@ -385,22 +353,14 @@ func testLeader_PeeringSync_Lifecycle_AcceptorDeletion(t *testing.T, mode tlsMod
 		c.NodeName = "acceptor"
 		c.Datacenter = "dc1"
 		c.TLSConfig.Domain = "consul"
-		if mode == tlsModeManual {
-			c.ConnectEnabled = false
-			c.TLSConfig.GRPC.CAFile = "../../test/hostname/CertAuth.crt"
-			c.TLSConfig.GRPC.CertFile = "../../test/hostname/Bob.crt"
-			c.TLSConfig.GRPC.KeyFile = "../../test/hostname/Bob.key"
-		}
-		if mode == tlsModeAuto {
-			c.CAConfig = &structs.CAConfiguration{
-				ClusterID: connect.TestClusterID,
-				Provider:  structs.ConsulCAProvider,
-				Config: map[string]interface{}{
-					"PrivateKey": ca.SigningKey,
-					"RootCert":   ca.RootCert,
-				},
-			}
-
+		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")
@@ -507,7 +467,7 @@ func TestLeader_PeeringSync_FailsForTLSError(t *testing.T) {
 	t.Run("server-name-validation", func(t *testing.T) {
 		testLeader_PeeringSync_failsForTLSError(t, func(token *structs.PeeringToken) {
 			token.ServerName = "wrong.name"
-		}, `transport: authentication handshake failed: x509: certificate is valid for server.dc1.consul, bob.server.dc1.consul, not wrong.name`)
+		}, `transport: authentication handshake failed: x509: certificate is valid for server.dc1.peering.11111111-2222-3333-4444-555555555555.consul, not wrong.name`)
 	})
 	t.Run("bad-ca-roots", func(t *testing.T) {
 		wrongRoot, err := ioutil.ReadFile("../../test/client_certs/rootca.crt")
@@ -522,15 +482,20 @@ func TestLeader_PeeringSync_FailsForTLSError(t *testing.T) {
 func testLeader_PeeringSync_failsForTLSError(t *testing.T, tokenMutateFn func(token *structs.PeeringToken), expectErr string) {
 	require.NotNil(t, tokenMutateFn)
 
+	ca := connect.TestCA(t, nil)
 	_, s1 := testServerWithConfig(t, func(c *Config) {
 		c.NodeName = "bob"
 		c.Datacenter = "dc1"
 		c.TLSConfig.Domain = "consul"
-
-		c.ConnectEnabled = false
-		c.TLSConfig.GRPC.CAFile = "../../test/hostname/CertAuth.crt"
-		c.TLSConfig.GRPC.CertFile = "../../test/hostname/Bob.crt"
-		c.TLSConfig.GRPC.KeyFile = "../../test/hostname/Bob.key"
+		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, s1.RPC, "dc1")
 
@@ -573,10 +538,6 @@ func testLeader_PeeringSync_failsForTLSError(t *testing.T, tokenMutateFn func(to
 		c.NodeName = "betty"
 		c.Datacenter = "dc2"
 		c.PrimaryDatacenter = "dc2"
-
-		c.TLSConfig.GRPC.CAFile = "../../test/hostname/CertAuth.crt"
-		c.TLSConfig.GRPC.CertFile = "../../test/hostname/Betty.crt"
-		c.TLSConfig.GRPC.KeyFile = "../../test/hostname/Betty.key"
 	})
 	testrpc.WaitForLeader(t, s2.RPC, "dc2")
 
@@ -615,11 +576,11 @@ func TestLeader_Peering_DeferredDeletion(t *testing.T) {
 		t.Skip("too slow for testing.Short")
 	}
 
-	// TODO(peering): Configure with TLS
 	_, s1 := testServerWithConfig(t, func(c *Config) {
 		c.NodeName = "s1.dc1"
 		c.Datacenter = "dc1"
 		c.TLSConfig.Domain = "consul"
+		c.GRPCTLSPort = freeport.GetOne(t)
 	})
 	testrpc.WaitForLeader(t, s1.RPC, "dc1")
 
@@ -694,15 +655,21 @@ func TestLeader_Peering_DialerReestablishesConnectionOnError(t *testing.T) {
 	}
 
 	// Reserve a gRPC port so we can restart the accepting server with the same port.
-	ports := freeport.GetN(t, 1)
-	acceptingServerPort := ports[0]
+	acceptingServerPort := freeport.GetOne(t)
 
+	ca := connect.TestCA(t, nil)
 	_, acceptingServer := testServerWithConfig(t, func(c *Config) {
 		c.NodeName = "acceptingServer.dc1"
 		c.Datacenter = "dc1"
-		c.TLSConfig.Domain = "consul"
-		c.GRPCPort = acceptingServerPort
-		c.PeeringEnabled = true
+		c.GRPCTLSPort = acceptingServerPort
+		c.CAConfig = &structs.CAConfiguration{
+			ClusterID: connect.TestClusterID,
+			Provider:  structs.ConsulCAProvider,
+			Config: map[string]interface{}{
+				"PrivateKey": ca.SigningKey,
+				"RootCert":   ca.RootCert,
+			},
+		}
 	})
 	testrpc.WaitForLeader(t, acceptingServer.RPC, "dc1")
 
@@ -805,9 +772,17 @@ func TestLeader_Peering_DialerReestablishesConnectionOnError(t *testing.T) {
 		c.NodeName = "acceptingServer.dc1"
 		c.Datacenter = "dc1"
 		c.TLSConfig.Domain = "consul"
-		c.GRPCPort = acceptingServerPort
 		c.DataDir = acceptingServer.config.DataDir
 		c.NodeID = acceptingServer.config.NodeID
+		c.GRPCTLSPort = acceptingServerPort
+		c.CAConfig = &structs.CAConfiguration{
+			ClusterID: connect.TestClusterID,
+			Provider:  structs.ConsulCAProvider,
+			Config: map[string]interface{}{
+				"PrivateKey": ca.SigningKey,
+				"RootCert":   ca.RootCert,
+			},
+		}
 	})
 
 	testrpc.WaitForLeader(t, acceptingServerRestart.RPC, "dc1")
@@ -902,11 +877,19 @@ func TestLeader_Peering_ImportedExportedServicesCount(t *testing.T) {
 		t.Skip("too slow for testing.Short")
 	}
 
+	ca := connect.TestCA(t, nil)
 	_, s1 := testServerWithConfig(t, func(c *Config) {
 		c.NodeName = "s1.dc1"
 		c.Datacenter = "dc1"
-		c.TLSConfig.Domain = "consul"
-		c.PeeringEnabled = true
+		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, s1.RPC, "dc1")
 
@@ -1204,11 +1187,19 @@ func TestLeader_PeeringMetrics_emitPeeringMetrics(t *testing.T) {
 		lastIdx            = uint64(0)
 	)
 
-	// TODO(peering): Configure with TLS
+	ca := connect.TestCA(t, nil)
 	_, s1 := testServerWithConfig(t, func(c *Config) {
 		c.NodeName = "s1.dc1"
 		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, s1.RPC, "dc1")
 
@@ -1615,10 +1606,20 @@ func Test_Leader_PeeringSync_ServerAddressUpdates(t *testing.T) {
 	maxRetryBackoff = 1
 	t.Cleanup(func() { maxRetryBackoff = orig })
 
+	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")
 
diff --git a/agent/consul/peering_backend.go b/agent/consul/peering_backend.go
index d0f7e31658..26c2f19436 100644
--- a/agent/consul/peering_backend.go
+++ b/agent/consul/peering_backend.go
@@ -57,26 +57,21 @@ func (b *PeeringBackend) GetLeaderAddress() string {
 
 // GetTLSMaterials returns the TLS materials for the dialer to dial the acceptor using TLS.
 // It returns the server name to validate, and the CA certificate to validate with.
-func (b *PeeringBackend) GetTLSMaterials() (string, []string, error) {
-	// Do not send TLS materials to the dialer if we to not have TLS configured for gRPC.
-	if b.srv.config.GRPCTLSPort <= 0 && !b.srv.tlsConfigurator.GRPCServerUseTLS() {
-		return "", nil, nil
-	}
-
-	// If the Connect CA is not in use we rely on the manually configured certs.
-	// Otherwise we rely on the internally managed server certificate.
-	if !b.srv.config.ConnectEnabled {
-		serverName := b.srv.tlsConfigurator.ServerSNI(b.srv.config.Datacenter, "")
-		caPems := b.srv.tlsConfigurator.GRPCManualCAPems()
-
-		return serverName, caPems, nil
+func (b *PeeringBackend) GetTLSMaterials(generatingToken bool) (string, []string, error) {
+	if generatingToken {
+		if !b.srv.config.ConnectEnabled {
+			return "", nil, fmt.Errorf("connect.enabled must be set to true in the server's configuration when generating peering tokens")
+		}
+		if b.srv.config.GRPCTLSPort <= 0 && !b.srv.tlsConfigurator.GRPCServerUseTLS() {
+			return "", nil, fmt.Errorf("TLS for gRPC must be enabled when generating peering tokens")
+		}
 	}
 
 	roots, err := b.srv.getCARoots(nil, b.srv.fsm.State())
 	if err != nil {
 		return "", nil, fmt.Errorf("failed to fetch roots: %w", err)
 	}
-	if len(roots.Roots) == 0 {
+	if len(roots.Roots) == 0 || roots.TrustDomain == "" {
 		return "", nil, fmt.Errorf("CA has not finished initializing")
 	}
 
diff --git a/agent/consul/peering_backend_oss_test.go b/agent/consul/peering_backend_oss_test.go
index 3c120d26f7..11466581b3 100644
--- a/agent/consul/peering_backend_oss_test.go
+++ b/agent/consul/peering_backend_oss_test.go
@@ -11,7 +11,10 @@ import (
 	"github.com/stretchr/testify/require"
 	gogrpc "google.golang.org/grpc"
 
+	"github.com/hashicorp/consul/agent/connect"
+	"github.com/hashicorp/consul/agent/structs"
 	"github.com/hashicorp/consul/proto/pbpeering"
+	"github.com/hashicorp/consul/sdk/freeport"
 	"github.com/hashicorp/consul/testrpc"
 )
 
@@ -21,9 +24,18 @@ func TestPeeringBackend_RejectsPartition(t *testing.T) {
 	}
 
 	t.Parallel()
+
+	ca := connect.TestCA(t, nil)
 	_, s1 := testServerWithConfig(t, func(c *Config) {
-		c.Datacenter = "dc1"
-		c.Bootstrap = true
+		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, s1.RPC, "dc1")
@@ -55,9 +67,17 @@ func TestPeeringBackend_IgnoresDefaultPartition(t *testing.T) {
 	}
 
 	t.Parallel()
+	ca := connect.TestCA(t, nil)
 	_, s1 := testServerWithConfig(t, func(c *Config) {
-		c.Datacenter = "dc1"
-		c.Bootstrap = true
+		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, s1.RPC, "dc1")
diff --git a/agent/consul/peering_backend_test.go b/agent/consul/peering_backend_test.go
index 2d9b9f029d..0d834c09a9 100644
--- a/agent/consul/peering_backend_test.go
+++ b/agent/consul/peering_backend_test.go
@@ -7,17 +7,18 @@ import (
 	"testing"
 	"time"
 
-	"github.com/hashicorp/consul/agent/structs"
-	"github.com/hashicorp/consul/sdk/freeport"
-	"github.com/hashicorp/consul/types"
-	"github.com/stretchr/testify/require"
 	gogrpc "google.golang.org/grpc"
 
+	"github.com/hashicorp/consul/agent/connect"
 	"github.com/hashicorp/consul/agent/pool"
+	"github.com/hashicorp/consul/agent/structs"
 	"github.com/hashicorp/consul/proto/pbpeering"
 	"github.com/hashicorp/consul/proto/pbpeerstream"
+	"github.com/hashicorp/consul/sdk/freeport"
 	"github.com/hashicorp/consul/sdk/testutil"
 	"github.com/hashicorp/consul/testrpc"
+	"github.com/hashicorp/consul/types"
+	"github.com/stretchr/testify/require"
 )
 
 func TestPeeringBackend_ForwardToLeader(t *testing.T) {
@@ -25,17 +26,26 @@ func TestPeeringBackend_ForwardToLeader(t *testing.T) {
 		t.Skip("too slow for testing.Short")
 	}
 
-	_, conf1 := testServerConfig(t)
-	server1, err := newServer(t, conf1)
-	require.NoError(t, err)
-
-	_, conf2 := testServerConfig(t)
-	conf2.Bootstrap = false
-	server2, err := newServer(t, conf2)
-	require.NoError(t, err)
+	ca := connect.TestCA(t, nil)
+	_, server1 := testServerWithConfig(t, func(c *Config) {
+		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,
+			},
+		}
+	})
+	_, server2 := testServerWithConfig(t, func(c *Config) {
+		c.Bootstrap = false
+	})
 
 	// Join a 2nd server (not the leader)
 	testrpc.WaitForLeader(t, server1.RPC, "dc1")
+	testrpc.WaitForActiveCARoot(t, server1.RPC, "dc1", nil)
+
 	joinLAN(t, server2, server1)
 	testrpc.WaitForLeader(t, server2.RPC, "dc1")
 
@@ -166,17 +176,26 @@ func TestPeerStreamService_ForwardToLeader(t *testing.T) {
 		t.Skip("too slow for testing.Short")
 	}
 
-	_, conf1 := testServerConfig(t)
-	server1, err := newServer(t, conf1)
-	require.NoError(t, err)
-
-	_, conf2 := testServerConfig(t)
-	conf2.Bootstrap = false
-	server2, err := newServer(t, conf2)
-	require.NoError(t, err)
+	ca := connect.TestCA(t, nil)
+	_, server1 := testServerWithConfig(t, func(c *Config) {
+		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,
+			},
+		}
+	})
+	_, server2 := testServerWithConfig(t, func(c *Config) {
+		c.Bootstrap = false
+	})
 
 	// server1 is leader, server2 follower
 	testrpc.WaitForLeader(t, server1.RPC, "dc1")
+	testrpc.WaitForActiveCARoot(t, server1.RPC, "dc1", nil)
+
 	joinLAN(t, server2, server1)
 	testrpc.WaitForLeader(t, server2.RPC, "dc1")
 
diff --git a/agent/consul/prepared_query_endpoint_test.go b/agent/consul/prepared_query_endpoint_test.go
index 07e9801a68..108a568498 100644
--- a/agent/consul/prepared_query_endpoint_test.go
+++ b/agent/consul/prepared_query_endpoint_test.go
@@ -21,12 +21,14 @@ import (
 	"github.com/hashicorp/consul-net-rpc/net/rpc"
 
 	"github.com/hashicorp/consul/acl"
+	"github.com/hashicorp/consul/agent/connect"
 	grpcexternal "github.com/hashicorp/consul/agent/grpc-external"
 	"github.com/hashicorp/consul/agent/structs"
 	"github.com/hashicorp/consul/agent/structs/aclfilter"
 	tokenStore "github.com/hashicorp/consul/agent/token"
 	"github.com/hashicorp/consul/api"
 	"github.com/hashicorp/consul/proto/pbpeering"
+	"github.com/hashicorp/consul/sdk/freeport"
 	"github.com/hashicorp/consul/sdk/testutil/retry"
 	"github.com/hashicorp/consul/testrpc"
 	"github.com/hashicorp/consul/types"
@@ -1463,10 +1465,20 @@ func TestPreparedQuery_Execute(t *testing.T) {
 
 	s2.tokens.UpdateReplicationToken("root", tokenStore.TokenSourceConfig)
 
+	ca := connect.TestCA(t, nil)
 	dir3, s3 := testServerWithConfig(t, func(c *Config) {
 		c.Datacenter = "dc3"
 		c.PrimaryDatacenter = "dc3"
 		c.NodeName = "acceptingServer.dc3"
+		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,
+			},
+		}
 	})
 	defer os.RemoveAll(dir3)
 	defer s3.Shutdown()
diff --git a/agent/grpc-external/services/peerstream/stream_test.go b/agent/grpc-external/services/peerstream/stream_test.go
index 156efa4759..da167bd2a6 100644
--- a/agent/grpc-external/services/peerstream/stream_test.go
+++ b/agent/grpc-external/services/peerstream/stream_test.go
@@ -43,7 +43,6 @@ import (
 
 const (
 	testPeerID                = "caf067a6-f112-4907-9101-d45857d2b149"
-	testActiveStreamSecretID  = "e778c518-f0db-473a-9224-24b357da971d"
 	testPendingStreamSecretID = "522c0daf-2ef2-4dab-bc78-5e04e3daf552"
 	testEstablishmentSecretID = "f6569d37-1c5b-4415-aae5-26f4594f7f60"
 )
diff --git a/agent/rpc/peering/service.go b/agent/rpc/peering/service.go
index cb72fe84cb..77a35d164b 100644
--- a/agent/rpc/peering/service.go
+++ b/agent/rpc/peering/service.go
@@ -116,7 +116,7 @@ type Backend interface {
 
 	// GetTLSMaterials returns the TLS materials for the dialer to dial the acceptor using TLS.
 	// It returns the server name to validate, and the CA certificate to validate with.
-	GetTLSMaterials() (string, []string, error)
+	GetTLSMaterials(generatingToken bool) (string, []string, error)
 
 	// GetServerAddresses returns the addresses used for establishing a peering connection.
 	// These may be server addresses or mesh gateway addresses if peering through mesh gateways.
@@ -221,6 +221,11 @@ func (s *Server) GenerateToken(
 		return nil, err
 	}
 
+	serverName, caPEMs, err := s.Backend.GetTLSMaterials(true)
+	if err != nil {
+		return nil, err
+	}
+
 	var (
 		peering  *pbpeering.Peering
 		secretID string
@@ -288,11 +293,6 @@ func (s *Server) GenerateToken(
 		break
 	}
 
-	serverName, caPEMs, err := s.Backend.GetTLSMaterials()
-	if err != nil {
-		return nil, err
-	}
-
 	// ServerExternalAddresses must be formatted as addr:port.
 	var serverAddrs []string
 	if len(req.ServerExternalAddresses) > 0 {
@@ -484,12 +484,12 @@ func (s *Server) validatePeeringLocality(token *structs.PeeringToken, partition
 
 	// If the token has the same server name as this cluster, but we can't find the peering
 	// in our store, it indicates a naming conflict.
-	serverName, _, err := s.Backend.GetTLSMaterials()
+	serverName, _, err := s.Backend.GetTLSMaterials(false)
 	if err != nil {
 		return fmt.Errorf("failed to fetch TLS materials: %w", err)
 	}
 
-	if serverName != "" && token.ServerName != "" && serverName == token.ServerName && peering == nil {
+	if serverName == token.ServerName && peering == nil {
 		return fmt.Errorf("conflict - peering token's server name matches the current cluster's server name, %q, but there is no record in the database", serverName)
 	}
 
diff --git a/agent/rpc/peering/service_test.go b/agent/rpc/peering/service_test.go
index e20472a352..dcae022172 100644
--- a/agent/rpc/peering/service_test.go
+++ b/agent/rpc/peering/service_test.go
@@ -398,7 +398,7 @@ func TestPeeringService_Establish_serverNameConflict(t *testing.T) {
 	id, err := uuid.GenerateUUID()
 	require.NoError(t, err, "could not generate uuid")
 
-	serverName, _, err := s.Server.GetPeeringBackend().GetTLSMaterials()
+	serverName, _, err := s.Server.GetPeeringBackend().GetTLSMaterials(true)
 	require.NoError(t, err)
 
 	peeringToken := structs.PeeringToken{
diff --git a/test/integration/connect/envoy/consul-base-cfg/base.hcl b/test/integration/connect/envoy/consul-base-cfg/base.hcl
index 241261c1f8..884117c5ce 100644
--- a/test/integration/connect/envoy/consul-base-cfg/base.hcl
+++ b/test/integration/connect/envoy/consul-base-cfg/base.hcl
@@ -1,2 +1,2 @@
 primary_datacenter = "primary"
-log_level          = "trace"
+log_level          = "trace"
\ No newline at end of file
diff --git a/test/integration/connect/envoy/consul-base-cfg/peering_server.hcl b/test/integration/connect/envoy/consul-base-cfg/peering_server.hcl
new file mode 100644
index 0000000000..ccbba6939c
--- /dev/null
+++ b/test/integration/connect/envoy/consul-base-cfg/peering_server.hcl
@@ -0,0 +1,6 @@
+ports {
+    grpc_tls = 8503
+}
+connect {
+    enabled = true
+}
\ No newline at end of file
diff --git a/test/integration/connect/envoy/run-tests.sh b/test/integration/connect/envoy/run-tests.sh
index 7ea41527e5..d32092e7a9 100755
--- a/test/integration/connect/envoy/run-tests.sh
+++ b/test/integration/connect/envoy/run-tests.sh
@@ -104,6 +104,13 @@ function init_workdir {
     mv workdir/${CLUSTER}/consul/server.hcl workdir/${CLUSTER}/consul-server/server.hcl
   fi
 
+  if test -f "workdir/${CLUSTER}/consul/peering_server.hcl" -a $REQUIRE_PEERS = "1"
+  then
+    mv workdir/${CLUSTER}/consul/peering_server.hcl workdir/${CLUSTER}/consul-server/peering_server.hcl
+  else
+    rm workdir/${CLUSTER}/consul/peering_server.hcl
+  fi
+
   # copy the ca-certs for SDS so we can verify the right ones are served
   mkdir -p workdir/test-sds-server/certs
   cp test-sds-server/certs/ca-root.crt workdir/test-sds-server/certs/ca-root.crt
@@ -216,11 +223,6 @@ function start_consul {
     docker_kill_rm consul-${DC}-server
     docker_kill_rm consul-${DC}
 
-    server_grpc_port="-1"
-    if is_set $REQUIRE_PEERS; then
-      server_grpc_port="8502"
-    fi
-
     docker run -d --name envoy_consul-${DC}-server_1 \
       --net=envoy-tests \
       $WORKDIR_SNIPPET \
@@ -231,7 +233,6 @@ function start_consul {
       agent -dev -datacenter "${DC}" \
       -config-dir "/workdir/${DC}/consul" \
       -config-dir "/workdir/${DC}/consul-server" \
-      -grpc-port $server_grpc_port \
       -client "0.0.0.0" \
       -bind "0.0.0.0" >/dev/null