diff --git a/consul/client.go b/consul/client.go
index 0b536a8d52..82a4bd7fac 100644
--- a/consul/client.go
+++ b/consul/client.go
@@ -119,12 +119,7 @@ func NewClient(config *Config) (*Client, error) {
 		shutdownCh: make(chan struct{}),
 	}
 
-	c.serverMgr = server_manager.New(c.logger, c.shutdownCh, c.serf)
-
-	// Start maintenance task for serverMgr
-	go c.serverMgr.Start()
-
-	// Start the Serf listeners to prevent a deadlock
+	// Start lan event handlers before lan Serf setup to prevent deadlock
 	go c.lanEventHandler()
 
 	// Initialize the lan Serf
@@ -134,6 +129,11 @@ func NewClient(config *Config) (*Client, error) {
 		c.Shutdown()
 		return nil, fmt.Errorf("Failed to start lan serf: %v", err)
 	}
+
+	// Start maintenance task for server_manager
+	c.serverMgr = server_manager.New(c.logger, c.shutdownCh, c.serf, c.connPool)
+	go c.serverMgr.Start()
+
 	return c, nil
 }
 
diff --git a/consul/client_test.go b/consul/client_test.go
index 5fe6194e35..124a7fb811 100644
--- a/consul/client_test.go
+++ b/consul/client_test.go
@@ -236,6 +236,73 @@ func TestClient_RPC_Pool(t *testing.T) {
 	wg.Wait()
 }
 
+func TestClient_RPC_ConsulServerPing(t *testing.T) {
+	var servers []*Server
+	var serverDirs []string
+	const numServers = 5
+
+	for n := numServers; n > 0; n-- {
+		var bootstrap bool
+		if n == numServers {
+			bootstrap = true
+		}
+		dir, s := testServerDCBootstrap(t, "dc1", bootstrap)
+		defer os.RemoveAll(dir)
+		defer s.Shutdown()
+
+		servers = append(servers, s)
+		serverDirs = append(serverDirs, dir)
+	}
+
+	const numClients = 1
+	clientDir, c := testClient(t)
+	defer os.RemoveAll(clientDir)
+	defer c.Shutdown()
+
+	// Join all servers.
+	for _, s := range servers {
+		addr := fmt.Sprintf("127.0.0.1:%d",
+			s.config.SerfLANConfig.MemberlistConfig.BindPort)
+		if _, err := c.JoinLAN([]string{addr}); err != nil {
+			t.Fatalf("err: %v", err)
+		}
+	}
+
+	// Sleep to allow Serf to sync, shuffle, and let the shuffle complete
+	time.Sleep(1 * time.Second)
+	c.serverMgr.ResetRebalanceTimer()
+	time.Sleep(1 * time.Second)
+
+	if len(c.LANMembers()) != numServers+numClients {
+		t.Errorf("bad len: %d", len(c.LANMembers()))
+	}
+	for _, s := range servers {
+		if len(s.LANMembers()) != numServers+numClients {
+			t.Errorf("bad len: %d", len(s.LANMembers()))
+		}
+	}
+
+	// Ping each server in the list
+	var pingCount int
+	for range servers {
+		time.Sleep(1 * time.Second)
+		s := c.serverMgr.FindServer()
+		ok, err := c.connPool.PingConsulServer(s)
+		if !ok {
+			t.Errorf("Unable to ping server %v: %s", s.String(), err)
+		}
+		pingCount += 1
+
+		// Artificially fail the server in order to rotate the server
+		// list
+		c.serverMgr.NotifyFailedServer(s)
+	}
+
+	if pingCount != numServers {
+		t.Errorf("bad len: %d/%d", pingCount, numServers)
+	}
+}
+
 func TestClient_RPC_TLS(t *testing.T) {
 	dir1, conf1 := testServerConfig(t, "a.testco.internal")
 	conf1.VerifyIncoming = true
diff --git a/consul/pool.go b/consul/pool.go
index 4abecbf4bf..cdfd2129df 100644
--- a/consul/pool.go
+++ b/consul/pool.go
@@ -10,6 +10,7 @@ import (
 	"sync/atomic"
 	"time"
 
+	"github.com/hashicorp/consul/consul/server_details"
 	"github.com/hashicorp/consul/tlsutil"
 	"github.com/hashicorp/net-rpc-msgpackrpc"
 	"github.com/hashicorp/yamux"
@@ -405,6 +406,30 @@ func (p *ConnPool) RPC(dc string, addr net.Addr, version int, method string, arg
 	return nil
 }
 
+// PingConsulServer sends a Status.Ping message to the specified server and
+// returns true if healthy, false if an error occurred
+func (p *ConnPool) PingConsulServer(s *server_details.ServerDetails) (bool, error) {
+	// Get a usable client
+	conn, sc, err := p.getClient(s.Datacenter, s.Addr, s.Version)
+	if err != nil {
+		return false, err
+	}
+
+	// Make the RPC call
+	var out struct{}
+	err = msgpackrpc.CallWithCodec(sc.codec, "Status.Ping", struct{}{}, &out)
+	if err != nil {
+		sc.Close()
+		p.releaseConn(conn)
+		return false, err
+	}
+
+	// Done with the connection
+	conn.returnClient(sc)
+	p.releaseConn(conn)
+	return true, nil
+}
+
 // Reap is used to close conns open over maxTime
 func (p *ConnPool) reap() {
 	for {
diff --git a/consul/server_details/server_details.go b/consul/server_details/server_details.go
index e9386e8ca3..4f3dc794a6 100644
--- a/consul/server_details/server_details.go
+++ b/consul/server_details/server_details.go
@@ -8,6 +8,16 @@ import (
 	"github.com/hashicorp/serf/serf"
 )
 
+// Key is used in maps and for equality tests.  A key is based on endpoints.
+type Key struct {
+	name string
+}
+
+// Equal compares two Key objects
+func (k *Key) Equal(x *Key) bool {
+	return k.name == x.name
+}
+
 // ServerDetails is used to return details of a consul server
 type ServerDetails struct {
 	Name       string
@@ -19,8 +29,22 @@ type ServerDetails struct {
 	Addr       net.Addr
 }
 
+// Key returns the corresponding Key
+func (s *ServerDetails) Key() *Key {
+	return &Key{
+		name: s.Name,
+	}
+}
+
+// String returns a string representation of ServerDetails
 func (s *ServerDetails) String() string {
-	return fmt.Sprintf("%s (Addr: %s) (DC: %s)", s.Name, s.Addr, s.Datacenter)
+	var addrStr, networkStr string
+	if s.Addr != nil {
+		addrStr = s.Addr.String()
+		networkStr = s.Addr.Network()
+	}
+
+	return fmt.Sprintf("%s (Addr: %s/%s) (DC: %s)", s.Name, networkStr, addrStr, s.Datacenter)
 }
 
 // IsConsulServer returns true if a serf member is a consul server. Returns a
diff --git a/consul/server_details/server_details_internal_test.go b/consul/server_details/server_details_internal_test.go
new file mode 100644
index 0000000000..ee09d8f57f
--- /dev/null
+++ b/consul/server_details/server_details_internal_test.go
@@ -0,0 +1,84 @@
+package server_details
+
+import (
+	"testing"
+)
+
+func TestServerDetails_Key_Equal(t *testing.T) {
+	tests := []struct {
+		name  string
+		k1    *Key
+		k2    *Key
+		equal bool
+	}{
+		{
+			name: "Key equality",
+			k1: &Key{
+				name: "s1",
+			},
+			k2: &Key{
+				name: "s1",
+			},
+			equal: true,
+		},
+		{
+			name: "Key Inequality",
+			k1: &Key{
+				name: "s1",
+			},
+			k2: &Key{
+				name: "s2",
+			},
+			equal: false,
+		},
+	}
+
+	for _, test := range tests {
+		if test.k1.Equal(test.k2) != test.equal {
+			t.Errorf("Expected a %v result from test %s", test.equal, test.name)
+		}
+
+		// Test Key to make sure it actually works as a key
+		m := make(map[Key]bool)
+		m[*test.k1] = true
+		if _, found := m[*test.k2]; found != test.equal {
+			t.Errorf("Expected a %v result from map test %s", test.equal, test.name)
+		}
+	}
+}
+
+func TestServerDetails_Key(t *testing.T) {
+	tests := []struct {
+		name  string
+		sd    *ServerDetails
+		k     *Key
+		equal bool
+	}{
+		{
+			name: "Key equality",
+			sd: &ServerDetails{
+				Name: "s1",
+			},
+			k: &Key{
+				name: "s1",
+			},
+			equal: true,
+		},
+		{
+			name: "Key inequality",
+			sd: &ServerDetails{
+				Name: "s1",
+			},
+			k: &Key{
+				name: "s2",
+			},
+			equal: false,
+		},
+	}
+
+	for _, test := range tests {
+		if test.k.Equal(test.sd.Key()) != test.equal {
+			t.Errorf("Expected a %v result from test %s", test.equal, test.name)
+		}
+	}
+}
diff --git a/consul/server_details/server_details_test.go b/consul/server_details/server_details_test.go
index 09b87ec165..b16cbf5a0a 100644
--- a/consul/server_details/server_details_test.go
+++ b/consul/server_details/server_details_test.go
@@ -8,6 +8,48 @@ import (
 	"github.com/hashicorp/serf/serf"
 )
 
+func TestServerDetails_Key_params(t *testing.T) {
+	ipv4a := net.ParseIP("127.0.0.1")
+	ipv4b := net.ParseIP("1.2.3.4")
+
+	tests := []struct {
+		name  string
+		sd1   *server_details.ServerDetails
+		sd2   *server_details.ServerDetails
+		equal bool
+	}{
+		{
+			name: "Addr inequality",
+			sd1: &server_details.ServerDetails{
+				Name:       "s1",
+				Datacenter: "dc1",
+				Port:       8300,
+				Addr:       &net.IPAddr{IP: ipv4a},
+			},
+			sd2: &server_details.ServerDetails{
+				Name:       "s1",
+				Datacenter: "dc1",
+				Port:       8300,
+				Addr:       &net.IPAddr{IP: ipv4b},
+			},
+			equal: true,
+		},
+	}
+
+	for _, test := range tests {
+		if test.sd1.Key().Equal(test.sd2.Key()) != test.equal {
+			t.Errorf("Expected a %v result from test %s", test.equal, test.name)
+		}
+
+		// Test Key to make sure it actually works as a key
+		m := make(map[server_details.Key]bool)
+		m[*test.sd1.Key()] = true
+		if _, found := m[*test.sd2.Key()]; found != test.equal {
+			t.Errorf("Expected a %v result from map test %s", test.equal, test.name)
+		}
+	}
+}
+
 func TestIsConsulServer(t *testing.T) {
 	m := serf.Member{
 		Name: "foo",
diff --git a/consul/server_manager/server_manager.go b/consul/server_manager/server_manager.go
index 504c5ce2bf..24844b0f91 100644
--- a/consul/server_manager/server_manager.go
+++ b/consul/server_manager/server_manager.go
@@ -47,11 +47,19 @@ const (
 	newRebalanceConnsPerSecPerServer = 64
 )
 
+// ConsulClusterInfo is an interface wrapper around serf and prevents a
+// cyclic import dependency
 type ConsulClusterInfo interface {
 	NumNodes() int
 }
 
-// serverCfg is the thread-safe configuration struct used to maintain the
+// Pinger is an interface wrapping client.ConnPool to prevent a
+// cyclic import dependency
+type Pinger interface {
+	PingConsulServer(server *server_details.ServerDetails) (bool, error)
+}
+
+// serverConfig is the thread-safe configuration struct used to maintain the
 // list of Consul servers in ServerManager.
 //
 // NOTE(sean@): We are explicitly relying on the fact that serverConfig will
@@ -68,6 +76,9 @@ type ServerManager struct {
 	serverConfigValue atomic.Value
 	serverConfigLock  sync.Mutex
 
+	// rebalanceTimer controls the duration of the rebalance interval
+	rebalanceTimer *time.Timer
+
 	// shutdownCh is a copy of the channel in consul.Client
 	shutdownCh chan struct{}
 
@@ -78,8 +89,13 @@ type ServerManager struct {
 	// connections.  ConsulClusterInfo is an interface that wraps serf.
 	clusterInfo ConsulClusterInfo
 
-	// notifyFailedServersBarrier is acts as a barrier to prevent
-	// queueing behind serverConfigLog and acts as a TryLock().
+	// connPoolPinger is used to test the health of a server in the
+	// connection pool.  Pinger is an interface that wraps
+	// client.ConnPool.
+	connPoolPinger Pinger
+
+	// notifyFailedBarrier is acts as a barrier to prevent queuing behind
+	// serverConfigLog and acts as a TryLock().
 	notifyFailedBarrier int32
 }
 
@@ -91,20 +107,20 @@ type ServerManager struct {
 func (sm *ServerManager) AddServer(server *server_details.ServerDetails) {
 	sm.serverConfigLock.Lock()
 	defer sm.serverConfigLock.Unlock()
-	serverCfg := sm.getServerConfig()
+	sc := sm.getServerConfig()
 
 	// Check if this server is known
 	found := false
-	for idx, existing := range serverCfg.servers {
+	for idx, existing := range sc.servers {
 		if existing.Name == server.Name {
-			newServers := make([]*server_details.ServerDetails, len(serverCfg.servers))
-			copy(newServers, serverCfg.servers)
+			newServers := make([]*server_details.ServerDetails, len(sc.servers))
+			copy(newServers, sc.servers)
 
 			// Overwrite the existing server details in order to
 			// possibly update metadata (e.g. server version)
 			newServers[idx] = server
 
-			serverCfg.servers = newServers
+			sc.servers = newServers
 			found = true
 			break
 		}
@@ -112,18 +128,23 @@ func (sm *ServerManager) AddServer(server *server_details.ServerDetails) {
 
 	// Add to the list if not known
 	if !found {
-		newServers := make([]*server_details.ServerDetails, len(serverCfg.servers), len(serverCfg.servers)+1)
-		copy(newServers, serverCfg.servers)
+		newServers := make([]*server_details.ServerDetails, len(sc.servers), len(sc.servers)+1)
+		copy(newServers, sc.servers)
 		newServers = append(newServers, server)
-		serverCfg.servers = newServers
+		sc.servers = newServers
 	}
 
-	sm.saveServerConfig(serverCfg)
+	sm.saveServerConfig(sc)
 }
 
 // cycleServers returns a new list of servers that has dequeued the first
 // server and enqueued it at the end of the list.  cycleServers assumes the
-// caller is holding the serverConfigLock.
+// caller is holding the serverConfigLock.  cycleServer does not test or ping
+// the next server inline.  cycleServer may be called when the environment
+// has just entered an unhealthy situation and blocking on a server test is
+// less desirable than just returning the next server in the firing line.  If
+// the next server fails, it will fail fast enough and cycleServer will be
+// called again.
 func (sc *serverConfig) cycleServer() (servers []*server_details.ServerDetails) {
 	numServers := len(sc.servers)
 	if numServers < 2 {
@@ -133,9 +154,30 @@ func (sc *serverConfig) cycleServer() (servers []*server_details.ServerDetails)
 	newServers := make([]*server_details.ServerDetails, 0, numServers)
 	newServers = append(newServers, sc.servers[1:]...)
 	newServers = append(newServers, sc.servers[0])
+
 	return newServers
 }
 
+// removeServerByKey performs an inline removal of the first matching server
+func (sc *serverConfig) removeServerByKey(targetKey *server_details.Key) {
+	for i, s := range sc.servers {
+		if targetKey.Equal(s.Key()) {
+			copy(sc.servers[i:], sc.servers[i+1:])
+			sc.servers[len(sc.servers)-1] = nil
+			sc.servers = sc.servers[:len(sc.servers)-1]
+			return
+		}
+	}
+}
+
+// shuffleServers shuffles the server list in place
+func (sc *serverConfig) shuffleServers() {
+	for i := len(sc.servers) - 1; i > 0; i-- {
+		j := rand.Int31n(int32(i + 1))
+		sc.servers[i], sc.servers[j] = sc.servers[j], sc.servers[i]
+	}
+}
+
 // FindServer takes out an internal "read lock" and searches through the list
 // of servers to find a "healthy" server.  If the server is actually
 // unhealthy, we rely on Serf to detect this and remove the node from the
@@ -143,17 +185,17 @@ func (sc *serverConfig) cycleServer() (servers []*server_details.ServerDetails)
 // during an RPC call, it is rotated to the end of the list.  If there are no
 // servers available, return nil.
 func (sm *ServerManager) FindServer() *server_details.ServerDetails {
-	serverCfg := sm.getServerConfig()
-	numServers := len(serverCfg.servers)
+	sc := sm.getServerConfig()
+	numServers := len(sc.servers)
 	if numServers == 0 {
-		sm.logger.Printf("[WARN] consul: No servers available")
+		sm.logger.Printf("[WARN] server manager: No servers available")
 		return nil
 	} else {
 		// Return whatever is at the front of the list because it is
 		// assumed to be the oldest in the server list (unless -
 		// hypothetically - the server list was rotated right after a
 		// server was added).
-		return serverCfg.servers[0]
+		return sc.servers[0]
 	}
 }
 
@@ -170,11 +212,12 @@ func (sm *ServerManager) saveServerConfig(sc serverConfig) {
 }
 
 // New is the only way to safely create a new ServerManager struct.
-func New(logger *log.Logger, shutdownCh chan struct{}, clusterInfo ConsulClusterInfo) (sm *ServerManager) {
-	// NOTE(sean@): Can't pass *consul.Client due to an import cycle
+func New(logger *log.Logger, shutdownCh chan struct{}, clusterInfo ConsulClusterInfo, connPoolPinger Pinger) (sm *ServerManager) {
 	sm = new(ServerManager)
 	sm.logger = logger
-	sm.clusterInfo = clusterInfo
+	sm.clusterInfo = clusterInfo       // can't pass *consul.Client: import cycle
+	sm.connPoolPinger = connPoolPinger // can't pass *consul.ConnPool: import cycle
+	sm.rebalanceTimer = time.NewTimer(clientRPCMinReuseDuration)
 	sm.shutdownCh = shutdownCh
 
 	sc := serverConfig{}
@@ -186,7 +229,7 @@ func New(logger *log.Logger, shutdownCh chan struct{}, clusterInfo ConsulCluster
 // NotifyFailedServer marks the passed in server as "failed" by rotating it
 // to the end of the server list.
 func (sm *ServerManager) NotifyFailedServer(server *server_details.ServerDetails) {
-	serverCfg := sm.getServerConfig()
+	sc := sm.getServerConfig()
 
 	// If the server being failed is not the first server on the list,
 	// this is a noop.  If, however, the server is failed and first on
@@ -194,7 +237,7 @@ func (sm *ServerManager) NotifyFailedServer(server *server_details.ServerDetails
 	// the server to the end of the list.
 
 	// Only rotate the server list when there is more than one server
-	if len(serverCfg.servers) > 1 && serverCfg.servers[0] == server &&
+	if len(sc.servers) > 1 && sc.servers[0] == server &&
 		// Use atomic.CAS to emulate a TryLock().
 		atomic.CompareAndSwapInt32(&sm.notifyFailedBarrier, 0, 1) {
 		defer atomic.StoreInt32(&sm.notifyFailedBarrier, 0)
@@ -203,11 +246,11 @@ func (sm *ServerManager) NotifyFailedServer(server *server_details.ServerDetails
 		// server to the end.
 		sm.serverConfigLock.Lock()
 		defer sm.serverConfigLock.Unlock()
-		serverCfg = sm.getServerConfig()
+		sc = sm.getServerConfig()
 
-		if len(serverCfg.servers) > 1 && serverCfg.servers[0] == server {
-			serverCfg.servers = serverCfg.cycleServer()
-			sm.saveServerConfig(serverCfg)
+		if len(sc.servers) > 1 && sc.servers[0] == server {
+			sc.servers = sc.cycleServer()
+			sm.saveServerConfig(sc)
 		}
 	}
 }
@@ -215,36 +258,144 @@ func (sm *ServerManager) NotifyFailedServer(server *server_details.ServerDetails
 // NumServers takes out an internal "read lock" and returns the number of
 // servers.  numServers includes both healthy and unhealthy servers.
 func (sm *ServerManager) NumServers() (numServers int) {
-	serverCfg := sm.getServerConfig()
-	numServers = len(serverCfg.servers)
+	sc := sm.getServerConfig()
+	numServers = len(sc.servers)
 	return numServers
 }
 
-// RebalanceServers takes out an internal write lock and shuffles the list of
-// servers on this agent.  This allows for a redistribution of work across
-// consul servers and provides a guarantee that the order of the server list
-// isn't related to the age at which the node was added to the cluster.
-// Elsewhere we rely on the position in the server list as a hint regarding
-// the stability of a server relative to its position in the server list.
-// Servers at or near the front of the list are more stable than servers near
-// the end of the list.  Unhealthy servers are removed when serf notices the
-// server has been deregistered.
+// RebalanceServers shuffles the list of servers on this agent.  The server
+// at the front of the list is selected for the next RPC.  RPC calls that
+// fail for a particular server are rotated to the end of the list.  This
+// method reshuffles the list periodically in order to redistribute work
+// across all known consul servers (i.e. guarantee that the order of servers
+// in the server list isn't positively correlated with the age of a server in
+// the consul cluster).  Periodically shuffling the server list prevents
+// long-lived clients from fixating on long-lived servers.
+//
+// Unhealthy servers are removed when serf notices the server has been
+// deregistered.  Before the newly shuffled server list is saved, the new
+// remote endpoint is tested to ensure its responsive.
 func (sm *ServerManager) RebalanceServers() {
+	// Obtain a copy of the current serverConfig
+	sc := sm.getServerConfig()
+
+	// Early abort if there is no value to shuffling
+	if len(sc.servers) < 2 {
+		return
+	}
+
+	sc.shuffleServers()
+
+	// Iterate through the shuffled server list to find a healthy server.
+	// Don't iterate on the list directly, this loop mutates the server
+	// list.
+	var foundHealthyServer bool
+	for i := 0; i < len(sc.servers); i++ {
+		// Always test the first server.  Failed servers are cycled
+		// while Serf detects the node has failed.
+		selectedServer := sc.servers[0]
+
+		ok, err := sm.connPoolPinger.PingConsulServer(selectedServer)
+		if ok {
+			foundHealthyServer = true
+			break
+		}
+		sm.logger.Printf(`[DEBUG] server manager: pinging server "%s" failed: %s`, selectedServer.String(), err)
+
+		sc.cycleServer()
+	}
+
+	// If no healthy servers were found, sleep and wait for Serf to make
+	// the world a happy place again.
+	if !foundHealthyServer {
+		sm.logger.Printf("[DEBUG] server manager: No healthy servers during rebalance, aborting")
+		return
+	}
+
+	// Verify that all servers are present
+	if sm.reconcileServerList(&sc) {
+		sm.logger.Printf("[DEBUG] server manager: Rebalanced %d servers, next active server is %s", len(sc.servers), sc.servers[0].String())
+	} else {
+		// reconcileServerList failed because Serf removed the server
+		// that was at the front of the list that had successfully
+		// been Ping'ed.  Between the Ping and reconcile, a Serf
+		// event had shown up removing the node.  Prevent an RPC
+		// timeout by retrying RebalanceServers().
+		//
+		// Instead of doing any heroics, "freeze in place" and
+		// continue to use the existing connection until the next
+		// rebalance occurs.
+	}
+
+	return
+}
+
+// reconcileServerList returns true when the first server in serverConfig
+// exists in the receiver's serverConfig.  If true, the merged serverConfig
+// is stored as the receiver's serverConfig.  Returns false if the first
+// server does not exist in the list (i.e. was removed by Serf during a
+// PingConsulServer() call.  Newly added servers are appended to the list and
+// other missing servers are removed from the list.
+func (sm *ServerManager) reconcileServerList(sc *serverConfig) bool {
 	sm.serverConfigLock.Lock()
 	defer sm.serverConfigLock.Unlock()
-	serverCfg := sm.getServerConfig()
 
-	newServers := make([]*server_details.ServerDetails, len(serverCfg.servers))
-	copy(newServers, serverCfg.servers)
+	// newServerCfg is a serverConfig that has been kept up to date with
+	// Serf node join and node leave events.
+	newServerCfg := sm.getServerConfig()
 
-	// Shuffle the server list
-	for i := len(serverCfg.servers) - 1; i > 0; i-- {
-		j := rand.Int31n(int32(i + 1))
-		newServers[i], newServers[j] = newServers[j], newServers[i]
+	// If Serf has removed all nodes, or there is no selected server
+	// (zero nodes in sc), abort early.
+	if len(newServerCfg.servers) == 0 || len(sc.servers) == 0 {
+		return false
 	}
-	serverCfg.servers = newServers
 
-	sm.saveServerConfig(serverCfg)
+	type targetServer struct {
+		server *server_details.ServerDetails
+
+		//   'b' == both
+		//   'o' == original
+		//   'n' == new
+		state byte
+	}
+	mergedList := make(map[server_details.Key]*targetServer, len(sc.servers))
+	for _, s := range sc.servers {
+		mergedList[*s.Key()] = &targetServer{server: s, state: 'o'}
+	}
+	for _, s := range newServerCfg.servers {
+		k := s.Key()
+		_, found := mergedList[*k]
+		if found {
+			mergedList[*k].state = 'b'
+		} else {
+			mergedList[*k] = &targetServer{server: s, state: 'n'}
+		}
+	}
+
+	// Ensure the selected server has not been removed by Serf
+	selectedServerKey := sc.servers[0].Key()
+	if v, found := mergedList[*selectedServerKey]; found && v.state == 'o' {
+		return false
+	}
+
+	// Append any new servers and remove any old servers
+	for k, v := range mergedList {
+		switch v.state {
+		case 'b':
+			// Do nothing, server exists in both
+		case 'o':
+			// Server has been removed
+			sc.removeServerByKey(&k)
+		case 'n':
+			// Server added
+			sc.servers = append(sc.servers, v.server)
+		default:
+			panic("unknown merge list state")
+		}
+	}
+
+	sm.saveServerConfig(*sc)
+	return true
 }
 
 // RemoveServer takes out an internal write lock and removes a server from
@@ -252,28 +403,26 @@ func (sm *ServerManager) RebalanceServers() {
 func (sm *ServerManager) RemoveServer(server *server_details.ServerDetails) {
 	sm.serverConfigLock.Lock()
 	defer sm.serverConfigLock.Unlock()
-	serverCfg := sm.getServerConfig()
+	sc := sm.getServerConfig()
 
 	// Remove the server if known
-	for i, _ := range serverCfg.servers {
-		if serverCfg.servers[i].Name == server.Name {
-			newServers := make([]*server_details.ServerDetails, 0, len(serverCfg.servers)-1)
-			newServers = append(newServers, serverCfg.servers[:i]...)
-			newServers = append(newServers, serverCfg.servers[i+1:]...)
-			serverCfg.servers = newServers
+	for i, _ := range sc.servers {
+		if sc.servers[i].Name == server.Name {
+			newServers := make([]*server_details.ServerDetails, 0, len(sc.servers)-1)
+			newServers = append(newServers, sc.servers[:i]...)
+			newServers = append(newServers, sc.servers[i+1:]...)
+			sc.servers = newServers
 
-			sm.saveServerConfig(serverCfg)
+			sm.saveServerConfig(sc)
 			return
 		}
 	}
 }
 
-// refreshServerRebalanceTimer is only called once the rebalanceTimer
-// expires.  Historically this was an expensive routine and is intended to be
-// run in isolation in a dedicated, non-concurrent task.
-func (sm *ServerManager) refreshServerRebalanceTimer(timer *time.Timer) time.Duration {
-	serverCfg := sm.getServerConfig()
-	numConsulServers := len(serverCfg.servers)
+// refreshServerRebalanceTimer is only called once sm.rebalanceTimer expires.
+func (sm *ServerManager) refreshServerRebalanceTimer() time.Duration {
+	sc := sm.getServerConfig()
+	numConsulServers := len(sc.servers)
 	// Limit this connection's life based on the size (and health) of the
 	// cluster.  Never rebalance a connection more frequently than
 	// connReuseLowWatermarkDuration, and make sure we never exceed
@@ -283,10 +432,18 @@ func (sm *ServerManager) refreshServerRebalanceTimer(timer *time.Timer) time.Dur
 	numLANMembers := sm.clusterInfo.NumNodes()
 	connRebalanceTimeout := lib.RateScaledInterval(clusterWideRebalanceConnsPerSec, connReuseLowWatermarkDuration, numLANMembers)
 
-	timer.Reset(connRebalanceTimeout)
+	sm.rebalanceTimer.Reset(connRebalanceTimeout)
 	return connRebalanceTimeout
 }
 
+// ResetRebalanceTimer resets the rebalance timer.  This method primarily
+// exists for testing and should not be used directly.
+func (sm *ServerManager) ResetRebalanceTimer() {
+	sm.serverConfigLock.Lock()
+	defer sm.serverConfigLock.Unlock()
+	sm.rebalanceTimer.Reset(clientRPCMinReuseDuration)
+}
+
 // Start is used to start and manage the task of automatically shuffling and
 // rebalancing the list of consul servers.  This maintenance only happens
 // periodically based on the expiration of the timer.  Failed servers are
@@ -294,14 +451,11 @@ func (sm *ServerManager) refreshServerRebalanceTimer(timer *time.Timer) time.Dur
 // the list.  The order of the server list must be shuffled periodically to
 // distribute load across all known and available consul servers.
 func (sm *ServerManager) Start() {
-	var rebalanceTimer *time.Timer = time.NewTimer(clientRPCMinReuseDuration)
-
 	for {
 		select {
-		case <-rebalanceTimer.C:
-			sm.logger.Printf("[INFO] server manager: Rebalancing server connections")
+		case <-sm.rebalanceTimer.C:
 			sm.RebalanceServers()
-			sm.refreshServerRebalanceTimer(rebalanceTimer)
+			sm.refreshServerRebalanceTimer()
 
 		case <-sm.shutdownCh:
 			sm.logger.Printf("[INFO] server manager: shutting down")
diff --git a/consul/server_manager/server_manager_internal_test.go b/consul/server_manager/server_manager_internal_test.go
index 6ea93c3e9d..4a5a6d43ab 100644
--- a/consul/server_manager/server_manager_internal_test.go
+++ b/consul/server_manager/server_manager_internal_test.go
@@ -4,6 +4,7 @@ import (
 	"bytes"
 	"fmt"
 	"log"
+	"math/rand"
 	"os"
 	"testing"
 	"time"
@@ -25,6 +26,20 @@ func GetBufferedLogger() *log.Logger {
 	return localLogger
 }
 
+type fauxConnPool struct {
+	// failPct between 0.0 and 1.0 == pct of time a Ping should fail
+	failPct float64
+}
+
+func (cp *fauxConnPool) PingConsulServer(server *server_details.ServerDetails) (bool, error) {
+	var success bool
+	successProb := rand.Float64()
+	if successProb > cp.failPct {
+		success = true
+	}
+	return success, nil
+}
+
 type fauxSerf struct {
 	numNodes int
 }
@@ -36,7 +51,15 @@ func (s *fauxSerf) NumNodes() int {
 func testServerManager() (sm *ServerManager) {
 	logger := GetBufferedLogger()
 	shutdownCh := make(chan struct{})
-	sm = New(logger, shutdownCh, &fauxSerf{numNodes: 16384})
+	sm = New(logger, shutdownCh, &fauxSerf{numNodes: 16384}, &fauxConnPool{})
+	return sm
+}
+
+func testServerManagerFailProb(failPct float64) (sm *ServerManager) {
+	logger := GetBufferedLogger()
+	logger = log.New(os.Stderr, "", log.LstdFlags)
+	shutdownCh := make(chan struct{})
+	sm = New(logger, shutdownCh, &fauxSerf{}, &fauxConnPool{failPct: failPct})
 	return sm
 }
 
@@ -125,17 +148,119 @@ func TestServerManagerInternal_New(t *testing.T) {
 	}
 }
 
-// func (sc *serverConfig) refreshServerRebalanceTimer(timer *time.Timer) {
+// func (sm *ServerManager) reconcileServerList(sc *serverConfig) bool {
+func TestServerManagerInternal_reconcileServerList(t *testing.T) {
+	tests := []int{0, 1, 2, 3, 4, 5, 10, 100}
+	for _, n := range tests {
+		ok, err := test_reconcileServerList(n)
+		if !ok {
+			t.Errorf("Expected %d to pass: %v", n, err)
+		}
+	}
+}
+
+func test_reconcileServerList(maxServers int) (bool, error) {
+	// Build a server list, reconcile, verify the missing servers are
+	// missing, the added have been added, and the original server is
+	// present.
+	const failPct = 0.5
+	sm := testServerManagerFailProb(failPct)
+
+	var failedServers, healthyServers []*server_details.ServerDetails
+	for i := 0; i < maxServers; i++ {
+		nodeName := fmt.Sprintf("s%02d", i)
+
+		node := &server_details.ServerDetails{Name: nodeName}
+		// Add 66% of servers to ServerManager
+		if rand.Float64() > 0.33 {
+			sm.AddServer(node)
+
+			// Of healthy servers, (ab)use connPoolPinger to
+			// failPct of the servers for the reconcile.  This
+			// allows for the selected server to no longer be
+			// healthy for the reconcile below.
+			if ok, _ := sm.connPoolPinger.PingConsulServer(node); ok {
+				// Will still be present
+				healthyServers = append(healthyServers, node)
+			} else {
+				// Will be missing
+				failedServers = append(failedServers, node)
+			}
+		} else {
+			// Will be added from the call to reconcile
+			healthyServers = append(healthyServers, node)
+		}
+	}
+
+	// Randomize ServerManager's server list
+	sm.RebalanceServers()
+	selectedServer := sm.FindServer()
+
+	var selectedServerFailed bool
+	for _, s := range failedServers {
+		if selectedServer.Key().Equal(s.Key()) {
+			selectedServerFailed = true
+			break
+		}
+	}
+
+	// Update ServerManager's server list to be "healthy" based on Serf.
+	// Reconcile this with origServers, which is shuffled and has a live
+	// connection, but possibly out of date.
+	origServers := sm.getServerConfig()
+	sm.saveServerConfig(serverConfig{servers: healthyServers})
+
+	// This should always succeed with non-zero server lists
+	if !selectedServerFailed && !sm.reconcileServerList(&origServers) &&
+		len(sm.getServerConfig().servers) != 0 &&
+		len(origServers.servers) != 0 {
+		// If the random gods are unfavorable and we end up with zero
+		// length lists, expect things to fail and retry the test.
+		return false, fmt.Errorf("Expected reconcile to succeed: %v %d %d",
+			selectedServerFailed,
+			len(sm.getServerConfig().servers),
+			len(origServers.servers))
+	}
+
+	// If we have zero-length server lists, test succeeded in degenerate
+	// case.
+	if len(sm.getServerConfig().servers) == 0 &&
+		len(origServers.servers) == 0 {
+		// Failed as expected w/ zero length list
+		return true, nil
+	}
+
+	resultingServerMap := make(map[server_details.Key]bool)
+	for _, s := range sm.getServerConfig().servers {
+		resultingServerMap[*s.Key()] = true
+	}
+
+	// Test to make sure no failed servers are in the ServerManager's
+	// list.  Error if there are any failedServers in sc.servers
+	for _, s := range failedServers {
+		_, ok := resultingServerMap[*s.Key()]
+		if ok {
+			return false, fmt.Errorf("Found failed server %v in merged list %v", s, resultingServerMap)
+		}
+	}
+
+	// Test to make sure all healthy servers are in the healthy list.
+	if len(healthyServers) != len(sm.getServerConfig().servers) {
+		return false, fmt.Errorf("Expected healthy map and servers to match: %d/%d", len(healthyServers), len(healthyServers))
+	}
+
+	// Test to make sure all healthy servers are in the resultingServerMap list.
+	for _, s := range healthyServers {
+		_, ok := resultingServerMap[*s.Key()]
+		if !ok {
+			return false, fmt.Errorf("Server %v missing from healthy map after merged lists", s)
+		}
+	}
+	return true, nil
+}
+
+// func (sc *serverConfig) refreshServerRebalanceTimer() {
 func TestServerManagerInternal_refreshServerRebalanceTimer(t *testing.T) {
-	sm := testServerManager()
-
-	timer := time.NewTimer(time.Duration(1 * time.Nanosecond))
-	time.Sleep(1 * time.Millisecond)
-	sm.refreshServerRebalanceTimer(timer)
-
-	logger := log.New(os.Stderr, "", log.LstdFlags)
-	shutdownCh := make(chan struct{})
-
 	type clusterSizes struct {
 		numNodes     int
 		numServers   int
@@ -170,17 +295,19 @@ func TestServerManagerInternal_refreshServerRebalanceTimer(t *testing.T) {
 		{1000000, 19, 10 * time.Minute},
 	}
 
-	for _, s := range clusters {
-		sm := New(logger, shutdownCh, &fauxSerf{numNodes: s.numNodes})
+	logger := log.New(os.Stderr, "", log.LstdFlags)
+	shutdownCh := make(chan struct{})
 
+	for _, s := range clusters {
+		sm := New(logger, shutdownCh, &fauxSerf{numNodes: s.numNodes}, &fauxConnPool{})
 		for i := 0; i < s.numServers; i++ {
 			nodeName := fmt.Sprintf("s%02d", i)
 			sm.AddServer(&server_details.ServerDetails{Name: nodeName})
 		}
 
-		d := sm.refreshServerRebalanceTimer(timer)
+		d := sm.refreshServerRebalanceTimer()
 		if d < s.minRebalance {
-			t.Fatalf("duration too short for cluster of size %d and %d servers (%s < %s)", s.numNodes, s.numServers, d, s.minRebalance)
+			t.Errorf("duration too short for cluster of size %d and %d servers (%s < %s)", s.numNodes, s.numServers, d, s.minRebalance)
 		}
 	}
 }
diff --git a/consul/server_manager/server_manager_test.go b/consul/server_manager/server_manager_test.go
index 8b292a2ddc..25673140a4 100644
--- a/consul/server_manager/server_manager_test.go
+++ b/consul/server_manager/server_manager_test.go
@@ -4,6 +4,7 @@ import (
 	"bytes"
 	"fmt"
 	"log"
+	"math/rand"
 	"os"
 	"strings"
 	"testing"
@@ -26,6 +27,20 @@ func GetBufferedLogger() *log.Logger {
 	return localLogger
 }
 
+type fauxConnPool struct {
+	// failPct between 0.0 and 1.0 == pct of time a Ping should fail
+	failPct float64
+}
+
+func (cp *fauxConnPool) PingConsulServer(server *server_details.ServerDetails) (bool, error) {
+	var success bool
+	successProb := rand.Float64()
+	if successProb > cp.failPct {
+		success = true
+	}
+	return success, nil
+}
+
 type fauxSerf struct {
 }
 
@@ -37,7 +52,15 @@ func testServerManager() (sm *server_manager.ServerManager) {
 	logger := GetBufferedLogger()
 	logger = log.New(os.Stderr, "", log.LstdFlags)
 	shutdownCh := make(chan struct{})
-	sm = server_manager.New(logger, shutdownCh, &fauxSerf{})
+	sm = server_manager.New(logger, shutdownCh, &fauxSerf{}, &fauxConnPool{})
+	return sm
+}
+
+func testServerManagerFailProb(failPct float64) (sm *server_manager.ServerManager) {
+	logger := GetBufferedLogger()
+	logger = log.New(os.Stderr, "", log.LstdFlags)
+	shutdownCh := make(chan struct{})
+	sm = server_manager.New(logger, shutdownCh, &fauxSerf{}, &fauxConnPool{failPct: failPct})
 	return sm
 }
 
@@ -124,7 +147,7 @@ func TestServerManager_New(t *testing.T) {
 	logger := GetBufferedLogger()
 	logger = log.New(os.Stderr, "", log.LstdFlags)
 	shutdownCh := make(chan struct{})
-	sm := server_manager.New(logger, shutdownCh, &fauxSerf{})
+	sm := server_manager.New(logger, shutdownCh, &fauxSerf{}, &fauxConnPool{})
 	if sm == nil {
 		t.Fatalf("ServerManager nil")
 	}
@@ -202,7 +225,8 @@ func TestServerManager_NumServers(t *testing.T) {
 
 // func (sm *ServerManager) RebalanceServers() {
 func TestServerManager_RebalanceServers(t *testing.T) {
-	sm := testServerManager()
+	const failPct = 0.5
+	sm := testServerManagerFailProb(failPct)
 	const maxServers = 100
 	const numShuffleTests = 100
 	const uniquePassRate = 0.5
@@ -265,6 +289,10 @@ func TestServerManager_RemoveServer(t *testing.T) {
 		servers = append(servers, server)
 		sm.AddServer(server)
 	}
+	if sm.NumServers() != maxServers {
+		t.Fatalf("Expected %d servers, received %d", maxServers, sm.NumServers())
+	}
+
 	sm.RebalanceServers()
 
 	if sm.NumServers() != maxServers {