diff --git a/pimd/pim_oil.c b/pimd/pim_oil.c
index 64979ed7ed..8933245de1 100644
--- a/pimd/pim_oil.c
+++ b/pimd/pim_oil.c
@@ -36,6 +36,8 @@
 // struct list *pim_channel_oil_list = NULL;
 // struct hash *pim_channel_oil_hash = NULL;
 
+static void pim_channel_update_mute(struct channel_oil *c_oil);
+
 char *pim_channel_oil_dump(struct channel_oil *c_oil, char *buf, size_t size)
 {
 	char *out;
@@ -205,8 +207,17 @@ struct channel_oil *pim_channel_oil_add(struct pim_instance *pim,
 		pim_channel_oil_change_iif(pim, c_oil, input_vif_index,
 					   name);
 		++c_oil->oil_ref_count;
-		/* channel might be present prior to upstream */
-		c_oil->up = pim_upstream_find(pim, sg);
+
+		if (!c_oil->up) {
+			/* channel might be present prior to upstream */
+			c_oil->up = pim_upstream_find(
+					pim, sg);
+			/* if the upstream entry is being anchored to an
+			 * already existing channel OIL we need to re-evaluate
+			 * the "Mute" state on AA OIFs
+			 */
+			pim_channel_update_mute(c_oil);
+		}
 
 		if (PIM_DEBUG_MROUTE)
 			zlog_debug(
@@ -247,7 +258,8 @@ struct channel_oil *pim_channel_oil_add(struct pim_instance *pim,
 	return c_oil;
 }
 
-void pim_channel_oil_del(struct channel_oil *c_oil, const char *name)
+struct channel_oil *pim_channel_oil_del(struct channel_oil *c_oil,
+		const char *name)
 {
 	if (PIM_DEBUG_MROUTE) {
 		struct prefix_sg sg = {.src = c_oil->oil.mfcc_mcastgrp,
@@ -270,6 +282,24 @@ void pim_channel_oil_del(struct channel_oil *c_oil, const char *name)
 		hash_release(c_oil->pim->channel_oil_hash, c_oil);
 
 		pim_channel_oil_free(c_oil);
+		return NULL;
+	}
+
+	return c_oil;
+}
+
+void pim_channel_oil_upstream_deref(struct channel_oil *c_oil)
+{
+	/* The upstream entry associated with a channel_oil is abt to be
+	 * deleted. If the channel_oil is kept around because of other
+	 * references we need to remove upstream based states out of it.
+	 */
+	c_oil = pim_channel_oil_del(c_oil, __func__);
+	if (c_oil) {
+		/* note: here we assume that c_oil->up has already been
+		 * cleared
+		 */
+		pim_channel_update_mute(c_oil);
 	}
 }
 
@@ -448,6 +478,22 @@ void pim_channel_update_oif_mute(struct channel_oil *c_oil,
 	pim_mroute_add(c_oil, __PRETTY_FUNCTION__);
 }
 
+/* pim_upstream has been set or cleared on the c_oil. re-eval mute state
+ * on all existing OIFs
+ */
+static void pim_channel_update_mute(struct channel_oil *c_oil)
+{
+	struct pim_interface *pim_reg_ifp;
+	struct pim_interface *vxlan_ifp;
+
+	pim_reg_ifp = c_oil->pim->regiface->info;
+	if (pim_reg_ifp)
+		pim_channel_update_oif_mute(c_oil, pim_reg_ifp);
+	vxlan_ifp = pim_vxlan_get_term_ifp(c_oil->pim);
+	if (vxlan_ifp)
+		pim_channel_update_oif_mute(c_oil, vxlan_ifp);
+}
+
 int pim_channel_add_oif(struct channel_oil *channel_oil, struct interface *oif,
 			uint32_t proto_mask, const char *caller)
 {
diff --git a/pimd/pim_oil.h b/pimd/pim_oil.h
index a371e2a7c6..087f47121d 100644
--- a/pimd/pim_oil.h
+++ b/pimd/pim_oil.h
@@ -120,7 +120,8 @@ struct channel_oil *pim_channel_oil_add(struct pim_instance *pim,
 void pim_channel_oil_change_iif(struct pim_instance *pim,
 				struct channel_oil *c_oil, int input_vif_index,
 				const char *name);
-void pim_channel_oil_del(struct channel_oil *c_oil, const char *name);
+struct channel_oil *pim_channel_oil_del(struct channel_oil *c_oil,
+		const char *name);
 
 int pim_channel_add_oif(struct channel_oil *c_oil, struct interface *oif,
 			uint32_t proto_mask, const char *caller);
@@ -133,4 +134,6 @@ char *pim_channel_oil_dump(struct channel_oil *c_oil, char *buf, size_t size);
 
 void pim_channel_update_oif_mute(struct channel_oil *c_oil,
 		struct pim_interface *pim_ifp);
+
+void pim_channel_oil_upstream_deref(struct channel_oil *c_oil);
 #endif /* PIM_OIL_H */
diff --git a/pimd/pim_upstream.c b/pimd/pim_upstream.c
index 02dfb136c5..fdb7363042 100644
--- a/pimd/pim_upstream.c
+++ b/pimd/pim_upstream.c
@@ -141,14 +141,22 @@ static struct pim_upstream *pim_upstream_find_parent(struct pim_instance *pim,
 
 static void upstream_channel_oil_detach(struct pim_upstream *up)
 {
-	if (up->channel_oil) {
+	struct channel_oil *channel_oil = up->channel_oil;
+
+	if (channel_oil) {
 		/* Detaching from channel_oil, channel_oil may exist post del,
 		   but upstream would not keep reference of it
 		 */
-		up->channel_oil->up = NULL;
-		pim_channel_oil_del(up->channel_oil, __PRETTY_FUNCTION__);
+		channel_oil->up = NULL;
 		up->channel_oil = NULL;
+
+		/* attempt to delete channel_oil; if channel_oil is being held
+		 * because of other references cleanup info such as "Mute"
+		 * inferred from the parent upstream
+		 */
+		pim_channel_oil_upstream_deref(channel_oil);
 	}
+
 }
 
 struct pim_upstream *pim_upstream_del(struct pim_instance *pim,
diff --git a/pimd/pim_vxlan.h b/pimd/pim_vxlan.h
index f0a66e6b77..c6507a474c 100644
--- a/pimd/pim_vxlan.h
+++ b/pimd/pim_vxlan.h
@@ -115,6 +115,13 @@ static inline bool pim_vxlan_is_orig_mroute(struct pim_vxlan_sg *vxlan_sg)
 	return (vxlan_sg->sg.src.s_addr != 0);
 }
 
+static inline bool pim_vxlan_is_local_sip(struct pim_upstream *up)
+{
+	return (up->sg.src.s_addr != INADDR_ANY) &&
+		up->rpf.source_nexthop.interface &&
+		if_is_loopback_or_vrf(up->rpf.source_nexthop.interface);
+}
+
 extern struct pim_vxlan *pim_vxlan_p;
 extern struct pim_vxlan_sg *pim_vxlan_sg_find(struct pim_instance *pim,
 					    struct prefix_sg *sg);