diff --git a/scheduler/reconcile_test.go b/scheduler/reconcile_test.go
index 604347fa5..94b3746b6 100644
--- a/scheduler/reconcile_test.go
+++ b/scheduler/reconcile_test.go
@@ -1515,6 +1515,55 @@ func TestReconciler_RescheduleLater_Service(t *testing.T) {
 	r.inplaceUpdate[0].EvalID = evals[0].ID
 }
 
+// Tests service allocations with client status complete
+func TestReconciler_Service_ClientStatusComplete(t *testing.T) {
+	// Set desired 5
+	job := mock.Job()
+	job.TaskGroups[0].Count = 5
+
+	// Set up reschedule policy
+	delayDur := 15 * time.Second
+	job.TaskGroups[0].ReschedulePolicy = &structs.ReschedulePolicy{Attempts: 1, Interval: 24 * time.Hour, Delay: delayDur, MaxDelay: 1 * time.Hour}
+
+	// Create 5 existing allocations
+	var allocs []*structs.Allocation
+	for i := 0; i < 5; i++ {
+		alloc := mock.Alloc()
+		alloc.Job = job
+		alloc.JobID = job.ID
+		alloc.NodeID = uuid.Generate()
+		alloc.Name = structs.AllocName(job.ID, job.TaskGroups[0].Name, uint(i))
+		allocs = append(allocs, alloc)
+		alloc.ClientStatus = structs.AllocClientStatusRunning
+		alloc.DesiredStatus = structs.AllocDesiredStatusRun
+	}
+
+	// Mark one as client status complete
+	allocs[4].ClientStatus = structs.AllocClientStatusComplete
+
+	reconciler := NewAllocReconciler(testLogger(), allocUpdateFnIgnore, false, job.ID, job, nil, allocs, nil)
+	r := reconciler.Compute()
+
+	// Should place a new placement for the alloc that was marked complete
+	assertResults(t, r, &resultExpectation{
+		createDeployment:  nil,
+		deploymentUpdates: nil,
+		place:             1,
+		inplace:           0,
+		stop:              0,
+		desiredTGUpdates: map[string]*structs.DesiredUpdates{
+			job.TaskGroups[0].Name: {
+				Place:         1,
+				InPlaceUpdate: 0,
+				Ignore:        4,
+			},
+		},
+	})
+
+	assertNamesHaveIndexes(t, intRange(4, 4), placeResultsToNames(r.place))
+
+}
+
 // Tests rescheduling failed service allocations with desired state stop
 func TestReconciler_RescheduleNow_Service(t *testing.T) {
 	require := require.New(t)
diff --git a/scheduler/reconcile_util.go b/scheduler/reconcile_util.go
index a7b0b8141..d571a8b4e 100644
--- a/scheduler/reconcile_util.go
+++ b/scheduler/reconcile_util.go
@@ -279,18 +279,18 @@ func (a allocSet) filterByRescheduleable(isBatch bool) (untainted, rescheduleNow
 // updateByReschedulable is a helper method that encapsulates logic for whether a failed allocation
 // should be rescheduled now, later or left in the untainted set
 func updateByReschedulable(alloc *structs.Allocation, now time.Time, batch bool) (untainted, rescheduleNow, rescheduleLater bool, rescheduleTime time.Time) {
-	shouldAllow := true
+	shouldFilter := false
 	if !batch {
-		// For service type jobs we ignore allocs whose desired state is stop/evict
-		// everything else is either rescheduleable or untainted
-		shouldAllow = alloc.DesiredStatus != structs.AllocDesiredStatusStop && alloc.DesiredStatus != structs.AllocDesiredStatusEvict
+		// For service type jobs we filter terminal allocs
+		// except for those with ClientStatusFailed - those are checked for reschedulability
+		shouldFilter = alloc.TerminalStatus() && alloc.ClientStatus != structs.AllocClientStatusFailed
 	}
 	rescheduleTime, eligible := alloc.NextRescheduleTime()
 	// We consider a time difference of less than 5 seconds to be eligible
 	// because we collapse allocations that failed within 5 seconds into a single evaluation
 	if eligible && now.After(rescheduleTime) {
 		rescheduleNow = true
-	} else if shouldAllow {
+	} else if !shouldFilter {
 		untainted = true
 		if eligible && alloc.FollowupEvalID == "" {
 			rescheduleLater = true