diff --git a/service-t/src/com/android/server/ethernet/EthernetNetworkFactory.java b/service-t/src/com/android/server/ethernet/EthernetNetworkFactory.java
index 2196bf8..00f6c56 100644
--- a/service-t/src/com/android/server/ethernet/EthernetNetworkFactory.java
+++ b/service-t/src/com/android/server/ethernet/EthernetNetworkFactory.java
@@ -469,7 +469,9 @@
             // TODO: Update this logic to only do a restart if required. Although a restart may
             //  be required due to the capabilities or ipConfiguration values, not all
             //  capabilities changes require a restart.
-            restart();
+            if (mIpClient != null) {
+                restart();
+            }
         }
 
         boolean isRestricted() {
@@ -558,6 +560,13 @@
 
         void updateNeighborLostEvent(String logMsg) {
             Log.i(TAG, "updateNeighborLostEvent " + logMsg);
+            if (mIpConfig.getIpAssignment() == IpAssignment.STATIC) {
+                // Ignore NUD failures for static IP configurations, where restarting the IpClient
+                // will not fix connectivity.
+                // In this scenario, NetworkMonitor will not verify the network, so it will
+                // eventually be torn down.
+                return;
+            }
             // Reachability lost will be seen only if the gateway is not reachable.
             // Since ethernet FW doesn't have the mechanism to scan for new networks
             // like WiFi, simply restart.
diff --git a/service-t/src/com/android/server/ethernet/EthernetTracker.java b/service-t/src/com/android/server/ethernet/EthernetTracker.java
index 6ec478b..95baf81 100644
--- a/service-t/src/com/android/server/ethernet/EthernetTracker.java
+++ b/service-t/src/com/android/server/ethernet/EthernetTracker.java
@@ -302,9 +302,14 @@
         final int state = getInterfaceState(iface);
         final int role = getInterfaceRole(iface);
         final IpConfiguration config = getIpConfigurationForCallback(iface, state);
+        final boolean isRestricted = isRestrictedInterface(iface);
         final int n = mListeners.beginBroadcast();
         for (int i = 0; i < n; i++) {
             try {
+                if (isRestricted) {
+                    final ListenerInfo info = (ListenerInfo) mListeners.getBroadcastCookie(i);
+                    if (!info.canUseRestrictedNetworks) continue;
+                }
                 mListeners.getBroadcastItem(i).onInterfaceStateChanged(iface, state, role, config);
             } catch (RemoteException e) {
                 // Do nothing here.
diff --git a/tests/cts/net/src/android/net/cts/EthernetManagerTest.kt b/tests/cts/net/src/android/net/cts/EthernetManagerTest.kt
index 3635b7b..122eb15 100644
--- a/tests/cts/net/src/android/net/cts/EthernetManagerTest.kt
+++ b/tests/cts/net/src/android/net/cts/EthernetManagerTest.kt
@@ -381,7 +381,10 @@
         setIncludeTestInterfaces(false)
 
         for (listener in addedListeners) {
+            // Even if a given listener was not registered as both an interface and ethernet state
+            // listener, calling remove is safe.
             em.removeInterfaceStateListener(listener)
+            em.removeEthernetStateListener(listener)
         }
         registeredCallbacks.forEach { cm.unregisterNetworkCallback(it) }
         releaseTetheredInterface()
@@ -409,6 +412,11 @@
         addedListeners.add(listener)
     }
 
+    private fun addEthernetStateListener(listener: EthernetStateListener) {
+        em.addEthernetStateListener(handler::post, listener)
+        addedListeners.add(listener)
+    }
+
     // WARNING: setting hasCarrier to false requires kernel support. Call
     // assumeChangingCarrierSupported() at the top of your test.
     private fun createInterface(hasCarrier: Boolean = true): EthernetTestInterface {
@@ -503,13 +511,8 @@
         runAsShell(NETWORK_SETTINGS) { em.setEthernetEnabled(enabled) }
 
         val listener = EthernetStateListener()
-        em.addEthernetStateListener(handler::post, listener)
-        try {
-            listener.eventuallyExpect(
-                    if (enabled) ETHERNET_STATE_ENABLED else ETHERNET_STATE_DISABLED)
-        } finally {
-            em.removeEthernetStateListener(listener)
-        }
+        addEthernetStateListener(listener)
+        listener.eventuallyExpect(if (enabled) ETHERNET_STATE_ENABLED else ETHERNET_STATE_DISABLED)
     }
 
     // NetworkRequest.Builder does not create a copy of the passed NetworkRequest, so in order to
@@ -979,4 +982,23 @@
         cb.eventuallyExpectCapabilities(TEST_CAPS)
         cb.eventuallyExpectLpForStaticConfig(STATIC_IP_CONFIGURATION.staticIpConfiguration)
     }
+
+    @Test
+    fun testUpdateConfiguration_withLinkDown() {
+        assumeChangingCarrierSupported()
+        // createInterface without carrier is racy, so create it and then remove carrier.
+        val iface = createInterface()
+        val cb = requestNetwork(ETH_REQUEST)
+        cb.expectAvailable()
+
+        iface.setCarrierEnabled(false)
+        cb.eventuallyExpectLost()
+
+        updateConfiguration(iface, STATIC_IP_CONFIGURATION, TEST_CAPS).expectResult(iface.name)
+        cb.assertNoCallback()
+
+        iface.setCarrierEnabled(true)
+        cb.eventuallyExpectCapabilities(TEST_CAPS)
+        cb.eventuallyExpectLpForStaticConfig(STATIC_IP_CONFIGURATION.staticIpConfiguration)
+    }
 }