diff --git a/fs_mgr/libsnapshot/snapuserd/user-space-merge/snapuserd_server.cpp b/fs_mgr/libsnapshot/snapuserd/user-space-merge/snapuserd_server.cpp
index a79e3e1..eb64704 100644
--- a/fs_mgr/libsnapshot/snapuserd/user-space-merge/snapuserd_server.cpp
+++ b/fs_mgr/libsnapshot/snapuserd/user-space-merge/snapuserd_server.cpp
@@ -599,8 +599,13 @@
         return false;
     }
 
-    // We must re-initialize property service access, since we launched before
-    // second-stage init.
+    // This initialization of system property is important. When daemon is
+    // launched post selinux transition (before init second stage),
+    // bionic libc initializes system property as part of __libc_init_common();
+    // however that initialization fails silently given that fact that we don't
+    // have /dev/__properties__ setup which is created at init second stage.
+    //
+    // At this point, we have the handlers setup and is safe to setup property.
     __system_properties_init();
 
     if (!android::base::WaitForProperty("snapuserd.proxy_ready", "true")) {
diff --git a/init/snapuserd_transition.cpp b/init/snapuserd_transition.cpp
index e11510e..5deaf31 100644
--- a/init/snapuserd_transition.cpp
+++ b/init/snapuserd_transition.cpp
@@ -32,6 +32,7 @@
 #include <android-base/strings.h>
 #include <android-base/unique_fd.h>
 #include <cutils/sockets.h>
+#include <fs_avb/fs_avb.h>
 #include <libsnapshot/snapshot.h>
 #include <private/android_filesystem_config.h>
 #include <procinfo/process_map.h>
@@ -247,6 +248,56 @@
     }
 }
 
+/*
+ * Before starting init second stage, we will wait
+ * for snapuserd daemon to be up and running; bionic libc
+ * may read /system/etc/selinux/plat_property_contexts file
+ * before invoking main() function. This will happen if
+ * init initializes property during second stage. Any access
+ * to /system without snapuserd daemon will lead to a deadlock.
+ *
+ * Thus, we do a simple probe by reading system partition. This
+ * read will eventually be serviced by daemon confirming that
+ * daemon is up and running. Furthermore, we are still in the kernel
+ * domain and sepolicy has not been enforced yet. Thus, access
+ * to these device mapper block devices are ok even though
+ * we may see audit logs.
+ */
+bool SnapuserdSelinuxHelper::TestSnapuserdIsReady() {
+    std::string dev = "/dev/block/mapper/system"s + fs_mgr_get_slot_suffix();
+    android::base::unique_fd fd(open(dev.c_str(), O_RDONLY | O_DIRECT));
+    if (fd < 0) {
+        PLOG(ERROR) << "open " << dev << " failed";
+        return false;
+    }
+
+    void* addr;
+    ssize_t page_size = getpagesize();
+    if (posix_memalign(&addr, page_size, page_size) < 0) {
+        PLOG(ERROR) << "posix_memalign with page size " << page_size;
+        return false;
+    }
+
+    std::unique_ptr<void, decltype(&::free)> buffer(addr, ::free);
+
+    int iter = 0;
+    while (iter < 10) {
+        ssize_t n = TEMP_FAILURE_RETRY(pread(fd.get(), buffer.get(), page_size, 0));
+        if (n < 0) {
+            // Wait for sometime before retry
+            std::this_thread::sleep_for(100ms);
+        } else if (n == page_size) {
+            return true;
+        } else {
+            LOG(ERROR) << "pread returned: " << n << " from: " << dev << " expected: " << page_size;
+        }
+
+        iter += 1;
+    }
+
+    return false;
+}
+
 void SnapuserdSelinuxHelper::RelaunchFirstStageSnapuserd() {
     auto fd = GetRamdiskSnapuserdFd();
     if (!fd) {
@@ -268,6 +319,13 @@
         setenv(kSnapuserdFirstStagePidVar, std::to_string(pid).c_str(), 1);
 
         LOG(INFO) << "Relaunched snapuserd with pid: " << pid;
+
+        if (!TestSnapuserdIsReady()) {
+            PLOG(FATAL) << "snapuserd daemon failed to launch";
+        } else {
+            LOG(INFO) << "snapuserd daemon is up and running";
+        }
+
         return;
     }
 
diff --git a/init/snapuserd_transition.h b/init/snapuserd_transition.h
index be22afd..557d105 100644
--- a/init/snapuserd_transition.h
+++ b/init/snapuserd_transition.h
@@ -56,6 +56,7 @@
   private:
     void RelaunchFirstStageSnapuserd();
     void ExecSnapuserd();
+    bool TestSnapuserdIsReady();
 
     std::unique_ptr<SnapshotManager> sm_;
     BlockDevInitializer block_dev_init_;