diff --git a/servicetalk-loadbalancer-experimental-provider/src/main/java/io/servicetalk/loadbalancer/experimental/DefaultLoadBalancerObserver.java b/servicetalk-loadbalancer-experimental-provider/src/main/java/io/servicetalk/loadbalancer/experimental/DefaultLoadBalancerObserver.java
index 208ebade32..6a1a0eca3e 100644
--- a/servicetalk-loadbalancer-experimental-provider/src/main/java/io/servicetalk/loadbalancer/experimental/DefaultLoadBalancerObserver.java
+++ b/servicetalk-loadbalancer-experimental-provider/src/main/java/io/servicetalk/loadbalancer/experimental/DefaultLoadBalancerObserver.java
@@ -44,14 +44,12 @@ public HostObserver hostObserver(Object resolvedAddress) {
     }
 
     @Override
-    public void onServiceDiscoveryEvent(Collection<? extends ServiceDiscovererEvent<?>> events, int oldHostSetSize,
-                                        int newHostSetSize) {
-        LOGGER.debug("{}- onServiceDiscoveryEvent(events: {}, oldHostSetSize: {}, newHostSetSize: {})",
-                lbDescription, events, oldHostSetSize, newHostSetSize);
+    public void onServiceDiscoveryEvent(Collection<? extends ServiceDiscovererEvent<?>> events) {
+        LOGGER.debug("{}- onServiceDiscoveryEvent(events: {}, count {})", lbDescription, events, events.size());
     }
 
     @Override
-    public void onHostSetChanged(Collection<? extends Host> newHosts) {
+    public void onHostsUpdate(Collection<? extends Host> oldHosts, Collection<? extends Host> newHosts) {
         if (LOGGER.isDebugEnabled()) {
             int healthyCount = 0;
             for (Host host : newHosts) {
@@ -59,8 +57,9 @@ public void onHostSetChanged(Collection<? extends Host> newHosts) {
                     healthyCount++;
                 }
             }
-            LOGGER.debug("{}- onHostSetChanged(host set size: {}, healthy: {}). New hosts: {}", lbDescription,
-                    newHosts.size(), healthyCount, newHosts);
+            LOGGER.debug("{}- onHostsUpdate(old hosts: {}, new hosts: {}), old host count: {}, new host count: {}, " +
+                            "new healthy count: {}",
+                    lbDescription, oldHosts, newHosts, oldHosts.size(), newHosts.size(), healthyCount);
         }
     }
 
@@ -70,8 +69,9 @@ public void onNoAvailableHostException(final NoAvailableHostException exception)
     }
 
     @Override
-    public void onNoActiveHostException(int hostSetSize, NoActiveHostException exception) {
-        LOGGER.debug("{}- onNoActiveHostException(hostSetSize: {})", lbDescription, hostSetSize, exception);
+    public void onNoActiveHostException(Collection<? extends Host> hosts, NoActiveHostException exception) {
+        LOGGER.debug("{}- onNoActiveHostException(hosts: {}, host count: {})", lbDescription, hosts, hosts.size(),
+                exception);
     }
 
     private final class HostObserverImpl implements HostObserver {
diff --git a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/BaseHostSelector.java b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/BaseHostSelector.java
index ddf1f90e31..01aaa9a7d2 100644
--- a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/BaseHostSelector.java
+++ b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/BaseHostSelector.java
@@ -48,11 +48,6 @@ public final Single<C> selectConnection(Predicate<C> selector, @Nullable Context
         return hosts.isEmpty() ? noHostsFailure() : selectConnection0(selector, context, forceNewConnectionAndReserve);
     }
 
-    @Override
-    public final int hostSetSize() {
-        return hosts.size();
-    }
-
     @Override
     public final boolean isHealthy() {
         // TODO: in the future we may want to make this more of a "are at least X hosts available" question
@@ -60,7 +55,8 @@ public final boolean isHealthy() {
         return anyHealthy(hosts);
     }
 
-    final List<? extends Host<ResolvedAddress, C>> hosts() {
+    @Override
+    public final List<? extends Host<ResolvedAddress, C>> hosts() {
         return hosts;
     }
 
diff --git a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/DefaultHost.java b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/DefaultHost.java
index 5940dc92f0..b05228e5cb 100644
--- a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/DefaultHost.java
+++ b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/DefaultHost.java
@@ -116,6 +116,11 @@ public Addr address() {
         return address;
     }
 
+    @Override
+    public double loadBalancingWeight() {
+        return 1;
+    }
+
     @Override
     public boolean markActiveIfNotClosed() {
         final ConnState oldState = connStateUpdater.getAndUpdate(this, oldConnState -> {
diff --git a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/DefaultLoadBalancer.java b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/DefaultLoadBalancer.java
index 274e480967..eae092a136 100644
--- a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/DefaultLoadBalancer.java
+++ b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/DefaultLoadBalancer.java
@@ -174,7 +174,7 @@ final class DefaultLoadBalancer<ResolvedAddress, C extends LoadBalancedConnectio
 
         // When we get a health-status event we should update the host set.
         this.outlierDetectorStatusChangeStream = this.outlierDetector.healthStatusChanged().forEach((ignored) ->
-            sequentialExecutor.execute(() -> sequentialUpdateUsedHosts(usedHosts)));
+            sequentialExecutor.execute(() -> sequentialUpdateUsedHosts(usedHosts, true)));
 
         // We subscribe to events as the very last step so that if we subscribe to an eager service discoverer
         // we already have all the fields initialized.
@@ -308,6 +308,10 @@ private void sequentialOnNext(Collection<? extends ServiceDiscovererEvent<Resolv
                 return;
             }
 
+            // Notify the observer first so that we can emit the service discovery event before we start (potentially)
+            // emitting events related to creating new hosts.
+            loadBalancerObserver.onServiceDiscoveryEvent(events);
+
             boolean sendReadyEvent = false;
             final List<PrioritizedHostImpl<ResolvedAddress, C>> nextHosts = new ArrayList<>(
                     usedHosts.size() + events.size());
@@ -380,16 +384,7 @@ private void sequentialOnNext(Collection<? extends ServiceDiscovererEvent<Resolv
                     nextHosts.add(createHost(event));
                 }
             }
-
-            // Always send the event regardless of if we update the actual list.
-            loadBalancerObserver.onServiceDiscoveryEvent(events, usedHosts.size(), nextHosts.size());
-            // We've built a materially different host set so now set it for consumption and send our events.
-            if (hostSetChanged) {
-                sequentialUpdateUsedHosts(nextHosts);
-            }
-
-            LOGGER.debug("{}: now using addresses (size={}): {}.",
-                    DefaultLoadBalancer.this, nextHosts.size(), nextHosts);
+            sequentialUpdateUsedHosts(nextHosts, hostSetChanged);
             if (nextHosts.isEmpty()) {
                 eventStreamProcessor.onNext(LOAD_BALANCER_NOT_READY_EVENT);
             } else if (sendReadyEvent) {
@@ -442,7 +437,7 @@ private PrioritizedHostImpl<ResolvedAddress, C> createHost(ServiceDiscovererEven
                                 currentHosts, host);
                         // we only need to do anything else if we actually removed the host
                         if (nextHosts.size() != currentHosts.size()) {
-                            sequentialUpdateUsedHosts(nextHosts);
+                            sequentialUpdateUsedHosts(nextHosts, true);
                             if (nextHosts.isEmpty()) {
                                 // We transitioned from non-empty to empty. That means we're not ready.
                                 eventStreamProcessor.onNext(LOAD_BALANCER_NOT_READY_EVENT);
@@ -504,17 +499,27 @@ public void onComplete() {
     }
 
     // must be called from within the SequentialExecutor
-    private void sequentialUpdateUsedHosts(List<PrioritizedHostImpl<ResolvedAddress, C>> nextHosts) {
-        this.usedHosts = nextHosts;
-        // We need to reset the load balancing weights before we run the host set through the rest
-        // of the operations that will transform and consume the load balancing weight.
-        for (PrioritizedHostImpl<?, ?> host : nextHosts) {
-            host.loadBalancingWeight(host.serviceDiscoveryWeight());
-        }
-        nextHosts = priorityStrategy.prioritize(nextHosts);
-        nextHosts = subsetter.subset(nextHosts);
-        this.hostSelector = hostSelector.rebuildWithHosts(nextHosts);
-        loadBalancerObserver.onHostSetChanged(Collections.unmodifiableList(nextHosts));
+    private void sequentialUpdateUsedHosts(List<PrioritizedHostImpl<ResolvedAddress, C>> nextHosts,
+                                           boolean hostSetChanged) {
+        HostSelector<ResolvedAddress, C> oldHostSelector = hostSelector;
+        HostSelector<ResolvedAddress, C> newHostSelector;
+        if (hostSetChanged) {
+            this.usedHosts = nextHosts;
+            // We need to reset the load balancing weights before we run the host set through the rest
+            // of the operations that will transform and consume the load balancing weight.
+            for (PrioritizedHostImpl<?, ?> host : nextHosts) {
+                host.loadBalancingWeight(host.serviceDiscoveryWeight());
+            }
+            nextHosts = priorityStrategy.prioritize(nextHosts);
+            nextHosts = subsetter.subset(nextHosts);
+            this.hostSelector = newHostSelector = hostSelector.rebuildWithHosts(nextHosts);
+        } else {
+            newHostSelector = oldHostSelector;
+        }
+        final Collection<? extends LoadBalancerObserver.Host> newHosts = newHostSelector.hosts();
+        loadBalancerObserver.onHostsUpdate(Collections.unmodifiableCollection(oldHostSelector.hosts()),
+                Collections.unmodifiableCollection(newHosts));
+        LOGGER.debug("{}: Using addresses (size={}): {}.", this, newHosts.size(), newHosts);
     }
 
     @Override
@@ -541,8 +546,7 @@ private Single<C> selectConnection0(final Predicate<C> selector, @Nullable final
                         subscribeToEvents(true);
                     }
                 }
-                loadBalancerObserver.onNoActiveHostException(
-                        currentHostSelector.hostSetSize(), (NoActiveHostException) exn);
+                loadBalancerObserver.onNoActiveHostException(currentHostSelector.hosts(), (NoActiveHostException) exn);
             } else if (exn instanceof NoAvailableHostException) {
                 loadBalancerObserver.onNoAvailableHostException((NoAvailableHostException) exn);
             }
@@ -628,8 +632,8 @@ public boolean isHealthy() {
         }
 
         @Override
-        public int hostSetSize() {
-            return 0;
+        public Collection<? extends LoadBalancerObserver.Host> hosts() {
+            return emptyList();
         }
     }
 
diff --git a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/Host.java b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/Host.java
index b0ab11ffb1..9497ba0d23 100644
--- a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/Host.java
+++ b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/Host.java
@@ -29,7 +29,8 @@
  * @param <ResolvedAddress> the type of resolved address.
  * @param <C> the concrete type of returned connections.
  */
-interface Host<ResolvedAddress, C extends LoadBalancedConnection> extends ListenableAsyncCloseable, ScoreSupplier {
+interface Host<ResolvedAddress, C extends LoadBalancedConnection> extends ListenableAsyncCloseable, ScoreSupplier,
+        LoadBalancerObserver.Host {
     /**
      * Select an existing connection from the host.
      * @return the selected host, or null if a suitable host couldn't be found.
@@ -49,15 +50,9 @@ interface Host<ResolvedAddress, C extends LoadBalancedConnection> extends Listen
      * The address of the host
      * @return the address of the host
      */
+    @Override
     ResolvedAddress address();
 
-    /**
-     * Determine the health status of this host.
-     * @return whether the host considers itself healthy enough to serve traffic. This is best effort and does not
-     *         guarantee that the request will succeed.
-     */
-    boolean isHealthy();
-
     /**
      * Determine whether the host is in a state where it can make new connections.
      * @return whether the host is in a state where it can make new connections.
diff --git a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/HostSelector.java b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/HostSelector.java
index 489db08e46..5febbacb9a 100644
--- a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/HostSelector.java
+++ b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/HostSelector.java
@@ -19,6 +19,7 @@
 import io.servicetalk.concurrent.api.Single;
 import io.servicetalk.context.api.ContextMap;
 
+import java.util.Collection;
 import java.util.List;
 import java.util.function.Predicate;
 import javax.annotation.Nullable;
@@ -71,10 +72,11 @@ Single<C> selectConnection(Predicate<C> selector, @Nullable ContextMap context,
     boolean isHealthy();
 
     /**
-     * The size of the host candidate pool for this host selector.
+     * The set of hosts this selector will pick from.
      * <p>
-     * Note that this is primarily for observability purposes.
-     * @return the size of the host candidate pool for this host selector.
+     * Note that this may differ from the hosts advertised by the {@link io.servicetalk.client.api.ServiceDiscoverer}
+     * due to various filtering mechanisms.
+     * @return the set of hosts this selector will pick from.
      */
-    int hostSetSize();
+    Collection<? extends LoadBalancerObserver.Host> hosts();
 }
diff --git a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/LoadBalancerObserver.java b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/LoadBalancerObserver.java
index df344be58e..c223ce4db5 100644
--- a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/LoadBalancerObserver.java
+++ b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/LoadBalancerObserver.java
@@ -37,20 +37,18 @@ public interface LoadBalancerObserver {
     /**
      * Callback for monitoring the changes due to a service discovery update.
      * @param events the collection of {@link ServiceDiscovererEvent}s received by the load balancer.
-     * @param oldHostSetSize the size of the previous host set.
-     * @param newHostSetSize the new size of  the host set.
      */
-    void onServiceDiscoveryEvent(Collection<? extends ServiceDiscovererEvent<?>> events,
-                                 int oldHostSetSize, int newHostSetSize);
+    void onServiceDiscoveryEvent(Collection<? extends ServiceDiscovererEvent<?>> events);
 
     /**
      * Callback for when the set of hosts used by the load balancer has changed. This set may not
      * exactly reflect the state of the service discovery system due to filtering of zero-weight
      * hosts and forms of sub-setting and thus may only represent the hosts that the selection
      * algorithm may use.
+     * @param oldHosts the old set of hosts used by the selection algorithm.
      * @param newHosts the new set of hosts used by the selection algorithm.
      */
-    void onHostSetChanged(Collection<? extends Host> newHosts);
+    void onHostsUpdate(Collection<? extends Host> oldHosts, Collection<? extends Host> newHosts);
 
     /**
      * Callback for when connection selection fails due to no hosts being available.
@@ -60,10 +58,10 @@ void onServiceDiscoveryEvent(Collection<? extends ServiceDiscovererEvent<?>> eve
 
     /**
      * Callback for when connection selection fails due to all hosts being inactive.
-     * @param hostSetSize the size of the current host set where all hosts are inactive.
+     * @param hosts the set of hosts that is eligible for selection.
      * @param exception an exception with more details about the failure.
      */
-    void onNoActiveHostException(int hostSetSize, NoActiveHostException exception);
+    void onNoActiveHostException(Collection<? extends Host> hosts, NoActiveHostException exception);
 
     /**
      * An observer for {@link io.servicetalk.loadbalancer.Host} events.
diff --git a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/NoopLoadBalancerObserver.java b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/NoopLoadBalancerObserver.java
index 9839d75983..ddbc2770e3 100644
--- a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/NoopLoadBalancerObserver.java
+++ b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/NoopLoadBalancerObserver.java
@@ -37,13 +37,12 @@ public HostObserver hostObserver(Object resolvedAddress) {
     }
 
     @Override
-    public void onServiceDiscoveryEvent(Collection<? extends ServiceDiscovererEvent<?>> events,
-                                        int oldHostSetSize, int newHostSetSize) {
+    public void onServiceDiscoveryEvent(Collection<? extends ServiceDiscovererEvent<?>> events) {
         // noop
     }
 
     @Override
-    public void onHostSetChanged(Collection<? extends Host> newHosts) {
+    public void onHostsUpdate(Collection<? extends Host> oldHosts, Collection<? extends Host> newHosts) {
         // noop
     }
 
@@ -53,7 +52,7 @@ public void onNoAvailableHostException(NoAvailableHostException exception) {
     }
 
     @Override
-    public void onNoActiveHostException(int hostSetSize, NoActiveHostException exn) {
+    public void onNoActiveHostException(Collection<? extends Host> hosts, NoActiveHostException exn) {
         // noop
     }
 
diff --git a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/P2CSelector.java b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/P2CSelector.java
index b414215342..0ae8535674 100644
--- a/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/P2CSelector.java
+++ b/servicetalk-loadbalancer-experimental/src/main/java/io/servicetalk/loadbalancer/P2CSelector.java
@@ -68,7 +68,7 @@ public HostSelector<ResolvedAddress, C> rebuildWithHosts(List<? extends Host<Res
     @Override
     Single<C> selectConnection0(final Predicate<C> selector, @Nullable final ContextMap context,
                                 final boolean forceNewConnectionAndReserve) {
-        final int size = hostSetSize();
+        final int size = hosts().size();
         switch (size) {
             case 0:
                 // We shouldn't get called if the load balancer doesn't have any hosts.
diff --git a/servicetalk-loadbalancer-experimental/src/test/java/io/servicetalk/loadbalancer/DefaultLoadBalancerTest.java b/servicetalk-loadbalancer-experimental/src/test/java/io/servicetalk/loadbalancer/DefaultLoadBalancerTest.java
index e7d479a99f..37ad089230 100644
--- a/servicetalk-loadbalancer-experimental/src/test/java/io/servicetalk/loadbalancer/DefaultLoadBalancerTest.java
+++ b/servicetalk-loadbalancer-experimental/src/test/java/io/servicetalk/loadbalancer/DefaultLoadBalancerTest.java
@@ -486,8 +486,8 @@ public boolean isHealthy() {
             }
 
             @Override
-            public int hostSetSize() {
-                return hosts.size();
+            public Collection<? extends LoadBalancerObserver.Host> hosts() {
+                return hosts;
             }
         }
     }