diff --git a/pkg/server/delta/v3/server.go b/pkg/server/delta/v3/server.go
index 74d8af57b4..65fb0d3f75 100644
--- a/pkg/server/delta/v3/server.go
+++ b/pkg/server/delta/v3/server.go
@@ -65,7 +65,7 @@ func NewServer(ctx context.Context, config cache.ConfigWatcher, callbacks Callba
 	return s
 }
 
-func (s *server) processDelta(str stream.DeltaStream, reqCh chan *discovery.DeltaDiscoveryRequest, defaultTypeURL string) error {
+func (s *server) processDelta(str stream.DeltaStream, reqCh <-chan *discovery.DeltaDiscoveryRequest, defaultTypeURL string) error {
 	streamID := atomic.AddInt64(&s.streamCount, 1)
 
 	// streamNonce holds a unique nonce for req-resp pairs per xDS stream.
@@ -83,7 +83,7 @@ func (s *server) processDelta(str stream.DeltaStream, reqCh chan *discovery.Delt
 		}
 	}()
 
-	// Sends a response, returns the new stream nonce
+	// sends a response, returns the new stream nonce
 	send := func(resp cache.DeltaResponse) (string, error) {
 		if resp == nil {
 			return "", errors.New("missing response")
@@ -103,6 +103,44 @@ func (s *server) processDelta(str stream.DeltaStream, reqCh chan *discovery.Delt
 		return response.Nonce, str.Send(response)
 	}
 
+	// process a single delta response
+	process := func(resp cache.DeltaResponse) error {
+		typ := resp.GetDeltaRequest().GetTypeUrl()
+		if resp == deltaErrorResponse {
+			return status.Errorf(codes.Unavailable, typ+" watch failed")
+		}
+
+		nonce, err := send(resp)
+		if err != nil {
+			return err
+		}
+
+		watch := watches.deltaWatches[typ]
+		watch.nonce = nonce
+
+		watch.state.SetResourceVersions(resp.GetNextVersionMap())
+		watches.deltaWatches[typ] = watch
+		return nil
+	}
+
+	// processAll purges the deltaMuxedResponses channel
+	processAll := func() error {
+		for {
+			select {
+			// We watch the multiplexed channel for incoming responses.
+			case resp, more := <-watches.deltaMuxedResponses:
+				if !more {
+					break
+				}
+				if err := process(resp); err != nil {
+					return err
+				}
+			default:
+				return nil
+			}
+		}
+	}
+
 	if s.callbacks != nil {
 		if err := s.callbacks.OnDeltaStreamOpen(str.Context(), streamID, defaultTypeURL); err != nil {
 			return err
@@ -113,41 +151,29 @@ func (s *server) processDelta(str stream.DeltaStream, reqCh chan *discovery.Delt
 		select {
 		case <-s.ctx.Done():
 			return nil
+		// We watch the multiplexed channel for incoming responses.
 		case resp, more := <-watches.deltaMuxedResponses:
+			// input stream ended or errored out
 			if !more {
 				break
 			}
 
-			typ := resp.GetDeltaRequest().GetTypeUrl()
-			if resp == deltaErrorResponse {
-				return status.Errorf(codes.Unavailable, typ+" watch failed")
-			}
-
-			nonce, err := send(resp)
-			if err != nil {
+			if err := process(resp); err != nil {
 				return err
 			}
-
-			watch := watches.deltaWatches[typ]
-			watch.nonce = nonce
-
-			watch.state.SetResourceVersions(resp.GetNextVersionMap())
-			watches.deltaWatches[typ] = watch
 		case req, more := <-reqCh:
 			// input stream ended or errored out
 			if !more {
 				return nil
 			}
+
 			if req == nil {
 				return status.Errorf(codes.Unavailable, "empty request")
 			}
 
-			// make sure responses are processed prior to new requests to avoid deadlock
-			if len(watches.deltaMuxedResponses) > 0 {
-				go func() {
-					reqCh <- req
-				}()
-				break
+			// make sure all existing responses are processed prior to new requests to avoid deadlock
+			if err := processAll(); err != nil {
+				return err
 			}
 
 			if s.callbacks != nil {
@@ -192,8 +218,7 @@ func (s *server) processDelta(str stream.DeltaStream, reqCh chan *discovery.Delt
 			s.subscribe(req.GetResourceNamesSubscribe(), &watch.state)
 			s.unsubscribe(req.GetResourceNamesUnsubscribe(), &watch.state)
 
-			watch.responses = watches.deltaMuxedResponses
-			watch.cancel = s.cache.CreateDeltaWatch(req, watch.state, watch.responses)
+			watch.cancel = s.cache.CreateDeltaWatch(req, watch.state, watches.deltaMuxedResponses)
 			watches.deltaWatches[typeURL] = watch
 		}
 	}
diff --git a/pkg/server/delta/v3/watches.go b/pkg/server/delta/v3/watches.go
index 839d323211..63c4c2d38d 100644
--- a/pkg/server/delta/v3/watches.go
+++ b/pkg/server/delta/v3/watches.go
@@ -17,6 +17,10 @@ type watches struct {
 // newWatches creates and initializes watches.
 func newWatches() watches {
 	// deltaMuxedResponses needs a buffer to release go-routines populating it
+	//
+	// because deltaMuxedResponses can be populated by an update from the cache
+	// and a request from the client, we need to create the channel with a buffer
+	// size of 2x the number of types to avoid deadlocks.
 	return watches{
 		deltaWatches:        make(map[string]watch, int(types.UnknownType)),
 		deltaMuxedResponses: make(chan cache.DeltaResponse, int(types.UnknownType)*2),
@@ -28,13 +32,14 @@ func (w *watches) Cancel() {
 	for _, watch := range w.deltaWatches {
 		watch.Cancel()
 	}
+
+	close(w.deltaMuxedResponses)
 }
 
 // watch contains the necessary modifiables for receiving resource responses
 type watch struct {
-	responses chan cache.DeltaResponse
-	cancel    func()
-	nonce     string
+	cancel func()
+	nonce  string
 
 	state stream.StreamState
 }
diff --git a/pkg/server/delta/v3/watches_test.go b/pkg/server/delta/v3/watches_test.go
index 6113498707..cee0985ebd 100644
--- a/pkg/server/delta/v3/watches_test.go
+++ b/pkg/server/delta/v3/watches_test.go
@@ -5,8 +5,6 @@ import (
 	"testing"
 
 	"github.com/stretchr/testify/assert"
-
-	"github.com/envoyproxy/go-control-plane/pkg/cache/v3"
 )
 
 func TestDeltaWatches(t *testing.T) {
@@ -14,14 +12,11 @@ func TestDeltaWatches(t *testing.T) {
 		watches := newWatches()
 
 		cancelCount := 0
-		var channels []chan cache.DeltaResponse
 		// create a few watches, and ensure that the cancel function are called and the channels are closed
 		for i := 0; i < 5; i++ {
 			newWatch := watch{}
 			if i%2 == 0 {
 				newWatch.cancel = func() { cancelCount++ }
-				newWatch.responses = make(chan cache.DeltaResponse)
-				channels = append(channels, newWatch.responses)
 			}
 
 			watches.deltaWatches[strconv.Itoa(i)] = newWatch