diff --git a/faucet/port.py b/faucet/port.py
index 706a230b46..d79bb1be15 100644
--- a/faucet/port.py
+++ b/faucet/port.py
@@ -518,18 +518,18 @@ def lacp_port_update(self, selected, cold_start=False):
             # Cold starting, so revert to unconfigured state
             self.deconfigure_port()
         elif self.lacp_selected:
-            # Can configure LACP port to be forced SELECTED
+            # Configured LACP port option to be forced into SELECTED state
             self.select_port()
-        elif self.lacp_standby:
-            # Can configure LACP port to be forced STANDBY
-            self.standby_port()
         elif self.lacp_unselected:
-            # Can configure LACP port to be force UNSELECTED
+            # Configured LACP port option to be forced into UNSELECTED state
             self.deselect_port()
         else:
             if selected:
-                # Belongs on chosen DP for LAG, so SELECT port
+                # Port SELECTED so change state to SELECTED
                 self.select_port()
+            elif self.lacp_standby:
+                # Send port to STANDBY if not SELECTED
+                self.standby_port()
             else:
                 # Doesn't belong on chosen DP for LAG, DESELECT port
                 self.deselect_port()
diff --git a/tests/unit/faucet/test_port.py b/tests/unit/faucet/test_port.py
index ccbaf0702e..1fc5b989a8 100755
--- a/tests/unit/faucet/test_port.py
+++ b/tests/unit/faucet/test_port.py
@@ -106,9 +106,10 @@ def test_lacp_port_update(self):
         port.lacp_port_update(True)
         self.assertEqual(port.dyn_lacp_port_selected, LACP_PORT_SELECTED)
         # Test option to force standby mode
+        # Option forces the statemachine to revert to STANDBY mode when not selected
         port.lacp_standby = True
         port.lacp_port_update(True)
-        self.assertEqual(port.dyn_lacp_port_selected, LACP_PORT_STANDBY)
+        self.assertEqual(port.dyn_lacp_port_selected, LACP_PORT_SELECTED)
         port.lacp_port_update(False)
         self.assertEqual(port.dyn_lacp_port_selected, LACP_PORT_STANDBY)
         # Test forcing selected port
diff --git a/tests/unit/faucet/test_valve_stack.py b/tests/unit/faucet/test_valve_stack.py
index b68c0a86e7..08b1f0c80b 100755
--- a/tests/unit/faucet/test_valve_stack.py
+++ b/tests/unit/faucet/test_valve_stack.py
@@ -309,6 +309,83 @@ def test_MCLAG_cold_start(self):
         self.assertTrue(port.is_actor_up(), 'Actor not UP')
 
 
+class ValveStackMCLAGStandbyTestCase(ValveTestBases.ValveTestSmall):
+    """Test MCLAG with standby port option overrules unselected states"""
+
+    CONFIG = """
+dps:
+    s1:
+%s
+        stack:
+            priority: 1
+        interfaces:
+            1:
+                description: p1
+                stack:
+                    dp: s2
+                    port: 1
+            2:
+                description: p3
+                native_vlan: 100
+                lacp_standby: True
+                lacp: 1
+            3:
+                description: p4
+                native_vlan: 100
+                lacp_standby: True
+                lacp: 1
+    s2:
+        hardware: 'GenericTFM'
+        dp_id: 0x2
+        interfaces:
+            1:
+                description: p1
+                stack:
+                    dp: s1
+                    port: 1
+            2:
+                description: p3
+                native_vlan: 100
+                lacp_standby: True
+                lacp: 1
+            3:
+                description: p4
+                native_vlan: 100
+                lacp_standby: True
+                lacp: 1
+""" % BASE_DP1_CONFIG
+
+    def setUp(self):
+        """Setup basic loop config"""
+        self.setup_valve(self.CONFIG)
+
+    def get_other_valves(self, valve):
+        """Return other running valves"""
+        return self.valves_manager._other_running_valves(valve)  # pylint: disable=protected-access
+
+    def test_MCLAG_standby_option(self):
+        """Test MCLAG standby option forces standby state instead of unselected"""
+        self.activate_all_ports()
+        valve = self.valves_manager.valves[0x1]
+        other_valve = self.valves_manager.valves[0x2]
+        for port in valve.dp.ports.values():
+            if port.lacp:
+                valve.lacp_update(port, True, 1, 1, self.get_other_valves(valve))
+                self.assertTrue(port.is_port_selected())
+        for port in other_valve.dp.ports.values():
+            if port.lacp:
+                other_valve.lacp_update(port, True, 1, 1, self.get_other_valves(other_valve))
+                self.assertTrue(port.is_port_standby())
+        for port in valve.dp.ports.values():
+            if port.lacp:
+                valve.lacp_update(port, False, 1, 1, self.get_other_valves(valve))
+                self.assertTrue(port.is_port_standby())
+        for port in other_valve.dp.ports.values():
+            if port.lacp:
+                other_valve.lacp_update(port, True, 1, 1, self.get_other_valves(other_valve))
+                self.assertTrue(port.is_port_selected())
+
+
 class ValveStackRootExtLoopProtectTestCase(ValveTestBases.ValveTestSmall):
     """External loop protect test cases"""