diff --git a/pkg/agent/controller/controller_suite_test.go b/pkg/agent/controller/controller_suite_test.go
index d3e25871..48ac599c 100644
--- a/pkg/agent/controller/controller_suite_test.go
+++ b/pkg/agent/controller/controller_suite_test.go
@@ -325,8 +325,8 @@ func newTestDiver() *testDriver {
 	t.brokerEndpointSliceClient = t.syncerConfig.BrokerClient.Resource(*test.GetGroupVersionResourceFor(t.syncerConfig.RestMapper,
 		&discovery.EndpointSlice{})).Namespace(test.RemoteNamespace)
 
-	t.cluster1.init(t.syncerConfig)
-	t.cluster2.init(t.syncerConfig)
+	t.cluster1.init(t.syncerConfig, nil)
+	t.cluster2.init(t.syncerConfig, nil)
 
 	return t
 }
@@ -340,15 +340,18 @@ func (t *testDriver) afterEach() {
 	close(t.stopCh)
 }
 
-func (c *cluster) init(syncerConfig *broker.SyncerConfig) {
+func (c *cluster) init(syncerConfig *broker.SyncerConfig, dynClient *dynamicfake.FakeDynamicClient) {
 	for k, v := range c.service.Labels {
 		c.serviceEndpointSlices[0].Labels[k] = v
 	}
 
 	c.serviceIP = c.service.Spec.ClusterIP
 
-	c.localDynClient = dynamicfake.NewSimpleDynamicClient(syncerConfig.Scheme)
-	fake.AddBasicReactors(&c.localDynClient.Fake)
+	c.localDynClient = dynClient
+	if c.localDynClient == nil {
+		c.localDynClient = dynamicfake.NewSimpleDynamicClient(syncerConfig.Scheme)
+		fake.AddBasicReactors(&c.localDynClient.Fake)
+	}
 
 	c.localServiceImportReactor = fake.NewFailingReactorForResource(&c.localDynClient.Fake, "serviceimports")
 
diff --git a/pkg/agent/controller/reconciliation_test.go b/pkg/agent/controller/reconciliation_test.go
index e4354920..3302e251 100644
--- a/pkg/agent/controller/reconciliation_test.go
+++ b/pkg/agent/controller/reconciliation_test.go
@@ -117,6 +117,11 @@ var _ = Describe("Reconciliation", func() {
 			t = newTestDiver()
 			t.useClusterSetIP = true
 
+			brokerDynClient := t.syncerConfig.BrokerClient.(*fake.FakeDynamicClient)
+
+			// Use the broker client for cluster1 to simulate the broker being on the same cluster.
+			t.cluster1.init(t.syncerConfig, brokerDynClient)
+
 			test.CreateResource(t.cluster1.localServiceImportClient.Namespace(test.LocalNamespace), localServiceImport)
 			test.CreateResource(t.cluster1.localEndpointSliceClient, localEndpointSlice)
 			test.CreateResource(t.cluster1.localServiceExportClient, serviceExport)
@@ -133,12 +138,6 @@ var _ = Describe("Reconciliation", func() {
 			t.cluster1.start(t, *t.syncerConfig)
 			t.cluster2.start(t, *t.syncerConfig)
 
-			t.awaitNonHeadlessServiceExported(&t.cluster1)
-
-			testutil.EnsureNoActionsForResource(&t.cluster1.localDynClient.Fake, "serviceimports", "delete")
-			testutil.EnsureNoActionsForResource(&t.cluster1.localDynClient.Fake, "endpointslices", "delete")
-
-			brokerDynClient := t.syncerConfig.BrokerClient.(*fake.FakeDynamicClient)
 			testutil.EnsureNoActionsForResource(&brokerDynClient.Fake, "endpointslices", "delete")
 
 			// For migration cleanup, it may attempt to delete a local legacy ServiceImport from the broker so ignore it.
@@ -153,6 +152,8 @@ var _ = Describe("Reconciliation", func() {
 
 				return false
 			}).Should(BeFalse())
+
+			t.awaitNonHeadlessServiceExported(&t.cluster1)
 		})
 	})
 
diff --git a/pkg/agent/controller/service_import.go b/pkg/agent/controller/service_import.go
index c988ccdf..79f72ea4 100644
--- a/pkg/agent/controller/service_import.go
+++ b/pkg/agent/controller/service_import.go
@@ -247,8 +247,8 @@ func (c *ServiceImportController) reconcileLocalAggregatedServiceImports() {
 		for i := range siList.Items {
 			si := c.converter.toServiceImport(&siList.Items[i])
 
-			if serviceImportSourceName(si) != "" {
-				// This is not an aggregated ServiceImport.
+			if serviceImportSourceName(si) != "" || si.Annotations[mcsv1a1.LabelServiceName] != "" {
+				// This is not a local aggregated ServiceImport.
 				continue
 			}