diff --git a/src/cluster.c b/src/cluster.c
index da0301718..a0944bf23 100644
--- a/src/cluster.c
+++ b/src/cluster.c
@@ -61,6 +61,7 @@ list *clusterGetNodesInMyShard(clusterNode *node);
 int clusterNodeAddSlave(clusterNode *master, clusterNode *slave);
 int clusterAddSlot(clusterNode *n, int slot);
 int clusterDelSlot(int slot);
+int clusterMoveNodeSlots(clusterNode *from_node, clusterNode *to_node);
 int clusterDelNodeSlots(clusterNode *node);
 int clusterNodeSetSlotBit(clusterNode *n, int slot);
 void clusterSetMaster(clusterNode *n);
@@ -3058,7 +3059,50 @@ int clusterProcessPacket(clusterLink *link) {
 
                 if (nodeIsMaster(sender)) {
                     /* Master turned into a slave! Reconfigure the node. */
-                    clusterDelNodeSlots(sender);
+                    if (master && !memcmp(master->shard_id, sender->shard_id, CLUSTER_NAMELEN)) {
+                        /* `sender` was a primary and was in the same shard as `master`, its new primary */
+                        if (sender->configEpoch > senderConfigEpoch) {
+                            serverLog(LL_NOTICE,
+                                      "Ignore stale message from %.40s (%s) in shard %.40s;"
+                                      " gossip config epoch: %llu, current config epoch: %llu",
+                                      sender->name,
+                                      sender->human_nodename,
+                                      sender->shard_id,
+                                      (unsigned long long)senderConfigEpoch,
+                                      (unsigned long long)sender->configEpoch);
+                        } else {
+                            /* A failover occurred in the shard where `sender` belongs to and `sender` is no longer
+                             * a primary. Update slot assignment to `master`, which is the new primary in the shard */
+                            int slots = clusterMoveNodeSlots(sender, master);
+                            /* `master` is still a `slave` in this observer node's view; update its role and configEpoch */
+                            clusterSetNodeAsMaster(master);
+                            master->configEpoch = senderConfigEpoch;
+                            serverLog(LL_NOTICE, "A failover occurred in shard %.40s; node %.40s (%s)"
+                                                 " lost %d slot(s) to node %.40s (%s) with a config epoch of %llu",
+                                      sender->shard_id,
+                                      sender->name,
+                                      sender->human_nodename,
+                                      slots,
+                                      master->name,
+                                      master->human_nodename,
+                                      (unsigned long long) master->configEpoch);
+                        }
+                    } else {
+                        /* `sender` was moved to another shard and has become a replica, remove its slot assignment */
+                        int slots = clusterDelNodeSlots(sender);
+                        serverLog(LL_NOTICE, "Node %.40s (%s) is no longer master of shard %.40s;"
+                                             " removed all %d slot(s) it used to own",
+                                  sender->name,
+                                  sender->human_nodename,
+                                  sender->shard_id,
+                                  slots);
+                        if (master != NULL) {
+                            serverLog(LL_NOTICE, "Node %.40s (%s) is now part of shard %.40s",
+                                      sender->name,
+                                      sender->human_nodename,
+                                      master->shard_id);
+                        }
+                    }
                     sender->flags &= ~(CLUSTER_NODE_MASTER|
                                        CLUSTER_NODE_MIGRATE_TO);
                     sender->flags |= CLUSTER_NODE_SLAVE;
@@ -5010,6 +5054,22 @@ int clusterDelSlot(int slot) {
     return C_OK;
 }
 
+/* Transfer slots from `from_node` to `to_node`.
+ * Iterates over all cluster slots, transferring each slot covered by `from_node` to `to_node`.
+ * Counts and returns the number of slots transferred.  */
+int clusterMoveNodeSlots(clusterNode *from_node, clusterNode *to_node) {
+    int processed = 0;
+
+    for (int j = 0; j < CLUSTER_SLOTS; j++) {
+        if (clusterNodeGetSlotBit(from_node, j)) {
+            clusterDelSlot(j);
+            clusterAddSlot(to_node, j);
+            processed++;
+        }
+    }
+    return processed;
+}
+
 /* Delete all the slots associated with the specified node.
  * The number of deleted slots is returned. */
 int clusterDelNodeSlots(clusterNode *node) {