diff --git a/CHANGELOG.md b/CHANGELOG.md
index 857a77e0..e996ff52 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -13,6 +13,7 @@ This file is used to list changes made in each version of the aws-parallelcluste
 - Fix clustermgtd failing to detect compute node bootstrap timeouts, which prevented the cluster from entering protected mode.
 - Fix an issue where compute nodes are incorrectly replaced when launching a large number of nodes due to eventual consistency.
 - Fix an issue where starting the compute fleet may not reliably recover the cluster from protected mode.
+- Fix an issue where static nodes in a maintenance reservation enter a terminate/relaunch loop when being replaced.
 
 3.15.0
 ------
diff --git a/src/slurm_plugin/clustermgtd.py b/src/slurm_plugin/clustermgtd.py
index a09924af..d2253452 100644
--- a/src/slurm_plugin/clustermgtd.py
+++ b/src/slurm_plugin/clustermgtd.py
@@ -741,13 +741,13 @@ def _is_instance_unhealthy(self, instance_status: EC2InstanceHealthState, health
         return is_instance_status_unhealthy
 
     def _update_static_nodes_in_replacement(self, slurm_nodes: List[SlurmNode]):
-        """Remove from self.static_nodes_in_replacement nodes that are up or that are in maintenance."""
+        """Remove from self.static_nodes_in_replacement nodes that are up."""
         nodename_to_slurm_nodes_map = {node.name: node for node in slurm_nodes}
         nodes_still_in_replacement = set()
         for nodename in self._static_nodes_in_replacement:
             node = nodename_to_slurm_nodes_map.get(nodename)
-            # Consider nodename still in replacement if node is not up and not in maintenance
-            if node and not node.is_up() and not node.is_in_maintenance():
+            # Consider nodename still in replacement if node is not up
+            if node and not node.is_up():
                 nodes_still_in_replacement.add(nodename)
 
         # override self._static_nodes_in_replacement with updated list
diff --git a/tests/slurm_plugin/test_clustermgtd.py b/tests/slurm_plugin/test_clustermgtd.py
index 3a7b7d2b..6f63dd74 100644
--- a/tests/slurm_plugin/test_clustermgtd.py
+++ b/tests/slurm_plugin/test_clustermgtd.py
@@ -820,7 +820,7 @@ def test_handle_health_check(
                 StaticNode("queue1-st-c5xlarge-11", "ip", "hostname", "IDLE+CLOUD", "queue1"),
                 StaticNode("queue1-st-c5xlarge-12", "ip", "hostname", "DOWN+CLOUD", "queue1"),
             ],
-            {"queue1-st-c5xlarge-2", "queue1-st-c5xlarge-6"},
+            {"queue1-st-c5xlarge-2", "queue1-st-c5xlarge-3", "queue1-st-c5xlarge-6"},
         )
     ],
     ids=["mixed"],
@@ -3980,6 +3980,45 @@ def test_set_ice_compute_resources_to_down(
             False,
             True,  # disable_capacity_blocks_management
         ),
+        # User-created maintenance reservation: a DOWN node in MAINTENANCE+RESERVED that is NOT
+        # tracked by CapacityBlockManager (not in reserved_nodenames) should still be considered
+        # unhealthy and enter the replacement flow.
+        (
+            [
+                # Node in user-created maintenance reservation - not tracked as CB reserved
+                StaticNode(
+                    "queue1-st-c5xlarge-1",
+                    "ip-1",
+                    "hostname",
+                    "DOWN+CLOUD+MAINTENANCE+RESERVED",
+                    "queue1",
+                ),
+                # Node in CB maintenance reservation - tracked as CB reserved
+                StaticNode(
+                    "queue1-st-c5xlarge-2",
+                    "ip-2",
+                    "hostname",
+                    "DOWN+CLOUD+MAINTENANCE+RESERVED",
+                    "queue1",
+                    reservation_name="cr-123456",
+                ),
+            ],
+            ["queue1-st-c5xlarge-2"],  # reserved_nodenames (only CB node)
+            [],  # expected_unhealthy_dynamic_nodes
+            [
+                StaticNode(
+                    "queue1-st-c5xlarge-1",
+                    "ip-1",
+                    "hostname",
+                    "DOWN+CLOUD+MAINTENANCE+RESERVED",
+                    "queue1",
+                ),
+            ],  # expected_unhealthy_static_nodes (user maintenance node enters replacement)
+            [False],  # unhealthy_static_node_backing_instance_valid
+            {},  # expected_ice_compute_resources_and_nodes_map
+            False,  # disable_nodes_on_insufficient_capacity
+            False,  # disable_capacity_blocks_management
+        ),
     ],
 )
 @pytest.mark.usefixtures(