diff --git a/server/jetstream_cluster.go b/server/jetstream_cluster.go
index 1444a76892..965aa66511 100644
--- a/server/jetstream_cluster.go
+++ b/server/jetstream_cluster.go
@@ -3185,7 +3185,7 @@ func (js *jetStream) monitorStream(mset *stream, sa *streamAssignment, sendSnaps
 						// If the error signals we timed out of a snapshot, we should try to replay the snapshot
 						// instead of fully resetting the state. Resetting the clustered state may result in
 						// race conditions and should only be used as a last effort attempt.
-						if errors.Is(err, errCatchupAbortedNoLeader) || err == errCatchupTooManyRetries {
+						if errors.Is(err, errCatchupAbortedNoLeader) || err == errCatchupTooManyRetries || err == errAlreadyLeader {
 							if node := mset.raftNode(); node != nil && node.DrainAndReplaySnapshot() {
 								break
 							}
@@ -3997,10 +3997,8 @@ func (js *jetStream) applyStreamEntries(mset *stream, ce *CommittedEntry, isReco
 				}
 			}
 
-			if isRecovering || !mset.IsLeader() {
-				if err := mset.processSnapshot(ss, ce.Index); err != nil && err != errAlreadyLeader {
-					return 0, err
-				}
+			if err := mset.processSnapshot(ss, ce.Index); err != nil {
+				return 0, err
 			}
 		} else if e.Type == EntryRemovePeer {
 			js.mu.RLock()
@@ -9925,7 +9923,14 @@ func (mset *stream) processSnapshot(snap *StreamReplicatedState, index uint64) (
 
 	// Pause the apply channel for our raft group while we catch up.
 	if err := n.PauseApply(); err != nil {
-		return err
+		// The only reason PauseApply can fail is due to errAlreadyLeader.
+		// We step down to get someone else to become the leader that can catch us up.
+		// Ignore the error since we could have already stepped down before us doing so here.
+		_ = n.StepDown()
+		// Now try pausing again and continue to catchup.
+		if err = n.PauseApply(); err != nil {
+			return err
+		}
 	}
 
 	// Set our catchup state.
diff --git a/server/jetstream_cluster_3_test.go b/server/jetstream_cluster_3_test.go
index 07c05949e2..f27c164de5 100644
--- a/server/jetstream_cluster_3_test.go
+++ b/server/jetstream_cluster_3_test.go
@@ -8949,3 +8949,43 @@ func TestJetStreamClusterInterestStreamMsgWithNoInterestStillAppliesRollup(t *te
 		t.Run(fmt.Sprintf("R%d", replicas), func(t *testing.T) { test(t, replicas) })
 	}
 }
+
+func TestJetStreamClusterStreamLeaderStepsDownIfSnapshotCatchupRequired(t *testing.T) {
+	c := createJetStreamClusterExplicit(t, "R3S", 3)
+	defer c.shutdown()
+
+	nc, js := jsClientConnect(t, c.randomServer())
+	defer nc.Close()
+
+	_, err := js.AddStream(&nats.StreamConfig{
+		Name:     "TEST",
+		Subjects: []string{"foo"},
+		Replicas: 3,
+	})
+	require_NoError(t, err)
+
+	// Publish a message and ensure everyone is synced up.
+	_, err = js.Publish("foo", nil)
+	require_NoError(t, err)
+	checkFor(t, 2*time.Second, 200*time.Millisecond, func() error {
+		return checkState(t, c, globalAccountName, "TEST")
+	})
+
+	// Get the current stream leader.
+	sl := c.streamLeader(globalAccountName, "TEST")
+	require_NotNil(t, sl)
+	mset, err := sl.globalAccount().lookupStream("TEST")
+	require_NoError(t, err)
+	rn := mset.raftNode()
+
+	// Grab the current state of the leader which contains the message we've published.
+	snap := mset.stateSnapshot()
+	// Truncate this leader's store to be empty, while remaining Raft leader.
+	require_NoError(t, mset.store.Truncate(0))
+	// Send the snapshot containing the message. Even though we're Raft leader, we must
+	// still check we're up-to-date and if not: step down and catch up.
+	require_NoError(t, rn.SendSnapshot(snap))
+	checkFor(t, 10*time.Second, 200*time.Millisecond, func() error {
+		return checkState(t, c, globalAccountName, "TEST")
+	})
+}
diff --git a/server/raft.go b/server/raft.go
index f968c91847..cd1613d281 100644
--- a/server/raft.go
+++ b/server/raft.go
@@ -1133,8 +1133,8 @@ func (n *raft) PauseApply() error {
 }
 
 func (n *raft) pauseApplyLocked() {
-	// If we are currently a candidate make sure we step down.
-	if n.State() == Candidate {
+	// If we are currently not a follower, make sure we step down.
+	if n.State() != Follower {
 		n.stepdownLocked(noLeader)
 	}
 
diff --git a/server/store.go b/server/store.go
index a46d5deebe..d88efe74ca 100644
--- a/server/store.go
+++ b/server/store.go
@@ -736,7 +736,7 @@ func isOutOfSpaceErr(err error) bool {
 var errFirstSequenceMismatch = errors.New("first sequence mismatch")
 
 func isClusterResetErr(err error) bool {
-	return err == errLastSeqMismatch || err == ErrStoreEOF || err == errFirstSequenceMismatch || errors.Is(err, errCatchupAbortedNoLeader) || err == errCatchupTooManyRetries
+	return err == errLastSeqMismatch || err == ErrStoreEOF || err == errFirstSequenceMismatch || errors.Is(err, errCatchupAbortedNoLeader) || err == errCatchupTooManyRetries || err == errAlreadyLeader
 }
 
 // Copy all fields.