diff --git a/storage_controller/src/reconciler.rs b/storage_controller/src/reconciler.rs
index 9f6f385dc9..b03a6dae04 100644
--- a/storage_controller/src/reconciler.rs
+++ b/storage_controller/src/reconciler.rs
@@ -686,6 +686,8 @@ impl Reconciler {
                 .await?,
         );
 
+        pausable_failpoint!("reconciler-live-migrate-post-generation-inc");
+
         let dest_conf = build_location_config(
             &self.shard,
             &self.config,
@@ -760,7 +762,9 @@ impl Reconciler {
         Ok(())
     }
 
-    async fn maybe_refresh_observed(&mut self) -> Result<(), ReconcileError> {
+    /// Returns true if the observed state of the attached location was refreshed
+    /// and false otherwise.
+    async fn maybe_refresh_observed(&mut self) -> Result<bool, ReconcileError> {
         // If the attached node has uncertain state, read it from the pageserver before proceeding: this
         // is important to avoid spurious generation increments.
         //
@@ -770,7 +774,7 @@ impl Reconciler {
 
         let Some(attached_node) = self.intent.attached.as_ref() else {
             // Nothing to do
-            return Ok(());
+            return Ok(false);
         };
 
         if matches!(
@@ -815,7 +819,7 @@ impl Reconciler {
             }
         }
 
-        Ok(())
+        Ok(true)
     }
 
     /// Reconciling a tenant makes API calls to pageservers until the observed state
@@ -831,7 +835,7 @@ impl Reconciler {
     /// state where it still requires later reconciliation.
     pub(crate) async fn reconcile(&mut self) -> Result<(), ReconcileError> {
         // Prepare: if we have uncertain `observed` state for our would-be attachement location, then refresh it
-        self.maybe_refresh_observed().await?;
+        let refreshed = self.maybe_refresh_observed().await?;
 
         // Special case: live migration
         self.maybe_live_migrate().await?;
@@ -855,8 +859,14 @@ impl Reconciler {
             );
             match self.observed.locations.get(&node.get_id()) {
                 Some(conf) if conf.conf.as_ref() == Some(&wanted_conf) => {
-                    // Nothing to do
-                    tracing::info!(node_id=%node.get_id(), "Observed configuration already correct.")
+                    if refreshed {
+                        tracing::info!(
+                            node_id=%node.get_id(), "Observed configuration correct after refresh. Notifying compute.");
+                        self.compute_notify().await?;
+                    } else {
+                        // Nothing to do
+                        tracing::info!(node_id=%node.get_id(), "Observed configuration already correct.");
+                    }
                 }
                 observed => {
                     // In all cases other than a matching observed configuration, we will
diff --git a/test_runner/regress/test_compatibility.py b/test_runner/regress/test_compatibility.py
index f61778e4c5..fcc2e7006f 100644
--- a/test_runner/regress/test_compatibility.py
+++ b/test_runner/regress/test_compatibility.py
@@ -249,6 +249,7 @@ def test_forward_compatibility(
     top_output_dir: Path,
     pg_version: PgVersion,
     compatibility_snapshot_dir: Path,
+    compute_reconfigure_listener: ComputeReconfigure,
 ):
     """
     Test that the old binaries can read new data
@@ -257,6 +258,7 @@ def test_forward_compatibility(
         os.environ.get("ALLOW_FORWARD_COMPATIBILITY_BREAKAGE", "false").lower() == "true"
     )
 
+    neon_env_builder.control_plane_hooks_api = compute_reconfigure_listener.control_plane_hooks_api
     neon_env_builder.test_may_use_compatibility_snapshot_binaries = True
 
     try:
diff --git a/test_runner/regress/test_storage_controller.py b/test_runner/regress/test_storage_controller.py
index 35a75ca607..b9344f2fb4 100644
--- a/test_runner/regress/test_storage_controller.py
+++ b/test_runner/regress/test_storage_controller.py
@@ -4176,3 +4176,121 @@ def test_storage_controller_graceful_migration(neon_env_builder: NeonEnvBuilder,
         )
     else:
         assert initial_ps.http_client().tenant_list_locations()["tenant_shards"] == []
+
+
+@run_only_on_default_postgres("this is like a 'unit test' against storcon db")
+def test_storage_controller_migrate_with_pageserver_restart(
+    neon_env_builder: NeonEnvBuilder, make_httpserver
+):
+    """
+    Test that live migrations which fail right after incrementing the generation
+    due to the destination going offline eventually send a compute notification
+    after the destination re-attaches.
+    """
+    neon_env_builder.num_pageservers = 2
+
+    neon_env_builder.storage_controller_config = {
+        # Disable transitions to offline
+        "max_offline": "600s",
+        "use_local_compute_notifications": False,
+    }
+
+    neon_env_builder.control_plane_hooks_api = (
+        f"http://{make_httpserver.host}:{make_httpserver.port}/"
+    )
+
+    notifications = []
+
+    def notify(request: Request):
+        log.info(f"Received notify-attach: {request}")
+        notifications.append(request.json)
+
+    make_httpserver.expect_request("/notify-attach", method="PUT").respond_with_handler(notify)
+
+    env = neon_env_builder.init_start()
+
+    env.storage_controller.allowed_errors.extend(
+        [
+            ".*Call to node.*management API failed.*",
+            ".*Call to node.*management API still failed.*",
+            ".*Reconcile error.*",
+            ".*request.*PUT.*migrate.*",
+        ]
+    )
+
+    env.storage_controller.tenant_policy_update(env.initial_tenant, {"placement": {"Attached": 1}})
+    env.storage_controller.reconcile_until_idle()
+
+    initial_desc = env.storage_controller.tenant_describe(env.initial_tenant)["shards"][0]
+    log.info(f"{initial_desc=}")
+    primary = env.get_pageserver(initial_desc["node_attached"])
+    secondary = env.get_pageserver(initial_desc["node_secondary"][0])
+
+    # Pause the migration after incrementing the generation in the database
+    env.storage_controller.configure_failpoints(
+        ("reconciler-live-migrate-post-generation-inc", "pause")
+    )
+
+    tenant_shard_id = TenantShardId(env.initial_tenant, 0, 0)
+
+    try:
+        with concurrent.futures.ThreadPoolExecutor(max_workers=2) as executor:
+            migrate_fut = executor.submit(
+                env.storage_controller.tenant_shard_migrate,
+                tenant_shard_id,
+                secondary.id,
+                config=StorageControllerMigrationConfig(prewarm=False, override_scheduler=True),
+            )
+
+            def has_hit_migration_failpoint():
+                expr = "at failpoint reconciler-live-migrate-post-generation-inc"
+                log.info(expr)
+                assert env.storage_controller.log_contains(expr)
+
+            wait_until(has_hit_migration_failpoint)
+
+            secondary.stop()
+
+            # Eventually migration completes
+            env.storage_controller.configure_failpoints(
+                ("reconciler-live-migrate-post-generation-inc", "off")
+            )
+            try:
+                migrate_fut.result()
+            except StorageControllerApiException as err:
+                log.info(f"Migration failed: {err}")
+    except:
+        env.storage_controller.configure_failpoints(
+            ("reconciler-live-migrate-post-generation-inc", "off")
+        )
+        raise
+
+    def process_migration_result():
+        dump = env.storage_controller.tenant_shard_dump()
+        observed = dump[0]["observed"]["locations"]
+
+        log.info(f"{observed=} primary={primary.id} secondary={secondary.id}")
+
+        assert observed[str(primary.id)]["conf"]["mode"] == "AttachedStale"
+        assert observed[str(secondary.id)]["conf"] is None
+
+    wait_until(process_migration_result)
+
+    # Start and wait for re-attach to be processed
+    secondary.start()
+    env.storage_controller.poll_node_status(
+        secondary.id,
+        desired_availability=PageserverAvailability.ACTIVE,
+        desired_scheduling_policy=None,
+        max_attempts=10,
+        backoff=1,
+    )
+
+    env.storage_controller.reconcile_until_idle()
+
+    assert notifications[-1] == {
+        "tenant_id": str(env.initial_tenant),
+        "stripe_size": None,
+        "shards": [{"node_id": int(secondary.id), "shard_number": 0}],
+        "preferred_az": DEFAULT_AZ_ID,
+    }