diff --git a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/pipeline/RatisPipelineProvider.java b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/pipeline/RatisPipelineProvider.java
index 30eb83ab735f..583ef5cac17b 100644
--- a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/pipeline/RatisPipelineProvider.java
+++ b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/pipeline/RatisPipelineProvider.java
@@ -17,6 +17,8 @@
 
 package org.apache.hadoop.hdds.scm.pipeline;
 
+import static org.apache.hadoop.hdds.protocol.DatanodeDetails.Port.Name.RATIS_DATASTREAM;
+
 import com.google.common.annotations.VisibleForTesting;
 import java.io.IOException;
 import java.util.ArrayList;
@@ -155,7 +157,7 @@ public synchronized Pipeline create(RatisReplicationConfig replicationConfig,
       );
     }
 
-    final List<DatanodeDetails> dns;
+    List<DatanodeDetails> dns;
     final ReplicationFactor factor =
         replicationConfig.getReplicationFactor();
     switch (factor) {
@@ -163,17 +165,22 @@ public synchronized Pipeline create(RatisReplicationConfig replicationConfig,
       dns = pickNodesNotUsed(replicationConfig, minRatisVolumeSizeBytes, containerSizeBytes);
       break;
     case THREE:
-      List<DatanodeDetails> excludeDueToEngagement = filterPipelineEngagement();
-      if (!excludeDueToEngagement.isEmpty()) {
-        if (excludedNodes.isEmpty()) {
-          excludedNodes = excludeDueToEngagement;
-        } else {
-          excludedNodes.addAll(excludeDueToEngagement);
-        }
+      List<DatanodeDetails> excludeDueToEngagement = filterNodes(true);
+      List<DatanodeDetails> currentExcluded = new ArrayList<>(excludedNodes);
+      currentExcluded.addAll(excludeDueToEngagement);
+      try {
+        dns = placementPolicy.chooseDatanodes(currentExcluded,
+            favoredNodes, factor.getNumber(), minRatisVolumeSizeBytes,
+            containerSizeBytes);
+      } catch (SCMException scmException) {
+        excludeDueToEngagement = filterNodes(false);
+        currentExcluded = new ArrayList<>(excludedNodes);
+        currentExcluded.addAll(excludeDueToEngagement);
+        dns = placementPolicy.chooseDatanodes(currentExcluded,
+            favoredNodes, factor.getNumber(), minRatisVolumeSizeBytes,
+            containerSizeBytes);
       }
-      dns = placementPolicy.chooseDatanodes(excludedNodes,
-          favoredNodes, factor.getNumber(), minRatisVolumeSizeBytes,
-          containerSizeBytes);
+
       break;
     default:
       throw new IllegalStateException("Unknown factor: " + factor.name());
@@ -224,14 +231,19 @@ public Pipeline createForRead(
         .build();
   }
 
-  private List<DatanodeDetails> filterPipelineEngagement() {
+  /**
+   *
+   * @return
+   */
+  private List<DatanodeDetails> filterNodes(boolean filterRatisStreaming) {
     final NodeManager nodeManager = getNodeManager();
     final PipelineStateManager stateManager = getPipelineStateManager();
     final List<DatanodeDetails> healthyNodes = nodeManager.getNodes(NodeStatus.inServiceHealthy());
     final List<DatanodeDetails> excluded = new ArrayList<>();
     for (DatanodeDetails d : healthyNodes) {
       final int count = PipelinePlacementPolicy.currentRatisThreePipelineCount(nodeManager, stateManager, d);
-      if (count >= nodeManager.pipelineLimit(d)) {
+      if (count >= nodeManager.pipelineLimit(d) ||
+          (filterRatisStreaming && !d.hasPort(RATIS_DATASTREAM))) {
         excluded.add(d);
       }
     }
diff --git a/hadoop-hdds/server-scm/src/test/java/org/apache/hadoop/hdds/scm/pipeline/TestRatisPipelineProvider.java b/hadoop-hdds/server-scm/src/test/java/org/apache/hadoop/hdds/scm/pipeline/TestRatisPipelineProvider.java
index bf352f2051ef..ab2a1c3d77d4 100644
--- a/hadoop-hdds/server-scm/src/test/java/org/apache/hadoop/hdds/scm/pipeline/TestRatisPipelineProvider.java
+++ b/hadoop-hdds/server-scm/src/test/java/org/apache/hadoop/hdds/scm/pipeline/TestRatisPipelineProvider.java
@@ -34,7 +34,9 @@
 import java.util.Collections;
 import java.util.HashSet;
 import java.util.List;
+import java.util.Random;
 import java.util.Set;
+import java.util.concurrent.ThreadLocalRandom;
 import java.util.concurrent.TimeoutException;
 import java.util.stream.Collectors;
 import org.apache.hadoop.hdds.HddsConfigKeys;
@@ -57,6 +59,7 @@
 import org.apache.hadoop.hdds.scm.ha.SCMHAManager;
 import org.apache.hadoop.hdds.scm.ha.SCMHAManagerStub;
 import org.apache.hadoop.hdds.scm.metadata.SCMDBDefinition;
+import org.apache.hadoop.hdds.scm.net.NetworkTopologyImpl;
 import org.apache.hadoop.hdds.scm.node.NodeStatus;
 import org.apache.hadoop.hdds.utils.db.DBStore;
 import org.apache.hadoop.hdds.utils.db.DBStoreBuilder;
@@ -93,10 +96,22 @@ public void init(int maxPipelinePerNode, OzoneConfiguration conf)
     init(maxPipelinePerNode, conf, testDir);
   }
 
+  public void initWithNodes(int maxPipelinePerNode, List<DatanodeDetails> nodes, int count)
+      throws Exception {
+    OzoneConfiguration conf = new OzoneConfiguration();
+    conf.set(HddsConfigKeys.OZONE_METADATA_DIRS, testDir.getAbsolutePath());
+    nodeManager = new MockNodeManager(new NetworkTopologyImpl(new OzoneConfiguration()), nodes, false, count);
+    initializeCommonState(maxPipelinePerNode, conf);
+  }
+
   public void init(int maxPipelinePerNode, OzoneConfiguration conf, File dir) throws Exception {
     conf.set(HddsConfigKeys.OZONE_METADATA_DIRS, dir.getAbsolutePath());
-    dbStore = DBStoreBuilder.createDBStore(conf, SCMDBDefinition.get());
     nodeManager = new MockNodeManager(true, nodeCount);
+    initializeCommonState(maxPipelinePerNode, conf);
+  }
+
+  private void initializeCommonState(int maxPipelinePerNode, OzoneConfiguration conf) throws Exception {
+    dbStore = DBStoreBuilder.createDBStore(conf, SCMDBDefinition.get());
     nodeManager.setNumPipelinePerDatanode(maxPipelinePerNode);
     long containerSize = (long) conf.getStorageSize(
         ScmConfigKeys.OZONE_SCM_CONTAINER_SIZE,
@@ -246,6 +261,73 @@ public void testCreateFactorTHREEPipelineWithSameDatanodes()
     assertEquals(pipeline2.getNodeSet(), pipeline3.getNodeSet());
   }
 
+  private DatanodeDetails createDatanodeDetails(boolean supportRatisStreaming) {
+    Random random = ThreadLocalRandom.current();
+    String ipAddress = random.nextInt(256)
+        + "." + random.nextInt(256)
+        + "." + random.nextInt(256)
+        + "." + random.nextInt(256);
+
+    DatanodeDetails.Builder dn = DatanodeDetails.newBuilder()
+        .setID(DatanodeID.randomID())
+        .setHostName("localhost" + "-" + ipAddress)
+        .setIpAddress(ipAddress)
+        .setNetworkLocation(null)
+        .setPersistedOpState(HddsProtos.NodeOperationalState.IN_SERVICE)
+        .setPersistedOpStateExpiry(0);
+
+    for (DatanodeDetails.Port.Name name : DatanodeDetails.Port.Name.values()) {
+      if (!supportRatisStreaming && name == DatanodeDetails.Port.Name.RATIS_DATASTREAM) {
+        continue;
+      }
+      dn.addPort(DatanodeDetails.newPort(name, 0));
+    }
+    return dn.build();
+  }
+
+  @Test
+  public void testCreatePipelinePrioritizesRatisStreamingNodes() throws Exception {
+    List<DatanodeDetails> nodes = new ArrayList<>();
+    // Add 3 nodes WITH RATIS_DATASTREAM
+    for (int i = 0; i < 3; i++) {
+      nodes.add(createDatanodeDetails(true));
+    }
+    // Add 3 nodes WITHOUT RATIS_DATASTREAM
+    for (int i = 0; i < 3; i++) {
+      nodes.add(createDatanodeDetails(false));
+    }
+
+    initWithNodes(1, nodes, 3);
+    Pipeline pipeline = provider.create(RatisReplicationConfig.getInstance(ReplicationFactor.THREE));
+    assertEquals(3, pipeline.getNodes().size());
+    for (DatanodeDetails dn : pipeline.getNodes()) {
+      assertTrue(dn.hasPort(DatanodeDetails.Port.Name.RATIS_DATASTREAM), 
+          "Pipeline should only contain datanodes with RATIS_DATASTREAM when available");
+    }
+  }
+
+  @Test
+  public void testCreatePipelineFallsBackWhenNotEnoughRatisStreamingNodes() throws Exception {
+    List<DatanodeDetails> nodes = new ArrayList<>();
+    // Add 2 nodes WITH RATIS_DATASTREAM
+    for (int i = 0; i < 2; i++) {
+      nodes.add(createDatanodeDetails(true));
+    }
+    // Add 1 node WITHOUT RATIS_DATASTREAM
+    nodes.add(createDatanodeDetails(false));
+
+    initWithNodes(1, nodes, 3);
+    Pipeline pipeline = provider.create(RatisReplicationConfig.getInstance(ReplicationFactor.THREE));
+    assertEquals(3, pipeline.getNodes().size());
+    
+    long streamingNodeCount = pipeline.getNodes().stream()
+        .filter(dn -> dn.hasPort(DatanodeDetails.Port.Name.RATIS_DATASTREAM))
+        .count();
+    
+    assertEquals(2, streamingNodeCount, 
+        "Pipeline should contain exactly 2 nodes with RATIS_DATASTREAM as fallback was required");
+  }
+
   @Test
   public void testCreatePipelinesDnExclude() throws Exception {