diff --git a/nomad/state/state_store.go b/nomad/state/state_store.go
index c47b465f214d..df3fe4d30a0f 100644
--- a/nomad/state/state_store.go
+++ b/nomad/state/state_store.go
@@ -3578,6 +3578,20 @@ func (s *StateStore) updateDeploymentWithAlloc(index uint64, alloc, existing *st
 	state.HealthyAllocs += healthy
 	state.UnhealthyAllocs += unhealthy
 
+	// Ensure PlacedCanaries accurately reflects the alloc canary status
+	if alloc.DeploymentStatus != nil && alloc.DeploymentStatus.Canary {
+		found := false
+		for _, canary := range state.PlacedCanaries {
+			if alloc.ID == canary {
+				found = true
+				break
+			}
+		}
+		if !found {
+			state.PlacedCanaries = append(state.PlacedCanaries, alloc.ID)
+		}
+	}
+
 	// Update the progress deadline
 	if pd := state.ProgressDeadline; pd != 0 {
 		// If we are the first placed allocation for the deployment start the progress deadline.
diff --git a/nomad/state/state_store_test.go b/nomad/state/state_store_test.go
index 652458f573eb..fb1d51b7489c 100644
--- a/nomad/state/state_store_test.go
+++ b/nomad/state/state_store_test.go
@@ -6382,6 +6382,109 @@ func TestStateStore_UpsertDeploymentAllocHealth_BadAlloc_Nonexistent(t *testing.
 	}
 }
 
+// Test that a deployments PlacedCanaries is properly updated
+func TestStateStore_UpsertDeploymentAlloc_Canaries(t *testing.T) {
+	t.Parallel()
+
+	state := testStateStore(t)
+
+	// Create a deployment
+	d1 := mock.Deployment()
+	require.NoError(t, state.UpsertDeployment(2, d1))
+
+	// Create a Job
+	job := mock.Job()
+	require.NoError(t, state.UpsertJob(3, job))
+
+	// Create alloc with canary status
+	a := mock.Alloc()
+	a.JobID = job.ID
+	a.DeploymentID = d1.ID
+	a.DeploymentStatus = &structs.AllocDeploymentStatus{
+		Healthy: helper.BoolToPtr(false),
+		Canary:  true,
+	}
+	require.NoError(t, state.UpsertAllocs(4, []*structs.Allocation{a}))
+
+	// Pull the deployment from state
+	ws := memdb.NewWatchSet()
+	deploy, err := state.DeploymentByID(ws, d1.ID)
+	require.NoError(t, err)
+
+	// Ensure that PlacedCanaries is accurate
+	require.Equal(t, 1, len(deploy.TaskGroups[job.TaskGroups[0].Name].PlacedCanaries))
+
+	// Create alloc without canary status
+	b := mock.Alloc()
+	b.JobID = job.ID
+	b.DeploymentID = d1.ID
+	b.DeploymentStatus = &structs.AllocDeploymentStatus{
+		Healthy: helper.BoolToPtr(false),
+		Canary:  false,
+	}
+	require.NoError(t, state.UpsertAllocs(4, []*structs.Allocation{b}))
+
+	// Pull the deployment from state
+	ws = memdb.NewWatchSet()
+	deploy, err = state.DeploymentByID(ws, d1.ID)
+	require.NoError(t, err)
+
+	// Ensure that PlacedCanaries is accurate
+	require.Equal(t, 1, len(deploy.TaskGroups[job.TaskGroups[0].Name].PlacedCanaries))
+
+	// Create a second deployment
+	d2 := mock.Deployment()
+	require.NoError(t, state.UpsertDeployment(5, d2))
+
+	c := mock.Alloc()
+	c.JobID = job.ID
+	c.DeploymentID = d2.ID
+	c.DeploymentStatus = &structs.AllocDeploymentStatus{
+		Healthy: helper.BoolToPtr(false),
+		Canary:  true,
+	}
+	require.NoError(t, state.UpsertAllocs(6, []*structs.Allocation{c}))
+
+	ws = memdb.NewWatchSet()
+	deploy2, err := state.DeploymentByID(ws, d2.ID)
+	require.NoError(t, err)
+
+	// Ensure that PlacedCanaries is accurate
+	require.Equal(t, 1, len(deploy2.TaskGroups[job.TaskGroups[0].Name].PlacedCanaries))
+}
+
+func TestStateStore_UpsertDeploymentAlloc_NoCanaries(t *testing.T) {
+	t.Parallel()
+
+	state := testStateStore(t)
+
+	// Create a deployment
+	d1 := mock.Deployment()
+	require.NoError(t, state.UpsertDeployment(2, d1))
+
+	// Create a Job
+	job := mock.Job()
+	require.NoError(t, state.UpsertJob(3, job))
+
+	// Create alloc with canary status
+	a := mock.Alloc()
+	a.JobID = job.ID
+	a.DeploymentID = d1.ID
+	a.DeploymentStatus = &structs.AllocDeploymentStatus{
+		Healthy: helper.BoolToPtr(true),
+		Canary:  false,
+	}
+	require.NoError(t, state.UpsertAllocs(4, []*structs.Allocation{a}))
+
+	// Pull the deployment from state
+	ws := memdb.NewWatchSet()
+	deploy, err := state.DeploymentByID(ws, d1.ID)
+	require.NoError(t, err)
+
+	// Ensure that PlacedCanaries is accurate
+	require.Equal(t, 0, len(deploy.TaskGroups[job.TaskGroups[0].Name].PlacedCanaries))
+}
+
 // Test that allocation health can't be set for an alloc with mismatched
 // deployment ids
 func TestStateStore_UpsertDeploymentAllocHealth_BadAlloc_MismatchDeployment(t *testing.T) {
diff --git a/scheduler/generic_sched.go b/scheduler/generic_sched.go
index d9e5c7cc31c9..11e4bc9e3998 100644
--- a/scheduler/generic_sched.go
+++ b/scheduler/generic_sched.go
@@ -529,10 +529,6 @@ func (s *GenericScheduler) computePlacements(destructive, place []placementResul
 				// If we are placing a canary and we found a match, add the canary
 				// to the deployment state object and mark it as a canary.
 				if missing.Canary() && s.deployment != nil {
-					if state, ok := s.deployment.TaskGroups[tg.Name]; ok {
-						state.PlacedCanaries = append(state.PlacedCanaries, alloc.ID)
-					}
-
 					alloc.DeploymentStatus = &structs.AllocDeploymentStatus{
 						Canary: true,
 					}
diff --git a/scheduler/generic_sched_test.go b/scheduler/generic_sched_test.go
index f7b06da7e9e1..7dc44bc460be 100644
--- a/scheduler/generic_sched_test.go
+++ b/scheduler/generic_sched_test.go
@@ -2029,17 +2029,28 @@ func TestServiceSched_JobModify_Canaries(t *testing.T) {
 	if plan.Deployment == nil {
 		t.Fatalf("bad: %#v", plan)
 	}
-	state, ok := plan.Deployment.TaskGroups[job.TaskGroups[0].Name]
-	if !ok {
-		t.Fatalf("bad: %#v", plan)
-	}
-	if state.DesiredTotal != 10 && state.DesiredCanaries != desiredUpdates {
-		t.Fatalf("bad: %#v", state)
-	}
+
+	// Ensure local state was not altered in scheduler
+	staleState, ok := plan.Deployment.TaskGroups[job.TaskGroups[0].Name]
+	require.True(t, ok)
+
+	require.Equal(t, 0, len(staleState.PlacedCanaries))
+
+	ws := memdb.NewWatchSet()
+
+	// Grab the latest state
+	deploy, err := h.State.DeploymentByID(ws, plan.Deployment.ID)
+	require.NoError(t, err)
+
+	state, ok := deploy.TaskGroups[job.TaskGroups[0].Name]
+	require.True(t, ok)
+
+	require.Equal(t, 10, state.DesiredTotal)
+	require.Equal(t, state.DesiredCanaries, desiredUpdates)
 
 	// Assert the canaries were added to the placed list
 	if len(state.PlacedCanaries) != desiredUpdates {
-		t.Fatalf("bad: %#v", state)
+		assert.Fail(t, "expected PlacedCanaries to equal desiredUpdates", state)
 	}
 }