diff --git a/src/net_processing.cpp b/src/net_processing.cpp
index 16b4735e5ef..7354eb57e90 100644
--- a/src/net_processing.cpp
+++ b/src/net_processing.cpp
@@ -1406,11 +1406,13 @@ void PeerManagerImpl::FindNextBlocksToDownload(const Peer& peer, unsigned int co
         return;
     }
 
-    // When we sync with AssumeUtxo and discover the snapshot is not in the peer's best chain, abort:
-    // We can't reorg to this chain due to missing undo data until the background sync has finished,
+    // When syncing with AssumeUtxo and the snapshot has not yet been validated,
+    // abort downloading blocks from peers that don't have the snapshot block in their best chain.
+    // We can't reorg to this chain due to missing undo data until validation completes,
     // so downloading blocks from it would be futile.
     const CBlockIndex* snap_base{m_chainman.CurrentChainstate().SnapshotBase()};
-    if (snap_base && state->pindexBestKnownBlock->GetAncestor(snap_base->nHeight) != snap_base) {
+    if (snap_base && m_chainman.CurrentChainstate().m_assumeutxo == Assumeutxo::UNVALIDATED &&
+        state->pindexBestKnownBlock->GetAncestor(snap_base->nHeight) != snap_base) {
         LogDebug(BCLog::NET, "Not downloading blocks from peer=%d, which doesn't have the snapshot block in its best chain.\n", peer.m_id);
         return;
     }
diff --git a/test/functional/feature_assumeutxo.py b/test/functional/feature_assumeutxo.py
index 20ebd823d13..7420dfe02a0 100755
--- a/test/functional/feature_assumeutxo.py
+++ b/test/functional/feature_assumeutxo.py
@@ -347,6 +347,29 @@ class AssumeutxoTest(BitcoinTestFramework):
         assert 'NETWORK' in ibd_node.getpeerinfo()[0]['servicesnames']
         self.sync_blocks(nodes=(ibd_node, snapshot_node))
 
+    def test_sync_to_most_work_chain_after_background_validation(self):
+        """
+        After background validation completes, node should be able
+        to download and process blocks from peers without the snapshot block in their chain.
+        """
+        self.log.info("Testing sync to the most-work chain without the snapshot block after background validation")
+
+        forking_node = self.nodes[0]
+        snapshot_node = self.nodes[2]  # Has already completed background validation
+
+        self.log.info("Forking node switches to an alternative chain that forks one block before the snapshot block")
+        fork_point = SNAPSHOT_BASE_HEIGHT - 1
+        forking_node_old_height = forking_node.getblockcount()
+        forking_node_old_chainwork = int(forking_node.getblockchaininfo()['chainwork'], 16)
+        forking_node.invalidateblock(forking_node.getblockhash(fork_point + 1))
+
+        self.log.info("Mine one more block than original chain to make the new chain have most work")
+        self.generate(forking_node, nblocks=(forking_node_old_height - fork_point) + 1, sync_fun=self.no_op)
+        assert int(forking_node.getblockchaininfo()['chainwork'], 16) > forking_node_old_chainwork
+
+        self.log.info("Snapshot node should reorg to the most-work chain without the snapshot block")
+        self.sync_blocks(nodes=(snapshot_node, forking_node))
+
     def assert_only_network_limited_service(self, node):
         node_services = node.getnetworkinfo()['localservicesnames']
         assert 'NETWORK' not in node_services
@@ -775,6 +798,8 @@ class AssumeutxoTest(BitcoinTestFramework):
         # The following test cleans node2 and node3 chain directories.
         self.test_sync_from_assumeutxo_node(snapshot=dump_output)
 
+        self.test_sync_to_most_work_chain_after_background_validation()
+
 @dataclass
 class Block:
     hash: str