diff --git a/internal/gatewayapi/testdata/backendtrafficpolicy-with-healthcheck.in.yaml b/internal/gatewayapi/testdata/backendtrafficpolicy-with-healthcheck.in.yaml
index e0b71ac1328..bd11501ac10 100644
--- a/internal/gatewayapi/testdata/backendtrafficpolicy-with-healthcheck.in.yaml
+++ b/internal/gatewayapi/testdata/backendtrafficpolicy-with-healthcheck.in.yaml
@@ -132,6 +132,10 @@ backendTrafficPolicies:
         baseEjectionTime: 160s
         interval: 2s
         maxEjectionPercent: 100
+        consecutive5XxErrors: 5
+        consecutiveGatewayErrors: 0
+        consecutiveLocalOriginFailures: 5
+        splitExternalLocalOriginErrors: false
 - apiVersion: gateway.envoyproxy.io/v1alpha1
   kind: BackendTrafficPolicy
   metadata:
@@ -163,6 +167,10 @@ backendTrafficPolicies:
         baseEjectionTime: 150s
         interval: 1s
         maxEjectionPercent: 100
+        consecutive5XxErrors: 5
+        consecutiveGatewayErrors: 0
+        consecutiveLocalOriginFailures: 5
+        splitExternalLocalOriginErrors: false
 - apiVersion: gateway.envoyproxy.io/v1alpha1
   kind: BackendTrafficPolicy
   metadata:
@@ -189,9 +197,13 @@ backendTrafficPolicies:
             type: Text
             text: pong
       passive:
-        baseEjectionTime: 180s
-        interval: 1s
-        maxEjectionPercent: 100
+        baseEjectionTime: 10s
+        interval: 10s
+        maxEjectionPercent: 10
+        consecutive5XxErrors: 5
+        consecutiveGatewayErrors: 0
+        consecutiveLocalOriginFailures: 5
+        splitExternalLocalOriginErrors: false
 - apiVersion: gateway.envoyproxy.io/v1alpha1
   kind: BackendTrafficPolicy
   metadata:
@@ -221,3 +233,7 @@ backendTrafficPolicies:
         baseEjectionTime: 160s
         interval: 8ms
         maxEjectionPercent: 11
+        consecutive5XxErrors: 5
+        consecutiveGatewayErrors: 0
+        consecutiveLocalOriginFailures: 5
+        splitExternalLocalOriginErrors: false
diff --git a/internal/gatewayapi/testdata/backendtrafficpolicy-with-healthcheck.out.yaml b/internal/gatewayapi/testdata/backendtrafficpolicy-with-healthcheck.out.yaml
index 78b8946cc3e..021877b870a 100755
--- a/internal/gatewayapi/testdata/backendtrafficpolicy-with-healthcheck.out.yaml
+++ b/internal/gatewayapi/testdata/backendtrafficpolicy-with-healthcheck.out.yaml
@@ -24,8 +24,12 @@ backendTrafficPolicies:
         unhealthyThreshold: 3
       passive:
         baseEjectionTime: 2m30s
+        consecutive5XxErrors: 5
+        consecutiveGatewayErrors: 0
+        consecutiveLocalOriginFailures: 5
         interval: 1s
         maxEjectionPercent: 100
+        splitExternalLocalOriginErrors: false
     targetRef:
       group: gateway.networking.k8s.io
       kind: HTTPRoute
@@ -60,9 +64,13 @@ backendTrafficPolicies:
         type: TCP
         unhealthyThreshold: 3
       passive:
-        baseEjectionTime: 3m0s
-        interval: 1s
-        maxEjectionPercent: 100
+        baseEjectionTime: 10s
+        consecutive5XxErrors: 5
+        consecutiveGatewayErrors: 0
+        consecutiveLocalOriginFailures: 5
+        interval: 10s
+        maxEjectionPercent: 10
+        splitExternalLocalOriginErrors: false
     targetRef:
       group: gateway.networking.k8s.io
       kind: HTTPRoute
@@ -98,8 +106,12 @@ backendTrafficPolicies:
         unhealthyThreshold: 3
       passive:
         baseEjectionTime: 2m40s
+        consecutive5XxErrors: 5
+        consecutiveGatewayErrors: 0
+        consecutiveLocalOriginFailures: 5
         interval: 8ms
         maxEjectionPercent: 11
+        splitExternalLocalOriginErrors: false
     targetRef:
       group: gateway.networking.k8s.io
       kind: HTTPRoute
@@ -137,8 +149,12 @@ backendTrafficPolicies:
         unhealthyThreshold: 3
       passive:
         baseEjectionTime: 2m40s
+        consecutive5XxErrors: 5
+        consecutiveGatewayErrors: 0
+        consecutiveLocalOriginFailures: 5
         interval: 2s
         maxEjectionPercent: 100
+        splitExternalLocalOriginErrors: false
     targetRef:
       group: gateway.networking.k8s.io
       kind: Gateway
@@ -456,8 +472,12 @@ xdsIR:
             unhealthyThreshold: 3
           passive:
             baseEjectionTime: 2m40s
+            consecutive5XxErrors: 5
+            consecutiveGatewayErrors: 0
+            consecutiveLocalOriginFailures: 5
             interval: 2s
             maxEjectionPercent: 100
+            splitExternalLocalOriginErrors: false
         hostname: '*'
         isHTTP2: true
         name: grpcroute/default/grpcroute-1/rule/0/match/-1/*
@@ -500,9 +520,13 @@ xdsIR:
             timeout: 1s
             unhealthyThreshold: 3
           passive:
-            baseEjectionTime: 3m0s
-            interval: 1s
-            maxEjectionPercent: 100
+            baseEjectionTime: 10s
+            consecutive5XxErrors: 5
+            consecutiveGatewayErrors: 0
+            consecutiveLocalOriginFailures: 5
+            interval: 10s
+            maxEjectionPercent: 10
+            splitExternalLocalOriginErrors: false
         hostname: gateway.envoyproxy.io
         isHTTP2: false
         name: httproute/default/httproute-2/rule/0/match/0/gateway_envoyproxy_io
@@ -535,8 +559,12 @@ xdsIR:
             unhealthyThreshold: 3
           passive:
             baseEjectionTime: 2m40s
+            consecutive5XxErrors: 5
+            consecutiveGatewayErrors: 0
+            consecutiveLocalOriginFailures: 5
             interval: 8ms
             maxEjectionPercent: 11
+            splitExternalLocalOriginErrors: false
         hostname: gateway.envoyproxy.io
         isHTTP2: false
         name: httproute/default/httproute-3/rule/0/match/0/gateway_envoyproxy_io
@@ -572,8 +600,12 @@ xdsIR:
             unhealthyThreshold: 3
           passive:
             baseEjectionTime: 2m30s
+            consecutive5XxErrors: 5
+            consecutiveGatewayErrors: 0
+            consecutiveLocalOriginFailures: 5
             interval: 1s
             maxEjectionPercent: 100
+            splitExternalLocalOriginErrors: false
         hostname: gateway.envoyproxy.io
         isHTTP2: false
         name: httproute/default/httproute-1/rule/0/match/0/gateway_envoyproxy_io
diff --git a/internal/xds/translator/testdata/in/xds-ir/health-check.yaml b/internal/xds/translator/testdata/in/xds-ir/health-check.yaml
index a634af2ef8f..ca5f9c0a1c8 100644
--- a/internal/xds/translator/testdata/in/xds-ir/health-check.yaml
+++ b/internal/xds/translator/testdata/in/xds-ir/health-check.yaml
@@ -27,6 +27,10 @@ http:
         baseEjectionTime: 180s
         interval: 2s
         maxEjectionPercent: 100
+        consecutive5XxErrors: 5
+        consecutiveGatewayErrors: 0
+        consecutiveLocalOriginFailures: 5
+        splitExternalLocalOriginErrors: false
     destination:
       name: "first-route-dest"
       settings:
@@ -52,6 +56,10 @@ http:
         baseEjectionTime: 180s
         interval: 1s
         maxEjectionPercent: 100
+        consecutive5XxErrors: 5
+        consecutiveGatewayErrors: 0
+        consecutiveLocalOriginFailures: 5
+        splitExternalLocalOriginErrors: false
     destination:
       name: "second-route-dest"
       settings:
@@ -75,6 +83,10 @@ http:
         baseEjectionTime: 160s
         interval: 1s
         maxEjectionPercent: 100
+        consecutive5XxErrors: 5
+        consecutiveGatewayErrors: 0
+        consecutiveLocalOriginFailures: 5
+        splitExternalLocalOriginErrors: false
     destination:
       name: "third-route-dest"
       settings:
@@ -98,6 +110,10 @@ http:
         baseEjectionTime: 180s
         interval: 1s
         maxEjectionPercent: 90
+        consecutive5XxErrors: 5
+        consecutiveGatewayErrors: 0
+        consecutiveLocalOriginFailures: 5
+        splitExternalLocalOriginErrors: true
     destination:
       name: "fourth-route-dest"
       settings:
diff --git a/internal/xds/translator/testdata/out/xds-ir/health-check.clusters.yaml b/internal/xds/translator/testdata/out/xds-ir/health-check.clusters.yaml
index 98df3804fc4..8c076fbdb87 100644
--- a/internal/xds/translator/testdata/out/xds-ir/health-check.clusters.yaml
+++ b/internal/xds/translator/testdata/out/xds-ir/health-check.clusters.yaml
@@ -28,6 +28,9 @@
   name: first-route-dest
   outlierDetection:
     baseEjectionTime: 180s
+    consecutive5xx: 5
+    consecutiveGatewayFailure: 0
+    consecutiveLocalOriginFailure: 5
     interval: 2s
     maxEjectionPercent: 100
   perConnectionBufferLimitBytes: 32768
@@ -60,6 +63,9 @@
   name: second-route-dest
   outlierDetection:
     baseEjectionTime: 180s
+    consecutive5xx: 5
+    consecutiveGatewayFailure: 0
+    consecutiveLocalOriginFailure: 5
     interval: 1s
     maxEjectionPercent: 100
   perConnectionBufferLimitBytes: 32768
@@ -90,6 +96,9 @@
   name: third-route-dest
   outlierDetection:
     baseEjectionTime: 160s
+    consecutive5xx: 5
+    consecutiveGatewayFailure: 0
+    consecutiveLocalOriginFailure: 5
     interval: 1s
     maxEjectionPercent: 100
   perConnectionBufferLimitBytes: 32768
@@ -120,7 +129,11 @@
   name: fourth-route-dest
   outlierDetection:
     baseEjectionTime: 180s
+    consecutive5xx: 5
+    consecutiveGatewayFailure: 0
+    consecutiveLocalOriginFailure: 5
     interval: 1s
     maxEjectionPercent: 90
+    splitExternalLocalOriginErrors: true
   perConnectionBufferLimitBytes: 32768
   type: EDS