diff --git a/tools/ocaml/xenstored/domains.ml b/tools/ocaml/xenstored/domains.ml
index 63c6ad5daa..25fd592244 100644
--- a/tools/ocaml/xenstored/domains.ml
+++ b/tools/ocaml/xenstored/domains.ml
@@ -35,8 +35,9 @@ type domains = {
 	on_first_conflict_pause: unit -> unit;
 
 	(* If config is set to use individual instead of aggregate conflict-rate-limiting,
-	   we use this instead of the queues. *)
-	mutable n_paused: int;
+	   we use these counts instead of the queues. The second one includes the first. *)
+	mutable n_paused: int;    (* Number of domains with zero or negative credit *)
+	mutable n_penalised: int; (* Number of domains with less than maximum credit *)
 }
 
 let init eventchn on_first_conflict_pause = {
@@ -46,6 +47,7 @@ let init eventchn on_first_conflict_pause = {
 	doms_with_conflict_penalty = Queue.create ();
 	on_first_conflict_pause = on_first_conflict_pause;
 	n_paused = 0;
+	n_penalised = 0;
 }
 let del doms id = Hashtbl.remove doms.table id
 let exist doms id = Hashtbl.mem doms.table id
@@ -53,6 +55,23 @@ let find doms id = Hashtbl.find doms.table id
 let number doms = Hashtbl.length doms.table
 let iter doms fct = Hashtbl.iter (fun _ b -> fct b) doms.table
 
+let rec is_empty_queue q =
+	Queue.is_empty q ||
+		if !(Queue.peek q) = None
+		then (
+			ignore (Queue.pop q);
+			is_empty_queue q
+		) else false
+
+let all_at_max_credit doms =
+	if !Define.conflict_rate_limit_is_aggregate
+	then
+		(* Check both becuase if burst limit is 1.0 then a domain can go straight
+		 * from max-credit to paused without getting into the penalty queue. *)
+		is_empty_queue doms.doms_with_conflict_penalty
+		&& is_empty_queue doms.doms_conflict_paused
+	else doms.n_penalised = 0
+
 (* Functions to handle queues of domains given that the domain might be deleted while in a queue. *)
 let push dom queue =
 	Queue.push (ref (Some dom)) queue
@@ -132,13 +151,16 @@ let decr_conflict_credit doms dom =
 	let before = dom.Domain.conflict_credit in
 	let after = max (-1.0) (before -. 1.0) in
 	dom.Domain.conflict_credit <- after;
+	let newly_penalised =
+		before >= !Define.conflict_burst_limit
+		&& after < !Define.conflict_burst_limit in
+	let newly_paused = before > 0.0 && after <= 0.0 in
 	if !Define.conflict_rate_limit_is_aggregate then (
-		if before >= !Define.conflict_burst_limit
-		&& after < !Define.conflict_burst_limit
+		if newly_penalised
 		&& after > 0.0
 		then (
 			push dom doms.doms_with_conflict_penalty
-		) else if before > 0.0 && after <= 0.0
+		) else if newly_paused
 		then (
 			let first_pause = Queue.is_empty doms.doms_conflict_paused in
 			push dom doms.doms_conflict_paused;
@@ -146,9 +168,12 @@ let decr_conflict_credit doms dom =
 		) else (
 			(* The queues are correct already: no further action needed. *)
 		)
-	) else if before > 0.0 && after <= 0.0 then (
-		doms.n_paused <- doms.n_paused + 1;
-		if doms.n_paused = 1 then doms.on_first_conflict_pause ()
+	) else (
+		if newly_penalised then doms.n_penalised <- doms.n_penalised + 1;
+		if newly_paused then (
+			doms.n_paused <- doms.n_paused + 1;
+			if doms.n_paused = 1 then doms.on_first_conflict_pause ()
+		)
 	)
 
 (* Give one point of credit to one domain, and update the queues appropriately. *)
@@ -177,9 +202,13 @@ let incr_conflict_credit doms =
 			let before = dom.Domain.conflict_credit in
 			let after = min (before +. 1.0) !Define.conflict_burst_limit in
 			dom.Domain.conflict_credit <- after;
+
 			if before <= 0.0 && after > 0.0
-			then doms.n_paused <- doms.n_paused - 1
+			then doms.n_paused <- doms.n_paused - 1;
+
+			if before < !Define.conflict_burst_limit
+			&& after >= !Define.conflict_burst_limit
+			then doms.n_penalised <- doms.n_penalised - 1
 		in
-		(* Scope for optimisation (probably tiny): avoid iteration if all domains are at max credit *)
-		iter doms inc
+		if doms.n_penalised > 0 then iter doms inc
 	)
diff --git a/tools/ocaml/xenstored/xenstored.ml b/tools/ocaml/xenstored/xenstored.ml
index c0097018e2..8c82fe94af 100644
--- a/tools/ocaml/xenstored/xenstored.ml
+++ b/tools/ocaml/xenstored/xenstored.ml
@@ -436,7 +436,10 @@ let _ =
 			peaceful_mw;
 		let start_time = Unix.gettimeofday () in
 		let timeout =
-			let until_next_activity = min (max 0. (!next_frequent_ops -. start_time)) period_ops_interval in
+			let until_next_activity =
+				if Domains.all_at_max_credit domains
+				then period_ops_interval
+				else min (max 0. (!next_frequent_ops -. start_time)) period_ops_interval in
 			if peaceful_mw <> [] then 0. else until_next_activity
 		in
 		let inset, outset = Connections.select ~only_if:is_peaceful cons in