diff --git a/sources.c b/sources.c
index 2614448..ff7a792 100644
--- a/sources.c
+++ b/sources.c
@@ -526,11 +526,6 @@ SRC_UpdateReachability(SRC_Instance inst, int reachable)
   if (inst->reachability_size < SOURCE_REACH_BITS)
       inst->reachability_size++;
 
-  /* Source selection can change with unreachable sources */
-  if (inst->reachability == 0) {
-    SRC_SelectSource(NULL);
-  }
-
   /* Check if special reference update mode failed */
   if (REF_GetMode() != REF_ModeNormal && special_mode_end()) {
     REF_SetUnsynchronised();
@@ -539,6 +534,10 @@ SRC_UpdateReachability(SRC_Instance inst, int reachable)
   /* Try to replace unreachable NTP sources */
   if (inst->reachability == 0 && inst->reachability_size == SOURCE_REACH_BITS)
     handle_bad_source(inst);
+
+  /* Source selection can change with unreachable sources */
+  if (inst->reachability == 0)
+    SRC_SelectSource(NULL);
 }
 
 /* ================================================== */
diff --git a/test/simulation/148-replacement b/test/simulation/148-replacement
index f15fc4d..d09fba6 100755
--- a/test/simulation/148-replacement
+++ b/test/simulation/148-replacement
@@ -53,4 +53,28 @@ check_log_messages "2010-01-01T0[5-9]:.*Source 192.168.123.. replaced with" 0 15
 check_file_messages "20.*192.168.123.* 11.1   6  6 " 20 500 measurements.log || test_fail
 rm -f tmp/measurements.log
 
+# 2 replaceable falsetickers and 1 replaceable unreachable server
+servers=6
+falsetickers=2
+base_delay="(+ 1e-4 (* -1 (equal 0.1 to 3)))"
+client_server_conf="
+server nodes-4-1.net1.clk
+server nodes-5-2.net1.clk
+server nodes-6-3.net1.clk"
+
+run_test || test_fail
+check_chronyd_exit || test_fail
+check_source_selection && test_fail
+check_packet_interval || test_fail
+check_sync || test_fail
+
+check_log_messages "Can't synchronise: no majority" 1 1 || test_fail
+check_log_messages "Detected falseticker" 0 2 || test_fail
+check_log_messages "Source 192.168.123.. replaced with" 3 60 || test_fail
+check_log_messages "Source 192.168.123.1 replaced with" 1 25 || test_fail
+check_log_messages "Source 192.168.123.2 replaced with" 1 25 || test_fail
+check_log_messages "Source 192.168.123.3 replaced with" 1 25 || test_fail
+check_file_messages "20.*192.168.123.* 11.1   6  6 " 50 800 measurements.log || test_fail
+rm -f tmp/measurements.log
+
 test_pass