diff --git a/hadoop-yarn-project/CHANGES.txt b/hadoop-yarn-project/CHANGES.txt
index 41f4a7963d2..cfd4a239015 100644
--- a/hadoop-yarn-project/CHANGES.txt
+++ b/hadoop-yarn-project/CHANGES.txt
@@ -574,6 +574,9 @@ Release 2.8.0 - UNRELEASED
     YARN-3917. getResourceCalculatorPlugin for the default should intercept all
     exceptions. (gera)
 
+    YARN-3894. RM startup should fail for wrong CS xml NodeLabel capacity
+    configuration. (Bibin A Chundatt via wangda)
+
 Release 2.7.2 - UNRELEASED
 
   INCOMPATIBLE CHANGES
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/capacity/ParentQueue.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/capacity/ParentQueue.java
index 97a5d276940..5807dd1b3d9 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/capacity/ParentQueue.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/capacity/ParentQueue.java
@@ -147,7 +147,7 @@ public class ParentQueue extends AbstractCSQueue {
       		" for children of queue " + queueName);
     }
     // check label capacities
-    for (String nodeLabel : labelManager.getClusterNodeLabelNames()) {
+    for (String nodeLabel : queueCapacities.getExistingNodeLabels()) {
       float capacityByLabel = queueCapacities.getCapacity(nodeLabel);
       // check children's labels
       float sum = 0;
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/capacity/TestQueueParsing.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/capacity/TestQueueParsing.java
index 198bd4a27b5..92baa857007 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/capacity/TestQueueParsing.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/capacity/TestQueueParsing.java
@@ -22,12 +22,15 @@ import java.io.IOException;
 
 import org.apache.commons.logging.Log;
 import org.apache.commons.logging.LogFactory;
+import org.apache.hadoop.io.IOUtils;
 import org.apache.hadoop.service.ServiceOperations;
 import org.apache.hadoop.yarn.conf.YarnConfiguration;
 import org.apache.hadoop.yarn.nodelabels.CommonNodeLabelsManager;
+import org.apache.hadoop.yarn.server.resourcemanager.MockRM;
 import org.apache.hadoop.yarn.server.resourcemanager.RMContextImpl;
 import org.apache.hadoop.yarn.server.resourcemanager.nodelabels.NullRMNodeLabelsManager;
 import org.apache.hadoop.yarn.server.resourcemanager.nodelabels.RMNodeLabelsManager;
+import org.apache.hadoop.yarn.server.resourcemanager.scheduler.ResourceScheduler;
 import org.apache.hadoop.yarn.server.resourcemanager.security.ClientToAMTokenSecretManagerInRM;
 import org.apache.hadoop.yarn.server.resourcemanager.security.NMTokenSecretManagerInRM;
 import org.apache.hadoop.yarn.server.resourcemanager.security.RMContainerTokenSecretManager;
@@ -898,4 +901,39 @@ public class TestQueueParsing {
     
     capacityScheduler.reinitialize(csConf, rmContext);
   }
+
+  @Test(timeout = 60000, expected = java.lang.IllegalArgumentException.class)
+  public void testRMStartWrongNodeCapacity() throws Exception {
+    YarnConfiguration config = new YarnConfiguration();
+    nodeLabelManager = new NullRMNodeLabelsManager();
+    nodeLabelManager.init(config);
+    config.setClass(YarnConfiguration.RM_SCHEDULER, CapacityScheduler.class,
+        ResourceScheduler.class);
+    CapacitySchedulerConfiguration conf =
+        new CapacitySchedulerConfiguration(config);
+
+    // Define top-level queues
+    conf.setQueues(CapacitySchedulerConfiguration.ROOT, new String[] { "a" });
+    conf.setCapacityByLabel(CapacitySchedulerConfiguration.ROOT, "x", 100);
+    conf.setCapacityByLabel(CapacitySchedulerConfiguration.ROOT, "y", 100);
+    conf.setCapacityByLabel(CapacitySchedulerConfiguration.ROOT, "z", 100);
+
+    final String A = CapacitySchedulerConfiguration.ROOT + ".a";
+    conf.setCapacity(A, 100);
+    conf.setAccessibleNodeLabels(A, ImmutableSet.of("x", "y", "z"));
+    conf.setCapacityByLabel(A, "x", 100);
+    conf.setCapacityByLabel(A, "y", 100);
+    conf.setCapacityByLabel(A, "z", 70);
+    MockRM rm = null;
+    try {
+      rm = new MockRM(conf) {
+        @Override
+        public RMNodeLabelsManager createNodeLabelManager() {
+          return nodeLabelManager;
+        }
+      };
+    } finally {
+      IOUtils.closeStream(rm);
+    }
+  }
 }