diff --git a/drv/transceivers-server/src/main.rs b/drv/transceivers-server/src/main.rs
index d3bd52718..0e4798c5f 100644
--- a/drv/transceivers-server/src/main.rs
+++ b/drv/transceivers-server/src/main.rs
@@ -21,7 +21,7 @@ use drv_sidecar_front_io::{
     },
     Reg,
 };
-use drv_sidecar_seq_api::{SeqError, Sequencer};
+use drv_sidecar_seq_api::{SeqError, Sequencer, TofinoSeqState};
 use drv_transceivers_api::{
     ModuleStatus, TransceiversError, NUM_PORTS, TRANSCEIVER_TEMPERATURE_SENSORS,
 };
@@ -78,6 +78,7 @@ enum Trace {
     DisablingPorts(LogicalPortMask),
     DisableFailed(usize, LogicalPortMask),
     ClearDisabledPorts(LogicalPortMask),
+    SeqError(SeqError),
 }
 
 counted_ringbuf!(Trace, 16, Trace::None);
@@ -193,21 +194,26 @@ impl ServerImpl {
         self.system_led_state
     }
 
-    fn update_leds(&mut self) {
-        // handle port LEDs
+    fn update_leds(&mut self, seq_state: TofinoSeqState) {
         let mut next_state = LogicalPortMask(0);
-        for (i, state) in self.led_states.0.into_iter().enumerate() {
-            let i = LogicalPort(i as u8);
-            match state {
-                LedState::On => next_state.set(i),
-                LedState::Blink => {
-                    if self.blink_on {
-                        next_state.set(i)
+
+        // We only turn transceiver LEDs on when Sidecar is in A0, since that is when there can be
+        // meaningful link activity happening. When outside of A0, we default the LEDs to off.
+        if seq_state == TofinoSeqState::A0 {
+            for (i, state) in self.led_states.0.into_iter().enumerate() {
+                let i = LogicalPort(i as u8);
+                match state {
+                    LedState::On => next_state.set(i),
+                    LedState::Blink => {
+                        if self.blink_on {
+                            next_state.set(i)
+                        }
                     }
+                    LedState::Off => (),
                 }
-                LedState::Off => (),
             }
         }
+
         if let Err(e) = self.leds.update_led_state(next_state) {
             ringbuf_entry!(Trace::LEDUpdateError(e));
         }
@@ -512,9 +518,9 @@ impl ServerImpl {
         // the `sensors` and `thermal` tasks.
     }
 
-    fn handle_i2c_loop(&mut self) {
+    fn handle_i2c_loop(&mut self, seq_state: TofinoSeqState) {
         if self.leds_initialized {
-            self.update_leds();
+            self.update_leds(seq_state);
             let errors = match self.leds.error_summary() {
                 Ok(errs) => errs,
                 Err(e) => {
@@ -719,10 +725,23 @@ fn main() -> ! {
         for t in multitimer.iter_fired() {
             match t {
                 Timers::I2C => {
+                    // Check what power state we are in since that can impact LED state which is
+                    // part of the I2C loop.
+                    let seq_state =
+                        seq.tofino_seq_state().unwrap_or_else(|e| {
+                            // The failure path here is that we cannot get the state from the FPGA.
+                            // If we cannot communicate with the FPGA then something has likely went
+                            // rather wrong, and we are probably not in A0. For handling the error
+                            // we will assume to be in the Init state, since that is what the main
+                            // sequencer does as well.
+                            ringbuf_entry!(Trace::SeqError(e));
+                            TofinoSeqState::Init
+                        });
+
                     // Handle the Front IO status checking as part of this
                     // loop because the frequency is what we had before and
                     // the server itself has no knowledge of the sequencer.
-                    server.handle_i2c_loop();
+                    server.handle_i2c_loop(seq_state);
                 }
                 Timers::SPI => {
                     if server.front_io_board_present == FrontIOStatus::Ready {