Index: core/src/main/scala/kafka/controller/KafkaController.scala
===================================================================
--- core/src/main/scala/kafka/controller/KafkaController.scala	(revision 1394632)
+++ core/src/main/scala/kafka/controller/KafkaController.scala	(working copy)
@@ -147,8 +147,20 @@
     info("New partition creation callback for %s".format(newPartitions.mkString(",")))
     partitionStateMachine.handleStateChanges(newPartitions, NewPartition)
     partitionStateMachine.handleStateChanges(newPartitions, OnlinePartition)
+    val replicas = getAllReplicasForPartition(newPartitions)
+    replicas.foreach {
+      case(topic, partitionId, replicaId) =>
+        replicaStateMachine.replicaState.put((topic, partitionId, replicaId), OnlineReplica)
+    }
   }
 
+  private def getAllReplicasForPartition(partitions: Seq[(String, Int)]): Seq[Tuple3[String, Int, Int]] = {
+    partitions.map { p =>
+      val replicas = controllerContext.partitionReplicaAssignment(p)
+      replicas.map(r => (p._1, p._2, r))
+    }.flatten
+  }
+
   /* TODO: kafka-330  This API is unused until we introduce the delete topic functionality.
   remove the unneeded leaderAndISRPath that the previous controller didn't get a chance to remove*/
   def onTopicDeletion(topics: Set[String], replicaAssignment: mutable.Map[(String, Int), Seq[Int]]) {
Index: core/src/main/scala/kafka/controller/ReplicaStateMachine.scala
===================================================================
--- core/src/main/scala/kafka/controller/ReplicaStateMachine.scala	(revision 1394632)
+++ core/src/main/scala/kafka/controller/ReplicaStateMachine.scala	(working copy)
@@ -100,7 +100,7 @@
    * @param replicaId   The replica for which the state transition is invoked
    * @param targetState The end state that the replica should be moved to
    */
-  private def handleStateChange(topic: String, partition: Int, replicaId: Int, targetState: ReplicaState) {
+  def handleStateChange(topic: String, partition: Int, replicaId: Int, targetState: ReplicaState) {
     try {
       targetState match {
         case OnlineReplica =>