diff --git a/src/libsystemd/sd-event/sd-event.c b/src/libsystemd/sd-event/sd-event.c
index 42b5ba1f7e..94b178eafd 100644
--- a/src/libsystemd/sd-event/sd-event.c
+++ b/src/libsystemd/sd-event/sd-event.c
@@ -4120,7 +4120,13 @@ static int source_dispatch(sd_event_source *s) {
                 return 1;
         }
 
-        if (!IN_SET(s->type, SOURCE_DEFER, SOURCE_EXIT)) {
+        if (IN_SET(s->type, SOURCE_DEFER, SOURCE_EXIT)) {
+                /* Make sure this event source is moved to the end of the priority list now. We do this here
+                 * because defer and exit event sources are always pending from the moment they're added so
+                 * the same logic in source_set_pending() is never triggered. */
+                s->pending_iteration = s->event->iteration;
+                event_source_pp_prioq_reshuffle(s);
+        } else {
                 r = source_set_pending(s, false);
                 if (r < 0)
                         return r;
diff --git a/src/libsystemd/sd-event/test-event.c b/src/libsystemd/sd-event/test-event.c
index e85fa2e431..eb986c9e08 100644
--- a/src/libsystemd/sd-event/test-event.c
+++ b/src/libsystemd/sd-event/test-event.c
@@ -1131,4 +1131,40 @@ TEST(exit_on_idle_no_sources) {
         ASSERT_OK(sd_event_loop(e));
 }
 
+static int defer_fair_handler(sd_event_source *s, void *userdata) {
+        unsigned *counter = ASSERT_PTR(userdata);
+
+        /* If we're about to increment above 5, exit the event loop */
+        if (*counter >= 5)
+                return sd_event_exit(sd_event_source_get_event(s), 0);
+
+        (*counter)++;
+
+        return 0;
+}
+
+TEST(defer_fair_scheduling) {
+        _cleanup_(sd_event_unrefp) sd_event *e = NULL;
+        sd_event_source *sources[5] = {};
+        unsigned counters[5] = {};
+
+        ASSERT_OK(sd_event_new(&e));
+        ASSERT_OK(sd_event_set_exit_on_idle(e, true));
+
+        /* Create 5 defer sources with equal priority */
+        for (unsigned i = 0; i < 5; i++) {
+                ASSERT_OK(sd_event_add_defer(e, &sources[i], defer_fair_handler, &counters[i]));
+                ASSERT_OK(sd_event_source_set_enabled(sources[i], SD_EVENT_ON));
+        }
+
+        /* Run the event loop until one of the handlers exits */
+        ASSERT_OK(sd_event_loop(e));
+
+        /* All counters should be equal to 5, demonstrating fair scheduling */
+        for (unsigned i = 0; i < 5; i++) {
+                ASSERT_EQ(counters[i], 5u);
+                sd_event_source_unref(sources[i]);
+        }
+}
+
 DEFINE_TEST_MAIN(LOG_DEBUG);