diff --git a/src/backend/access/transam/xlog.c b/src/backend/access/transam/xlog.c
index 441a9124cd..40c56d9012 100644
--- a/src/backend/access/transam/xlog.c
+++ b/src/backend/access/transam/xlog.c
@@ -8033,13 +8033,6 @@ StartupXLOG(void)
 	/* Reload shared-memory state for prepared transactions */
 	RecoverPreparedTransactions();
 
-	/*
-	 * Shutdown the recovery environment. This must occur after
-	 * RecoverPreparedTransactions(), see notes for lock_twophase_recover()
-	 */
-	if (standbyState != STANDBY_DISABLED)
-		ShutdownRecoveryTransactionEnvironment();
-
 	/* Shut down xlogreader */
 	if (readFile >= 0)
 	{
@@ -8087,6 +8080,18 @@ StartupXLOG(void)
 	UpdateControlFile();
 	LWLockRelease(ControlFileLock);
 
+	/*
+	 * Shutdown the recovery environment. This must occur after
+	 * RecoverPreparedTransactions() (see notes in lock_twophase_recover())
+	 * and after switching SharedRecoveryState to RECOVERY_STATE_DONE so as
+	 * any session building a snapshot will not rely on KnownAssignedXids as
+	 * RecoveryInProgress() is disabled at this stage.  This is particularly
+	 * critical for prepared 2PC transactions, that may still need to be
+	 * included in snapshots once recovery has ended.
+	 */
+	if (standbyState != STANDBY_DISABLED)
+		ShutdownRecoveryTransactionEnvironment();
+
 	/*
 	 * If there were cascading standby servers connected to us, nudge any wal
 	 * sender processes to notice that we've been promoted.