diff --git a/rootfs/etc/nginx/template/nginx.tmpl b/rootfs/etc/nginx/template/nginx.tmpl
index 22c7f893d..82370bba7 100644
--- a/rootfs/etc/nginx/template/nginx.tmpl
+++ b/rootfs/etc/nginx/template/nginx.tmpl
@@ -1173,7 +1173,6 @@ stream {
             proxy_set_header       X-Service-Port     $service_port;
             {{ end }}
 
-            {{ if not (empty $location.Backend) }}
             {{ buildProxyPass $server.Hostname $all.Backends $location }}
             {{ if (or (eq $location.Proxy.ProxyRedirectFrom "default") (eq $location.Proxy.ProxyRedirectFrom "off")) }}
             proxy_redirect                          {{ $location.Proxy.ProxyRedirectFrom }};
@@ -1181,10 +1180,6 @@ stream {
             proxy_redirect                          {{ $location.Proxy.ProxyRedirectFrom }} {{ $location.Proxy.ProxyRedirectTo }};
             {{ end }}
             {{ else }}
-            # No endpoints available for the request
-            return 503;
-            {{ end }}
-            {{ else }}
             # Location denied. Reason: {{ $location.Denied | printf "%q" }}
             return 503;
             {{ end }}
diff --git a/test/e2e/servicebackend/service_backend.go b/test/e2e/servicebackend/service_backend.go
index 180327d67..7e28d0315 100644
--- a/test/e2e/servicebackend/service_backend.go
+++ b/test/e2e/servicebackend/service_backend.go
@@ -49,7 +49,7 @@ var _ = framework.IngressNginxDescribe("Service backend - 503", func() {
 
 		f.WaitForNginxServer(host,
 			func(server string) bool {
-				return strings.Contains(server, "return 503;")
+				return strings.Contains(server, "proxy_pass http://upstream_balancer;")
 			})
 
 		resp, _, errs := gorequest.New().
@@ -72,7 +72,7 @@ var _ = framework.IngressNginxDescribe("Service backend - 503", func() {
 
 		f.WaitForNginxServer(host,
 			func(server string) bool {
-				return strings.Contains(server, "return 503;")
+				return strings.Contains(server, "proxy_pass http://upstream_balancer;")
 			})
 
 		resp, _, errs := gorequest.New().