diff --git a/pinot-server/src/main/java/org/apache/pinot/server/starter/helix/BaseServerStarter.java b/pinot-server/src/main/java/org/apache/pinot/server/starter/helix/BaseServerStarter.java
index 0b33ed2dd8dc..8b1f23cf29b0 100644
--- a/pinot-server/src/main/java/org/apache/pinot/server/starter/helix/BaseServerStarter.java
+++ b/pinot-server/src/main/java/org/apache/pinot/server/starter/helix/BaseServerStarter.java
@@ -178,6 +178,7 @@ public abstract class BaseServerStarter implements ServiceStartable {
   protected RealtimeLuceneIndexRefreshManager _realtimeLuceneTextIndexRefreshManager;
   protected PinotEnvironmentProvider _pinotEnvironmentProvider;
   protected SegmentOperationsThrottler _segmentOperationsThrottler;
+  protected ServerThreadPoolManager _serverThreadPoolManager;
   protected ThreadAccountant _threadAccountant;
   protected DefaultClusterConfigChangeHandler _clusterConfigChangeHandler;
   protected volatile boolean _isServerReadyToServeQueries = false;
@@ -701,6 +702,9 @@ public void start()
               segmentDownloadThrottler, segmentMultiColTextIndexPreprocessThrottler);
     }
 
+    _serverThreadPoolManager = new ServerThreadPoolManager(_serverConf);
+    _clusterConfigChangeHandler.registerClusterConfigChangeListener(_serverThreadPoolManager);
+
     // Enable/disable thread CPU time measurement through instance config.
     ThreadResourceUsageProvider.setThreadCpuTimeMeasurementEnabled(
         _serverConf.getProperty(Server.CONFIG_OF_ENABLE_THREAD_CPU_TIME_MEASUREMENT,
@@ -732,7 +736,7 @@ public void start()
 
     initSegmentFetcher(_serverConf);
     StateModelFactory<?> stateModelFactory =
-        new SegmentOnlineOfflineStateModelFactory(_instanceId, instanceDataManager);
+        new SegmentOnlineOfflineStateModelFactory(_instanceId, instanceDataManager, _serverThreadPoolManager);
     _helixManager.getStateMachineEngine()
         .registerStateModelFactory(SegmentOnlineOfflineStateModelFactory.getStateModelName(), stateModelFactory);
     // Start the data manager as a pre-connect callback so that it starts after connecting to the ZK in order to access
@@ -945,7 +949,7 @@ public void stop() {
     _adminApiApplication.startShuttingDown();
     _helixAdmin.setConfig(_instanceConfigScope,
         Collections.singletonMap(Helix.IS_SHUTDOWN_IN_PROGRESS, Boolean.toString(true)));
-
+    _serverThreadPoolManager.shutdown();
     long endTimeMs =
         startTimeMs + _serverConf.getProperty(Server.CONFIG_OF_SHUTDOWN_TIMEOUT_MS, Server.DEFAULT_SHUTDOWN_TIMEOUT_MS);
     if (_serverConf.getProperty(Server.CONFIG_OF_SHUTDOWN_ENABLE_QUERY_CHECK,
diff --git a/pinot-server/src/main/java/org/apache/pinot/server/starter/helix/SegmentOnlineOfflineStateModelFactory.java b/pinot-server/src/main/java/org/apache/pinot/server/starter/helix/SegmentOnlineOfflineStateModelFactory.java
index d547741706b8..01b9d3c26d5c 100644
--- a/pinot-server/src/main/java/org/apache/pinot/server/starter/helix/SegmentOnlineOfflineStateModelFactory.java
+++ b/pinot-server/src/main/java/org/apache/pinot/server/starter/helix/SegmentOnlineOfflineStateModelFactory.java
@@ -18,6 +18,8 @@
  */
 package org.apache.pinot.server.starter.helix;
 
+import java.util.concurrent.ExecutorService;
+import javax.annotation.Nullable;
 import org.apache.helix.NotificationContext;
 import org.apache.helix.model.Message;
 import org.apache.helix.participant.statemachine.StateModel;
@@ -40,10 +42,13 @@ public class SegmentOnlineOfflineStateModelFactory extends StateModelFactory<Sta
 
   private final String _instanceId;
   private final InstanceDataManager _instanceDataManager;
+  private final ServerThreadPoolManager _serverThreadPoolManager;
 
-  public SegmentOnlineOfflineStateModelFactory(String instanceId, InstanceDataManager instanceDataManager) {
+  public SegmentOnlineOfflineStateModelFactory(String instanceId, InstanceDataManager instanceDataManager,
+      ServerThreadPoolManager serverThreadPoolManager) {
     _instanceId = instanceId;
     _instanceDataManager = instanceDataManager;
+    _serverThreadPoolManager = serverThreadPoolManager;
   }
 
   public static String getStateModelName() {
@@ -162,7 +167,6 @@ private void onConsumingToDropped(String realtimeTableName, String segmentName)
     public void onBecomeOnlineFromOffline(Message message, NotificationContext context)
         throws Exception {
       _logger.info("SegmentOnlineOfflineStateModel.onBecomeOnlineFromOffline() : {}", message);
-
       try {
         _instanceDataManager.addOnlineSegment(message.getResourceName(), message.getPartitionName());
       } catch (Exception e) {
@@ -247,4 +251,13 @@ public void onBecomeDroppedFromError(Message message, NotificationContext contex
       }
     }
   }
+
+  @Override
+  @Nullable
+  public ExecutorService getExecutorService(String resourceName, String fromState, String toState) {
+    if (fromState.equals("CONSUMING") || toState.equals("CONSUMING")) {
+      return _serverThreadPoolManager.getHelixConsumingTransitionExecutor();
+    }
+    return _serverThreadPoolManager.getHelixTransitionExecutor();
+  }
 }
diff --git a/pinot-server/src/main/java/org/apache/pinot/server/starter/helix/ServerThreadPoolManager.java b/pinot-server/src/main/java/org/apache/pinot/server/starter/helix/ServerThreadPoolManager.java
new file mode 100644
index 000000000000..0653c01fccdc
--- /dev/null
+++ b/pinot-server/src/main/java/org/apache/pinot/server/starter/helix/ServerThreadPoolManager.java
@@ -0,0 +1,137 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.pinot.server.starter.helix;
+
+import com.google.common.util.concurrent.ThreadFactoryBuilder;
+import java.util.Map;
+import java.util.Set;
+import java.util.concurrent.ThreadPoolExecutor;
+import javax.annotation.Nullable;
+import org.apache.helix.participant.statemachine.StateModelFactory;
+import org.apache.pinot.spi.config.provider.PinotClusterConfigChangeListener;
+import org.apache.pinot.spi.env.PinotConfiguration;
+import org.slf4j.Logger;
+import org.slf4j.LoggerFactory;
+
+import static org.apache.pinot.spi.utils.CommonConstants.Server.CONFIG_OF_HELIX_CONSUMING_TRANSITION_THREAD_POOL_SIZE;
+import static org.apache.pinot.spi.utils.CommonConstants.Server.CONFIG_OF_HELIX_TRANSITION_THREAD_POOL_SIZE;
+
+
+/**
+ * Manages the custom Helix state transition thread pools for Pinot server.
+ * Helix state transition will use their default thread pool if the thread pool provided by this class is null. Also see
+ * {@link SegmentOnlineOfflineStateModelFactory#getExecutorService(String, String, String)}
+ */
+public class ServerThreadPoolManager implements PinotClusterConfigChangeListener {
+  private static final Logger LOGGER = LoggerFactory.getLogger(ServerThreadPoolManager.class);
+  @Nullable
+  private ThreadPoolExecutor _helixTransitionExecutor;
+  @Nullable
+  private ThreadPoolExecutor _helixConsumingTransitionExecutor;
+
+  public ServerThreadPoolManager(PinotConfiguration serverConf) {
+    String helixTransitionThreadPoolSizeStr =
+        serverConf.getProperty(CONFIG_OF_HELIX_TRANSITION_THREAD_POOL_SIZE);
+    String helixConsumingTransitionThreadPoolSizeStr =
+        serverConf.getProperty(CONFIG_OF_HELIX_CONSUMING_TRANSITION_THREAD_POOL_SIZE);
+    if (helixTransitionThreadPoolSizeStr != null) {
+      int helixTransitionThreadPoolSize = Integer.parseInt(helixTransitionThreadPoolSizeStr);
+      _helixTransitionExecutor = new ThreadPoolExecutor(helixTransitionThreadPoolSize, helixTransitionThreadPoolSize,
+          0L, java.util.concurrent.TimeUnit.SECONDS, new java.util.concurrent.LinkedBlockingQueue<>(),
+          new ThreadFactoryBuilder().setNameFormat("HelixTransitionExecutor-%d").build());
+      LOGGER.info("Created HelixTransitionExecutor with pool size: {}", helixTransitionThreadPoolSize);
+    }
+    if (helixConsumingTransitionThreadPoolSizeStr != null) {
+      int helixConsumingTransitionThreadPoolSize = Integer.parseInt(helixConsumingTransitionThreadPoolSizeStr);
+      _helixConsumingTransitionExecutor =
+          new ThreadPoolExecutor(helixConsumingTransitionThreadPoolSize, helixConsumingTransitionThreadPoolSize,
+              0L, java.util.concurrent.TimeUnit.SECONDS, new java.util.concurrent.LinkedBlockingQueue<>(),
+              new ThreadFactoryBuilder().setNameFormat("HelixConsumingTransitionExecutor-%d").build());
+      LOGGER.info("Created HelixConsumingTransitionExecutor with pool size: {}",
+          helixConsumingTransitionThreadPoolSize);
+    }
+  }
+
+  /**
+   * There will be no effect on the change to attempt to remove or add in the custom helix transition thread pool.
+   * For example, from null to 40 or from 40 to null. Because the thread pool would be registered via
+   * {@link StateModelFactory#getExecutorService(String, String, String)} upon the first time a transition type is
+   * seen, and will not be changed after that.
+   * But the change from 40 to 10, for example, is effective because it just changes the core size and max size of
+   * the thread pool, not to reassign the thread pool object.
+   */
+  @Override
+  public void onChange(Set<String> changedConfigs, Map<String, String> clusterConfigs) {
+    if (changedConfigs.contains(CONFIG_OF_HELIX_TRANSITION_THREAD_POOL_SIZE)) {
+      if (clusterConfigs.get(CONFIG_OF_HELIX_TRANSITION_THREAD_POOL_SIZE) != null) {
+        if (_helixTransitionExecutor == null) {
+          LOGGER.warn("Custom thread pool HelixTransitionExecutor cannot be created on the fly from the config change. "
+              + "Please restart the server to take effect.");
+        } else {
+          int newPoolSize = Integer.parseInt(clusterConfigs.get(CONFIG_OF_HELIX_TRANSITION_THREAD_POOL_SIZE));
+          _helixTransitionExecutor.setCorePoolSize(newPoolSize);
+          _helixTransitionExecutor.setMaximumPoolSize(newPoolSize);
+          LOGGER.info("Updated HelixTransitionExecutor pool size to: {}", newPoolSize);
+        }
+      } else if (_helixTransitionExecutor != null) {
+        LOGGER.warn(
+            "Custom thread pool HelixTransitionExecutor would still be used for Helix state transitions even though "
+                + "the config {} is removed from cluster config, using the last known size: {}",
+            CONFIG_OF_HELIX_TRANSITION_THREAD_POOL_SIZE, _helixTransitionExecutor.getCorePoolSize());
+      }
+    }
+    if (changedConfigs.contains(CONFIG_OF_HELIX_CONSUMING_TRANSITION_THREAD_POOL_SIZE)) {
+      if (clusterConfigs.get(CONFIG_OF_HELIX_CONSUMING_TRANSITION_THREAD_POOL_SIZE) != null) {
+        if (_helixConsumingTransitionExecutor == null) {
+          LOGGER.warn(
+              "Custom thread pool HelixConsumingTransitionExecutor cannot be created on the fly from the config "
+                  + "change. Please restart the server to take effect.");
+        } else {
+          int newPoolSize = Integer.parseInt(clusterConfigs.get(CONFIG_OF_HELIX_CONSUMING_TRANSITION_THREAD_POOL_SIZE));
+          _helixConsumingTransitionExecutor.setCorePoolSize(newPoolSize);
+          _helixConsumingTransitionExecutor.setMaximumPoolSize(newPoolSize);
+          LOGGER.info("Updated HelixConsumingTransitionExecutor pool size to: {}", newPoolSize);
+        }
+      } else if (_helixConsumingTransitionExecutor != null) {
+        LOGGER.warn("Custom thread pool HelixConsumingTransitionExecutor would still be used for Helix consuming state "
+                + "transitions even though the config {} is removed from cluster config, using the last known size: {}",
+            CONFIG_OF_HELIX_CONSUMING_TRANSITION_THREAD_POOL_SIZE, _helixConsumingTransitionExecutor.getCorePoolSize());
+      }
+    }
+  }
+
+  @Nullable
+  public ThreadPoolExecutor getHelixTransitionExecutor() {
+    return _helixTransitionExecutor;
+  }
+
+  @Nullable
+  public ThreadPoolExecutor getHelixConsumingTransitionExecutor() {
+    return _helixConsumingTransitionExecutor;
+  }
+
+  public void shutdown() {
+    if (_helixTransitionExecutor != null) {
+      _helixTransitionExecutor.shutdownNow();
+    }
+    if (_helixConsumingTransitionExecutor != null) {
+      _helixConsumingTransitionExecutor.shutdownNow();
+    }
+  }
+}
diff --git a/pinot-spi/src/main/java/org/apache/pinot/spi/utils/CommonConstants.java b/pinot-spi/src/main/java/org/apache/pinot/spi/utils/CommonConstants.java
index 9a7f8804a203..6ca80aa6d65f 100644
--- a/pinot-spi/src/main/java/org/apache/pinot/spi/utils/CommonConstants.java
+++ b/pinot-spi/src/main/java/org/apache/pinot/spi/utils/CommonConstants.java
@@ -1112,6 +1112,12 @@ public static class Server {
         INSTANCE_DATA_MANAGER_CONFIG_PREFIX + "." + RELOAD_CONSUMING_SEGMENT;
     public static final boolean DEFAULT_RELOAD_CONSUMING_SEGMENT = true;
 
+    // Configs for helix thread pools
+    public static final String CONFIG_OF_HELIX_TRANSITION_THREAD_POOL_SIZE =
+        "pinot.server.helix.transition.thread.pool.size";
+    public static final String CONFIG_OF_HELIX_CONSUMING_TRANSITION_THREAD_POOL_SIZE =
+        "pinot.server.helix.transition.consuming.thread.pool.size";
+
     // Query logger related configs
     public static final String CONFIG_OF_QUERY_LOG_MAX_RATE = "pinot.server.query.log.maxRatePerSecond";
     @Deprecated