diff --git a/pkg/controller/admissionchecks/multikueue/multikueuecluster.go b/pkg/controller/admissionchecks/multikueue/multikueuecluster.go
index 483b6cff630..f5376917677 100644
--- a/pkg/controller/admissionchecks/multikueue/multikueuecluster.go
+++ b/pkg/controller/admissionchecks/multikueue/multikueuecluster.go
@@ -120,6 +120,10 @@ type remoteClient struct {
 	failedConnAttempts   uint
 	retryConnNextAttempt metav1.Time
 
+	// Held during setConfig. Without it, one stuck remote would stall every
+	// other cluster's reconcile via clustersReconciler.lock. See #11297.
+	setConfigLock sync.Mutex
+
 	clock clock.Clock
 
 	// For unit testing only. There is now need of creating fully functional remote clients in the unit tests
@@ -488,7 +492,9 @@ func (c *clustersReconciler) stopAndRemoveCluster(clusterName string) {
 	}
 }
 
-func (c *clustersReconciler) setRemoteClientConfig(ctx context.Context, clusterName string, config *clientConfig, origin string) (*time.Duration, error) {
+// findOrCreateRemoteClient returns the remoteClient for clusterName, creating
+// one if absent. Only the brief map operation runs under c.lock.
+func (c *clustersReconciler) findOrCreateRemoteClient(clusterName, origin string) *remoteClient {
 	c.lock.Lock()
 	defer c.lock.Unlock()
 
@@ -500,6 +506,14 @@ func (c *clustersReconciler) setRemoteClientConfig(ctx context.Context, clusterN
 		}
 		c.remoteClients[clusterName] = client
 	}
+	return client
+}
+
+func (c *clustersReconciler) setRemoteClientConfig(ctx context.Context, clusterName string, config *clientConfig, origin string) (*time.Duration, error) {
+	client := c.findOrCreateRemoteClient(clusterName, origin)
+
+	client.setConfigLock.Lock()
+	defer client.setConfigLock.Unlock()
 
 	clientLog := ctrl.LoggerFrom(c.rootContext).WithValues("clusterName", clusterName)
 	clientCtx := ctrl.LoggerInto(c.rootContext, clientLog)
diff --git a/pkg/controller/admissionchecks/multikueue/multikueuecluster_test.go b/pkg/controller/admissionchecks/multikueue/multikueuecluster_test.go
index f7880bdd76a..295e15dc4d8 100644
--- a/pkg/controller/admissionchecks/multikueue/multikueuecluster_test.go
+++ b/pkg/controller/admissionchecks/multikueue/multikueuecluster_test.go
@@ -23,6 +23,7 @@ import (
 	"os"
 	"path/filepath"
 	"strings"
+	"sync"
 	"testing"
 	"time"
 
@@ -1267,3 +1268,91 @@ func TestEstablishBackoffSchedule(t *testing.T) {
 		})
 	}
 }
+
+// Regression for #11297. A remote stuck inside Watch must not stop
+// reconciles of other clusters.
+func TestSetRemoteClientConfigDoesNotBlockOtherClusters(t *testing.T) {
+	// stuckWatchTimeout is the per-phase budget for the test: how long we
+	// wait for the slow watch to be reached, for the fast reconcile to
+	// finish, and for the slow goroutine to clean up after release. Generous
+	// enough to survive a loaded CI runner.
+	const stuckWatchTimeout = 5 * time.Second
+
+	ctx, _ := utiltesting.ContextWithLog(t)
+
+	slowReached := make(chan struct{})
+	slowRelease := make(chan struct{})
+	var releaseOnce sync.Once
+	releaseSlow := func() { releaseOnce.Do(func() { close(slowRelease) }) }
+	t.Cleanup(releaseSlow)
+
+	gatedBuilder := func(config *clientConfig, _ client.Options) (client.WithWatch, error) {
+		kubeconfig := string(config.Kubeconfig)
+		b := getClientBuilder(ctx).WithInterceptorFuncs(interceptor.Funcs{
+			Watch: func(watchCtx context.Context, c client.WithWatch, obj client.ObjectList, opts ...client.ListOption) (watch.Interface, error) {
+				if strings.Contains(kubeconfig, "slow-user") {
+					close(slowReached)
+					select {
+					case <-slowRelease:
+						return nil, errors.New("released")
+					case <-watchCtx.Done():
+						return nil, watchCtx.Err()
+					}
+				}
+				return c.Watch(watchCtx, obj, opts...)
+			},
+		})
+		return b.Build(), nil
+	}
+
+	slowCluster := utiltestingapi.MakeMultiKueueCluster("cluster-slow").
+		KubeConfig(kueue.SecretLocationType, "secret-slow").Generation(1).Obj()
+	fastCluster := utiltestingapi.MakeMultiKueueCluster("cluster-fast").
+		KubeConfig(kueue.SecretLocationType, "secret-fast").Generation(1).Obj()
+	slowSecret := makeTestSecret("secret-slow", testKubeconfig("slow-user"))
+	fastSecret := makeTestSecret("secret-fast", testKubeconfig("fast-user"))
+
+	localClient := getClientBuilder(ctx).
+		WithLists(&kueue.MultiKueueClusterList{Items: []kueue.MultiKueueCluster{*slowCluster, *fastCluster}}).
+		WithLists(&corev1.SecretList{Items: []corev1.Secret{slowSecret, fastSecret}}).
+		WithStatusSubresource(slowCluster, fastCluster).
+		Build()
+
+	reconciler := newClustersReconciler(localClient, TestNamespace, 0, defaultOrigin, nil, nil, &NoOpClusterProfileCreds{}, nil)
+	reconciler.rootContext = ctx
+	reconciler.builderOverride = gatedBuilder
+
+	slowDone := make(chan struct{})
+	go func() {
+		defer close(slowDone)
+		_, _ = reconciler.Reconcile(ctx, reconcile.Request{NamespacedName: types.NamespacedName{Name: "cluster-slow"}})
+	}()
+
+	select {
+	case <-slowReached:
+	case <-time.After(stuckWatchTimeout):
+		t.Fatal("slow cluster's reconcile did not reach the Watch call in time")
+	}
+
+	fastDone := make(chan error, 1)
+	go func() {
+		_, err := reconciler.Reconcile(ctx, reconcile.Request{NamespacedName: types.NamespacedName{Name: "cluster-fast"}})
+		fastDone <- err
+	}()
+
+	select {
+	case err := <-fastDone:
+		if err != nil {
+			t.Fatalf("cluster-fast reconcile returned err: %v", err)
+		}
+	case <-time.After(stuckWatchTimeout):
+		t.Fatal("cluster-fast reconcile was blocked by cluster-slow (head-of-line)")
+	}
+
+	releaseSlow()
+	select {
+	case <-slowDone:
+	case <-time.After(stuckWatchTimeout):
+		t.Fatal("slow goroutine did not exit after release")
+	}
+}