diff --git a/.chloggen/fix_persistentstorage_deadlock.yaml b/.chloggen/fix_persistentstorage_deadlock.yaml
new file mode 100755
index 00000000000..6521f9375b5
--- /dev/null
+++ b/.chloggen/fix_persistentstorage_deadlock.yaml
@@ -0,0 +1,11 @@
+# One of 'breaking', 'deprecation', 'new_component', 'enhancement', 'bug_fix'
+change_type: bug_fix
+
+# The name of the component, or a single word describing the area of concern, (e.g. otlpreceiver)
+component: exporterhelper
+
+# A brief description of the change.  Surround your text with quotes ("") if it needs to start with a backtick (`).
+note: Fix a deadlock in persistent queue initialization 
+
+# One or more tracking issues or pull requests related to the change
+issues: [7400]
diff --git a/exporter/exporterhelper/internal/persistent_storage.go b/exporter/exporterhelper/internal/persistent_storage.go
index 338136cabcd..9657c2e2f41 100644
--- a/exporter/exporterhelper/internal/persistent_storage.go
+++ b/exporter/exporterhelper/internal/persistent_storage.go
@@ -90,7 +90,6 @@ var (
 
 // newPersistentContiguousStorage creates a new file-storage extension backed queue;
 // queueName parameter must be a unique value that identifies the queue.
-// The queue needs to be initialized separately using initPersistentContiguousStorage.
 func newPersistentContiguousStorage(ctx context.Context, queueName string, capacity uint64, logger *zap.Logger, client storage.Client, unmarshaler RequestUnmarshaler) *persistentContiguousStorage {
 	pcs := &persistentContiguousStorage{
 		logger:      logger,
@@ -107,18 +106,18 @@ func newPersistentContiguousStorage(ctx context.Context, queueName string, capac
 	initPersistentContiguousStorage(ctx, pcs)
 	notDispatchedReqs := pcs.retrieveNotDispatchedReqs(context.Background())
 
-	// We start the loop first so in case there are more elements in the persistent storage than the capacity,
-	// it does not get blocked on initialization
-
-	go pcs.loop()
-
 	// Make sure the leftover requests are handled
 	pcs.enqueueNotDispatchedReqs(notDispatchedReqs)
-	// Make sure the communication channel is loaded up
-	for i := uint64(0); i < pcs.size(); i++ {
+
+	// Ensure the communication channel has the same size as the queue
+	// We might already have items here from requeueing non-dispatched requests
+	for len(pcs.putChan) < int(pcs.size()) {
 		pcs.putChan <- struct{}{}
 	}
 
+	// start the loop which moves items from storage to the outbound channel
+	go pcs.loop()
+
 	return pcs
 }
 
diff --git a/exporter/exporterhelper/internal/persistent_storage_test.go b/exporter/exporterhelper/internal/persistent_storage_test.go
index d4ff5134404..b7ae05ea1ef 100644
--- a/exporter/exporterhelper/internal/persistent_storage_test.go
+++ b/exporter/exporterhelper/internal/persistent_storage_test.go
@@ -272,6 +272,47 @@ func TestPersistentStorage_CurrentlyProcessedItems(t *testing.T) {
 	}
 }
 
+// this test attempts to check if all the invariants are kept if the queue is recreated while
+// close to full and with some items dispatched
+func TestPersistentStorage_StartWithNonDispatched(t *testing.T) {
+	var capacity uint64 = 5 // arbitrary small number
+	path := t.TempDir()
+	logger := zap.NewNop()
+
+	traces := newTraces(5, 10)
+	req := newFakeTracesRequest(traces)
+
+	ext := createStorageExtension(path)
+	client := createTestClient(ext)
+	ps := createTestPersistentStorageWithLoggingAndCapacity(client, logger, capacity)
+
+	// Put in items up to capacity
+	for i := 0; i < int(capacity); i++ {
+		err := ps.put(req)
+		require.NoError(t, err)
+	}
+
+	// get one item out, but don't mark it as processed
+	<-ps.get()
+	// put one more item in
+	err := ps.put(req)
+	require.NoError(t, err)
+
+	require.Eventually(t, func() bool {
+		return ps.size() == capacity-1
+	}, 5*time.Second, 10*time.Millisecond)
+	ps.stop()
+
+	// Reload
+	newPs := createTestPersistentStorageWithLoggingAndCapacity(client, logger, capacity)
+
+	require.Eventually(t, func() bool {
+		newPs.mu.Lock()
+		defer newPs.mu.Unlock()
+		return newPs.size() == capacity-1 && len(newPs.currentlyDispatchedItems) == 1
+	}, 5*time.Second, 10*time.Millisecond)
+}
+
 func TestPersistentStorage_RepeatPutCloseReadClose(t *testing.T) {
 	path := t.TempDir()