diff --git a/CHANGELOG.md b/CHANGELOG.md
index d01f893c97..94cdde7056 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -124,6 +124,21 @@ it will be removed; but as it won't be user-visible this isn't considered a brea
   migration instructions, and while the `*-agent.yaml` files remained part of the instructions they
   were actually unnescessary.
 
+- Change: The previous version of Emissary-ingress was based on Envoy 1.17 and when using grpc_stats
+  with `all_methods` or `services` set, it would output metrics in the following format
+  `envoy_cluster_grpc_{ServiceName}_{statname}`. When neither of these fields are set it would be
+  aggregated to `envoy_cluster_grpc_{statname}`.
+  The new behavior since Envoy 1.18 will produce
+  metrics in the following format `envoy_cluster_grpc_{MethodName}_statsname` and
+  `envoy_cluster_grpc_statsname`.
+  After further investigation we found that Envoy doesn't properly
+  parse service names such as `cncf.telepresence.Manager/Status`. In the future, we will work
+  upstream Envoy to get this parsing logic fixed to ensure consistent metric naming.
+
+- Bugfix: Previously setting `grpc_stats` in the `ambassador` `Module` without setting either
+  `grpc_stats.services` or `grpc_stats.all_methods` would result in crashing. Now it behaves as if
+  `grpc_stats.all_methods=false`.
+
 ## [2.3.1] June 09, 2022
 [2.3.1]: https://github.com/emissary-ingress/emissary/compare/v2.3.0...v2.3.1
 
diff --git a/docs/releaseNotes.yml b/docs/releaseNotes.yml
index c21af6517c..7d8a7f2e72 100644
--- a/docs/releaseNotes.yml
+++ b/docs/releaseNotes.yml
@@ -99,6 +99,26 @@ items:
           <code>*-migration.yaml</code> files have not been part of the migration instructions, and
           while the <code>*-agent.yaml</code> files remained part of the instructions they were
           actually unnescessary.
+      - title: Metric naming change for grpc_stats
+        type: change
+        body: >-
+          The previous version of $productName$ was based on Envoy 1.17 and when using grpc_stats
+          with <code>all_methods</code> or <code>services</code> set, it would output metrics in
+          the following format <code>envoy_cluster_grpc_{ServiceName}_{statname}</code>. When
+          neither of these fields are set it would be aggregated to <code>envoy_cluster_grpc_{statname}</code>.
+
+          The new behavior since Envoy 1.18 will produce metrics in the following format
+          <code>envoy_cluster_grpc_{MethodName}_statsname</code> and <code>envoy_cluster_grpc_statsname</code>.
+
+          After further investigation we found that Envoy doesn't properly parse service
+          names such as <code>cncf.telepresence.Manager/Status</code>. In the future, we will work
+          upstream Envoy to get this parsing logic fixed to ensure consistent metric naming.
+      - title: Default behavior for empty grpc_stats changed
+        type: bugfix
+        body: >-
+          Previously setting <code>grpc_stats</code> in the <code>ambassador</code> <code>Module</code>
+          without setting either <code>grpc_stats.services</code> or <code>grpc_stats.all_methods</code>
+          would result in crashing. Now it behaves as if <code>grpc_stats.all_methods=false</code>.
   - version: 2.3.1
     date: '2022-06-09'
     notes:
diff --git a/python/ambassador/ir/irambassador.py b/python/ambassador/ir/irambassador.py
index 11a4bf2c6e..70a35598a8 100644
--- a/python/ambassador/ir/irambassador.py
+++ b/python/ambassador/ir/irambassador.py
@@ -251,32 +251,21 @@ def finalize(self, ir: 'IR', aconf: Config) -> bool:
             self.grpc_web.sourced_by(amod)
             ir.save_filter(self.grpc_web)
 
-        if amod and ('grpc_stats' in amod):
-            grpc_stats = amod.grpc_stats
-
+        if amod and (grpc_stats := amod.get('grpc_stats')) is not None:
+            # grpc_stats = { 'all_methods': False} if amod.grpc_stats is None else amod.grpc_stats
             # default config with safe values
-            config = {
-                'individual_method_stats_allowlist': {
-                    'services': []
-                },
-                'stats_for_all_methods': False,
+            config: Dict[str, Any] = {
                 'enable_upstream_stats': False
             }
 
-            if ('services' in grpc_stats):
+            # Only one of config['individual_method_stats_allowlist'] or
+            # config['stats_for_all_methods'] can be set.
+            if 'services' in grpc_stats:
                 config['individual_method_stats_allowlist'] = {
                     'services': grpc_stats['services']
                 }
-                # remove stats_for_all_methods key from config. only one of individual_method_stats_allowlist or
-                # stats_for_all_methods can be set
-                config.pop('stats_for_all_methods')
-
-            # if 'services' is present, ignore 'all_methods'
-            if ('all_methods' in grpc_stats) and ('services' not in grpc_stats):
-                config['stats_for_all_methods'] = bool(grpc_stats['all_methods'])
-                # remove individual_method_stats_allowlist key from config. only one of individual_method_stats_allowlist or
-                # stats_for_all_methods can be set
-                config.pop('individual_method_stats_allowlist')
+            else:
+                config['stats_for_all_methods'] = bool(grpc_stats.get('all_methods', False))
 
             if ('upstream_stats' in grpc_stats):
                 config['enable_upstream_stats'] = bool(grpc_stats['upstream_stats'])
diff --git a/python/tests/kat/t_grpc_stats.py b/python/tests/kat/t_grpc_stats.py
index facf9c674c..de2d93d3ae 100644
--- a/python/tests/kat/t_grpc_stats.py
+++ b/python/tests/kat/t_grpc_stats.py
@@ -66,14 +66,14 @@ def check(self):
         stats = self.results[-1].text
 
         metrics = [
-            'envoy_cluster_grpc_EchoService_0',
-            'envoy_cluster_grpc_EchoService_13',
-            'envoy_cluster_grpc_EchoService_request_message_count',
-            'envoy_cluster_grpc_EchoService_response_message_count',
-            'envoy_cluster_grpc_EchoService_success',
-            'envoy_cluster_grpc_EchoService_total',
+            'envoy_cluster_grpc_Echo_0',
+            'envoy_cluster_grpc_Echo_13',
+            'envoy_cluster_grpc_Echo_request_message_count',
+            'envoy_cluster_grpc_Echo_response_message_count',
+            'envoy_cluster_grpc_Echo_success',
+            'envoy_cluster_grpc_Echo_total',
             # present only when enable_upstream_stats is true
-            'envoy_cluster_grpc_EchoService_upstream_rq_time'
+            'envoy_cluster_grpc_Echo_upstream_rq_time'
         ]
 
         # these metrics SHOULD NOT be there based on the filter config
@@ -164,12 +164,12 @@ def check(self):
         stats = self.results[-1].text
 
         metrics = [
-            'envoy_cluster_grpc_EchoService_0',
-            'envoy_cluster_grpc_EchoService_13',
-            'envoy_cluster_grpc_EchoService_request_message_count',
-            'envoy_cluster_grpc_EchoService_response_message_count',
-            'envoy_cluster_grpc_EchoService_success',
-            'envoy_cluster_grpc_EchoService_total',
+            'envoy_cluster_grpc_Echo_0',
+            'envoy_cluster_grpc_Echo_13',
+            'envoy_cluster_grpc_Echo_request_message_count',
+            'envoy_cluster_grpc_Echo_response_message_count',
+            'envoy_cluster_grpc_Echo_success',
+            'envoy_cluster_grpc_Echo_total',
         ]
 
         # these metrics SHOULD NOT be there based on the filter config
diff --git a/python/tests/unit/test_ambassador_module_validation.py b/python/tests/unit/test_ambassador_module_validation.py
index 34c927f672..9589e7e1bb 100644
--- a/python/tests/unit/test_ambassador_module_validation.py
+++ b/python/tests/unit/test_ambassador_module_validation.py
@@ -153,3 +153,159 @@ def test_invalid_set_current_client_cert_details_value():
     require_errors(r2["ir"], [
         ( "ambassador.default.1", "'set_current_client_cert_details' value for key 'subject' may only be 'true' or 'false', not 'invalid'")
     ])
+
+@pytest.mark.compilertest
+def test_valid_grpc_stats_all_methods():
+    yaml = """
+---
+apiVersion: getambassador.io/v3alpha1
+kind: Module
+metadata:
+  name: ambassador
+  namespace: default
+spec:
+  config:
+    grpc_stats:
+      all_methods: true
+"""
+
+    cache = Cache(logger)
+    r1 = Compile(logger, yaml, k8s=True)
+    r2 = Compile(logger, yaml, k8s=True, cache=cache)
+
+    require_no_errors(r1["ir"])
+    require_no_errors(r2["ir"])
+
+    ir = r1["ir"].as_dict()
+    stats_filters = [f for f in ir["filters"] if f["name"] == "grpc_stats"]
+    assert len(stats_filters) == 1
+    assert stats_filters[0]["config"] == {
+        'enable_upstream_stats': False,
+        'stats_for_all_methods': True
+    }
+
+
+@pytest.mark.compilertest
+def test_valid_grpc_stats_services():
+    yaml = """
+---
+apiVersion: getambassador.io/v3alpha1
+kind: Module
+metadata:
+  name: ambassador
+  namespace: default
+spec:
+  config:
+    grpc_stats:
+      services:
+        - name: echo.EchoService
+          method_names: [Echo]
+"""
+
+    cache = Cache(logger)
+    r1 = Compile(logger, yaml, k8s=True)
+    r2 = Compile(logger, yaml, k8s=True, cache=cache)
+
+    require_no_errors(r1["ir"])
+    require_no_errors(r2["ir"])
+
+    ir = r1["ir"].as_dict()
+    stats_filters = [f for f in ir["filters"] if f["name"] == "grpc_stats"]
+    assert len(stats_filters) == 1
+    assert stats_filters[0]["config"] == {
+        'enable_upstream_stats': False,
+        'individual_method_stats_allowlist': {
+            'services': [
+                {
+                    'name': 'echo.EchoService',
+                    'method_names': ['Echo']
+
+                }
+            ]
+        }
+    }
+
+@pytest.mark.compilertest
+def test_valid_grpc_stats_upstream():
+    yaml = """
+---
+apiVersion: getambassador.io/v3alpha1
+kind: Module
+metadata:
+  name: ambassador
+  namespace: default
+spec:
+  config:
+    grpc_stats:
+      upstream_stats: true
+"""
+
+    cache = Cache(logger)
+    r1 = Compile(logger, yaml, k8s=True)
+    r2 = Compile(logger, yaml, k8s=True, cache=cache)
+
+    require_no_errors(r1["ir"])
+    require_no_errors(r2["ir"])
+
+    ir = r1["ir"].as_dict()
+    stats_filters = [f for f in ir["filters"] if f["name"] == "grpc_stats"]
+    assert len(stats_filters) == 1
+    assert stats_filters[0]["config"] == {
+        'enable_upstream_stats': True,
+        'stats_for_all_methods': False
+    }
+
+@pytest.mark.compilertest
+def test_invalid_grpc_stats():
+    yaml = """
+---
+apiVersion: getambassador.io/v3alpha1
+kind: Module
+metadata:
+  name: ambassador
+  namespace: default
+spec:
+  config:
+    grpc_stats:
+"""
+
+    cache = Cache(logger)
+    r1 = Compile(logger, yaml, k8s=True)
+    r2 = Compile(logger, yaml, k8s=True, cache=cache)
+
+    require_no_errors(r1["ir"])
+    require_no_errors(r2["ir"])
+
+    ir = r1["ir"].as_dict()
+    stats_filters = [f for f in ir["filters"] if f["name"] == "grpc_stats"]
+    assert len(stats_filters) == 0
+
+
+@pytest.mark.compilertest
+def test_valid_grpc_stats_empty():
+    yaml = """
+---
+apiVersion: getambassador.io/v3alpha1
+kind: Module
+metadata:
+  name: ambassador
+  namespace: default
+spec:
+  config:
+    grpc_stats: {}
+"""
+
+    cache = Cache(logger)
+    r1 = Compile(logger, yaml, k8s=True)
+    r2 = Compile(logger, yaml, k8s=True, cache=cache)
+
+    require_no_errors(r1["ir"])
+    require_no_errors(r2["ir"])
+
+    ir = r1["ir"].as_dict()
+    stats_filters = [f for f in ir["filters"] if f["name"] == "grpc_stats"]
+    assert len(stats_filters) == 1
+    assert stats_filters[0]["config"] == {
+        'enable_upstream_stats': False,
+        'stats_for_all_methods': False
+    }