diff --git a/internal/component/otelcol/internal/scheduler/scheduler.go b/internal/component/otelcol/internal/scheduler/scheduler.go
index 079f8e0ab8..11de9236a9 100644
--- a/internal/component/otelcol/internal/scheduler/scheduler.go
+++ b/internal/component/otelcol/internal/scheduler/scheduler.go
@@ -74,6 +74,9 @@ func NewWithPauseCallbacks(l log.Logger, onPause func(), onResume func()) *Sched
 //
 // Schedule() completely overrides the set of previously running components.
 // Components which have been removed since the last call to Schedule will be stopped.
+//
+// updateConsumers is called after the components are paused and before starting the new components.
+// It is expected that this function will set the new set of consumers to the wrapping consumer that's assigned to the Alloy component.
 func (cs *Scheduler) Schedule(ctx context.Context, updateConsumers func(), h otelcomponent.Host, cc ...otelcomponent.Component) {
 	cs.schedMut.Lock()
 	defer cs.schedMut.Unlock()
@@ -109,7 +112,7 @@ func (cs *Scheduler) Schedule(ctx context.Context, updateConsumers func(), h ote
 	updateConsumers()
 
 	// 4. Start the new components
-	level.Debug(cs.log).Log("msg", "scheduling components", "count", len(cs.schedComponents))
+	level.Debug(cs.log).Log("msg", "scheduling otelcol components", "count", len(cs.schedComponents))
 	cs.schedComponents = cs.startComponents(ctx, h, cc...)
 	cs.host = h
 	//TODO: What if the trace component failed but the metrics one didn't? Should we resume all consumers?
diff --git a/internal/component/otelcol/internal/scheduler/scheduler_test.go b/internal/component/otelcol/internal/scheduler/scheduler_test.go
index 477809c960..a7c50a8d24 100644
--- a/internal/component/otelcol/internal/scheduler/scheduler_test.go
+++ b/internal/component/otelcol/internal/scheduler/scheduler_test.go
@@ -5,6 +5,9 @@ import (
 	"testing"
 	"time"
 
+	"go.uber.org/atomic"
+
+	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 	otelcomponent "go.opentelemetry.io/collector/component"
 
@@ -59,6 +62,65 @@ func TestScheduler(t *testing.T) {
 		require.NoError(t, stopped.Wait(5*time.Second), "component did not shutdown")
 	})
 
+	t.Run("Pause callbacks are called", func(t *testing.T) {
+		var (
+			pauseCalls  = &atomic.Int32{}
+			resumeCalls = &atomic.Int32{}
+			l           = util.TestLogger(t)
+			cs          = scheduler.NewWithPauseCallbacks(
+				l,
+				func() { pauseCalls.Inc() },
+				func() { resumeCalls.Inc() },
+			)
+			h = scheduler.NewHost(l)
+		)
+		ctx, cancel := context.WithCancel(context.Background())
+
+		// Run our scheduler in the background.
+		go func() {
+			err := cs.Run(ctx)
+			require.NoError(t, err)
+		}()
+
+		toInt := func(a *atomic.Int32) int { return int(a.Load()) }
+
+		// The Run function starts the components. They should be paused and then resumed.
+		require.EventuallyWithT(t, func(t *assert.CollectT) {
+			assert.Equal(t, 1, toInt(pauseCalls), "pause callbacks should be called on run")
+			assert.Equal(t, 1, toInt(resumeCalls), "resume callback should be called on run")
+		}, 5*time.Second, 10*time.Millisecond, "pause/resume callbacks not called correctly")
+
+		// Schedule our component, which should notify the started and stopped
+		// trigger once it starts and stops respectively.
+		component, started, stopped := newTriggerComponent()
+		cs.Schedule(ctx, func() {}, h, component)
+
+		require.EventuallyWithT(t, func(t *assert.CollectT) {
+			assert.Equal(t, 2, toInt(pauseCalls), "pause callbacks should be called on schedule")
+			assert.Equal(t, 2, toInt(resumeCalls), "resume callback should be called on schedule")
+		}, 5*time.Second, 10*time.Millisecond, "pause/resume callbacks not called correctly")
+
+		// Wait for the component to start, and then unschedule all components, which
+		// should cause our running component to terminate.
+		require.NoError(t, started.Wait(5*time.Second), "component did not start")
+		cs.Schedule(ctx, func() {}, h)
+
+		require.EventuallyWithT(t, func(t *assert.CollectT) {
+			assert.Equal(t, 3, toInt(pauseCalls), "pause callback should be called on second schedule")
+			assert.Equal(t, 3, toInt(resumeCalls), "resume callback should be called on second schedule")
+		}, 5*time.Second, 10*time.Millisecond, "pause/resume callbacks not called correctly")
+
+		require.NoError(t, stopped.Wait(5*time.Second), "component did not shutdown")
+
+		// Stop the scheduler
+		cancel()
+
+		require.EventuallyWithT(t, func(t *assert.CollectT) {
+			assert.Equal(t, 3, toInt(pauseCalls), "pause callback should not be called on shutdown")
+			assert.Equal(t, 3, toInt(resumeCalls), "resume callback should not be called on shutdown")
+		}, 5*time.Second, 10*time.Millisecond, "pause/resume callbacks not called correctly")
+	})
+
 	t.Run("Running components get stopped on shutdown", func(t *testing.T) {
 		var (
 			l  = util.TestLogger(t)