Table Not Created On All MySQL Masters Here is the multi master setup.
Table is not created on middle master. 

log-slave-updates is not enabled in my.cnf file.

Master 1

mysql&gt; create database replication;
mysql&gt; use replication;
mysql&gt; CREATE TABLE T1 (ID INT Not Null) ENGINE = InnoDB CHARACTER SET latin1 COLLATE latin1_bin;


Master 2

mysql&gt; use replication;
mysql&gt; select * from T1;
ERROR 1146 (42S02): Table 'replication.T1' doesn't exist


Master 3

mysql&gt; use replication;
Database changed
mysql&gt; select * from T1;
+----+
| ID |
+----+
|  2 |
+----+
1 row in set (0.00 sec)
@Michaelsqlbot's comment makes it easy to see the issue

Replication must be going 

+----&lt;------------&lt;-----+
|                       ^
|                       |
V                       |
+--&gt; M3 -&gt; M2-&gt; M1 --&gt;--+


or

+----&lt;------------&lt;-----+
|                       ^
|                       |
V                       |
+--&gt; M1 -&gt; M3-&gt; M2 --&gt;--+


and M2 does not have log-slave-updates

Given that topology, here is the sequence of events that must have taken place


You created table T1 on M1
M3 has table T1
M2 does not have table T1 because M2 does not have log-slave-updates
You inserted 2 into table T1

If the INSERT was done on M1, M3 has data, M2 has no data and no table T1
If the INSERT was done on M3, M1 has no data, M2 has no data and no table T1



EPILOGUE

Configuring log-slave-updates tells a Slave to take a binlog event from its relay logs, execute it, and record the event in its local binlogs (if log-bin is enabled on the Slave). Thus, M2 not having log-slave-updates enabled in your MultiMaster setup is the root cause.

Big thanks to @Michaelsqlbot for the hint.