diff --git a/core/hdd/src/wlan_hdd_twt.c b/core/hdd/src/wlan_hdd_twt.c
index 8604670b7cb4..b0aee95553a5 100644
--- a/core/hdd/src/wlan_hdd_twt.c
+++ b/core/hdd/src/wlan_hdd_twt.c
@@ -1086,8 +1086,10 @@ hdd_twt_setup_pack_resp_nlmsg(struct sk_buff *reply_skb,
 		return QDF_STATUS_E_FAILURE;
 	}
 
-	if (event->params.num_additional_twt_params == 0)
+	if (event->params.num_additional_twt_params == 0) {
+		nla_nest_end(reply_skb, config_attr);
 		return QDF_STATUS_SUCCESS;
+	}
 
 	response_type = wmi_twt_add_cmd_to_vendor_twt_resp_type(event->additional_params.twt_cmd);
 	if (response_type == -EINVAL) {
@@ -1255,14 +1257,6 @@ hdd_twt_add_dialog_comp_cb(struct wlan_objmgr_psoc *psoc,
 		  add_dialog_event->params.status, vdev_id,
 		  QDF_MAC_ADDR_REF(add_dialog_event->params.peer_macaddr));
 	hdd_send_twt_setup_response(adapter, add_dialog_event);
-
-	if (add_dialog_event->params.status)
-		return;
-
-	ucfg_mlme_set_twt_setup_done(
-		adapter->hdd_ctx->psoc,
-		(struct qdf_mac_addr *)add_dialog_event->params.peer_macaddr,
-		add_dialog_event->params.dialog_id, true);
 }
 
 /**
diff --git a/core/sme/src/common/sme_api.c b/core/sme/src/common/sme_api.c
index 24fdc8a5bd7c..e852c6adb6e5 100644
--- a/core/sme/src/common/sme_api.c
+++ b/core/sme/src/common/sme_api.c
@@ -2074,7 +2074,8 @@ sme_process_twt_add_dialog_event(struct mac_context *mac,
 		(struct qdf_mac_addr *)add_dialog_event->params.peer_macaddr,
 		add_dialog_event->params.dialog_id, WLAN_TWT_SETUP);
 	if (!is_evt_allowed) {
-		sme_debug("add dialog event dropped");
+		sme_debug("add dialog event dropped for id:%d",
+			  add_dialog_event->params.dialog_id);
 		return;
 	}
 
@@ -2082,17 +2083,29 @@ sme_process_twt_add_dialog_event(struct mac_context *mac,
 	if (callback)
 		callback(mac->psoc, add_dialog_event);
 
-	ucfg_mlme_set_twt_session_state(
-		mac->psoc,
-		(struct qdf_mac_addr *)add_dialog_event->params.peer_macaddr,
-		add_dialog_event->params.dialog_id,
-		WLAN_TWT_SETUP_STATE_ACTIVE);
-
 	/* Reset the active TWT command to none */
 	mlme_set_twt_command_in_progress(
 		mac->psoc,
 		(struct qdf_mac_addr *)add_dialog_event->params.peer_macaddr,
 		add_dialog_event->params.dialog_id, WLAN_TWT_NONE);
+
+	if (add_dialog_event->params.status) {
+		/* Clear the stored TWT dialog ID as TWT setup failed */
+		ucfg_mlme_init_twt_context(mac->psoc, (struct qdf_mac_addr *)
+					   add_dialog_event->params.peer_macaddr,
+					   add_dialog_event->params.dialog_id);
+		return;
+	}
+
+	ucfg_mlme_set_twt_setup_done(mac->psoc, (struct qdf_mac_addr *)
+				     add_dialog_event->params.peer_macaddr,
+				     add_dialog_event->params.dialog_id, true);
+
+	ucfg_mlme_set_twt_session_state(
+		mac->psoc,
+		(struct qdf_mac_addr *)add_dialog_event->params.peer_macaddr,
+		add_dialog_event->params.dialog_id,
+		WLAN_TWT_SETUP_STATE_ACTIVE);
 }
 
 /**
@@ -2117,7 +2130,8 @@ sme_process_twt_del_dialog_event(struct mac_context *mac,
 	    param->dialog_id != WLAN_ALL_SESSIONS_DIALOG_ID &&
 	    param->status != WMI_HOST_DEL_TWT_STATUS_ROAMING &&
 	    param->status != WMI_HOST_DEL_TWT_STATUS_PEER_INIT_TEARDOWN) {
-		sme_debug("add dialog event dropped");
+		sme_debug("Del dialog event dropped for id:%d",
+			  param->dialog_id);
 		return;
 	}
 
diff --git a/core/wma/src/wma_twt.c b/core/wma/src/wma_twt.c
index 9cb4602ec166..3b2bdab7ff6e 100644
--- a/core/wma/src/wma_twt.c
+++ b/core/wma/src/wma_twt.c
@@ -224,7 +224,8 @@ int wma_twt_add_dialog_complete_event_handler(void *handle,
 			return qdf_status_to_os_return(status);
 	}
 
-	wma_debug("TWT: Extract TWT add dialog event :%d", status);
+	wma_debug("TWT: Extract TWT add dialog event id:%d",
+		  add_dialog_event->params.dialog_id);
 
 	sme_msg.type = eWNI_SME_TWT_ADD_DIALOG_EVENT;
 	sme_msg.bodyptr = add_dialog_event;