diff --git a/core/wma/src/wma_main.c b/core/wma/src/wma_main.c
index c8e7baf30caf..31d782d7c955 100644
--- a/core/wma/src/wma_main.c
+++ b/core/wma/src/wma_main.c
@@ -239,6 +239,34 @@ static void wma_set_ipa_disable_config(
 #ifndef NUM_OF_ADDITIONAL_FW_PEERS
 #define NUM_OF_ADDITIONAL_FW_PEERS	2
 #endif
+
+/**
+ * wma_update_num_peers_tids() - Update num_peers and tids based on num_vdevs
+ * @wma_handle: wma handle
+ * @tgt_cfg: Resource config given to target
+ *
+ * Get num_vdevs from tgt_cfg and update num_peers and tids based on it.
+ *
+ * Return: none
+ */
+static void wma_update_num_peers_tids(t_wma_handle *wma_handle,
+				      target_resource_config *tgt_cfg)
+
+{
+	uint8_t no_of_peers_supported;
+
+	no_of_peers_supported = wma_get_number_of_peers_supported(wma_handle);
+
+	tgt_cfg->num_peers = no_of_peers_supported + tgt_cfg->num_vdevs +
+				NUM_OF_ADDITIONAL_FW_PEERS;
+	/* The current firmware implementation requires the number of
+	 * offload peers should be (number of vdevs + 1).
+	 */
+	tgt_cfg->num_tids =
+		wma_get_number_of_tids_supported(no_of_peers_supported,
+						 tgt_cfg->num_vdevs);
+}
+
 /**
  * wma_set_default_tgt_config() - set default tgt config
  * @wma_handle: wma handle
@@ -250,15 +278,11 @@ static void wma_set_default_tgt_config(tp_wma_handle wma_handle,
 				       target_resource_config *tgt_cfg,
 				       struct cds_config_info *cds_cfg)
 {
-	uint8_t no_of_peers_supported;
-
-	no_of_peers_supported = wma_get_number_of_peers_supported(wma_handle);
-
 	qdf_mem_zero(tgt_cfg, sizeof(target_resource_config));
+
 	tgt_cfg->num_vdevs = cds_cfg->num_vdevs;
-	tgt_cfg->num_peers = no_of_peers_supported +
-				cds_cfg->num_vdevs +
-				NUM_OF_ADDITIONAL_FW_PEERS;
+	wma_update_num_peers_tids(wma_handle, tgt_cfg);
+
 	/* The current firmware implementation requires the number of
 	 * offload peers should be (number of vdevs + 1).
 	 */
@@ -266,8 +290,6 @@ static void wma_set_default_tgt_config(tp_wma_handle wma_handle,
 	tgt_cfg->num_offload_reorder_buffs =
 				cds_cfg->ap_maxoffload_reorderbuffs + 1;
 	tgt_cfg->num_peer_keys = CFG_TGT_NUM_PEER_KEYS;
-	tgt_cfg->num_tids = wma_get_number_of_tids_supported(
-				no_of_peers_supported, cds_cfg->num_vdevs);
 	tgt_cfg->ast_skid_limit = CFG_TGT_AST_SKID_LIMIT;
 	tgt_cfg->tx_chain_mask = CFG_TGT_DEFAULT_TX_CHAIN_MASK;
 	tgt_cfg->rx_chain_mask = CFG_TGT_DEFAULT_RX_CHAIN_MASK;
@@ -6747,8 +6769,24 @@ int wma_rx_service_ready_ext_event(void *handle, uint8_t *event,
 	if (wmi_service_enabled(wma_handle->wmi_handle, wmi_service_nan_vdev))
 		ucfg_nan_set_vdev_creation_supp_by_fw(wma_handle->psoc, true);
 
-	if (ucfg_nan_is_vdev_creation_allowed(wma_handle->psoc))
+	/*
+	 * Firmware can accommodate maximum 4 vdevs and the ini gNumVdevs
+	 * indicates the same.
+	 * If host driver is going to create vdev for NAN, it indicates
+	 * the total no.of vdevs supported to firmware which includes the
+	 * NAN vdev.
+	 * If firmware is going to create NAN discovery vdev, host should
+	 * indicate 3 vdevs and firmware shall add 1 vdev for NAN. So decrement
+	 * the num_vdevs by 1.
+	 */
+	if (ucfg_nan_is_vdev_creation_allowed(wma_handle->psoc)) {
 		wlan_res_cfg->nan_separate_iface_support = true;
+	} else {
+		wlan_res_cfg->num_vdevs--;
+		wma_update_num_peers_tids(wma_handle, wlan_res_cfg);
+	}
+
+	WMA_LOGD("%s: num_vdevs: %u", __func__, wlan_res_cfg->num_vdevs);
 
 	wma_init_dbr_params(wma_handle);