diff --git a/components/cmn_services/policy_mgr/inc/wlan_policy_mgr_api.h b/components/cmn_services/policy_mgr/inc/wlan_policy_mgr_api.h
index 429b34486e40..d902f7ee4327 100644
--- a/components/cmn_services/policy_mgr/inc/wlan_policy_mgr_api.h
+++ b/components/cmn_services/policy_mgr/inc/wlan_policy_mgr_api.h
@@ -1967,6 +1967,14 @@ QDF_STATUS policy_mgr_wait_for_connection_update(
  */
 QDF_STATUS policy_mgr_reset_connection_update(struct wlan_objmgr_psoc *psoc);
 
+/**
+ * policy_mgr_reset_hw_mode_change() - Reset the hw mode change.
+ * @psoc: Pointer to PSOC object
+ *
+ * Return: none
+ */
+void policy_mgr_reset_hw_mode_change(struct wlan_objmgr_psoc *psoc);
+
 /**
  * policy_mgr_set_connection_update() - Set connection update
  * event
diff --git a/components/cmn_services/policy_mgr/src/wlan_policy_mgr_action.c b/components/cmn_services/policy_mgr/src/wlan_policy_mgr_action.c
index 8bddabd08af7..671ae3c3b3a2 100644
--- a/components/cmn_services/policy_mgr/src/wlan_policy_mgr_action.c
+++ b/components/cmn_services/policy_mgr/src/wlan_policy_mgr_action.c
@@ -2609,6 +2609,14 @@ QDF_STATUS policy_mgr_reset_connection_update(struct wlan_objmgr_psoc *psoc)
 	return QDF_STATUS_SUCCESS;
 }
 
+void policy_mgr_reset_hw_mode_change(struct wlan_objmgr_psoc *psoc)
+{
+	policy_mgr_err("Clear hw mode change and connection update evt");
+	policy_mgr_set_hw_mode_change_in_progress(
+			psoc, POLICY_MGR_HW_MODE_NOT_IN_PROGRESS);
+	policy_mgr_reset_connection_update(psoc);
+}
+
 QDF_STATUS policy_mgr_set_connection_update(struct wlan_objmgr_psoc *psoc)
 {
 	QDF_STATUS status;
diff --git a/core/sme/src/common/sme_api.c b/core/sme/src/common/sme_api.c
index 67e2e9c67def..c6e3757eec5f 100644
--- a/core/sme/src/common/sme_api.c
+++ b/core/sme/src/common/sme_api.c
@@ -1,6 +1,6 @@
 /*
  * Copyright (c) 2012-2020 The Linux Foundation. All rights reserved.
- * Copyright (c) 2022 Qualcomm Innovation Center, Inc. All rights reserved.
+ * Copyright (c) 2022-2023 Qualcomm Innovation Center, Inc. All rights reserved.
  *
  * Permission to use, copy, modify, and/or distribute this software for
  * any purpose with or without fee is hereby granted, provided that the
@@ -615,6 +615,8 @@ QDF_STATUS sme_ser_cmd_callback(struct wlan_serialization_command *cmd,
 		status = sme_ser_handle_active_cmd(cmd);
 		break;
 	case WLAN_SER_CB_CANCEL_CMD:
+		if (cmd->cmd_type == WLAN_SER_CMD_SET_HW_MODE)
+			policy_mgr_reset_hw_mode_change(mac_ctx->psoc);
 		break;
 	case WLAN_SER_CB_RELEASE_MEM_CMD:
 		if (cmd->vdev)
@@ -629,6 +631,9 @@ QDF_STATUS sme_ser_cmd_callback(struct wlan_serialization_command *cmd,
 		    sme_cmd->command == eSmeCommandWmStatusChange))
 			qdf_trigger_self_recovery(mac_ctx->psoc,
 						  QDF_ACTIVE_LIST_TIMEOUT);
+
+		if (cmd->cmd_type == WLAN_SER_CMD_SET_HW_MODE)
+			policy_mgr_reset_hw_mode_change(mac_ctx->psoc);
 		break;
 	default:
 		sme_debug("unknown reason code");