diff --git a/core/hdd/inc/wlan_hdd_assoc.h b/core/hdd/inc/wlan_hdd_assoc.h
index cf136b4325dc..d9012e5e5cda 100644
--- a/core/hdd/inc/wlan_hdd_assoc.h
+++ b/core/hdd/inc/wlan_hdd_assoc.h
@@ -106,6 +106,8 @@ typedef enum {
  * @uIsAuthenticated: Remembers authenticated state
  * @dot11Mode: dot11Mode
  * @proxyARPService: proxy arp service
+ * @ptk_installed: ptk installed state
+ * @gtk_installed: gtk installed state
  */
 typedef struct connection_info_s {
 	eConnectionState connState;
@@ -122,6 +124,8 @@ typedef struct connection_info_s {
 	uint8_t uIsAuthenticated;
 	uint32_t dot11Mode;
 	uint8_t proxyARPService;
+	bool ptk_installed;
+	bool gtk_installed;
 } connection_info_t;
 
 /* Forward declarations */
diff --git a/core/hdd/src/wlan_hdd_assoc.c b/core/hdd/src/wlan_hdd_assoc.c
index ea597dbe04bd..cefae85899dd 100644
--- a/core/hdd/src/wlan_hdd_assoc.c
+++ b/core/hdd/src/wlan_hdd_assoc.c
@@ -1442,6 +1442,64 @@ done:
 	kfree(rspRsnIe);
 }
 
+/**
+ * hdd_is_roam_sync_in_progress()- Check if roam offloaded
+ *
+ * Return: roam sync status if roaming offloaded else false
+ */
+#ifdef WLAN_FEATURE_ROAM_OFFLOAD
+static inline bool hdd_is_roam_sync_in_progress(tCsrRoamInfo *roaminfo)
+{
+	return roaminfo->roamSynchInProgress;
+}
+#else
+static inline bool hdd_is_roam_sync_in_progress(tCsrRoamInfo *roaminfo)
+{
+	return false;
+}
+#endif
+
+
+/**
+ * hdd_change_sta_state_authenticated()-
+ * This function changes STA state to authenticated
+ * @adapter:  pointer to the adapter structure.
+ * @roaminfo: pointer to the RoamInfo structure.
+ *
+ * This is called from hdd_RoamSetKeyCompleteHandler
+ * in context to eCSR_ROAM_SET_KEY_COMPLETE event from fw.
+ *
+ * Return: 0 on success and errno on failure
+ */
+static int hdd_change_sta_state_authenticated(hdd_adapter_t *adapter,
+						 tCsrRoamInfo *roaminfo)
+{
+	int ret;
+	hdd_station_ctx_t *hddstactx = WLAN_HDD_GET_STATION_CTX_PTR(adapter);
+
+	hddLog(LOG1,
+		"Changing TL state to AUTHENTICATED for StaId= %d",
+		hddstactx->conn_info.staId[0]);
+
+	/* Connections that do not need Upper layer authentication,
+	 * transition TL to 'Authenticated' state after the keys are set
+	 */
+	ret = hdd_change_peer_state(adapter,
+			hddstactx->conn_info.staId[0],
+			ol_txrx_peer_state_auth,
+			hdd_is_roam_sync_in_progress(roaminfo));
+	hdd_conn_set_authenticated(adapter, true);
+	if ((WLAN_HDD_INFRA_STATION == adapter->device_mode) ||
+		(WLAN_HDD_P2P_CLIENT == adapter->device_mode)) {
+		sme_ps_enable_auto_ps_timer(
+			WLAN_HDD_GET_HAL_CTX(adapter),
+			adapter->sessionId,
+			hddstactx->hdd_ReassocScenario);
+	}
+
+	return ret;
+}
+
 /**
  * hdd_roam_set_key_complete_handler() - Update the security parameters
  * @pAdapter: pointer to adapter
@@ -1503,59 +1561,52 @@ static CDF_STATUS hdd_roam_set_key_complete_handler(hdd_adapter_t *pAdapter,
 		} else {
 			/*
 			 * TODO: Considering getting a state machine in
-			 * HDD later. This routine is invoked twice.
-			 * 1)set PTK 2)set GTK.
-			 * The following if statement will be true when
-			 * setting GTK. At this time we don't handle the state
-			 * in detail. Related CR: 174048 - TL not in
-			 * authenticated state
+			 * HDD later.This routine is invoked twice.
+			 * 1)set PTK 2)set GTK.The following if
+			 * statement will be TRUE when setting GTK.
+			 * At this time we don't handle the state in detail.
+			 * Related CR: 174048 - TL not in authenticated state
+			*/
+			if (eCSR_ROAM_RESULT_AUTHENTICATED == roamResult)
+				pHddStaCtx->conn_info.gtk_installed = true;
+			else
+				pHddStaCtx->conn_info.ptk_installed = true;
+
+			/* In WPA case move STA to authenticated when
+			 * ptk is installed.Earlier in WEP case STA
+			 * was moved to AUTHENTICATED prior to setting
+			 * the unicast key and it was resulting in sending
+			 * few un-encrypted packet. Now in WEP case
+			 * STA state will be moved to AUTHENTICATED
+			 * after we set the unicast and broadcast key.
 			 */
-			cdf_status =
-				hdd_change_peer_state(pAdapter, pHddStaCtx->conn_info.staId[0],
-						ol_txrx_peer_state_auth,
-#ifdef WLAN_FEATURE_ROAM_OFFLOAD
-						pRoamInfo->roamSynchInProgress
-#else
-						false
-#endif
-						);
-			hdd_conn_set_authenticated(pAdapter, true);
-			if ((eCSR_ROAM_RESULT_AUTHENTICATED == roamResult) &&
-			    (pRoamInfo != NULL) && !pRoamInfo->fAuthRequired) {
-				hddLog(LOG3,
-					"Key set for StaId= %d. Changing TL state to AUTHENTICATED",
-					pHddStaCtx->conn_info.staId[0]);
-
-				/*
-				 * Connections that do not need Upper layer
-				 * authentication, transition TL to
-				 * 'Authenticated' state after the keys are set.
-				 */
+			if ((pHddStaCtx->conn_info.ucEncryptionType ==
+			  eCSR_ENCRYPT_TYPE_WEP40) ||
+			  (pHddStaCtx->conn_info.ucEncryptionType ==
+			  eCSR_ENCRYPT_TYPE_WEP104) ||
+			  (pHddStaCtx->conn_info.ucEncryptionType ==
+			  eCSR_ENCRYPT_TYPE_WEP40_STATICKEY) ||
+			  (pHddStaCtx->conn_info.ucEncryptionType ==
+			  eCSR_ENCRYPT_TYPE_WEP104_STATICKEY)) {
+				if (pHddStaCtx->conn_info.gtk_installed &&
+					pHddStaCtx->conn_info.ptk_installed)
+					cdf_status =
+					    hdd_change_sta_state_authenticated(pAdapter,
+						pRoamInfo);
+			} else if (pHddStaCtx->conn_info.ptk_installed) {
 				cdf_status =
-					hdd_change_peer_state(pAdapter,
-						pHddStaCtx->conn_info.staId[0],
-						ol_txrx_peer_state_auth,
-#ifdef WLAN_FEATURE_ROAM_OFFLOAD
-						pRoamInfo->roamSynchInProgress
-#else
-						false
-#endif
-						);
+				    hdd_change_sta_state_authenticated(pAdapter,
+					pRoamInfo);
+			}
 
-				hdd_conn_set_authenticated(pAdapter, true);
-				if ((WLAN_HDD_INFRA_STATION ==
-					pAdapter->device_mode) ||
-					(WLAN_HDD_P2P_CLIENT ==
-					 pAdapter->device_mode)) {
-					sme_ps_enable_auto_ps_timer
-					(WLAN_HDD_GET_HAL_CTX(pAdapter),
-					 pAdapter->sessionId,
-					 pHddStaCtx->hdd_ReassocScenario);
-				}
+			if (pHddStaCtx->conn_info.gtk_installed &&
+				pHddStaCtx->conn_info.ptk_installed) {
+				pHddStaCtx->conn_info.gtk_installed = false;
+				pHddStaCtx->conn_info.ptk_installed = false;
 			}
 
 			pHddStaCtx->roam_info.roamingState =
-				HDD_ROAM_STATE_NONE;
+						HDD_ROAM_STATE_NONE;
 		}
 	} else {
 		/*