diff --git a/hif/src/sdio/hif_sdio_recv.c b/hif/src/sdio/hif_sdio_recv.c
index 8c51cb72efbd..1638c61b4355 100644
--- a/hif/src/sdio/hif_sdio_recv.c
+++ b/hif/src/sdio/hif_sdio_recv.c
@@ -1,5 +1,5 @@
 /*
- * Copyright (c) 2014-2016 The Linux Foundation. All rights reserved.
+ * Copyright (c) 2014-2017 The Linux Foundation. All rights reserved.
  *
  * Previously licensed under the ISC license by Qualcomm Atheros, Inc.
  *
@@ -36,6 +36,7 @@
 #include <qdf_defer.h>
 #include <qdf_atomic.h>
 #include <qdf_nbuf.h>
+#include <qdf_threads.h>
 #include <athdefs.h>
 #include <qdf_net_types.h>
 #include <a_types.h>
@@ -48,6 +49,8 @@
 #include "regtable_sdio.h"
 #include "if_sdio.h"
 
+#define NBUF_ALLOC_FAIL_WAIT_TIME 100
+
 static void hif_dev_dump_registers(struct hif_sdio_device *pdev,
 				struct MBOX_IRQ_PROC_REGISTERS *irq_proc_regs,
 				struct MBOX_IRQ_ENABLE_REGISTERS *
@@ -710,6 +713,12 @@ static QDF_STATUS hif_dev_issue_recv_packet_bundle(struct hif_sdio_device *pdev,
 	bundleSpaceRemaining =
 		HTC_MAX_MSG_PER_BUNDLE * target->TargetCreditSize;
 	packet_rx_bundle = allocate_htc_bundle_packet(target);
+	if (!packet_rx_bundle) {
+		AR_DEBUG_PRINTF(ATH_DEBUG_ERR,
+				("%s: packet_rx_bundle is NULL\n", __func__));
+		qdf_sleep(NBUF_ALLOC_FAIL_WAIT_TIME);  /* 100 msec sleep */
+		return QDF_STATUS_E_NOMEM;
+	}
 	bundle_buffer = packet_rx_bundle->pBuffer;
 
 	for (i = 0;
@@ -864,8 +873,22 @@ QDF_STATUS hif_dev_recv_message_pending_handler(struct hif_sdio_device *pdev,
 						  mail_box_index,
 						  &pkts_fetched,
 						  partial_bundle);
-				if (QDF_IS_STATUS_ERROR(status))
+				if (QDF_IS_STATUS_ERROR(status)) {
+					while (!HTC_QUEUE_EMPTY(
+							&recv_pkt_queue)) {
+						qdf_nbuf_t netbuf;
+
+						packet = htc_packet_dequeue(
+							 &recv_pkt_queue);
+						if (packet == NULL)
+							break;
+						netbuf = (qdf_nbuf_t) packet->
+								pNetBufContext;
+						if (netbuf)
+							qdf_nbuf_free(netbuf);
+					}
 					break;
+				}
 
 				if (HTC_PACKET_QUEUE_DEPTH(&recv_pkt_queue) !=
 					0) {
diff --git a/htc/htc.c b/htc/htc.c
index 1511e2ebbc9a..7a2d74a24d1d 100644
--- a/htc/htc.c
+++ b/htc/htc.c
@@ -1,5 +1,5 @@
 /*
- * Copyright (c) 2013-2016 The Linux Foundation. All rights reserved.
+ * Copyright (c) 2013-2017 The Linux Foundation. All rights reserved.
  *
  * Previously licensed under the ISC license by Qualcomm Atheros, Inc.
  *
@@ -31,6 +31,8 @@
 #include <qdf_nbuf.h>           /* qdf_nbuf_t */
 #include <qdf_types.h>          /* qdf_print */
 
+#define MAX_HTC_RX_BUNDLE  2
+
 #if defined(WLAN_DEBUG) || defined(DEBUG)
 static ATH_DEBUG_MASK_DESCRIPTION g_htc_debug_description[] = {
 	{ATH_DEBUG_SEND, "Send"},
@@ -499,9 +501,11 @@ A_STATUS htc_wait_target(HTC_HANDLE HTCHandle)
 	HTC_SERVICE_CONNECT_RESP resp;
 	HTC_READY_MSG *rdy_msg;
 	uint16_t htc_rdy_msg_id;
+	uint8_t i = 0;
+	HTC_PACKET *rx_bundle_packet, *temp_bundle_packet;
 
 	AR_DEBUG_PRINTF(ATH_DEBUG_TRC,
-			("htc_wait_target - Enter (target:0x%p) \n", HTCHandle));
+			("htc_wait_target - Enter (target:0x%p)\n", HTCHandle));
 	AR_DEBUG_PRINTF(ATH_DEBUG_ANY, ("+HWT\n"));
 
 	do {
@@ -561,6 +565,24 @@ A_STATUS htc_wait_target(HTC_HANDLE HTCHandle)
 			status = A_ECOMM;
 			break;
 		}
+
+		/* Allocate expected number of RX bundle buffer allocation */
+		if (HTC_RX_BUNDLE_ENABLED(target)) {
+			temp_bundle_packet = NULL;
+			for (i = 0; i < MAX_HTC_RX_BUNDLE; i++) {
+				rx_bundle_packet =
+					allocate_htc_bundle_packet(target);
+				if (rx_bundle_packet != NULL)
+					rx_bundle_packet->ListLink.pNext =
+						(DL_LIST *)temp_bundle_packet;
+				else
+					break;
+
+				temp_bundle_packet = rx_bundle_packet;
+			}
+			target->pBundleFreeList = temp_bundle_packet;
+		}
+
 		/* done processing */
 		target->CtrlResponseProcessing = false;