diff --git a/core/hdd/src/wlan_hdd_twt.c b/core/hdd/src/wlan_hdd_twt.c
index 7358080662b1..7b261c4f1f7d 100644
--- a/core/hdd/src/wlan_hdd_twt.c
+++ b/core/hdd/src/wlan_hdd_twt.c
@@ -1523,13 +1523,7 @@ hdd_twt_del_dialog_comp_cb(struct wlan_objmgr_psoc *psoc,
 	}
 
 	wlan_cfg80211_vendor_event(twt_vendor_event, GFP_KERNEL);
-	ucfg_mlme_set_twt_setup_done(
-				adapter->hdd_ctx->psoc,
-				(struct qdf_mac_addr *)params->peer_macaddr,
-				params->dialog_id, false);
-	mlme_init_twt_context(hdd_ctx->psoc,
-			      (struct qdf_mac_addr *)params->peer_macaddr,
-			      params->dialog_id);
+
 	hdd_exit();
 
 	return;
diff --git a/core/sme/src/common/sme_api.c b/core/sme/src/common/sme_api.c
index e852c6adb6e5..e4f329f38ad2 100644
--- a/core/sme/src/common/sme_api.c
+++ b/core/sme/src/common/sme_api.c
@@ -2108,6 +2108,24 @@ sme_process_twt_add_dialog_event(struct mac_context *mac,
 		WLAN_TWT_SETUP_STATE_ACTIVE);
 }
 
+static bool
+sme_is_twt_teardown_failed(enum WMI_HOST_DEL_TWT_STATUS teardown_status)
+{
+	switch (teardown_status) {
+	case WMI_HOST_DEL_TWT_STATUS_DIALOG_ID_NOT_EXIST:
+	case WMI_HOST_DEL_TWT_STATUS_INVALID_PARAM:
+	case WMI_HOST_DEL_TWT_STATUS_DIALOG_ID_BUSY:
+	case WMI_HOST_DEL_TWT_STATUS_NO_RESOURCE:
+	case WMI_HOST_DEL_TWT_STATUS_NO_ACK:
+	case WMI_HOST_DEL_TWT_STATUS_UNKNOWN_ERROR:
+		return true;
+	default:
+		return false;
+	}
+
+	return false;
+}
+
 /**
  * sme_process_twt_del_dialog_event() - Process twt del dialog event
  * response from firmware
@@ -2145,14 +2163,25 @@ sme_process_twt_del_dialog_event(struct mac_context *mac,
 			mac->psoc, (struct qdf_mac_addr *)param->peer_macaddr,
 			true);
 
-	ucfg_mlme_set_twt_session_state(
-			mac->psoc, (struct qdf_mac_addr *)param->peer_macaddr,
-			param->dialog_id, WLAN_TWT_SETUP_STATE_NOT_ESTABLISHED);
-
 	/* Reset the active TWT command to none */
 	mlme_set_twt_command_in_progress(
 			mac->psoc, (struct qdf_mac_addr *)param->peer_macaddr,
 			param->dialog_id, WLAN_TWT_NONE);
+
+	if (sme_is_twt_teardown_failed(param->status))
+		return;
+
+	ucfg_mlme_set_twt_setup_done(mac->psoc, (struct qdf_mac_addr *)
+				     param->peer_macaddr,
+				     param->dialog_id, false);
+
+	ucfg_mlme_set_twt_session_state(
+			mac->psoc, (struct qdf_mac_addr *)param->peer_macaddr,
+			param->dialog_id, WLAN_TWT_SETUP_STATE_NOT_ESTABLISHED);
+
+	mlme_init_twt_context(mac->psoc, (struct qdf_mac_addr *)
+			      param->peer_macaddr,
+			      param->dialog_id);
 }
 
 /**