diff --git a/drivers/scsi/lpfc/lpfc_els.c b/drivers/scsi/lpfc/lpfc_els.c
index ddd5949d8fc0..e21c73a3803e 100644
--- a/drivers/scsi/lpfc/lpfc_els.c
+++ b/drivers/scsi/lpfc/lpfc_els.c
@@ -5413,9 +5413,19 @@ out:
 				ndlp->nlp_flag &= ~NLP_RELEASE_RPI;
 				spin_unlock_irq(&ndlp->lock);
 			}
+			lpfc_drop_node(vport, ndlp);
+		} else if (ndlp->nlp_state != NLP_STE_PLOGI_ISSUE &&
+			   ndlp->nlp_state != NLP_STE_REG_LOGIN_ISSUE &&
+			   ndlp->nlp_state != NLP_STE_PRLI_ISSUE) {
+			/* Drop ndlp if there is no planned or outstanding
+			 * issued PRLI.
+			 *
+			 * In cases when the ndlp is acting as both an initiator
+			 * and target function, let our issued PRLI determine
+			 * the final ndlp kref drop.
+			 */
+			lpfc_drop_node(vport, ndlp);
 		}
-
-		lpfc_drop_node(vport, ndlp);
 	}
 
 	/* Release the originating I/O reference. */