diff --git a/drivers/infiniband/ulp/ipoib/ipoib_cm.c b/drivers/infiniband/ulp/ipoib/ipoib_cm.c
index 076a0bbb63d7..c64249f7caed 100644
--- a/drivers/infiniband/ulp/ipoib/ipoib_cm.c
+++ b/drivers/infiniband/ulp/ipoib/ipoib_cm.c
@@ -309,6 +309,11 @@ static int ipoib_cm_req_handler(struct ib_cm_id *cm_id, struct ib_cm_event *even
 		return -ENOMEM;
 	p->dev = dev;
 	p->id = cm_id;
+	cm_id->context = p;
+	p->state = IPOIB_CM_RX_LIVE;
+	p->jiffies = jiffies;
+	INIT_LIST_HEAD(&p->list);
+
 	p->qp = ipoib_cm_create_rx_qp(dev, p);
 	if (IS_ERR(p->qp)) {
 		ret = PTR_ERR(p->qp);
@@ -320,24 +325,24 @@ static int ipoib_cm_req_handler(struct ib_cm_id *cm_id, struct ib_cm_event *even
 	if (ret)
 		goto err_modify;
 
+	spin_lock_irq(&priv->lock);
+	queue_delayed_work(ipoib_workqueue,
+			   &priv->cm.stale_task, IPOIB_CM_RX_DELAY);
+	/* Add this entry to passive ids list head, but do not re-add it
+	 * if IB_EVENT_QP_LAST_WQE_REACHED has moved it to flush list. */
+	p->jiffies = jiffies;
+	if (p->state == IPOIB_CM_RX_LIVE)
+		list_move(&p->list, &priv->cm.passive_ids);
+	spin_unlock_irq(&priv->lock);
+
 	ret = ipoib_cm_send_rep(dev, cm_id, p->qp, &event->param.req_rcvd, psn);
 	if (ret) {
 		ipoib_warn(priv, "failed to send REP: %d\n", ret);
-		goto err_rep;
+		if (ib_modify_qp(p->qp, &ipoib_cm_err_attr, IB_QP_STATE))
+			ipoib_warn(priv, "unable to move qp to error state\n");
 	}
-
-	cm_id->context = p;
-	p->jiffies = jiffies;
-	p->state = IPOIB_CM_RX_LIVE;
-	spin_lock_irq(&priv->lock);
-	if (list_empty(&priv->cm.passive_ids))
-		queue_delayed_work(ipoib_workqueue,
-				   &priv->cm.stale_task, IPOIB_CM_RX_DELAY);
-	list_add(&p->list, &priv->cm.passive_ids);
-	spin_unlock_irq(&priv->lock);
 	return 0;
 
-err_rep:
 err_modify:
 	ib_destroy_qp(p->qp);
 err_qp: