diff --git a/drivers/bluetooth/hci_h5.c b/drivers/bluetooth/hci_h5.c
index a22838669b4e..20bdd71559b1 100644
--- a/drivers/bluetooth/hci_h5.c
+++ b/drivers/bluetooth/hci_h5.c
@@ -168,6 +168,36 @@ wakeup:
 	hci_uart_tx_wakeup(hu);
 }
 
+static void h5_peer_reset(struct hci_uart *hu)
+{
+	struct h5 *h5 = hu->priv;
+	struct sk_buff *skb;
+	const unsigned char hard_err[] = { 0x10, 0x01, 0x00 };
+
+	BT_ERR("Peer device has reset");
+
+	h5->state = H5_UNINITIALIZED;
+
+	del_timer(&h5->timer);
+
+	skb_queue_purge(&h5->rel);
+	skb_queue_purge(&h5->unrel);
+	skb_queue_purge(&h5->unack);
+
+	h5->tx_seq = 0;
+	h5->tx_ack = 0;
+
+	skb = bt_skb_alloc(3, GFP_ATOMIC);
+	if (!skb)
+		return;
+
+	bt_cb(skb)->pkt_type = HCI_EVENT_PKT;
+	memcpy(skb_put(skb, 3), hard_err, 3);
+
+	/* Send Hardware Error to upper stack */
+	hci_recv_frame(hu->hdev, skb);
+}
+
 static int h5_open(struct hci_uart *hu)
 {
 	struct h5 *h5;
@@ -283,8 +313,12 @@ static void h5_handle_internal_rx(struct hci_uart *hu)
 	conf_req[2] = h5_cfg_field(h5);
 
 	if (memcmp(data, sync_req, 2) == 0) {
+		if (h5->state == H5_ACTIVE)
+			h5_peer_reset(hu);
 		h5_link_control(hu, sync_rsp, 2);
 	} else if (memcmp(data, sync_rsp, 2) == 0) {
+		if (h5->state == H5_ACTIVE)
+			h5_peer_reset(hu);
 		h5->state = H5_INITIALIZED;
 		h5_link_control(hu, conf_req, 3);
 	} else if (memcmp(data, conf_req, 2) == 0) {