diff --git a/net/bluetooth/hci_event.c b/net/bluetooth/hci_event.c
index 218da9b0fe8f..559b6080706c 100644
--- a/net/bluetooth/hci_event.c
+++ b/net/bluetooth/hci_event.c
@@ -3799,6 +3799,22 @@ static u8 hci_cc_le_read_buffer_size_v2(struct hci_dev *hdev, void *data,
 	return rp->status;
 }
 
+static void hci_unbound_cis_failed(struct hci_dev *hdev, u8 cig, u8 status)
+{
+	struct hci_conn *conn, *tmp;
+
+	lockdep_assert_held(&hdev->lock);
+
+	list_for_each_entry_safe(conn, tmp, &hdev->conn_hash.list, list) {
+		if (conn->type != ISO_LINK || !bacmp(&conn->dst, BDADDR_ANY) ||
+		    conn->state == BT_OPEN || conn->iso_qos.ucast.cig != cig)
+			continue;
+
+		if (HCI_CONN_HANDLE_UNSET(conn->handle))
+			hci_conn_failed(conn, status);
+	}
+}
+
 static u8 hci_cc_le_set_cig_params(struct hci_dev *hdev, void *data,
 				   struct sk_buff *skb)
 {
@@ -3820,12 +3836,15 @@ static u8 hci_cc_le_set_cig_params(struct hci_dev *hdev, void *data,
 
 	hci_dev_lock(hdev);
 
+	/* BLUETOOTH CORE SPECIFICATION Version 5.4 | Vol 4, Part E page 2554
+	 *
+	 * If the Status return parameter is non-zero, then the state of the CIG
+	 * and its CIS configurations shall not be changed by the command. If
+	 * the CIG did not already exist, it shall not be created.
+	 */
 	if (status) {
-		while ((conn = hci_conn_hash_lookup_cig(hdev, rp->cig_id))) {
-			conn->state = BT_CLOSED;
-			hci_connect_cfm(conn, status);
-			hci_conn_del(conn);
-		}
+		/* Keep current configuration, fail only the unbound CIS */
+		hci_unbound_cis_failed(hdev, rp->cig_id, status);
 		goto unlock;
 	}