diff --git a/network_provisioning/CHANGELOG.md b/network_provisioning/CHANGELOG.md
index c94b60e6bb..cd7ad16d74 100644
--- a/network_provisioning/CHANGELOG.md
+++ b/network_provisioning/CHANGELOG.md
@@ -1,3 +1,12 @@
+# 1.2.1 (15-Dec-2025)
+
+- Fix prov-ctrl reset handler to return success when device is already in provisioning mode
+  - If firmware has already called `network_prov_mgr_reset_wifi_sm_state_on_failure()` or
+    `network_prov_mgr_reset_thread_sm_state_on_failure()`, the device state is already reset
+    to provisioning mode. The prov-ctrl handler now returns success in this case instead of
+    an invalid state error, allowing phone apps to successfully reset even if firmware has
+    already performed the reset operation.
+
 # 07-October-2025
 
 - Use managed cJSON component for IDF v6.0 and above
diff --git a/network_provisioning/idf_component.yml b/network_provisioning/idf_component.yml
index d079c9f18f..4930e1385c 100644
--- a/network_provisioning/idf_component.yml
+++ b/network_provisioning/idf_component.yml
@@ -1,4 +1,4 @@
-version: "1.2.0"
+version: "1.2.1"
 description: Network provisioning component for Wi-Fi or Thread devices
 url: https://github.com/espressif/idf-extra-components/tree/master/network_provisioning
 dependencies:
diff --git a/network_provisioning/src/manager.c b/network_provisioning/src/manager.c
index 933b941d8d..20a304df8c 100644
--- a/network_provisioning/src/manager.c
+++ b/network_provisioning/src/manager.c
@@ -2350,6 +2350,13 @@ esp_err_t network_prov_mgr_reset_wifi_sm_state_on_failure(void)
     ACQUIRE_LOCK(prov_ctx_lock);
 
     esp_err_t err = ESP_OK;
+    /* If already in STARTED state, reset has already been performed (e.g., by firmware).
+     * Return success as the device is effectively already reset and in provisioning mode. */
+    if (prov_ctx->prov_state == NETWORK_PROV_STATE_STARTED) {
+        ESP_LOGD(TAG, "Reset already performed, device already in provisioning mode");
+        goto exit;
+    }
+
     if (prov_ctx->prov_state != NETWORK_PROV_STATE_FAIL) {
         ESP_LOGE(TAG, "Trying reset when not in failure state. Current state: %d", prov_ctx->prov_state);
         err = ESP_ERR_INVALID_STATE;
@@ -2448,6 +2455,13 @@ esp_err_t network_prov_mgr_reset_thread_sm_state_on_failure(void)
     otInstance *instance = esp_openthread_get_instance();
 
     esp_openthread_lock_acquire(portMAX_DELAY);
+    /* If already in STARTED state, reset has already been performed (e.g., by firmware).
+     * Return success as the device is effectively already reset and in provisioning mode. */
+    if (prov_ctx->prov_state == NETWORK_PROV_STATE_STARTED) {
+        ESP_LOGD(TAG, "Reset already performed, device already in provisioning mode");
+        goto exit;
+    }
+
     if (prov_ctx->prov_state != NETWORK_PROV_STATE_FAIL) {
         ESP_LOGE(TAG, "Trying reset when not in failure state. Current state: %d", prov_ctx->prov_state);
         err = ESP_ERR_INVALID_STATE;