diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en/reporter_tx.c b/drivers/net/ethernet/mellanox/mlx5/core/en/reporter_tx.c
index b307234b4e05..b91814ecfbc9 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en/reporter_tx.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en/reporter_tx.c
@@ -83,17 +83,17 @@ static int mlx5e_tx_reporter_err_cqe_recover(struct mlx5e_txqsq *sq)
 	if (err) {
 		netdev_err(dev, "Failed to query SQ 0x%x state. err = %d\n",
 			   sq->sqn, err);
-		return err;
+		goto out;
 	}
 
 	if (state != MLX5_SQC_STATE_ERR)
-		return 0;
+		goto out;
 
 	mlx5e_tx_disable_queue(sq->txq);
 
 	err = mlx5e_wait_for_sq_flush(sq);
 	if (err)
-		return err;
+		goto out;
 
 	/* At this point, no new packets will arrive from the stack as TXQ is
 	 * marked with QUEUE_STATE_DRV_XOFF. In addition, NAPI cleared all
@@ -102,13 +102,17 @@ static int mlx5e_tx_reporter_err_cqe_recover(struct mlx5e_txqsq *sq)
 
 	err = mlx5e_sq_to_ready(sq, state);
 	if (err)
-		return err;
+		goto out;
 
 	mlx5e_reset_txqsq_cc_pc(sq);
 	sq->stats->recover++;
+	clear_bit(MLX5E_SQ_STATE_RECOVERING, &sq->state);
 	mlx5e_activate_txqsq(sq);
 
 	return 0;
+out:
+	clear_bit(MLX5E_SQ_STATE_RECOVERING, &sq->state);
+	return err;
 }
 
 static int mlx5_tx_health_report(struct devlink_health_reporter *tx_reporter,
diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en_main.c b/drivers/net/ethernet/mellanox/mlx5/core/en_main.c
index 6c712c5be4d8..9d5f6e56188f 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en_main.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en_main.c
@@ -1321,7 +1321,6 @@ err_free_txqsq:
 void mlx5e_activate_txqsq(struct mlx5e_txqsq *sq)
 {
 	sq->txq = netdev_get_tx_queue(sq->channel->netdev, sq->txq_ix);
-	clear_bit(MLX5E_SQ_STATE_RECOVERING, &sq->state);
 	set_bit(MLX5E_SQ_STATE_ENABLED, &sq->state);
 	netdev_tx_reset_queue(sq->txq);
 	netif_tx_start_queue(sq->txq);