diff --git a/drivers/usb/typec/tcpm/tcpm.c b/drivers/usb/typec/tcpm/tcpm.c
index be0b6469dd3d..8469c37a59e1 100644
--- a/drivers/usb/typec/tcpm/tcpm.c
+++ b/drivers/usb/typec/tcpm/tcpm.c
@@ -438,6 +438,9 @@ struct tcpm_port {
 	enum tcpm_ams next_ams;
 	bool in_ams;
 
+	/* Auto vbus discharge status */
+	bool auto_vbus_discharge_enabled;
+
 #ifdef CONFIG_DEBUG_FS
 	struct dentry *dentry;
 	struct mutex logbuffer_lock;	/* log buffer access lock */
@@ -507,6 +510,9 @@ static const char * const pd_rev[] = {
 	(tcpm_port_is_sink(port) && \
 	((port)->cc1 == TYPEC_CC_RP_3_0 || (port)->cc2 == TYPEC_CC_RP_3_0))
 
+#define tcpm_wait_for_discharge(port) \
+	(((port)->auto_vbus_discharge_enabled && !(port)->vbus_vsafe0v) ? PD_T_SAFE_0V : 0)
+
 static enum tcpm_state tcpm_default_state(struct tcpm_port *port)
 {
 	if (port->port_type == TYPEC_PORT_DRP) {
@@ -3413,6 +3419,8 @@ static int tcpm_src_attach(struct tcpm_port *port)
 	if (port->tcpc->enable_auto_vbus_discharge) {
 		ret = port->tcpc->enable_auto_vbus_discharge(port->tcpc, true);
 		tcpm_log_force(port, "enable vbus discharge ret:%d", ret);
+		if (!ret)
+			port->auto_vbus_discharge_enabled = true;
 	}
 
 	ret = tcpm_set_roles(port, true, TYPEC_SOURCE, tcpm_data_role_for_source(port));
@@ -3495,6 +3503,8 @@ static void tcpm_reset_port(struct tcpm_port *port)
 	if (port->tcpc->enable_auto_vbus_discharge) {
 		ret = port->tcpc->enable_auto_vbus_discharge(port->tcpc, false);
 		tcpm_log_force(port, "Disable vbus discharge ret:%d", ret);
+		if (!ret)
+			port->auto_vbus_discharge_enabled = false;
 	}
 	port->in_ams = false;
 	port->ams = NONE_AMS;
@@ -3568,6 +3578,8 @@ static int tcpm_snk_attach(struct tcpm_port *port)
 		tcpm_set_auto_vbus_discharge_threshold(port, TYPEC_PWR_MODE_USB, false, VSAFE5V);
 		ret = port->tcpc->enable_auto_vbus_discharge(port->tcpc, true);
 		tcpm_log_force(port, "enable vbus discharge ret:%d", ret);
+		if (!ret)
+			port->auto_vbus_discharge_enabled = true;
 	}
 
 	ret = tcpm_set_roles(port, true, TYPEC_SINK, tcpm_data_role_for_sink(port));
@@ -4670,9 +4682,9 @@ static void _tcpm_cc_change(struct tcpm_port *port, enum typec_cc_status cc1,
 		if (tcpm_port_is_disconnected(port) ||
 		    !tcpm_port_is_source(port)) {
 			if (port->port_type == TYPEC_PORT_SRC)
-				tcpm_set_state(port, SRC_UNATTACHED, 0);
+				tcpm_set_state(port, SRC_UNATTACHED, tcpm_wait_for_discharge(port));
 			else
-				tcpm_set_state(port, SNK_UNATTACHED, 0);
+				tcpm_set_state(port, SNK_UNATTACHED, tcpm_wait_for_discharge(port));
 		}
 		break;
 	case SNK_UNATTACHED:
@@ -4703,7 +4715,23 @@ static void _tcpm_cc_change(struct tcpm_port *port, enum typec_cc_status cc1,
 			tcpm_set_state(port, SNK_DEBOUNCED, 0);
 		break;
 	case SNK_READY:
-		if (tcpm_port_is_disconnected(port))
+		/*
+		 * EXIT condition is based primarily on vbus disconnect and CC is secondary.
+		 * "A port that has entered into USB PD communications with the Source and
+		 * has seen the CC voltage exceed vRd-USB may monitor the CC pin to detect
+		 * cable disconnect in addition to monitoring VBUS.
+		 *
+		 * A port that is monitoring the CC voltage for disconnect (but is not in
+		 * the process of a USB PD PR_Swap or USB PD FR_Swap) shall transition to
+		 * Unattached.SNK within tSinkDisconnect after the CC voltage remains below
+		 * vRd-USB for tPDDebounce."
+		 *
+		 * When set_auto_vbus_discharge_threshold is enabled, CC pins go
+		 * away before vbus decays to disconnect threshold. Allow
+		 * disconnect to be driven by vbus disconnect when auto vbus
+		 * discharge is enabled.
+		 */
+		if (!port->auto_vbus_discharge_enabled && tcpm_port_is_disconnected(port))
 			tcpm_set_state(port, unattached_state(port), 0);
 		else if (!port->pd_capable &&
 			 (cc1 != old_cc1 || cc2 != old_cc2))
@@ -4802,9 +4830,13 @@ static void _tcpm_cc_change(struct tcpm_port *port, enum typec_cc_status cc1,
 		 * Ignore CC changes here.
 		 */
 		break;
-
 	default:
-		if (tcpm_port_is_disconnected(port))
+		/*
+		 * While acting as sink and auto vbus discharge is enabled, Allow disconnect
+		 * to be driven by vbus disconnect.
+		 */
+		if (tcpm_port_is_disconnected(port) && !(port->pwr_role == TYPEC_SINK &&
+							 port->auto_vbus_discharge_enabled))
 			tcpm_set_state(port, unattached_state(port), 0);
 		break;
 	}
@@ -4968,8 +5000,16 @@ static void _tcpm_pd_vbus_off(struct tcpm_port *port)
 	case SRC_TRANSITION_SUPPLY:
 	case SRC_READY:
 	case SRC_WAIT_NEW_CAPABILITIES:
-		/* Force to unattached state to re-initiate connection */
-		tcpm_set_state(port, SRC_UNATTACHED, 0);
+		/*
+		 * Force to unattached state to re-initiate connection.
+		 * DRP port should move to Unattached.SNK instead of Unattached.SRC if
+		 * sink removed. Although sink removal here is due to source's vbus collapse,
+		 * treat it the same way for consistency.
+		 */
+		if (port->port_type == TYPEC_PORT_SRC)
+			tcpm_set_state(port, SRC_UNATTACHED, tcpm_wait_for_discharge(port));
+		else
+			tcpm_set_state(port, SNK_UNATTACHED, tcpm_wait_for_discharge(port));
 		break;
 
 	case PORT_RESET:
@@ -4988,9 +5028,8 @@ static void _tcpm_pd_vbus_off(struct tcpm_port *port)
 		break;
 
 	default:
-		if (port->pwr_role == TYPEC_SINK &&
-		    port->attached)
-			tcpm_set_state(port, SNK_UNATTACHED, 0);
+		if (port->pwr_role == TYPEC_SINK && port->attached)
+			tcpm_set_state(port, SNK_UNATTACHED, tcpm_wait_for_discharge(port));
 		break;
 	}
 }
@@ -5012,7 +5051,23 @@ static void _tcpm_pd_vbus_vsafe0v(struct tcpm_port *port)
 			tcpm_set_state(port, tcpm_try_snk(port) ? SNK_TRY : SRC_ATTACHED,
 				       PD_T_CC_DEBOUNCE);
 		break;
+	case SRC_STARTUP:
+	case SRC_SEND_CAPABILITIES:
+	case SRC_SEND_CAPABILITIES_TIMEOUT:
+	case SRC_NEGOTIATE_CAPABILITIES:
+	case SRC_TRANSITION_SUPPLY:
+	case SRC_READY:
+	case SRC_WAIT_NEW_CAPABILITIES:
+		if (port->auto_vbus_discharge_enabled) {
+			if (port->port_type == TYPEC_PORT_SRC)
+				tcpm_set_state(port, SRC_UNATTACHED, 0);
+			else
+				tcpm_set_state(port, SNK_UNATTACHED, 0);
+		}
+		break;
 	default:
+		if (port->pwr_role == TYPEC_SINK && port->auto_vbus_discharge_enabled)
+			tcpm_set_state(port, SNK_UNATTACHED, 0);
 		break;
 	}
 }