diff --git a/drivers/wifi/nrf_wifi/inc/fmac_main.h b/drivers/wifi/nrf_wifi/inc/fmac_main.h
index 0d37a2f2371..23f96089eb6 100644
--- a/drivers/wifi/nrf_wifi/inc/fmac_main.h
+++ b/drivers/wifi/nrf_wifi/inc/fmac_main.h
@@ -85,6 +85,7 @@ struct nrf_wifi_vif_ctx_zep {
 #endif /* CONFIG_NRF70_AP_MODE */
 #ifdef CONFIG_NRF_WIFI_RPU_RECOVERY
 	struct k_work nrf_wifi_rpu_recovery_work;
+	struct k_work_delayable nrf_wifi_rpu_recovery_bringup_work;
 #endif /* CONFIG_NRF_WIFI_RPU_RECOVERY */
 	int rts_threshold_value;
 };
diff --git a/drivers/wifi/nrf_wifi/src/net_if.c b/drivers/wifi/nrf_wifi/src/net_if.c
index aff943127a5..fc8b01b17cb 100644
--- a/drivers/wifi/nrf_wifi/src/net_if.c
+++ b/drivers/wifi/nrf_wifi/src/net_if.c
@@ -73,7 +73,6 @@ static void nrf_wifi_rpu_recovery_work_handler(struct k_work *work)
 								nrf_wifi_rpu_recovery_work);
 	struct nrf_wifi_ctx_zep *rpu_ctx_zep = NULL;
 	int ret;
-	bool recovery_fail = false;
 
 	if (!vif_ctx_zep) {
 		LOG_ERR("%s: vif_ctx_zep is NULL", __func__);
@@ -144,11 +143,27 @@ static void nrf_wifi_rpu_recovery_work_handler(struct k_work *work)
 	ret = net_if_down(vif_ctx_zep->zep_net_if_ctx);
 	if (ret) {
 		rpu_ctx_zep->rpu_recovery_failure++;
-		recovery_fail = true;
 		LOG_ERR("%s: net_if_down failed: %d", __func__, ret);
 		/* Continue with the recovery */
+	} else {
+		rpu_ctx_zep->rpu_recovery_success++;
 	}
-	k_msleep(CONFIG_NRF_WIFI_RPU_RECOVERY_PROPAGATION_DELAY_MS);
+	/* Continue recovery process after delay without blocking system workqueue.
+	 * Mutex is released in the next phase.
+	 */
+	k_work_reschedule(&vif_ctx_zep->nrf_wifi_rpu_recovery_bringup_work,
+			  K_MSEC(CONFIG_NRF_WIFI_RPU_RECOVERY_PROPAGATION_DELAY_MS));
+}
+
+static void nrf_wifi_rpu_recovery_bringup_work_handler(struct k_work *work)
+{
+	struct k_work_delayable *dwork = k_work_delayable_from_work(work);
+	struct nrf_wifi_vif_ctx_zep *vif_ctx_zep = CONTAINER_OF(dwork,
+							struct nrf_wifi_vif_ctx_zep,
+							nrf_wifi_rpu_recovery_bringup_work);
+	struct nrf_wifi_ctx_zep *rpu_ctx_zep = vif_ctx_zep->rpu_ctx_zep;
+	int ret;
+
 #ifdef CONFIG_NRF_WIFI_RPU_RECOVERY_DEBUG
 	LOG_ERR("%s: Bringing the interface up", __func__);
 #else
@@ -160,9 +175,6 @@ static void nrf_wifi_rpu_recovery_work_handler(struct k_work *work)
 	}
 	rpu_ctx_zep->rpu_recovery_in_progress = false;
 	rpu_ctx_zep->last_rpu_recovery_time_ms = k_uptime_get();
-	if (!recovery_fail) {
-		rpu_ctx_zep->rpu_recovery_success++;
-	}
 	k_mutex_unlock(&rpu_ctx_zep->rpu_lock);
 #ifdef CONFIG_NRF_WIFI_RPU_RECOVERY_DEBUG
 	LOG_ERR("%s: RPU recovery done", __func__);
@@ -669,6 +681,8 @@ void nrf_wifi_if_init_zep(struct net_if *iface)
 #ifdef CONFIG_NRF_WIFI_RPU_RECOVERY
 	k_work_init(&vif_ctx_zep->nrf_wifi_rpu_recovery_work,
 		    nrf_wifi_rpu_recovery_work_handler);
+	k_work_init_delayable(&vif_ctx_zep->nrf_wifi_rpu_recovery_bringup_work,
+			      nrf_wifi_rpu_recovery_bringup_work_handler);
 #endif /* CONFIG_NRF_WIFI_RPU_RECOVERY */
 
 #if !defined(CONFIG_NRF_WIFI_IF_AUTO_START)