diff --git a/drivers/usb/pd/policy_engine.c b/drivers/usb/pd/policy_engine.c
index 2bc70d1cf6fa..e193182af225 100644
--- a/drivers/usb/pd/policy_engine.c
+++ b/drivers/usb/pd/policy_engine.c
@@ -274,7 +274,7 @@ struct usbpd {
 	struct extcon_dev	*extcon;
 
 	enum usbpd_state	current_state;
-	bool			hard_reset;
+	bool			hard_reset_recvd;
 	u8			rx_msg_type;
 	u8			rx_msg_len;
 	u32			rx_payload[7];
@@ -487,16 +487,12 @@ static int pd_eval_src_caps(struct usbpd *pd, const u32 *src_caps)
 
 static void pd_send_hard_reset(struct usbpd *pd)
 {
-	int ret;
-
 	usbpd_dbg(&pd->dev, "send hard reset");
 
 	/* Force CC logic to source/sink to keep Rp/Rd unchanged */
 	set_power_role(pd, pd->current_pr);
 	pd->hard_reset_count++;
-	ret = pd_phy_signal(HARD_RESET_SIG, 5); /* tHardResetComplete */
-	if (!ret)
-		pd->hard_reset = true;
+	pd_phy_signal(HARD_RESET_SIG, 5); /* tHardResetComplete */
 	pd->in_pr_swap = false;
 }
 
@@ -522,7 +518,7 @@ static void phy_sig_received(struct usbpd *pd, enum pd_sig_type type)
 
 	/* Force CC logic to source/sink to keep Rp/Rd unchanged */
 	set_power_role(pd, pd->current_pr);
-	pd->hard_reset = true;
+	pd->hard_reset_recvd = true;
 	kick_sm(pd, 0);
 }
 
@@ -753,40 +749,6 @@ static void usbpd_set_state(struct usbpd *pd, enum usbpd_state next_state)
 		kobject_uevent(&pd->dev.kobj, KOBJ_CHANGE);
 		break;
 
-	case PE_SRC_TRANSITION_TO_DEFAULT:
-		pd->hard_reset = false;
-
-		if (pd->vconn_enabled)
-			regulator_disable(pd->vconn);
-		regulator_disable(pd->vbus);
-
-		if (pd->current_dr != DR_DFP) {
-			extcon_set_cable_state_(pd->extcon, EXTCON_USB, 0);
-			pd->current_dr = DR_DFP;
-			pd_phy_update_roles(pd->current_dr, pd->current_pr);
-		}
-
-		msleep(SRC_RECOVER_TIME);
-
-		ret = regulator_enable(pd->vbus);
-		if (ret)
-			usbpd_err(&pd->dev, "Unable to enable vbus\n");
-
-		if (pd->vconn_enabled) {
-			ret = regulator_enable(pd->vconn);
-			if (ret) {
-				usbpd_err(&pd->dev, "Unable to enable vconn\n");
-				pd->vconn_enabled = false;
-			}
-		}
-
-		val.intval = 0;
-		power_supply_set_property(pd->usb_psy,
-				POWER_SUPPLY_PROP_PD_IN_HARD_RESET, &val);
-
-		usbpd_set_state(pd, PE_SRC_STARTUP);
-		break;
-
 	case PE_SRC_HARD_RESET:
 	case PE_SNK_HARD_RESET:
 		/* hard reset may sleep; handle it in the workqueue */
@@ -1403,7 +1365,7 @@ static void usbpd_sm(struct work_struct *w)
 		pd->in_pr_swap = false;
 		pd->pd_connected = false;
 		pd->in_explicit_contract = false;
-		pd->hard_reset = false;
+		pd->hard_reset_recvd = false;
 		pd->caps_count = 0;
 		pd->hard_reset_count = 0;
 		pd->src_cap_id = 0;
@@ -1456,7 +1418,9 @@ static void usbpd_sm(struct work_struct *w)
 	}
 
 	/* Hard reset? */
-	if (pd->hard_reset) {
+	if (pd->hard_reset_recvd) {
+		pd->hard_reset_recvd = false;
+
 		val.intval = 1;
 		power_supply_set_property(pd->usb_psy,
 				POWER_SUPPLY_PROP_PD_IN_HARD_RESET, &val);
@@ -1464,10 +1428,12 @@ static void usbpd_sm(struct work_struct *w)
 		pd->in_pr_swap = false;
 		reset_vdm_state(pd);
 
-		if (pd->current_pr == PR_SINK)
+		if (pd->current_pr == PR_SINK) {
 			usbpd_set_state(pd, PE_SNK_TRANSITION_TO_DEFAULT);
-		else
-			usbpd_set_state(pd, PE_SRC_TRANSITION_TO_DEFAULT);
+		} else {
+			pd->current_state = PE_SRC_TRANSITION_TO_DEFAULT;
+			kick_sm(pd, PS_HARD_RESET_TIME);
+		}
 
 		goto sm_done;
 	}
@@ -1632,6 +1598,38 @@ static void usbpd_sm(struct work_struct *w)
 		}
 		break;
 
+	case PE_SRC_TRANSITION_TO_DEFAULT:
+		if (pd->vconn_enabled)
+			regulator_disable(pd->vconn);
+		regulator_disable(pd->vbus);
+
+		if (pd->current_dr != DR_DFP) {
+			extcon_set_cable_state_(pd->extcon, EXTCON_USB, 0);
+			pd->current_dr = DR_DFP;
+			pd_phy_update_roles(pd->current_dr, pd->current_pr);
+		}
+
+		msleep(SRC_RECOVER_TIME);
+
+		ret = regulator_enable(pd->vbus);
+		if (ret)
+			usbpd_err(&pd->dev, "Unable to enable vbus\n");
+
+		if (pd->vconn_enabled) {
+			ret = regulator_enable(pd->vconn);
+			if (ret) {
+				usbpd_err(&pd->dev, "Unable to enable vconn\n");
+				pd->vconn_enabled = false;
+			}
+		}
+
+		val.intval = 0;
+		power_supply_set_property(pd->usb_psy,
+				POWER_SUPPLY_PROP_PD_IN_HARD_RESET, &val);
+
+		usbpd_set_state(pd, PE_SRC_STARTUP);
+		break;
+
 	case PE_SRC_HARD_RESET:
 		val.intval = 1;
 		power_supply_set_property(pd->usb_psy,
@@ -1641,9 +1639,8 @@ static void usbpd_sm(struct work_struct *w)
 		pd->in_explicit_contract = false;
 		reset_vdm_state(pd);
 
-		usleep_range(PS_HARD_RESET_TIME * USEC_PER_MSEC,
-				(PS_HARD_RESET_TIME + 5) * USEC_PER_MSEC);
-		usbpd_set_state(pd, PE_SRC_TRANSITION_TO_DEFAULT);
+		pd->current_state = PE_SRC_TRANSITION_TO_DEFAULT;
+		kick_sm(pd, PS_HARD_RESET_TIME);
 		break;
 
 	case PE_SNK_STARTUP:
@@ -1829,8 +1826,6 @@ static void usbpd_sm(struct work_struct *w)
 		break;
 
 	case PE_SNK_TRANSITION_TO_DEFAULT:
-		pd->hard_reset = false;
-
 		val.intval = 0;
 		power_supply_set_property(pd->usb_psy,
 				POWER_SUPPLY_PROP_PD_IN_HARD_RESET, &val);
@@ -2117,11 +2112,11 @@ static int psy_changed(struct notifier_block *nb, unsigned long evt, void *ptr)
 		 * During hard reset when VBUS goes to 0 the CC logic
 		 * will report this as a disconnection. In those cases
 		 * it can be ignored, however the downside is that
-		 * pd->hard_reset can be momentarily true even when a
-		 * non-PD capable source is attached, and can't be
-		 * distinguished from a physical disconnect. In that
-		 * case, allow for the common case of disconnecting
-		 * from an SDP.
+		 * we can also happen to be in the SNK_Transition_to_default
+		 * state due to a hard reset attempt even with a non-PD
+		 * capable source, in which a physical disconnect may get
+		 * masked. In that case, allow for the common case of
+		 * disconnecting from an SDP.
 		 *
 		 * The less common case is a PD-capable SDP which will
 		 * result in a hard reset getting treated like a