direction = !dwc->ep0_expect_in;
                dwc->delayed_status = false;
+               usb_gadget_set_state(&dwc->gadget, USB_STATE_CONFIGURED);
 
                if (dwc->ep0state == EP0_STATUS_PHASE)
                        __dwc3_ep0_do_control_status(dwc, dwc->eps[direction]);
                ret = dwc3_ep0_delegate_req(dwc, ctrl);
                /* if the cfg matches and the cfg is non zero */
                if (cfg && (!ret || (ret == USB_GADGET_DELAYED_STATUS))) {
-                       usb_gadget_set_state(&dwc->gadget,
-                                       USB_STATE_CONFIGURED);
+
+                       /*
+                        * only change state if set_config has already
+                        * been processed. If gadget driver returns
+                        * USB_GADGET_DELAYED_STATUS, we will wait
+                        * to change the state on the next usb_ep_queue()
+                        */
+                       if (ret == 0)
+                               usb_gadget_set_state(&dwc->gadget,
+                                               USB_STATE_CONFIGURED);
 
                        /*
                         * Enable transition to U1/U2 state when