memcpy(&ndlp->active_rrqs.xri_bitmap,
                                &rrq.xri_bitmap,
                                sizeof(ndlp->active_rrqs.xri_bitmap));
-               lpfc_nlp_set_state(vport, ndlp, NLP_STE_NPR_NODE);
                /* Since we are swapping the ndlp passed in with the new one
                 * and the did has already been swapped, copy over the
                 * state and names.
                memcpy(&new_ndlp->nlp_nodename, &ndlp->nlp_nodename,
                        sizeof(struct lpfc_name));
                new_ndlp->nlp_state = ndlp->nlp_state;
+               lpfc_nlp_set_state(vport, ndlp, NLP_STE_NPR_NODE);
                /* Fix up the rport accordingly */
                rport = ndlp->rport;
                if (rport) {
 
                        continue;
                }
 
+               /* take care of nodes in unused state before the state
+                * machine taking action.
+                */
+               if (ndlp->nlp_state == NLP_STE_UNUSED_NODE) {
+                       lpfc_nlp_put(ndlp);
+                       continue;
+               }
+
                if (ndlp->nlp_type & NLP_FABRIC)
                        lpfc_disc_state_machine(vport, ndlp, NULL,
                                        NLP_EVT_DEVICE_RECOVERY);
 
                lpfc_disc_state_machine(vport, ndlp, NULL,
                                             NLP_EVT_DEVICE_RM);
-
        }
 
        /* At this point, ALL ndlp's should be gone