diff --git a/subsys/net/ip/net_context.c b/subsys/net/ip/net_context.c
index 26937bd0b9997..3126da3dcc329 100644
--- a/subsys/net/ip/net_context.c
+++ b/subsys/net/ip/net_context.c
@@ -553,6 +553,13 @@ int net_context_get(sa_family_t family, enum net_sock_type type, uint16_t proto,
 	k_sem_give(&contexts_lock);
 
 	if (ret < 0) {
+		if (ret == -EADDRINUSE &&
+		    !net_if_is_ip_offloaded(net_if_get_default()) &&
+		    proto == IPPROTO_TCP) {
+			/* Free the TCP context that we allocated earlier */
+			net_tcp_put(&contexts[i]);
+		}
+
 		return ret;
 	}