diff --git a/include/zephyr/net/conn_mgr_connectivity.h b/include/zephyr/net/conn_mgr_connectivity.h
index 8979e8cdfea..d1b0ea8106a 100644
--- a/include/zephyr/net/conn_mgr_connectivity.h
+++ b/include/zephyr/net/conn_mgr_connectivity.h
@@ -90,6 +90,12 @@ enum conn_mgr_if_flag {
 	CONN_MGR_IF_NO_AUTO_DOWN,
 
 /** @cond INTERNAL_HIDDEN */
+	/**
+	 * Internal flag indicating that the interface is in active (application initiated)
+	 * disconnect.
+	 */
+	CONN_MGR_IF_DISCONNECTING,
+
 	/* Total number of flags - must be at the end of the enum */
 	CONN_MGR_NUM_IF_FLAGS,
 /** @endcond */
diff --git a/include/zephyr/net/conn_mgr_connectivity_impl.h b/include/zephyr/net/conn_mgr_connectivity_impl.h
index 701991e2770..0c71c48f62c 100644
--- a/include/zephyr/net/conn_mgr_connectivity_impl.h
+++ b/include/zephyr/net/conn_mgr_connectivity_impl.h
@@ -57,8 +57,6 @@ struct conn_mgr_conn_api {
 	 * stop any in-progress attempts to associate to a network, the bound iface pointed to by
 	 * if_conn->iface.
 	 *
-	 * Must be non-blocking.
-	 *
 	 * Called by @ref conn_mgr_if_disconnect.
 	 */
 	int (*disconnect)(struct conn_mgr_conn_binding *const binding);
diff --git a/subsys/net/conn_mgr/conn_mgr_connectivity.c b/subsys/net/conn_mgr/conn_mgr_connectivity.c
index 7ffb5367586..5bf8e3f58be 100644
--- a/subsys/net/conn_mgr/conn_mgr_connectivity.c
+++ b/subsys/net/conn_mgr/conn_mgr_connectivity.c
@@ -41,6 +41,8 @@ int conn_mgr_if_connect(struct net_if *iface)
 		}
 	}
 
+	conn_mgr_if_set_flag(iface, CONN_MGR_IF_DISCONNECTING, false);
+
 	status = api->connect(binding);
 
 out:
@@ -49,8 +51,6 @@ out:
 	return status;
 }
 
-static void conn_mgr_conn_if_auto_admin_down(struct net_if *iface);
-
 int conn_mgr_if_disconnect(struct net_if *iface)
 {
 	struct conn_mgr_conn_binding *binding;
@@ -75,21 +75,13 @@ int conn_mgr_if_disconnect(struct net_if *iface)
 		goto out;
 	}
 
+	conn_mgr_if_set_flag(iface, CONN_MGR_IF_DISCONNECTING, true);
+
 	status = api->disconnect(binding);
 
 out:
 	conn_mgr_binding_unlock(binding);
 
-	/* Since the connectivity implementation will not automatically attempt to reconnect after
-	 * a call to conn_mgr_if_disconnect, conn_mgr_conn_if_auto_admin_down should be called.
-	 *
-	 * conn_mgr_conn_handle_iface_down will only call conn_mgr_conn_if_auto_admin_down if
-	 * persistence is disabled. To ensure conn_mgr_conn_if_auto_admin_down is called in all
-	 * cases, we must call it directly from here. If persistence is disabled, this will result
-	 * in conn_mgr_conn_if_auto_admin_down being called twice, but that is not an issue.
-	 */
-	conn_mgr_conn_if_auto_admin_down(iface);
-
 	return status;
 }
 
@@ -306,11 +298,16 @@ static void conn_mgr_conn_handle_iface_down(struct net_if *iface)
 		return;
 	}
 
-	/* If the iface is persistent, we expect it to try to reconnect, so nothing else to do */
-	if (conn_mgr_if_get_flag(iface, CONN_MGR_IF_PERSISTENT)) {
+	/* If the iface is persistent, we expect it to try to reconnect, unless
+	 * disconnect was explicitly initiated by the application.
+	 */
+	if (conn_mgr_if_get_flag(iface, CONN_MGR_IF_PERSISTENT) &&
+	    !conn_mgr_if_get_flag(iface, CONN_MGR_IF_DISCONNECTING)) {
 		return;
 	}
 
+	conn_mgr_if_set_flag(iface, CONN_MGR_IF_DISCONNECTING, false);
+
 	/* Otherwise, we do not expect the iface to reconnect, and we should call
 	 * conn_mgr_conn_if_auto_admin_down
 	 */