diff --git a/include/zephyr/net/net_if.h b/include/zephyr/net/net_if.h
index 754ea7342bf..3b38b785571 100644
--- a/include/zephyr/net/net_if.h
+++ b/include/zephyr/net/net_if.h
@@ -857,7 +857,7 @@ static inline int net_if_set_link_addr_unlocked(struct net_if *iface,
 						uint8_t *addr, uint8_t len,
 						enum net_link_type type)
 {
-	if (net_if_flag_is_set(iface, NET_IF_UP)) {
+	if (net_if_flag_is_set(iface, NET_IF_RUNNING)) {
 		return -EPERM;
 	}
 
diff --git a/subsys/net/ip/net_if.c b/subsys/net/ip/net_if.c
index f8a4d2ebc59..f72b319658c 100644
--- a/subsys/net/ip/net_if.c
+++ b/subsys/net/ip/net_if.c
@@ -4035,6 +4035,21 @@ static inline bool is_iface_offloaded(struct net_if *iface)
 
 static void notify_iface_up(struct net_if *iface)
 {
+	/* In many places it's assumed that link address was set with
+	 * net_if_set_link_addr(). Better check that now.
+	 */
+#if defined(CONFIG_NET_L2_CANBUS_RAW)
+	if (IS_ENABLED(CONFIG_NET_SOCKETS_CAN) &&
+	    (net_if_l2(iface) == &NET_L2_GET_NAME(CANBUS_RAW)))	{
+		/* CAN does not require link address. */
+	} else
+#endif	/* CONFIG_NET_L2_CANBUS_RAW */
+	{
+		if (!is_iface_offloaded(iface)) {
+			NET_ASSERT(net_if_get_link_addr(iface)->addr != NULL);
+		}
+	}
+
 	net_if_flag_set(iface, NET_IF_RUNNING);
 	net_mgmt_event_notify(NET_EVENT_IF_UP, iface);
 	net_virtual_enable(iface);
@@ -4172,19 +4187,6 @@ int net_if_up(struct net_if *iface)
 		goto out;
 	}
 
-	/* In many places it's assumed that link address was set with
-	 * net_if_set_link_addr(). Better check that now.
-	 */
-#if defined(CONFIG_NET_L2_CANBUS_RAW)
-	if (IS_ENABLED(CONFIG_NET_SOCKETS_CAN) &&
-	    (net_if_l2(iface) == &NET_L2_GET_NAME(CANBUS_RAW)))	{
-		/* CAN does not require link address. */
-	} else
-#endif	/* CONFIG_NET_L2_CANBUS_RAW */
-	{
-		NET_ASSERT(net_if_get_link_addr(iface)->addr != NULL);
-	}
-
 done:
 	net_if_flag_set(iface, NET_IF_UP);
 	net_mgmt_event_notify(NET_EVENT_IF_ADMIN_UP, iface);