diff --git a/subsys/net/lib/lwm2m/lwm2m_engine.c b/subsys/net/lib/lwm2m/lwm2m_engine.c
index 651baa30ff6..d4ebf2d62a2 100644
--- a/subsys/net/lib/lwm2m/lwm2m_engine.c
+++ b/subsys/net/lib/lwm2m/lwm2m_engine.c
@@ -592,7 +592,7 @@ static void check_notifications(struct lwm2m_ctx *ctx, const int64_t timestamp)
 			continue;
 		}
 		/* Check That There is not pending process*/
-		if (obs->active_tx_operation) {
+		if (obs->active_notify != NULL) {
 			continue;
 		}
 
diff --git a/subsys/net/lib/lwm2m/lwm2m_message_handling.c b/subsys/net/lib/lwm2m/lwm2m_message_handling.c
index 678f358d1ee..2733f6ed4a8 100644
--- a/subsys/net/lib/lwm2m/lwm2m_message_handling.c
+++ b/subsys/net/lib/lwm2m/lwm2m_message_handling.c
@@ -2823,7 +2823,7 @@ static void notify_message_timeout_cb(struct lwm2m_message *msg)
 						   msg->token, msg->tkl);
 
 		if (obs) {
-			obs->active_tx_operation = false;
+			obs->active_notify = NULL;
 			if (client_ctx->observe_cb) {
 				client_ctx->observe_cb(LWM2M_OBSERVE_EVENT_NOTIFY_TIMEOUT,
 						       &msg->path, msg->reply->user_data);
@@ -2895,7 +2895,7 @@ static int notify_message_reply_cb(const struct coap_packet *response, struct co
 						   reply->token, reply->tkl);
 
 		if (obs) {
-			obs->active_tx_operation = false;
+			obs->active_notify = NULL;
 			if (msg->ctx->observe_cb) {
 				msg->ctx->observe_cb(LWM2M_OBSERVE_EVENT_NOTIFY_ACK,
 						     lwm2m_read_first_path_ptr(&obs->path_list),
@@ -3068,7 +3068,7 @@ msg_init:
 		goto cleanup;
 	}
 
-	obs->active_tx_operation = true;
+	obs->active_notify = msg;
 	obs->resource_update = false;
 	lwm2m_information_interface_send(msg);
 #if defined(CONFIG_LWM2M_RESOURCE_DATA_CACHE_SUPPORT)
diff --git a/subsys/net/lib/lwm2m/lwm2m_observation.c b/subsys/net/lib/lwm2m/lwm2m_observation.c
index 91ab9c1709a..7933ebd8fd3 100644
--- a/subsys/net/lib/lwm2m/lwm2m_observation.c
+++ b/subsys/net/lib/lwm2m/lwm2m_observation.c
@@ -438,7 +438,7 @@ static void engine_observe_node_init(struct observe_node *obs, const uint8_t *to
 		obs->event_timestamp = 0;
 	}
 	obs->resource_update = false;
-	obs->active_tx_operation = false;
+	obs->active_notify = NULL;
 	obs->format = format;
 	obs->counter = OBSERVE_COUNTER_START;
 	sys_slist_append(&ctx->observer, &obs->node);
@@ -596,6 +596,12 @@ static int engine_add_observer(struct lwm2m_message *msg, const uint8_t *token,
 		memcpy(obs->token, token, tkl);
 		obs->tkl = tkl;
 
+		/* Cancel ongoing notification */
+		if (obs->active_notify != NULL) {
+			lwm2m_reset_message(obs->active_notify, true);
+			obs->active_notify = NULL;
+		}
+
 		LOG_DBG("OBSERVER DUPLICATE %u/%u/%u(%u) [%s]", msg->path.obj_id,
 			msg->path.obj_inst_id, msg->path.res_id, msg->path.level,
 			lwm2m_sprint_ip_addr(&msg->ctx->remote_addr));
@@ -679,6 +685,12 @@ static int engine_add_composite_observer(struct lwm2m_message *msg, const uint8_
 		memcpy(obs->token, token, tkl);
 		obs->tkl = tkl;
 
+		/* Cancel ongoing notification */
+		if (obs->active_notify != NULL) {
+			lwm2m_reset_message(obs->active_notify, true);
+			obs->active_notify = NULL;
+		}
+
 		LOG_DBG("OBSERVER Composite DUPLICATE [%s]",
 			lwm2m_sprint_ip_addr(&msg->ctx->remote_addr));
 
diff --git a/subsys/net/lib/lwm2m/lwm2m_observation.h b/subsys/net/lib/lwm2m/lwm2m_observation.h
index 95e60ab0a19..d74df74aab4 100644
--- a/subsys/net/lib/lwm2m/lwm2m_observation.h
+++ b/subsys/net/lib/lwm2m/lwm2m_observation.h
@@ -14,16 +14,16 @@ int lwm2m_notify_observer_path(const struct lwm2m_obj_path *path);
 
 struct observe_node {
 	sys_snode_t node;
-	sys_slist_t path_list;	      /* List of Observation path */
-	uint8_t token[MAX_TOKEN_LEN]; /* Observation Token */
-	int64_t event_timestamp;      /* Timestamp for trig next Notify  */
-	int64_t last_timestamp;	      /* Timestamp from last Notify */
+	sys_slist_t path_list;               /* List of Observation path */
+	uint8_t token[MAX_TOKEN_LEN];        /* Observation Token */
+	int64_t event_timestamp;             /* Timestamp for trig next Notify  */
+	int64_t last_timestamp;	             /* Timestamp from last Notify */
+	struct lwm2m_message *active_notify; /* Currently active notification */
 	uint32_t counter;
 	uint16_t format;
 	uint8_t tkl;
-	bool resource_update : 1;     /* Resource is updated */
-	bool composite : 1;	      /* Composite Observation */
-	bool active_tx_operation : 1; /* Active Notification  process ongoing */
+	bool resource_update : 1;            /* Resource is updated */
+	bool composite : 1;                  /* Composite Observation */
 };
 /* Attribute handling. */
 
diff --git a/tests/net/lib/lwm2m/lwm2m_engine/src/main.c b/tests/net/lib/lwm2m/lwm2m_engine/src/main.c
index bd1d21983dd..ed26380eccd 100644
--- a/tests/net/lib/lwm2m/lwm2m_engine/src/main.c
+++ b/tests/net/lib/lwm2m/lwm2m_engine/src/main.c
@@ -238,7 +238,7 @@ ZTEST(lwm2m_engine, test_check_notifications)
 	obs.last_timestamp = k_uptime_get();
 	obs.event_timestamp = k_uptime_get() + 1000U;
 	obs.resource_update = false;
-	obs.active_tx_operation = false;
+	obs.active_notify = NULL;
 
 	sys_slist_append(&ctx.observer, &obs.node);