diff --git a/drivers/adc/adc_mcux_adc16.c b/drivers/adc/adc_mcux_adc16.c
index cf721b8baea..7ab59b02f2f 100644
--- a/drivers/adc/adc_mcux_adc16.c
+++ b/drivers/adc/adc_mcux_adc16.c
@@ -76,7 +76,7 @@ struct mcux_adc16_data {
 
 #ifdef CONFIG_ADC_MCUX_ADC16_ENABLE_EDMA
 static void adc_dma_callback(const struct device *dma_dev, void *callback_arg,
-			     uint32_t channel, int error_code)
+			     uint32_t channel, int status)
 {
 	const struct device *dev = (const struct device *)callback_arg;
 	struct mcux_adc16_data *data = dev->data;
diff --git a/drivers/adc/adc_stm32.c b/drivers/adc/adc_stm32.c
index cace4eeaf6f..aceeea425db 100644
--- a/drivers/adc/adc_stm32.c
+++ b/drivers/adc/adc_stm32.c
@@ -782,9 +782,9 @@ static void dma_callback(const struct device *dev, void *user_data,
 
 	if (channel == data->dma.channel) {
 #if !defined(CONFIG_SOC_SERIES_STM32F1X)
-		if (LL_ADC_IsActiveFlag_OVR(adc) || (status == 0)) {
+		if (LL_ADC_IsActiveFlag_OVR(adc) || (status >= 0)) {
 #else
-		if (status == 0) {
+		if (status >= 0) {
 #endif /* !defined(CONFIG_SOC_SERIES_STM32F1X) */
 			data->samples_count = data->channel_count;
 			data->buffer += data->channel_count;
@@ -801,7 +801,7 @@ static void dma_callback(const struct device *dev, void *user_data,
 			 * the address is in a non-cacheable SRAM region.
 			 */
 			adc_context_on_sampling_done(&data->ctx, dev);
-		} else {
+		} else if (status < 0) {
 			LOG_ERR("DMA sampling complete, but DMA reported error %d", status);
 			data->dma_error = status;
 			LL_ADC_REG_StopConversion(adc);
diff --git a/drivers/dma/dma_dw_common.c b/drivers/dma/dma_dw_common.c
index 70b820b345f..722272e58e4 100644
--- a/drivers/dma/dma_dw_common.c
+++ b/drivers/dma/dma_dw_common.c
@@ -70,7 +70,7 @@ void dw_dma_isr(const struct device *dev)
 			 */
 			chan_data->dma_blkcallback(dev,
 						   chan_data->blkuser_data,
-						   channel, 0);
+						   channel, DMA_STATUS_BLOCK);
 		}
 	}
 
@@ -89,7 +89,7 @@ void dw_dma_isr(const struct device *dev)
 			LOG_DBG("Dispatching transfer callback");
 			chan_data->dma_tfrcallback(dev,
 						   chan_data->tfruser_data,
-						   channel, 0);
+						   channel, DMA_STATUS_COMPLETE);
 		}
 	}
 }
diff --git a/drivers/dma/dma_iproc_pax_v1.c b/drivers/dma/dma_iproc_pax_v1.c
index f8fc4a694f3..ba1450d6d8e 100644
--- a/drivers/dma/dma_iproc_pax_v1.c
+++ b/drivers/dma/dma_iproc_pax_v1.c
@@ -467,7 +467,7 @@ static int process_cmpl_event(const struct device *dev,
 			      enum ring_idx idx, uint32_t pl_len)
 {
 	struct dma_iproc_pax_data *pd = dev->data;
-	uint32_t wr_offs, rd_offs, ret = 0;
+	uint32_t wr_offs, rd_offs, ret = DMA_STATUS_COMPLETE;
 	struct dma_iproc_pax_ring_data *ring = &(pd->ring[idx]);
 	struct cmpl_pkt *c;
 	uint32_t is_outstanding;
diff --git a/drivers/dma/dma_mcux_edma.c b/drivers/dma/dma_mcux_edma.c
index 30baae4884f..ac56036b70c 100644
--- a/drivers/dma/dma_mcux_edma.c
+++ b/drivers/dma/dma_mcux_edma.c
@@ -120,14 +120,14 @@ static bool data_size_valid(const size_t data_size)
 static void nxp_edma_callback(edma_handle_t *handle, void *param, bool transferDone,
 			      uint32_t tcds)
 {
-	int ret = 1;
+	int ret = -EIO;
 	struct call_back *data = (struct call_back *)param;
 	uint32_t channel = handle->channel;
 
 	if (transferDone) {
 		/* DMA is no longer busy when there are no remaining TCDs to transfer */
 		data->busy = (handle->tcdPool != NULL) && (handle->tcdUsed > 0);
-		ret = 0;
+		ret = DMA_STATUS_COMPLETE;
 	}
 	LOG_DBG("transfer %d", tcds);
 	data->dma_callback(data->dev, data->user_data, channel, ret);
diff --git a/drivers/dma/dma_mcux_lpc.c b/drivers/dma/dma_mcux_lpc.c
index 49ead1fc64e..027fe627965 100644
--- a/drivers/dma/dma_mcux_lpc.c
+++ b/drivers/dma/dma_mcux_lpc.c
@@ -58,12 +58,12 @@ struct dma_mcux_lpc_dma_data {
 static void nxp_lpc_dma_callback(dma_handle_t *handle, void *param,
 			      bool transferDone, uint32_t intmode)
 {
-	int ret = 1;
+	int ret = -EIO;
 	struct call_back *data = (struct call_back *)param;
 	uint32_t channel = handle->channel;
 
 	if (transferDone) {
-		ret = 0;
+		ret = DMA_STATUS_COMPLETE;
 	}
 
 	if (intmode == kDMA_IntError) {
diff --git a/drivers/dma/dma_nios2_msgdma.c b/drivers/dma/dma_nios2_msgdma.c
index f8fd29bf214..ccc7b1e58ad 100644
--- a/drivers/dma/dma_nios2_msgdma.c
+++ b/drivers/dma/dma_nios2_msgdma.c
@@ -45,22 +45,22 @@ static void nios2_msgdma_callback(void *context)
 {
 	struct nios2_msgdma_dev_data *dev_data =
 		(struct nios2_msgdma_dev_data *)context;
-	int err_code;
+	int dma_status;
 	uint32_t status;
 
 	status = IORD_ALTERA_MSGDMA_CSR_STATUS(dev_data->msgdma_dev->csr_base);
 
 	if (status & ALTERA_MSGDMA_CSR_STOPPED_ON_ERROR_MASK) {
-		err_code = -EIO;
+		dma_status = -EIO;
 	} else if (status & ALTERA_MSGDMA_CSR_BUSY_MASK) {
-		err_code = -EBUSY;
+		dma_status = -EBUSY;
 	} else {
-		err_code = 0;
+		dma_status = DMA_STATUS_COMPLETE;
 	}
 
 	LOG_DBG("msgdma csr status Reg: 0x%x", status);
 
-	dev_data->dma_callback(dev_data->dev, dev_data->user_data, 0, err_code);
+	dev_data->dma_callback(dev_data->dev, dev_data->user_data, 0, dma_status);
 }
 
 static int nios2_msgdma_config(const struct device *dev, uint32_t channel,
diff --git a/drivers/dma/dma_stm32.c b/drivers/dma/dma_stm32.c
index fe3d3423520..b9cde124d8d 100644
--- a/drivers/dma/dma_stm32.c
+++ b/drivers/dma/dma_stm32.c
@@ -118,7 +118,7 @@ static void dma_stm32_irq_handler(const struct device *dev, uint32_t id)
 		if (!stream->hal_override) {
 			dma_stm32_clear_ht(dma, id);
 		}
-		stream->dma_callback(dev, stream->user_data, callback_arg, 0);
+		stream->dma_callback(dev, stream->user_data, callback_arg, DMA_STATUS_BLOCK);
 	} else if (stm32_dma_is_tc_irq_active(dma, id)) {
 #ifdef CONFIG_DMAMUX_STM32
 		stream->busy = false;
@@ -127,7 +127,7 @@ static void dma_stm32_irq_handler(const struct device *dev, uint32_t id)
 		if (!stream->hal_override) {
 			dma_stm32_clear_tc(dma, id);
 		}
-		stream->dma_callback(dev, stream->user_data, callback_arg, 0);
+		stream->dma_callback(dev, stream->user_data, callback_arg, DMA_STATUS_COMPLETE);
 	} else if (stm32_dma_is_unexpected_irq_happened(dma, id)) {
 		LOG_ERR("Unexpected irq happened.");
 		stream->dma_callback(dev, stream->user_data,
diff --git a/drivers/dma/dma_stm32u5.c b/drivers/dma/dma_stm32u5.c
index 9fb75d1c286..db58dbd2170 100644
--- a/drivers/dma/dma_stm32u5.c
+++ b/drivers/dma/dma_stm32u5.c
@@ -251,13 +251,13 @@ static void dma_stm32_irq_handler(const struct device *dev, uint32_t id)
 		if (!stream->hal_override) {
 			dma_stm32_clear_ht(dma, id);
 		}
-		stream->dma_callback(dev, stream->user_data, callback_arg, 0);
+		stream->dma_callback(dev, stream->user_data, callback_arg, DMA_STATUS_BLOCK);
 	} else if (stm32_dma_is_tc_irq_active(dma, id)) {
 		/* Let HAL DMA handle flags on its own */
 		if (!stream->hal_override) {
 			dma_stm32_clear_tc(dma, id);
 		}
-		stream->dma_callback(dev, stream->user_data, callback_arg, 0);
+		stream->dma_callback(dev, stream->user_data, callback_arg, DMA_STATUS_COMPLETE);
 	} else {
 		LOG_ERR("Transfer Error.");
 		dma_stm32_dump_stream_irq(dev, id);
diff --git a/drivers/flash/flash_stm32_ospi.c b/drivers/flash/flash_stm32_ospi.c
index 0b924296610..17c3fe8f267 100644
--- a/drivers/flash/flash_stm32_ospi.c
+++ b/drivers/flash/flash_stm32_ospi.c
@@ -1299,7 +1299,7 @@ static void ospi_dma_callback(const struct device *dev, void *arg,
 
 	ARG_UNUSED(dev);
 
-	if (status != 0) {
+	if (status < 0) {
 		LOG_ERR("DMA callback error with channel %d.", channel);
 	}
 
diff --git a/drivers/i2s/i2s_ll_stm32.c b/drivers/i2s/i2s_ll_stm32.c
index 8596dbb4ece..62db351e434 100644
--- a/drivers/i2s/i2s_ll_stm32.c
+++ b/drivers/i2s/i2s_ll_stm32.c
@@ -524,7 +524,7 @@ static void dma_rx_callback(const struct device *dma_dev, void *arg,
 	void *mblk_tmp;
 	int ret;
 
-	if (status != 0) {
+	if (status < 0) {
 		ret = -EIO;
 		stream->state = I2S_STATE_ERROR;
 		goto rx_disable;
@@ -591,7 +591,7 @@ static void dma_tx_callback(const struct device *dma_dev, void *arg,
 	size_t mem_block_size;
 	int ret;
 
-	if (status != 0) {
+	if (status < 0) {
 		ret = -EIO;
 		stream->state = I2S_STATE_ERROR;
 		goto tx_disable;
diff --git a/drivers/i2s/i2s_mcux_flexcomm.c b/drivers/i2s/i2s_mcux_flexcomm.c
index b5677bb36f0..a23548216eb 100644
--- a/drivers/i2s/i2s_mcux_flexcomm.c
+++ b/drivers/i2s/i2s_mcux_flexcomm.c
@@ -457,9 +457,9 @@ static void i2s_mcux_dma_tx_callback(const struct device *dma_dev, void *arg,
 			dma_start(stream->dev_dma, stream->channel);
 		}
 
-		if (ret || status) {
+		if (ret || status < 0) {
 			/*
-			 * DMA encountered an error (status != 0)
+			 * DMA encountered an error (status < 0)
 			 * or
 			 * No buffers in input queue
 			 */
@@ -490,7 +490,7 @@ static void i2s_mcux_dma_rx_callback(const struct device *dma_dev, void *arg,
 
 	LOG_DBG("rx cb: %d", stream->state);
 
-	if (status != 0) {
+	if (status < 0) {
 		stream->state = I2S_STATE_ERROR;
 		i2s_mcux_rx_stream_disable(dev, false);
 		return;
diff --git a/drivers/serial/uart_mcux_lpuart.c b/drivers/serial/uart_mcux_lpuart.c
index 446be27b143..8edb3da0949 100644
--- a/drivers/serial/uart_mcux_lpuart.c
+++ b/drivers/serial/uart_mcux_lpuart.c
@@ -593,7 +593,7 @@ static int uart_mcux_lpuart_dma_replace_rx_buffer(const struct device *dev)
 }
 
 static void dma_callback(const struct device *dma_dev, void *callback_arg, uint32_t channel,
-			 int error_code)
+			 int dma_status)
 {
 	struct device *dev = (struct device *)callback_arg;
 	const struct mcux_lpuart_config *config = dev->config;
@@ -611,8 +611,8 @@ static void dma_callback(const struct device *dma_dev, void *callback_arg, uint3
 			status.pending_length);
 	}
 
-	if (error_code != 0) {
-		LOG_ERR("Got error : %d", error_code);
+	if (dma_status < 0) {
+		LOG_ERR("Got error : %d", dma_status);
 	}
 
 
diff --git a/drivers/serial/uart_stm32.c b/drivers/serial/uart_stm32.c
index 8762c61380a..55d6b221cbb 100644
--- a/drivers/serial/uart_stm32.c
+++ b/drivers/serial/uart_stm32.c
@@ -1227,7 +1227,7 @@ void uart_stm32_dma_rx_cb(const struct device *dma_dev, void *user_data,
 	const struct device *uart_dev = user_data;
 	struct uart_stm32_data *data = uart_dev->data;
 
-	if (status != 0) {
+	if (status < 0) {
 		async_evt_rx_err(data, status);
 		return;
 	}
diff --git a/drivers/spi/spi_ll_stm32.c b/drivers/spi/spi_ll_stm32.c
index fa66b850d4c..9a3bebdaa4e 100644
--- a/drivers/spi/spi_ll_stm32.c
+++ b/drivers/spi/spi_ll_stm32.c
@@ -61,7 +61,7 @@ static void dma_callback(const struct device *dev, void *arg,
 	/* arg directly holds the spi device */
 	struct spi_stm32_data *data = arg;
 
-	if (status != 0) {
+	if (status < 0) {
 		LOG_ERR("DMA callback error with channel %d.", channel);
 		data->status_flags |= SPI_STM32_DMA_ERROR_FLAG;
 	} else {
diff --git a/drivers/spi/spi_mcux_dspi.c b/drivers/spi/spi_mcux_dspi.c
index eb1d29c39f5..63bccd70499 100644
--- a/drivers/spi/spi_mcux_dspi.c
+++ b/drivers/spi/spi_mcux_dspi.c
@@ -482,7 +482,7 @@ static void dma_callback(const struct device *dma_dev, void *callback_arg,
 
 	LOG_DBG("=dma call back @channel %d=", channel);
 
-	if (error_code) {
+	if (error_code < 0) {
 		LOG_ERR("error happened no callback process %d", error_code);
 		return;
 	}
diff --git a/drivers/spi/spi_mcux_flexcomm.c b/drivers/spi/spi_mcux_flexcomm.c
index 25d24701561..427704892ce 100644
--- a/drivers/spi/spi_mcux_flexcomm.c
+++ b/drivers/spi/spi_mcux_flexcomm.c
@@ -305,7 +305,7 @@ static void spi_mcux_dma_callback(const struct device *dev, void *arg,
 	const struct device *spi_dev = arg;
 	struct spi_mcux_data *data = spi_dev->data;
 
-	if (status != 0) {
+	if (status < 0) {
 		LOG_ERR("DMA callback error with channel %d.", channel);
 		data->status_flags |= SPI_MCUX_FLEXCOMM_DMA_ERROR_FLAG;
 	} else {
diff --git a/drivers/spi/spi_mcux_lpspi.c b/drivers/spi/spi_mcux_lpspi.c
index 9544a3dea48..7976c5d0087 100644
--- a/drivers/spi/spi_mcux_lpspi.c
+++ b/drivers/spi/spi_mcux_lpspi.c
@@ -254,7 +254,7 @@ static void spi_mcux_dma_callback(const struct device *dev, void *arg,
 	const struct device *spi_dev = arg;
 	struct spi_mcux_data *data = (struct spi_mcux_data *)spi_dev->data;
 
-	if (status != 0) {
+	if (status < 0) {
 		LOG_ERR("DMA callback error with channel %d.", channel);
 		data->status_flags |= SPI_MCUX_LPSPI_DMA_ERROR_FLAG;
 	} else {
diff --git a/include/zephyr/drivers/dma.h b/include/zephyr/drivers/dma.h
index 0448543a80d..eb04334101d 100644
--- a/include/zephyr/drivers/dma.h
+++ b/include/zephyr/drivers/dma.h
@@ -136,17 +136,25 @@ struct dma_block_config {
 	uint16_t  reserved :          3;
 };
 
+#define DMA_STATUS_COMPLETE	0
+#define DMA_STATUS_BLOCK	1
+
 /**
  * @typedef dma_callback_t
  * @brief Callback function for DMA transfer completion
  *
- *  If enabled, callback function will be invoked at transfer completion
- *  or when error happens.
+ *  If enabled, callback function will be invoked at transfer or block completion,
+ *  or when an error happens.
+ *  In circular mode, @p status indicates that the DMA device has reached either
+ *  the end of the buffer (DMA_STATUS_COMPLETE) or a water mark (DMA_STATUS_BLOCK).
  *
- * @param dev Pointer to the DMA device calling the callback.
- * @param user_data A pointer to some user data or NULL
- * @param channel The channel number
- * @param status 0 on success, a negative errno otherwise
+ * @param dev           Pointer to the DMA device calling the callback.
+ * @param user_data     A pointer to some user data or NULL
+ * @param channel       The channel number
+ * @param status        - 0-DMA_STATUS_COMPLETE buffer fully consumed
+ *                      - 1-DMA_STATUS_BLOCK buffer consumption reached a configured block
+ *                        or water mark
+ *                      - a negative errno otherwise
  */
 typedef void (*dma_callback_t)(const struct device *dev, void *user_data,
 			       uint32_t channel, int status);
diff --git a/tests/boards/altera_max10/msgdma/src/dma.c b/tests/boards/altera_max10/msgdma/src/dma.c
index f0fbe9c82c7..f02cab1330c 100644
--- a/tests/boards/altera_max10/msgdma/src/dma.c
+++ b/tests/boards/altera_max10/msgdma/src/dma.c
@@ -27,13 +27,13 @@ static struct dma_config dma_cfg = {0};
 static struct dma_block_config dma_block_cfg = {0};
 
 static void dma_user_callback(const struct device *dma_dev, void *arg,
-			      uint32_t id, int error_code)
+			      uint32_t id, int status)
 {
-	if (error_code == 0) {
+	if (status >= 0) {
 		TC_PRINT("DMA completed successfully\n");
 		dma_stat = DMA_OP_STAT_SUCCESS;
 	} else {
-		TC_PRINT("DMA error occurred!! (%d)\n", error_code);
+		TC_PRINT("DMA error occurred!! (%d)\n", status);
 		dma_stat = DMA_OP_STAT_ERR;
 	}
 }
diff --git a/tests/boards/intel_adsp/ssp/src/main.c b/tests/boards/intel_adsp/ssp/src/main.c
index b51d6dcb2d7..67d9e29f79b 100644
--- a/tests/boards/intel_adsp/ssp/src/main.c
+++ b/tests/boards/intel_adsp/ssp/src/main.c
@@ -83,7 +83,7 @@ static __aligned(32) int32_t rx_data[XFERS][BUF_SIZE] = { { 0 } };
 static void dma_callback(const struct device *dma_dev, void *user_data,
 			 uint32_t channel, int status)
 {
-	if (status) {
+	if (status < 0) {
 		TC_PRINT("tx callback status %d\n", status);
 	} else {
 		TC_PRINT("tx giving up\n");
@@ -93,7 +93,7 @@ static void dma_callback(const struct device *dma_dev, void *user_data,
 static void dma_callback_rx(const struct device *dma_dev, void *user_data,
 			    uint32_t channel, int status)
 {
-	if (status) {
+	if (status < 0) {
 		TC_PRINT("rx callback status %d\n", status);
 	} else {
 		TC_PRINT("rx giving xfer_sem\n");
diff --git a/tests/drivers/dma/chan_blen_transfer/src/test_dma.c b/tests/drivers/dma/chan_blen_transfer/src/test_dma.c
index 30785bdad17..d0fa561f37b 100644
--- a/tests/drivers/dma/chan_blen_transfer/src/test_dma.c
+++ b/tests/drivers/dma/chan_blen_transfer/src/test_dma.c
@@ -34,9 +34,9 @@ static char rx_data[RX_BUFF_SIZE] = { 0 };
 #endif
 
 static void test_done(const struct device *dma_dev, void *arg,
-		      uint32_t id, int error_code)
+		      uint32_t id, int status)
 {
-	if (error_code == 0) {
+	if (status >= 0) {
 		TC_PRINT("DMA transfer done\n");
 	} else {
 		TC_PRINT("DMA transfer met an error\n");
diff --git a/tests/drivers/dma/chan_link_transfer/src/test_dma.c b/tests/drivers/dma/chan_link_transfer/src/test_dma.c
index be7dfa455ea..9e55a36f7d4 100644
--- a/tests/drivers/dma/chan_link_transfer/src/test_dma.c
+++ b/tests/drivers/dma/chan_link_transfer/src/test_dma.c
@@ -40,9 +40,9 @@ static char rx_data2[RX_BUFF_SIZE] = { 0 };
 #endif
 
 static void test_done(const struct device *dma_dev, void *arg, uint32_t id,
-		      int error_code)
+		      int status)
 {
-	if (error_code == 0) {
+	if (status >= 0) {
 		TC_PRINT("DMA transfer done ch %d\n", id);
 	} else {
 		TC_PRINT("DMA transfer met an error\n");
diff --git a/tests/drivers/dma/loop_transfer/src/test_dma_loop.c b/tests/drivers/dma/loop_transfer/src/test_dma_loop.c
index 2610d72ced3..59dad035308 100644
--- a/tests/drivers/dma/loop_transfer/src/test_dma_loop.c
+++ b/tests/drivers/dma/loop_transfer/src/test_dma_loop.c
@@ -98,14 +98,14 @@ static void test_transfer(const struct device *dev, uint32_t id)
 }
 
 static void dma_user_callback(const struct device *dma_dev, void *arg,
-			      uint32_t id, int error_code)
+			      uint32_t id, int status)
 {
 	/* test case is done so ignore the interrupt */
 	if (done) {
 		return;
 	}
 
-	zassert_false(error_code, "DMA could not proceed, an error occurred\n");
+	zassert_false(status < 0, "DMA could not proceed, an error occurred\n");
 
 #ifdef CONFIG_DMAMUX_STM32
 	/* the channel is the DMAMUX's one
diff --git a/tests/drivers/dma/scatter_gather/src/test_dma_sg.c b/tests/drivers/dma/scatter_gather/src/test_dma_sg.c
index ca2a2a47997..9e56ac33107 100644
--- a/tests/drivers/dma/scatter_gather/src/test_dma_sg.c
+++ b/tests/drivers/dma/scatter_gather/src/test_dma_sg.c
@@ -44,7 +44,7 @@ static struct dma_block_config dma_block_cfgs[XFERS];
 static void dma_sg_callback(const struct device *dma_dev, void *user_data,
 			    uint32_t channel, int status)
 {
-	if (status) {
+	if (status < 0) {
 		TC_PRINT("callback status %d\n", status);
 	} else {
 		TC_PRINT("giving xfer_sem\n");