diff --git a/subsys/net/ip/utils.c b/subsys/net/ip/utils.c
index f130a184bcb..5025e326b80 100644
--- a/subsys/net/ip/utils.c
+++ b/subsys/net/ip/utils.c
@@ -864,8 +864,8 @@ static bool parse_ipv4(const char *str, size_t str_len,
 		return true;
 	}
 
-	memcpy(ipaddr, ptr + 1, str_len - end);
-	ipaddr[str_len - end] = '\0';
+	memcpy(ipaddr, ptr + 1, str_len - end - 1);
+	ipaddr[str_len - end - 1] = '\0';
 
 	ret = convert_port(ipaddr, &port);
 	if (!ret) {
diff --git a/tests/net/utils/src/main.c b/tests/net/utils/src/main.c
index a4ef8db7e0e..15a51e8ca73 100644
--- a/tests/net/utils/src/main.c
+++ b/tests/net/utils/src/main.c
@@ -532,6 +532,21 @@ ZTEST(test_utils_fn, test_addr_parse)
 			},
 			.verdict = true
 		},
+		{
+			.address = "192.0.2.3:80/foobar",
+			.len = sizeof("192.0.2.3:80") - 1,
+			.result = {
+				.sin_family = AF_INET,
+				.sin_port = htons(80),
+				.sin_addr = {
+					.s4_addr[0] = 192,
+					.s4_addr[1] = 0,
+					.s4_addr[2] = 2,
+					.s4_addr[3] = 3
+				}
+			},
+			.verdict = true
+		},
 		{
 			.address = "192.0.2.3/foobar",
 			.len = sizeof("192.0.2.3/foobar") - 1,