diff --git a/drivers/i3c/i3c_ccc.c b/drivers/i3c/i3c_ccc.c
index da914a233b7..a19184ce053 100644
--- a/drivers/i3c/i3c_ccc.c
+++ b/drivers/i3c/i3c_ccc.c
@@ -130,7 +130,8 @@ int i3c_ccc_do_setdasa(const struct i3c_device_desc *target)
 	 * Note that the 7-bit address needs to start at bit 1
 	 * (aka left-justified). So shift left by 1;
 	 */
-	dyn_addr = target->static_addr << 1;
+	dyn_addr = (target->init_dynamic_addr ?
+				target->init_dynamic_addr : target->static_addr) << 1;
 
 	ccc_tgt_payload.addr = target->static_addr;
 	ccc_tgt_payload.rnw = 0;
diff --git a/drivers/i3c/i3c_common.c b/drivers/i3c/i3c_common.c
index fea6634bb28..7f00217440b 100644
--- a/drivers/i3c/i3c_common.c
+++ b/drivers/i3c/i3c_common.c
@@ -402,23 +402,13 @@ static int i3c_bus_setdasa(const struct device *dev,
 			continue;
 		}
 
-		/*
-		 * If there is a desired dynamic address and it is
-		 * not the same as the static address, wait till
-		 * ENTDAA to do address assignment as this is
-		 * no longer SETDASA.
-		 */
-		if ((desc->init_dynamic_addr != 0U) &&
-		    (desc->init_dynamic_addr != desc->static_addr)) {
-			*need_daa = true;
-			continue;
-		}
-
 		LOG_DBG("SETDASA for 0x%x", desc->static_addr);
 
 		ret = i3c_ccc_do_setdasa(desc);
 		if (ret == 0) {
-			desc->dynamic_addr = desc->static_addr;
+			desc->dynamic_addr = (desc->init_dynamic_addr ? desc->init_dynamic_addr
+								      : desc->static_addr);
+			i3c_reattach_i3c_device(desc, desc->static_addr);
 		} else {
 			LOG_ERR("SETDASA error on address 0x%x (%d)",
 				desc->static_addr, ret);
diff --git a/include/zephyr/drivers/i3c.h b/include/zephyr/drivers/i3c.h
index 3f6fb332fc3..57501de7979 100644
--- a/include/zephyr/drivers/i3c.h
+++ b/include/zephyr/drivers/i3c.h
@@ -487,6 +487,23 @@ __subsystem struct i3c_driver_api {
 	 */
 	int (*recover_bus)(const struct device *dev);
 
+	/**
+	 * I3C Address Update
+	 *
+	 * Optional Controller only API.
+	 *
+	 * @see i3c_reattach_i3c_device
+	 *
+	 * @param dev Pointer to controller device driver instance.
+	 * @param target Pointer to target device descriptor.
+	 * @param old_dyn_addr Old dynamic address
+	 *
+	 * @return @see i3c_reattach_i3c_device
+	 */
+	int (*reattach_i3c_device)(const struct device *dev,
+			struct i3c_device_desc *target,
+			uint8_t old_dyn_addr);
+
 	/**
 	 * Perform Dynamic Address Assignment via ENTDAA.
 	 *
@@ -1083,6 +1100,37 @@ static inline int i3c_recover_bus(const struct device *dev)
 	return api->recover_bus(dev);
 }
 
+/**
+ * @brief Reattach I3C device
+ *
+ * called after every time an I3C device has its address
+ * changed. It can be because the device has been powered
+ * down and has lost its address, or it can happen when a
+ * device had a static address and has been assigned a
+ * dynamic address with SETDASA or a dynamic address has
+ * been updated with SETNEWDA.
+ * This method is optional.
+ *
+ * @param target Pointer to the target device descriptor
+ * @param old_dyn_addr The old dynamic address of target device, 0 if
+ *            there was no old dynamic address
+ *
+ * @retval 0 If successful.
+ * @retval -EINVAL If address is not available
+ */
+static inline int i3c_reattach_i3c_device(struct i3c_device_desc *target,
+			uint8_t old_dyn_addr)
+{
+	const struct i3c_driver_api *api =
+		(const struct i3c_driver_api *)target->bus->api;
+
+	if (api->reattach_i3c_device == NULL) {
+		return -ENOSYS;
+	}
+
+	return api->reattach_i3c_device(target->bus, target, old_dyn_addr);
+}
+
 /**
  * @brief Perform Dynamic Address Assignment on the I3C bus.
  *