diff --git a/include/kernel.h b/include/kernel.h
index b51a67b466b..5af88c2eeda 100644
--- a/include/kernel.h
+++ b/include/kernel.h
@@ -233,6 +233,17 @@ extern void k_thread_foreach_unlocked(
  */
 #define K_INHERIT_PERMS (BIT(3))
 
+/**
+ * @brief Callback item state
+ *
+ * @details
+ * This is a single bit of state reserved for "callback manager"
+ * utilities (p4wq initially) who need to track operations invoked
+ * from within a user-provided callback they have been invoked.
+ * Effectively it serves as a tiny bit of zero-overhead TLS data.
+ */
+#define K_CALLBACK_STATE (BIT(4))
+
 #ifdef CONFIG_X86
 /* x86 Bitmask definitions for threads user options */
 
diff --git a/lib/os/p4wq.c b/lib/os/p4wq.c
index 60553546020..ca98a578997 100644
--- a/lib/os/p4wq.c
+++ b/lib/os/p4wq.c
@@ -36,6 +36,21 @@ static bool rb_lessthan(struct rbnode *a, struct rbnode *b)
 	return (uintptr_t)a < (uintptr_t)b;
 }
 
+static void thread_set_requeued(struct k_thread *th)
+{
+	th->base.user_options |= K_CALLBACK_STATE;
+}
+
+static void thread_clear_requeued(struct k_thread *th)
+{
+	th->base.user_options &= ~K_CALLBACK_STATE;
+}
+
+static bool thread_was_requeued(struct k_thread *th)
+{
+	return !!(th->base.user_options & K_CALLBACK_STATE);
+}
+
 /* Slightly different semantics: rb_lessthan must be perfectly
  * symmetric (to produce a single tree structure) and will use the
  * pointer value to break ties where priorities are equal, here we
@@ -70,6 +85,7 @@ static FUNC_NORETURN void p4wq_loop(void *p0, void *p1, void *p2)
 			w->thread = _current;
 			sys_dlist_append(&queue->active, &w->dlnode);
 			set_prio(_current, w);
+			thread_clear_requeued(_current);
 
 			k_spin_unlock(&queue->lock, k);
 			w->handler(w);
@@ -78,7 +94,7 @@ static FUNC_NORETURN void p4wq_loop(void *p0, void *p1, void *p2)
 			/* Remove from the active list only if it
 			 * wasn't resubmitted already
 			 */
-			if (w->thread == _current) {
+			if (!thread_was_requeued(_current)) {
 				sys_dlist_remove(&w->dlnode);
 				w->thread = NULL;
 			}
@@ -142,6 +158,7 @@ void k_p4wq_submit(struct k_p4wq *queue, struct k_p4wq_work *item)
 	/* Resubmission from within handler?  Remove from active list */
 	if (item->thread == _current) {
 		sys_dlist_remove(&item->dlnode);
+		thread_set_requeued(_current);
 		item->thread = NULL;
 	}
 	__ASSERT_NO_MSG(item->thread == NULL);