diff --git a/subsys/bluetooth/controller/hci/hci.c b/subsys/bluetooth/controller/hci/hci.c
index 531f620ca43..66a3534bf24 100644
--- a/subsys/bluetooth/controller/hci/hci.c
+++ b/subsys/bluetooth/controller/hci/hci.c
@@ -1524,12 +1524,13 @@ static void le_big_create_sync(struct net_buf *buf, struct net_buf **evt)
 }
 
 
-static void le_big_terminate_sync(struct net_buf *buf, struct net_buf **evt)
+static void le_big_terminate_sync(struct net_buf *buf, struct net_buf **evt,
+				  void **node_rx)
 {
 	struct bt_hci_cp_le_big_terminate_sync *cmd = (void *)buf->data;
 	uint8_t status;
 
-	status = ll_big_sync_terminate(cmd->big_handle);
+	status = ll_big_sync_terminate(cmd->big_handle, node_rx);
 
 	*evt = cmd_complete_status(status);
 }
@@ -3243,7 +3244,7 @@ static int controller_cmd_handle(uint16_t  ocf, struct net_buf *cmd,
 		break;
 
 	case BT_OCF(BT_HCI_OP_LE_BIG_TERMINATE_SYNC):
-		le_big_terminate_sync(cmd, evt);
+		le_big_terminate_sync(cmd, evt, node_rx);
 		break;
 #endif /* CONFIG_BT_CTLR_SYNC_ISO */
 #endif /* CONFIG_BT_OBSERVER */
diff --git a/subsys/bluetooth/controller/include/ll.h b/subsys/bluetooth/controller/include/ll.h
index 07aa010d7c1..7ef0d47f3b7 100644
--- a/subsys/bluetooth/controller/include/ll.h
+++ b/subsys/bluetooth/controller/include/ll.h
@@ -147,7 +147,7 @@ uint8_t ll_big_sync_create(uint8_t big_handle, uint16_t sync_handle,
 			   uint8_t encryption, uint8_t *bcode, uint8_t mse,
 			   uint16_t sync_timeout, uint8_t num_bis,
 			   uint8_t *bis);
-uint8_t ll_big_sync_terminate(uint8_t big_handle);
+uint8_t ll_big_sync_terminate(uint8_t big_handle, void **rx);
 #else /* !CONFIG_BT_CTLR_ADV_EXT */
 uint8_t ll_scan_enable(uint8_t enable);
 #endif /* !CONFIG_BT_CTLR_ADV_EXT */
diff --git a/subsys/bluetooth/controller/ll_sw/ull_sync_iso.c b/subsys/bluetooth/controller/ll_sw/ull_sync_iso.c
index b3429189b03..6ea1b35f21e 100644
--- a/subsys/bluetooth/controller/ll_sw/ull_sync_iso.c
+++ b/subsys/bluetooth/controller/ll_sw/ull_sync_iso.c
@@ -114,11 +114,13 @@ uint8_t ll_big_sync_create(uint8_t big_handle, uint16_t sync_handle,
 	return BT_HCI_ERR_SUCCESS;
 }
 
-uint8_t ll_big_sync_terminate(uint8_t big_handle)
+uint8_t ll_big_sync_terminate(uint8_t big_handle, void **rx)
 {
-	memq_link_t *big_sync_estab;
-	memq_link_t *big_sync_lost;
 	struct ll_sync_iso *sync_iso;
+	struct node_rx_pdu *node_rx;
+	memq_link_t *link_sync_estab;
+	memq_link_t *link_sync_lost;
+	struct ll_sync_set *sync;
 	int err;
 
 	sync_iso = ull_sync_iso_get(big_handle);
@@ -126,19 +128,53 @@ uint8_t ll_big_sync_terminate(uint8_t big_handle)
 		return BT_HCI_ERR_UNKNOWN_ADV_IDENTIFIER;
 	}
 
-	err = ull_ticker_stop_with_mark(
-		TICKER_ID_SCAN_SYNC_ISO_BASE + big_handle,
-		sync_iso, &sync_iso->lll);
+	sync = sync_iso->sync;
+	if (sync) {
+		struct node_rx_sync_iso *se;
+
+		if (sync->iso.sync_iso != sync_iso) {
+			return BT_HCI_ERR_CMD_DISALLOWED;
+		}
+		sync->iso.sync_iso = NULL;
+		sync_iso->sync = NULL;
+
+		node_rx = (void *)sync->iso.node_rx_estab;
+		link_sync_estab = node_rx->hdr.link;
+		link_sync_lost = sync_iso->node_rx_lost.hdr.link;
+
+		ll_rx_link_release(link_sync_lost);
+		ll_rx_link_release(link_sync_estab);
+		ll_rx_release(node_rx);
+
+		node_rx = (void *)&sync_iso->node_rx_lost;
+		node_rx->hdr.type = NODE_RX_TYPE_SYNC_ISO;
+		node_rx->hdr.handle = 0xffff;
+
+		/* NOTE: struct node_rx_lost has uint8_t member following the
+		 *       struct node_rx_hdr to store the reason.
+		 */
+		se = (void *)node_rx->pdu;
+		se->status = BT_HCI_ERR_OP_CANCELLED_BY_HOST;
+
+		/* NOTE: Since NODE_RX_TYPE_SYNC_ISO is only generated from ULL
+		 *       context, pass ULL context as parameter.
+		 */
+		node_rx->hdr.rx_ftr.param = sync_iso;
+
+		*rx = node_rx;
+
+		return BT_HCI_ERR_SUCCESS;
+	}
+
+	err = ull_ticker_stop_with_mark((TICKER_ID_SCAN_SYNC_ISO_BASE +
+					 big_handle), sync_iso, &sync_iso->lll);
 	LL_ASSERT(err == 0 || err == -EALREADY);
 	if (err) {
 		return BT_HCI_ERR_CMD_DISALLOWED;
 	}
 
-	big_sync_lost = sync_iso->node_rx_lost.link;
-	ll_rx_link_release(big_sync_lost);
-
-	big_sync_estab = sync_iso->node_rx_estab.link;
-	ll_rx_link_release(big_sync_estab);
+	link_sync_lost = sync_iso->node_rx_lost.hdr.link;
+	ll_rx_link_release(link_sync_lost);
 
 	ull_sync_iso_release(sync_iso);
 
@@ -198,17 +234,17 @@ void ull_sync_iso_setup(struct ll_sync_iso *sync_iso,
 			struct node_rx_hdr *node_rx,
 			struct pdu_biginfo *biginfo)
 {
-	uint16_t handle;
-	struct node_rx_sync_iso *se;
-	uint16_t interval;
-	uint32_t interval_us;
 	uint32_t ticks_slot_overhead;
+	struct node_rx_sync_iso *se;
 	uint32_t ticks_slot_offset;
-	uint32_t ret;
+	struct lll_sync_iso *lll;
 	struct node_rx_ftr *ftr;
 	uint32_t sync_offset_us;
 	struct node_rx_pdu *rx;
-	struct lll_sync_iso *lll;
+	uint32_t interval_us;
+	uint16_t interval;
+	uint16_t handle;
+	uint32_t ret;
 
 	lll = &sync_iso->lll;
 	handle = ull_sync_iso_handle_get(sync_iso);
@@ -218,7 +254,7 @@ void ull_sync_iso_setup(struct ll_sync_iso *sync_iso,
 
 	/* TODO: Populate LLL with information from the BIGINFO */
 
-	rx = (void *)sync_iso->node_rx_estab.link;
+	rx = (void *)sync_iso->sync->iso.node_rx_estab;
 	rx->hdr.type = NODE_RX_TYPE_SYNC_ISO;
 	rx->hdr.handle = handle;
 	rx->hdr.rx_ftr.param = sync_iso;
diff --git a/tests/bluetooth/bsim_bt/bsim_test_iso/src/main.c b/tests/bluetooth/bsim_bt/bsim_test_iso/src/main.c
index 33c6456c0b3..92174836c6c 100644
--- a/tests/bluetooth/bsim_bt/bsim_test_iso/src/main.c
+++ b/tests/bluetooth/bsim_bt/bsim_test_iso/src/main.c
@@ -294,6 +294,7 @@ static void test_iso_recv_main(void)
 	uint8_t encryption = 0;
 	uint8_t bcode[16] = { 0 };
 	uint16_t sync_timeout = 0;
+	struct node_rx_hdr *node_rx;
 
 	printk("Creating BIG...\n");
 	err = ll_big_sync_create(big_handle, sync->handle, encryption, bcode,
@@ -307,7 +308,7 @@ static void test_iso_recv_main(void)
 	k_sleep(K_MSEC(5000));
 
 	printk("Terminating BIG...\n");
-	err = ll_big_sync_terminate(big_handle);
+	err = ll_big_sync_terminate(big_handle, (void **)&node_rx);
 	if (err) {
 		FAIL("Could not terminate BIG sync: %d\n", err);
 		return;