diff --git a/subsys/bluetooth/mesh/cfg_srv.c b/subsys/bluetooth/mesh/cfg_srv.c
index e14ba086514..20365f0194b 100644
--- a/subsys/bluetooth/mesh/cfg_srv.c
+++ b/subsys/bluetooth/mesh/cfg_srv.c
@@ -786,30 +786,6 @@ static void gatt_proxy_set(struct bt_mesh_model *model,
 		bt_mesh_store_cfg();
 	}
 
-	if (cfg->gatt_proxy == BT_MESH_GATT_PROXY_DISABLED) {
-		int i;
-
-		/* Section 4.2.11.1: "When the GATT Proxy state is set to
-		 * 0x00, the Node Identity state for all subnets shall be set
-		 * to 0x00 and shall not be changed."
-		 */
-		for (i = 0; i < ARRAY_SIZE(bt_mesh.sub); i++) {
-			struct bt_mesh_subnet *sub = &bt_mesh.sub[i];
-
-			if (sub->net_idx != BT_MESH_KEY_UNUSED) {
-				bt_mesh_proxy_identity_stop(sub);
-			}
-		}
-
-		/* Section 4.2.11: "Upon transition from GATT Proxy state 0x01
-		 * to GATT Proxy state 0x00 the GATT Bearer Server shall
-		 * disconnect all GATT Bearer Clients.
-		 */
-		bt_mesh_proxy_gatt_disconnect();
-	}
-
-	bt_mesh_adv_update();
-
 	if (cfg->hb_pub.feat & BT_MESH_FEAT_PROXY) {
 		bt_mesh_heartbeat_send();
 	}
@@ -2434,12 +2410,7 @@ static void node_identity_set(struct bt_mesh_model *model,
 		net_buf_simple_add_u8(&msg, STATUS_SUCCESS);
 		net_buf_simple_add_le16(&msg, idx);
 
-		/* Section 4.2.11.1: "When the GATT Proxy state is set to
-		 * 0x00, the Node Identity state for all subnets shall be set
-		 * to 0x00 and shall not be changed."
-		 */
-		if (IS_ENABLED(CONFIG_BT_MESH_GATT_PROXY) &&
-		    bt_mesh_gatt_proxy_get() == BT_MESH_GATT_PROXY_ENABLED) {
+		if (IS_ENABLED(CONFIG_BT_MESH_GATT_PROXY)) {
 			if (node_id) {
 				bt_mesh_proxy_identity_start(sub);
 			} else {
diff --git a/subsys/bluetooth/mesh/net.c b/subsys/bluetooth/mesh/net.c
index 739b1ec49cd..55f39cf7d83 100644
--- a/subsys/bluetooth/mesh/net.c
+++ b/subsys/bluetooth/mesh/net.c
@@ -1306,13 +1306,19 @@ void bt_mesh_net_recv(struct net_buf_simple *data, s8_t rssi,
 	/* Save the state so the buffer can later be relayed */
 	net_buf_simple_save(&buf, &state);
 
+	rx.local_match = (bt_mesh_fixed_group_match(rx.ctx.recv_dst) ||
+			  bt_mesh_elem_find(rx.ctx.recv_dst));
+
 	if (IS_ENABLED(CONFIG_BT_MESH_GATT_PROXY) &&
 	    net_if == BT_MESH_NET_IF_PROXY) {
 		bt_mesh_proxy_addr_add(data, rx.ctx.addr);
-	}
 
-	rx.local_match = (bt_mesh_fixed_group_match(rx.ctx.recv_dst) ||
-			  bt_mesh_elem_find(rx.ctx.recv_dst));
+		if (bt_mesh_gatt_proxy_get() == BT_MESH_GATT_PROXY_DISABLED &&
+		    !rx.local_match) {
+			BT_INFO("Proxy is disabled; ignoring message");
+			return;
+		}
+	}
 
 	/* The transport layer has indicated that it has rejected the message,
 	 * but would like to see it again if it is received in the future.
diff --git a/subsys/bluetooth/mesh/proxy.c b/subsys/bluetooth/mesh/proxy.c
index af4d5420398..d36fa00c120 100644
--- a/subsys/bluetooth/mesh/proxy.c
+++ b/subsys/bluetooth/mesh/proxy.c
@@ -1095,7 +1095,7 @@ static bool advertise_subnet(struct bt_mesh_subnet *sub)
 	}
 
 	return (sub->node_id == BT_MESH_NODE_IDENTITY_RUNNING ||
-		bt_mesh_gatt_proxy_get() == BT_MESH_GATT_PROXY_ENABLED);
+		bt_mesh_gatt_proxy_get() != BT_MESH_GATT_PROXY_NOT_SUPPORTED);
 }
 
 static struct bt_mesh_subnet *next_sub(void)
@@ -1162,11 +1162,7 @@ static s32_t gatt_proxy_advertise(struct bt_mesh_subnet *sub)
 	}
 
 	if (sub->node_id == BT_MESH_NODE_IDENTITY_STOPPED) {
-		if (bt_mesh_gatt_proxy_get() == BT_MESH_GATT_PROXY_ENABLED) {
-			net_id_adv(sub);
-		} else {
-			return gatt_proxy_advertise(next_sub());
-		}
+		net_id_adv(sub);
 	}
 
 	subnet_count = sub_count();