diff --git a/include/logging/log_core.h b/include/logging/log_core.h
index 6e5d467de35..d690d767713 100644
--- a/include/logging/log_core.h
+++ b/include/logging/log_core.h
@@ -540,6 +540,10 @@ bool log_is_strdup(void *buf);
  */
 void log_free(void *buf);
 
+/** @brief Indicate to the log core that one log message has been dropped.
+ */
+void log_dropped(void);
+
 #ifdef __cplusplus
 }
 #endif
diff --git a/subsys/logging/log_core.c b/subsys/logging/log_core.c
index 35a52630a75..07f314406e0 100644
--- a/subsys/logging/log_core.c
+++ b/subsys/logging/log_core.c
@@ -439,8 +439,6 @@ static void msg_process(struct log_msg *msg, bool bypass)
 				log_backend_put(backend, msg);
 			}
 		}
-	} else {
-		atomic_inc(&dropped_cnt);
 	}
 
 	log_msg_put(msg);
@@ -488,6 +486,11 @@ u32_t log_buffered_cnt(void)
 	return buffered_cnt;
 }
 
+void log_dropped(void)
+{
+	atomic_inc(&dropped_cnt);
+}
+
 u32_t log_src_cnt_get(u32_t domain_id)
 {
 	return log_sources_count();
diff --git a/subsys/logging/log_msg.c b/subsys/logging/log_msg.c
index 92e4a7225d3..21e4d45f857 100644
--- a/subsys/logging/log_msg.c
+++ b/subsys/logging/log_msg.c
@@ -74,10 +74,13 @@ union log_msg_chunk *log_msg_no_space_handle(void)
 	if (IS_ENABLED(CONFIG_LOG_MODE_OVERFLOW)) {
 		do {
 			more = log_process(true);
+			log_dropped();
 			err = k_mem_slab_alloc(&log_msg_pool,
 					       (void **)&msg,
 					       K_NO_WAIT);
 		} while ((err != 0) && more);
+	} else {
+		log_dropped();
 	}
 	return msg;