diff --git a/components/bt/controller/esp32c3/bt.c b/components/bt/controller/esp32c3/bt.c
index 1edf7950f4..c2ff063ced 100644
--- a/components/bt/controller/esp32c3/bt.c
+++ b/components/bt/controller/esp32c3/bt.c
@@ -37,6 +37,7 @@
 #include "esp32c3/rom/rom_layout.h"
 #include "esp_timer.h"
 #include "esp_sleep.h"
+#include "phy.h"
 
 #if CONFIG_BT_ENABLED
 
@@ -1237,6 +1238,11 @@ esp_err_t esp_bt_controller_deinit(void)
     esp_unregister_mac_bb_pu_callback(btdm_mac_bb_power_up_cb);
 #endif
 
+    /* Fix the issue caused by the power off the bt power domain.
+     * This issue is only on ESP32C3.
+     */
+    phy_init_flag();
+
     esp_bt_power_domain_off();
 
     free(osi_funcs_p);
diff --git a/components/bt/controller/esp32s3/bt.c b/components/bt/controller/esp32s3/bt.c
index 5da5ce0eaf..64e10ad4a7 100644
--- a/components/bt/controller/esp32s3/bt.c
+++ b/components/bt/controller/esp32s3/bt.c
@@ -1144,8 +1144,6 @@ error:
     esp_unregister_mac_bb_pu_callback(btdm_mac_bb_power_up_cb);
 #endif
 
-    esp_bt_power_domain_off();
-
     if (osi_funcs_p != NULL) {
         free(osi_funcs_p);
         osi_funcs_p = NULL;
@@ -1206,6 +1204,9 @@ esp_err_t esp_bt_controller_deinit(void)
     esp_unregister_mac_bb_pd_callback(btdm_mac_bb_power_down_cb);
     esp_unregister_mac_bb_pu_callback(btdm_mac_bb_power_up_cb);
 #endif
+
+    esp_bt_power_domain_off();
+
     free(osi_funcs_p);
     osi_funcs_p = NULL;
 
diff --git a/components/esp_phy/include/phy.h b/components/esp_phy/include/phy.h
index 1d0690f356..e6aa21db50 100644
--- a/components/esp_phy/include/phy.h
+++ b/components/esp_phy/include/phy.h
@@ -68,6 +68,13 @@ void phy_close_rf(void);
 void phy_xpd_tsens(void);
 #endif
 
+#if CONFIG_IDF_TARGET_ESP32C3
+/**
+ * @brief Update internal state of PHY when wifi deinit powers off the wifi power domain.
+ */
+void phy_init_flag(void);
+#endif
+
 /**
  * @brief Store and load PHY digital registers.
  *
diff --git a/components/esp_phy/lib b/components/esp_phy/lib
index 7586abbf59..fe7dc9599b 160000
--- a/components/esp_phy/lib
+++ b/components/esp_phy/lib
@@ -1 +1 @@
-Subproject commit 7586abbf591ab63d609d7afeb377559deabec808
+Subproject commit fe7dc9599bd318518eccc165d9e751114e28e7d2
diff --git a/components/esp_wifi/src/wifi_init.c b/components/esp_wifi/src/wifi_init.c
index 40273d86bf..3a66d30ea3 100644
--- a/components/esp_wifi/src/wifi_init.c
+++ b/components/esp_wifi/src/wifi_init.c
@@ -19,6 +19,7 @@
 #include "driver/adc2_wifi_private.h"
 #include "esp_coexist_internal.h"
 #include "esp_phy_init.h"
+#include "phy.h"
 
 #if (CONFIG_ESP32_WIFI_RX_BA_WIN > CONFIG_ESP32_WIFI_DYNAMIC_RX_BUFFER_NUM)
 #error "WiFi configuration check: WARNING, WIFI_RX_BA_WIN should not be larger than WIFI_DYNAMIC_RX_BUFFER_NUM!"
@@ -124,6 +125,9 @@ esp_err_t esp_wifi_deinit(void)
 #if CONFIG_MAC_BB_PD
     esp_unregister_mac_bb_pd_callback(pm_mac_sleep);
     esp_unregister_mac_bb_pu_callback(pm_mac_wakeup);
+#endif
+#if CONFIG_IDF_TARGET_ESP32C3
+    phy_init_flag();
 #endif
     esp_wifi_power_domain_off();
     return err;