diff --git a/components/wifi_provisioning/include/wifi_provisioning/manager.h b/components/wifi_provisioning/include/wifi_provisioning/manager.h
index 2edd43fee9..748efcb747 100644
--- a/components/wifi_provisioning/include/wifi_provisioning/manager.h
+++ b/components/wifi_provisioning/include/wifi_provisioning/manager.h
@@ -553,6 +553,18 @@ esp_err_t wifi_prov_mgr_get_wifi_disconnect_reason(wifi_prov_sta_fail_reason_t *
  */
 esp_err_t wifi_prov_mgr_configure_sta(wifi_config_t *wifi_cfg);
 
+/**
+ * @brief   Reset internal state machine and clear provisioned credentials.
+ *
+ * This API can be used to restart provisioning in case invalid credentials are entered.
+ *
+ * @return
+ *  - ESP_OK      : Reset provisioning state machine successfully
+ *  - ESP_FAIL    : Failed to reset provisioning state machine
+ *  - ESP_ERR_INVALID_STATE : Manager not initialized
+ */
+esp_err_t wifi_prov_mgr_reset_sm_state_on_failure(void);
+
 #ifdef __cplusplus
 }
 #endif
diff --git a/components/wifi_provisioning/src/manager.c b/components/wifi_provisioning/src/manager.c
index e3977cd6e7..ae82c77029 100644
--- a/components/wifi_provisioning/src/manager.c
+++ b/components/wifi_provisioning/src/manager.c
@@ -1553,3 +1553,34 @@ void wifi_prov_mgr_stop_provisioning(void)
 
     RELEASE_LOCK(prov_ctx_lock);
 }
+
+esp_err_t wifi_prov_mgr_reset_sm_state_on_failure(void)
+{
+    if (!prov_ctx_lock) {
+        ESP_LOGE(TAG, "Provisioning manager not initialized");
+        return ESP_ERR_INVALID_STATE;
+    }
+
+    ACQUIRE_LOCK(prov_ctx_lock);
+
+    esp_err_t err = ESP_OK;
+    if (prov_ctx->prov_state != WIFI_PROV_STATE_FAIL) {
+        ESP_LOGE(TAG, "Trying reset when not in failure state. Current state: %d", prov_ctx->prov_state);
+        err = ESP_ERR_INVALID_STATE;
+        goto exit;
+    }
+
+    wifi_config_t wifi_cfg = {0};
+
+    err = esp_wifi_set_config(WIFI_IF_STA, &wifi_cfg);
+    if (err != ESP_OK) {
+        ESP_LOGE(TAG, "Failed to set wifi config, 0x%x", err);
+        goto exit;
+    }
+
+    prov_ctx->prov_state = WIFI_PROV_STATE_STARTED;
+
+exit:
+    RELEASE_LOCK(prov_ctx_lock);
+    return err;
+}