diff --git a/net/bluetooth/hci_core.c b/net/bluetooth/hci_core.c
index c96b96ca41ac6ea88c38d26cc2fbc21537274b25..b1d423efa109c977e8b620990e6b50fec71ed468 100644
--- a/net/bluetooth/hci_core.c
+++ b/net/bluetooth/hci_core.c
@@ -2887,6 +2887,12 @@ static void hci_power_on(struct work_struct *work)
 		 */
 		mgmt_index_added(hdev);
 	} else if (test_and_clear_bit(HCI_CONFIG, &hdev->dev_flags)) {
+		/* When the controller is now configured, then it
+		 * is important to clear the HCI_RAW flag.
+		 */
+		if (!test_bit(HCI_UNCONFIGURED, &hdev->dev_flags))
+			clear_bit(HCI_RAW, &hdev->flags);
+
 		/* Powering on the controller with HCI_CONFIG set only
 		 * happens with the transition from unconfigured to
 		 * configured. This will send the Index Added event.
diff --git a/net/bluetooth/mgmt.c b/net/bluetooth/mgmt.c
index 8275316ae0991b2ca0b8d2523ced059e942706e1..e253f8e1fa47955ead2c6d1acea711e325a8ea02 100644
--- a/net/bluetooth/mgmt.c
+++ b/net/bluetooth/mgmt.c
@@ -5451,6 +5451,7 @@ static int set_external_config(struct sock *sk, struct hci_dev *hdev,
 
 			queue_work(hdev->req_workqueue, &hdev->power_on);
 		} else {
+			set_bit(HCI_RAW, &hdev->flags);
 			mgmt_index_added(hdev);
 		}
 	}