diff --git a/src/wps/wps_enrollee.c b/src/wps/wps_enrollee.c
index 80f1109a2..92e57a869 100644
--- a/src/wps/wps_enrollee.c
+++ b/src/wps/wps_enrollee.c
@@ -356,7 +356,6 @@ static struct wpabuf * wps_build_wsc_ack(struct wps_data *wps)
 static struct wpabuf * wps_build_wsc_nack(struct wps_data *wps)
 {
 	struct wpabuf *msg;
-	u16 err = WPS_CFG_NO_ERROR;
 
 	wpa_printf(MSG_DEBUG, "WPS: Building Message WSC_NACK");
 
@@ -364,14 +363,11 @@ static struct wpabuf * wps_build_wsc_nack(struct wps_data *wps)
 	if (msg == NULL)
 		return NULL;
 
-	if (wps->authenticator && wps->wps->ap_setup_locked)
-		err = WPS_CFG_SETUP_LOCKED;
-
 	if (wps_build_version(msg) ||
 	    wps_build_msg_type(msg, WPS_WSC_NACK) ||
 	    wps_build_enrollee_nonce(wps, msg) ||
 	    wps_build_registrar_nonce(wps, msg) ||
-	    wps_build_config_error(msg, err)) {
+	    wps_build_config_error(msg, wps->config_error)) {
 		wpabuf_free(msg);
 		return NULL;
 	}
@@ -402,6 +398,11 @@ struct wpabuf * wps_enrollee_get_msg(struct wps_data *wps, u8 *op_code)
 		*op_code = WSC_MSG;
 		break;
 	case RECEIVED_M2D:
+		if (wps->authenticator) {
+			msg = wps_build_wsc_nack(wps);
+			*op_code = WSC_NACK;
+			break;
+		}
 		msg = wps_build_wsc_ack(wps);
 		*op_code = WSC_ACK;
 		if (msg) {
@@ -560,6 +561,7 @@ static int wps_process_r_snonce1(struct wps_data *wps, const u8 *r_snonce1)
 	if (os_memcmp(wps->peer_hash1, hash, WPS_HASH_LEN) != 0) {
 		wpa_printf(MSG_DEBUG, "WPS: R-Hash1 derived from R-S1 does "
 			   "not match with the pre-committed value");
+		wps->config_error = WPS_CFG_DEV_PASSWORD_AUTH_FAILURE;
 		return -1;
 	}
 
@@ -598,6 +600,7 @@ static int wps_process_r_snonce2(struct wps_data *wps, const u8 *r_snonce2)
 	if (os_memcmp(wps->peer_hash2, hash, WPS_HASH_LEN) != 0) {
 		wpa_printf(MSG_DEBUG, "WPS: R-Hash2 derived from R-S2 does "
 			   "not match with the pre-committed value");
+		wps->config_error = WPS_CFG_DEV_PASSWORD_AUTH_FAILURE;
 		return -1;
 	}
 
@@ -681,19 +684,23 @@ static enum wps_process_res wps_process_m2(struct wps_data *wps,
 	if (wps->state != RECV_M2) {
 		wpa_printf(MSG_DEBUG, "WPS: Unexpected state (%d) for "
 			   "receiving M2", wps->state);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	if (wps_process_registrar_nonce(wps, attr->registrar_nonce) ||
 	    wps_process_enrollee_nonce(wps, attr->enrollee_nonce) ||
 	    wps_process_uuid_r(wps, attr->uuid_r) ||
 	    wps_process_pubkey(wps, attr->public_key, attr->public_key_len) ||
-	    wps_process_authenticator(wps, attr->authenticator, msg))
-		return WPS_FAILURE;
+	    wps_process_authenticator(wps, attr->authenticator, msg)) {
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
+	}
 
 	if (wps->authenticator && wps->wps->ap_setup_locked) {
 		wpa_printf(MSG_DEBUG, "WPS: AP Setup is locked - refuse "
 			   "registration of a new Registrar");
+		wps->config_error = WPS_CFG_SETUP_LOCKED;
 		wps->state = SEND_WSC_NACK;
 		return WPS_CONTINUE;
 	}
@@ -711,7 +718,8 @@ static enum wps_process_res wps_process_m2d(struct wps_data *wps,
 	if (wps->state != RECV_M2) {
 		wpa_printf(MSG_DEBUG, "WPS: Unexpected state (%d) for "
 			   "receiving M2D", wps->state);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	wpa_hexdump_ascii(MSG_DEBUG, "WPS: Manufacturer",
@@ -731,7 +739,7 @@ static enum wps_process_res wps_process_m2d(struct wps_data *wps,
 	 */
 
 	wps->state = RECEIVED_M2D;
-	return WPS_FAILURE;
+	return WPS_CONTINUE;
 }
 
 
@@ -747,21 +755,25 @@ static enum wps_process_res wps_process_m4(struct wps_data *wps,
 	if (wps->state != RECV_M4) {
 		wpa_printf(MSG_DEBUG, "WPS: Unexpected state (%d) for "
 			   "receiving M4", wps->state);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	if (wps_process_enrollee_nonce(wps, attr->enrollee_nonce) ||
 	    wps_process_authenticator(wps, attr->authenticator, msg) ||
 	    wps_process_r_hash1(wps, attr->r_hash1) ||
-	    wps_process_r_hash2(wps, attr->r_hash2))
-		return WPS_FAILURE;
+	    wps_process_r_hash2(wps, attr->r_hash2)) {
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
+	}
 
 	decrypted = wps_decrypt_encr_settings(wps, attr->encr_settings,
 					      attr->encr_settings_len);
 	if (decrypted == NULL) {
 		wpa_printf(MSG_DEBUG, "WPS: Failed to decrypted Encrypted "
 			   "Settings attribute");
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	wpa_printf(MSG_DEBUG, "WPS: Processing decrypted Encrypted Settings "
@@ -770,7 +782,8 @@ static enum wps_process_res wps_process_m4(struct wps_data *wps,
 	    wps_process_key_wrap_auth(wps, decrypted, eattr.key_wrap_auth) ||
 	    wps_process_r_snonce1(wps, eattr.r_snonce1)) {
 		wpabuf_free(decrypted);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 	wpabuf_free(decrypted);
 
@@ -791,19 +804,23 @@ static enum wps_process_res wps_process_m6(struct wps_data *wps,
 	if (wps->state != RECV_M6) {
 		wpa_printf(MSG_DEBUG, "WPS: Unexpected state (%d) for "
 			   "receiving M6", wps->state);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	if (wps_process_enrollee_nonce(wps, attr->enrollee_nonce) ||
-	    wps_process_authenticator(wps, attr->authenticator, msg))
-		return WPS_FAILURE;
+	    wps_process_authenticator(wps, attr->authenticator, msg)) {
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
+	}
 
 	decrypted = wps_decrypt_encr_settings(wps, attr->encr_settings,
 					      attr->encr_settings_len);
 	if (decrypted == NULL) {
 		wpa_printf(MSG_DEBUG, "WPS: Failed to decrypted Encrypted "
 			   "Settings attribute");
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	wpa_printf(MSG_DEBUG, "WPS: Processing decrypted Encrypted Settings "
@@ -812,7 +829,8 @@ static enum wps_process_res wps_process_m6(struct wps_data *wps,
 	    wps_process_key_wrap_auth(wps, decrypted, eattr.key_wrap_auth) ||
 	    wps_process_r_snonce2(wps, eattr.r_snonce2)) {
 		wpabuf_free(decrypted);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 	wpabuf_free(decrypted);
 
@@ -833,19 +851,23 @@ static enum wps_process_res wps_process_m8(struct wps_data *wps,
 	if (wps->state != RECV_M8) {
 		wpa_printf(MSG_DEBUG, "WPS: Unexpected state (%d) for "
 			   "receiving M8", wps->state);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	if (wps_process_enrollee_nonce(wps, attr->enrollee_nonce) ||
-	    wps_process_authenticator(wps, attr->authenticator, msg))
-		return WPS_FAILURE;
+	    wps_process_authenticator(wps, attr->authenticator, msg)) {
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
+	}
 
 	decrypted = wps_decrypt_encr_settings(wps, attr->encr_settings,
 					      attr->encr_settings_len);
 	if (decrypted == NULL) {
 		wpa_printf(MSG_DEBUG, "WPS: Failed to decrypted Encrypted "
 			   "Settings attribute");
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	wpa_printf(MSG_DEBUG, "WPS: Processing decrypted Encrypted Settings "
@@ -856,7 +878,8 @@ static enum wps_process_res wps_process_m8(struct wps_data *wps,
 			      eattr.num_cred) ||
 	    wps_process_ap_settings_e(wps, &eattr)) {
 		wpabuf_free(decrypted);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 	wpabuf_free(decrypted);
 
@@ -1031,7 +1054,7 @@ static enum wps_process_res wps_process_wsc_nack(struct wps_data *wps,
 		return WPS_FAILURE;
 	}
 
-	wpa_printf(MSG_DEBUG, "WPS: Enrollee terminated negotiation with "
+	wpa_printf(MSG_DEBUG, "WPS: Registrar terminated negotiation with "
 		   "Configuration Error %d", WPA_GET_BE16(attr.config_error));
 
 	return WPS_FAILURE;
diff --git a/src/wps/wps_i.h b/src/wps/wps_i.h
index 693a24f7f..b661b5d13 100644
--- a/src/wps/wps_i.h
+++ b/src/wps/wps_i.h
@@ -79,6 +79,8 @@ struct wps_data {
 	struct wps_credential cred;
 
 	struct wps_device_data peer_dev;
+
+	u16 config_error; /* Configuration Error value to be used in NACK. */
 };
 
 
diff --git a/src/wps/wps_registrar.c b/src/wps/wps_registrar.c
index a2e88936f..b7a38c2be 100644
--- a/src/wps/wps_registrar.c
+++ b/src/wps/wps_registrar.c
@@ -1180,6 +1180,29 @@ static struct wpabuf * wps_build_wsc_ack(struct wps_data *wps)
 }
 
 
+static struct wpabuf * wps_build_wsc_nack(struct wps_data *wps)
+{
+	struct wpabuf *msg;
+
+	wpa_printf(MSG_DEBUG, "WPS: Building Message WSC_NACK");
+
+	msg = wpabuf_alloc(1000);
+	if (msg == NULL)
+		return NULL;
+
+	if (wps_build_version(msg) ||
+	    wps_build_msg_type(msg, WPS_WSC_NACK) ||
+	    wps_build_enrollee_nonce(wps, msg) ||
+	    wps_build_registrar_nonce(wps, msg) ||
+	    wps_build_config_error(msg, wps->config_error)) {
+		wpabuf_free(msg);
+		return NULL;
+	}
+
+	return msg;
+}
+
+
 struct wpabuf * wps_registrar_get_msg(struct wps_data *wps, u8 *op_code)
 {
 	struct wpabuf *msg;
@@ -1212,6 +1235,10 @@ struct wpabuf * wps_registrar_get_msg(struct wps_data *wps, u8 *op_code)
 		msg = wps_build_wsc_ack(wps);
 		*op_code = WSC_ACK;
 		break;
+	case SEND_WSC_NACK:
+		msg = wps_build_wsc_nack(wps);
+		*op_code = WSC_NACK;
+		break;
 	default:
 		wpa_printf(MSG_DEBUG, "WPS: Unsupported state %d for building "
 			   "a message", wps->state);
@@ -1345,6 +1372,7 @@ static int wps_process_e_snonce1(struct wps_data *wps, const u8 *e_snonce1)
 	if (os_memcmp(wps->peer_hash1, hash, WPS_HASH_LEN) != 0) {
 		wpa_printf(MSG_DEBUG, "WPS: E-Hash1 derived from E-S1 does "
 			   "not match with the pre-committed value");
+		wps->config_error = WPS_CFG_DEV_PASSWORD_AUTH_FAILURE;
 		return -1;
 	}
 
@@ -1384,6 +1412,7 @@ static int wps_process_e_snonce2(struct wps_data *wps, const u8 *e_snonce2)
 		wpa_printf(MSG_DEBUG, "WPS: E-Hash2 derived from E-S2 does "
 			   "not match with the pre-committed value");
 		wps_registrar_invalidate_pin(wps->registrar, wps->uuid_e);
+		wps->config_error = WPS_CFG_DEV_PASSWORD_AUTH_FAILURE;
 		return -1;
 	}
 
@@ -1625,14 +1654,17 @@ static enum wps_process_res wps_process_m3(struct wps_data *wps,
 	if (wps->state != RECV_M3) {
 		wpa_printf(MSG_DEBUG, "WPS: Unexpected state (%d) for "
 			   "receiving M3", wps->state);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	if (wps_process_registrar_nonce(wps, attr->registrar_nonce) ||
 	    wps_process_authenticator(wps, attr->authenticator, msg) ||
 	    wps_process_e_hash1(wps, attr->e_hash1) ||
-	    wps_process_e_hash2(wps, attr->e_hash2))
-		return WPS_FAILURE;
+	    wps_process_e_hash2(wps, attr->e_hash2)) {
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
+	}
 
 	wps->state = SEND_M4;
 	return WPS_CONTINUE;
@@ -1651,19 +1683,23 @@ static enum wps_process_res wps_process_m5(struct wps_data *wps,
 	if (wps->state != RECV_M5) {
 		wpa_printf(MSG_DEBUG, "WPS: Unexpected state (%d) for "
 			   "receiving M5", wps->state);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	if (wps_process_registrar_nonce(wps, attr->registrar_nonce) ||
-	    wps_process_authenticator(wps, attr->authenticator, msg))
-		return WPS_FAILURE;
+	    wps_process_authenticator(wps, attr->authenticator, msg)) {
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
+	}
 
 	decrypted = wps_decrypt_encr_settings(wps, attr->encr_settings,
 					      attr->encr_settings_len);
 	if (decrypted == NULL) {
 		wpa_printf(MSG_DEBUG, "WPS: Failed to decrypted Encrypted "
 			   "Settings attribute");
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	wpa_printf(MSG_DEBUG, "WPS: Processing decrypted Encrypted Settings "
@@ -1672,7 +1708,8 @@ static enum wps_process_res wps_process_m5(struct wps_data *wps,
 	    wps_process_key_wrap_auth(wps, decrypted, eattr.key_wrap_auth) ||
 	    wps_process_e_snonce1(wps, eattr.e_snonce1)) {
 		wpabuf_free(decrypted);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 	wpabuf_free(decrypted);
 
@@ -1714,19 +1751,23 @@ static enum wps_process_res wps_process_m7(struct wps_data *wps,
 	if (wps->state != RECV_M7) {
 		wpa_printf(MSG_DEBUG, "WPS: Unexpected state (%d) for "
 			   "receiving M7", wps->state);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	if (wps_process_registrar_nonce(wps, attr->registrar_nonce) ||
-	    wps_process_authenticator(wps, attr->authenticator, msg))
-		return WPS_FAILURE;
+	    wps_process_authenticator(wps, attr->authenticator, msg)) {
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
+	}
 
 	decrypted = wps_decrypt_encr_settings(wps, attr->encr_settings,
 					      attr->encr_settings_len);
 	if (decrypted == NULL) {
 		wpa_printf(MSG_DEBUG, "WPS: Failed to decrypted Encrypted "
 			   "Settings attribute");
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	wpa_printf(MSG_DEBUG, "WPS: Processing decrypted Encrypted Settings "
@@ -1736,7 +1777,8 @@ static enum wps_process_res wps_process_m7(struct wps_data *wps,
 	    wps_process_e_snonce2(wps, eattr.e_snonce2) ||
 	    wps_process_ap_settings_r(wps, &eattr)) {
 		wpabuf_free(decrypted);
-		return WPS_FAILURE;
+		wps->state = SEND_WSC_NACK;
+		return WPS_CONTINUE;
 	}
 
 	wpabuf_free(decrypted);
@@ -1865,6 +1907,8 @@ static enum wps_process_res wps_process_wsc_nack(struct wps_data *wps,
 
 	wpa_printf(MSG_DEBUG, "WPS: Received WSC_NACK");
 
+	wps->state = SEND_WSC_NACK;
+
 	if (wps_parse_msg(msg, &attr) < 0)
 		return WPS_FAILURE;