diff --git a/chip/g/system.c b/chip/g/system.c
index 323c258ea8..15640f46e3 100644
--- a/chip/g/system.c
+++ b/chip/g/system.c
@@ -13,6 +13,7 @@
 #include "signed_header.h"
 #include "system.h"
 #include "task.h"
+#include "upgrade_fw.h"
 #include "version.h"
 
 static void check_reset_cause(void)
@@ -86,6 +87,14 @@ void system_pre_init(void)
 	system_init_board_properties();
 #endif
 }
+#ifdef BOARD_CR50
+void clear_retry_counter(void)
+{
+	GWRITE_FIELD(PMU, LONG_LIFE_SCRATCH_WR_EN, REG0, 1);
+	GREG32(PMU, LONG_LIFE_SCRATCH0) = 0;
+	GWRITE_FIELD(PMU, LONG_LIFE_SCRATCH_WR_EN, REG0, 0);
+}
+#endif
 
 void system_reset(int flags)
 {
@@ -96,6 +105,15 @@ void system_reset(int flags)
 	interrupt_disable();
 
 	if (flags & SYSTEM_RESET_HARD) {
+#if defined(BOARD_CR50) && !defined(SECTION_IS_RO)
+		/*
+		 * If the system was updated during this boot clear the retry
+		 * counter.
+		 */
+		if (fw_upgraded())
+			clear_retry_counter();
+#endif
+
 		/* Reset the full microcontroller */
 		GR_PMU_GLOBAL_RESET = GC_PMU_GLOBAL_RESET_KEY;
 	} else {
@@ -333,9 +351,7 @@ int system_process_retry_counter(void)
 	struct SignedHeader *me, *other;
 
 	retry_counter = GREG32(PMU, LONG_LIFE_SCRATCH0);
-	GWRITE_FIELD(PMU, LONG_LIFE_SCRATCH_WR_EN, REG0, 1);
-	GREG32(PMU, LONG_LIFE_SCRATCH0) = 0;
-	GWRITE_FIELD(PMU, LONG_LIFE_SCRATCH_WR_EN, REG0, 0);
+	clear_retry_counter();
 
 	ccprintf("%s:retry counter %d\n", __func__, retry_counter);
 
diff --git a/chip/g/upgrade_fw.c b/chip/g/upgrade_fw.c
index a419e3a229..b1da99d7a7 100644
--- a/chip/g/upgrade_fw.c
+++ b/chip/g/upgrade_fw.c
@@ -32,6 +32,8 @@ struct {
 	uint32_t rw_top_offset;
 } valid_sections;
 
+static int upgrade_done;
+
 /* Pick sections where updates can go to based on current code addresses. */
 static void set_valid_sections(void)
 {
@@ -263,3 +265,13 @@ void fw_upgrade_command_handler(void *body,
 
 	*error_code = UPGRADE_SUCCESS;
 }
+
+void fw_upgrade_complete(void)
+{
+	upgrade_done = 1;
+}
+
+int fw_upgraded(void)
+{
+	return upgrade_done;
+}
diff --git a/chip/g/upgrade_fw.h b/chip/g/upgrade_fw.h
index 8eca3761b6..cbddd5bdb8 100644
--- a/chip/g/upgrade_fw.h
+++ b/chip/g/upgrade_fw.h
@@ -115,6 +115,11 @@ void fw_upgrade_command_handler(void *body,
 				size_t cmd_size,
 				size_t *response_size);
 
+/* Returns 1 if an upgrade was done during this run 0 if there was no upgrade */
+int fw_upgraded(void);
+
+/* Used to tell fw upgrade the update ran successfully and is finished */
+void fw_upgrade_complete(void);
 
 /* Various upgrade command return values. */
 enum return_value {
diff --git a/chip/g/usb_upgrade.c b/chip/g/usb_upgrade.c
index 5c213668d1..7f58f57fc8 100644
--- a/chip/g/usb_upgrade.c
+++ b/chip/g/usb_upgrade.c
@@ -206,6 +206,7 @@ static void upgrade_out_handler(struct consumer const *consumer, size_t count)
 			if (command == UPGRADE_DONE) {
 				CPRINTS("FW update: done");
 
+				fw_upgrade_complete();
 				resp_value = 0;
 				QUEUE_ADD_UNITS(&upgrade_to_usb,
 						&resp_value, 1);