diff --git a/netutils/ntpclient/ntpclient.c b/netutils/ntpclient/ntpclient.c
index 0f215f21c..bc9bfefaf 100644
--- a/netutils/ntpclient/ntpclient.c
+++ b/netutils/ntpclient/ntpclient.c
@@ -383,6 +383,9 @@ static int ntpc_daemon(int argc, char **argv)
     {
       nerr("ERROR: Failed to resolve '%s'\n",
            CONFIG_NETUTILS_NTPCLIENT_SERVER);
+
+      g_ntpc_daemon.state = NTP_STOPPED;
+      sem_post(&g_ntpc_daemon.sync);
       return EXIT_FAILURE;
     }
 #endif