diff --git a/bgpd/bgp_fsm.c b/bgpd/bgp_fsm.c
index 5e5ac636ed..a86c457b62 100644
--- a/bgpd/bgp_fsm.c
+++ b/bgpd/bgp_fsm.c
@@ -251,6 +251,20 @@ static struct peer *peer_xfer_conn(struct peer *from_peer)
 	peer->remote_id = from_peer->remote_id;
 	peer->last_reset = from_peer->last_reset;
 
+	peer->peer_gr_present_state = from_peer->peer_gr_present_state;
+	peer->peer_gr_new_status_flag = from_peer->peer_gr_new_status_flag;
+	bgp_peer_gr_flags_update(peer);
+
+	if (bgp_peer_gr_mode_get(peer) == PEER_DISABLE) {
+
+		UNSET_FLAG(peer->sflags, PEER_STATUS_NSF_MODE);
+
+		if (CHECK_FLAG(peer->sflags,
+					PEER_STATUS_NSF_WAIT)) {
+			peer_nsf_stop(peer);
+		}
+	}
+
 	if (from_peer->hostname != NULL) {
 		if (peer->hostname) {
 			XFREE(MTYPE_BGP_PEER_HOST, peer->hostname);
@@ -2604,5 +2618,25 @@ void bgp_peer_gr_flags_update(struct peer *peer)
 			peer->host,
 			(CHECK_FLAG(peer->flags,
 				PEER_FLAG_GRACEFUL_RESTART_GLOBAL_INHERIT) ?
-				"Set" : "UnSet"));
+			 "Set" : "UnSet"));
+
+	if (!CHECK_FLAG(peer->flags,
+		PEER_FLAG_GRACEFUL_RESTART) &&
+		!CHECK_FLAG(peer->flags,
+			PEER_FLAG_GRACEFUL_RESTART_HELPER)){
+		zlog_debug(
+			"BGP_GR:: Peer %s UNSET PEER_STATUS_NSF_MODE!",
+			peer->host);
+
+		UNSET_FLAG(peer->sflags, PEER_STATUS_NSF_MODE);
+
+		if (CHECK_FLAG(peer->sflags,
+				PEER_STATUS_NSF_WAIT)) {
+
+			peer_nsf_stop(peer);
+			zlog_debug(
+				"BGP_GR:: Peer %s UNSET PEER_STATUS_NSF_WAIT!",
+				peer->host);
+		}
+	}
 }
diff --git a/bgpd/bgp_io.c b/bgpd/bgp_io.c
index fed34e5b65..626c36ff05 100644
--- a/bgpd/bgp_io.c
+++ b/bgpd/bgp_io.c
@@ -462,7 +462,12 @@ static uint16_t bgp_read(struct peer *peer)
 			 safe_strerror(errno));
 
 		if (peer->status == Established) {
-			if (CHECK_FLAG(peer->sflags, PEER_STATUS_NSF_MODE)) {
+			if ((CHECK_FLAG(peer->flags,
+				PEER_FLAG_GRACEFUL_RESTART) ||
+				CHECK_FLAG(peer->flags,
+				PEER_FLAG_GRACEFUL_RESTART_HELPER)) &&
+				CHECK_FLAG(peer->sflags,
+				PEER_STATUS_NSF_MODE)) {
 				peer->last_reset = PEER_DOWN_NSF_CLOSE_SESSION;
 				SET_FLAG(peer->sflags, PEER_STATUS_NSF_WAIT);
 			} else
@@ -475,10 +480,15 @@ static uint16_t bgp_read(struct peer *peer)
 	} else if (nbytes == 0) {
 		if (bgp_debug_neighbor_events(peer))
 			zlog_debug("%s [Event] BGP connection closed fd %d",
-				   peer->host, peer->fd);
+					peer->host, peer->fd);
 
 		if (peer->status == Established) {
-			if (CHECK_FLAG(peer->sflags, PEER_STATUS_NSF_MODE)) {
+			if ((CHECK_FLAG(peer->flags,
+				PEER_FLAG_GRACEFUL_RESTART) ||
+				CHECK_FLAG(peer->flags,
+				PEER_FLAG_GRACEFUL_RESTART_HELPER)) &&
+				CHECK_FLAG(peer->sflags,
+				PEER_STATUS_NSF_MODE)) {
 				peer->last_reset = PEER_DOWN_NSF_CLOSE_SESSION;
 				SET_FLAG(peer->sflags, PEER_STATUS_NSF_WAIT);
 			} else
diff --git a/bgpd/bgp_network.c b/bgpd/bgp_network.c
index 4031d2dfde..4487684de5 100644
--- a/bgpd/bgp_network.c
+++ b/bgpd/bgp_network.c
@@ -487,6 +487,18 @@ static int bgp_accept(struct thread *thread)
 	hash_get(peer->bgp->peerhash, peer, hash_alloc_intern);
 
 	peer_xfer_config(peer, peer1);
+	bgp_peer_gr_flags_update(peer);
+
+	if (bgp_peer_gr_mode_get(peer) == PEER_DISABLE) {
+
+		UNSET_FLAG(peer->sflags, PEER_STATUS_NSF_MODE);
+
+		if (CHECK_FLAG(peer->sflags,
+				PEER_STATUS_NSF_WAIT)) {
+			peer_nsf_stop(peer);
+		}
+	}
+
 	UNSET_FLAG(peer->flags, PEER_FLAG_CONFIG_NODE);
 
 	peer->doppelganger = peer1;
@@ -497,10 +509,9 @@ static int bgp_accept(struct thread *thread)
 	BGP_TIMER_OFF(peer->t_start); /* created in peer_create() */
 
 	SET_FLAG(peer->sflags, PEER_STATUS_ACCEPT_PEER);
-
 	/* Make dummy peer until read Open packet. */
 	if (peer1->status == Established
-	    && CHECK_FLAG(peer1->sflags, PEER_STATUS_NSF_MODE)) {
+		&& CHECK_FLAG(peer1->sflags, PEER_STATUS_NSF_MODE)) {
 		/* If we have an existing established connection with graceful
 		 * restart
 		 * capability announced with one or more address families, then
@@ -508,7 +519,14 @@ static int bgp_accept(struct thread *thread)
 		 * existing established connection and move state to connect.
 		 */
 		peer1->last_reset = PEER_DOWN_NSF_CLOSE_SESSION;
-		SET_FLAG(peer1->sflags, PEER_STATUS_NSF_WAIT);
+
+		if (CHECK_FLAG(peer1->flags,
+			PEER_FLAG_GRACEFUL_RESTART) ||
+			CHECK_FLAG(peer1->flags,
+			PEER_FLAG_GRACEFUL_RESTART_HELPER))
+			SET_FLAG(peer1->sflags,
+				PEER_STATUS_NSF_WAIT);
+
 		bgp_event_update(peer1, TCP_connection_closed);
 	}
 
diff --git a/bgpd/bgp_open.c b/bgpd/bgp_open.c
index eb6dc1a753..89437a5149 100644
--- a/bgpd/bgp_open.c
+++ b/bgpd/bgp_open.c
@@ -462,6 +462,8 @@ static int bgp_capability_restart(struct peer *peer,
 	restart_flag_time = stream_getw(s);
 	if (CHECK_FLAG(restart_flag_time, RESTART_R_BIT))
 		SET_FLAG(peer->cap, PEER_CAP_RESTART_BIT_RCV);
+	else
+		UNSET_FLAG(peer->cap, PEER_CAP_RESTART_BIT_RCV);
 
 	UNSET_FLAG(restart_flag_time, 0xF000);
 	peer->v_gr_restart = restart_flag_time;
diff --git a/bgpd/bgpd.c b/bgpd/bgpd.c
index fae91655ab..2c60b818ef 100644
--- a/bgpd/bgpd.c
+++ b/bgpd/bgpd.c
@@ -1326,6 +1326,9 @@ void peer_xfer_config(struct peer *peer_dst, struct peer *peer_src)
 	peer_dst->flags = peer_src->flags;
 	peer_dst->cap = peer_src->cap;
 
+	peer_dst->peer_gr_present_state = peer_src->peer_gr_present_state;
+	peer_dst->peer_gr_new_status_flag = peer_src->peer_gr_new_status_flag;
+
 	peer_dst->local_as = peer_src->local_as;
 	peer_dst->port = peer_src->port;
 	(void)peer_sort(peer_dst);
@@ -2213,7 +2216,7 @@ int peer_afc_set(struct peer *peer, afi_t afi, safi_t safi, int enable)
 		return peer_deactivate(peer, afi, safi);
 }
 
-static void peer_nsf_stop(struct peer *peer)
+void peer_nsf_stop(struct peer *peer)
 {
 	afi_t afi;
 	safi_t safi;
diff --git a/bgpd/bgpd.h b/bgpd/bgpd.h
index 390dc8a7ff..a8ba6ad258 100644
--- a/bgpd/bgpd.h
+++ b/bgpd/bgpd.h
@@ -2081,5 +2081,6 @@ extern struct peer *peer_lookup_in_view(struct vty *vty, struct bgp *bgp,
 
 /* Hooks */
 DECLARE_HOOK(peer_status_changed, (struct peer * peer), (peer))
+void peer_nsf_stop(struct peer *peer);
 
 #endif /* _QUAGGA_BGPD_H */