diff --git a/lib/extension/otaUpdate.ts b/lib/extension/otaUpdate.ts
index a92ac9c5e..7db198b7f 100644
--- a/lib/extension/otaUpdate.ts
+++ b/lib/extension/otaUpdate.ts
@@ -65,6 +65,10 @@ export default class OTAUpdate extends Extension {
         // remove them.
         for (const device of this.zigbee.devices(false)) {
             this.removeProgressAndRemainingFromState(device);
+            // Reset update state, e.g. when Z2M restarted during update.
+            if (this.state.get(device).update?.state === 'updating') {
+                this.state.get(device).update.state = 'available';
+            }
         }
     }
 
diff --git a/test/otaUpdate.test.js b/test/otaUpdate.test.js
index 0fdf1a897..6b38a3a95 100644
--- a/test/otaUpdate.test.js
+++ b/test/otaUpdate.test.js
@@ -485,4 +485,11 @@ describe('OTA update', () => {
         expect(spyUseIndexOverride).toHaveBeenCalledWith('http://my.site/index.json');
         spyUseIndexOverride.mockClear();
     });
+
+    it('Clear update state on startup', async () => {
+        const device = controller.zigbee.resolveEntity(zigbeeHerdsman.devices.bulb_color.ieeeAddr);
+        controller.state.set(device, {update: {progress: 100, remaining: 10, state: 'updating'}})
+        await resetExtension();
+        expect(controller.state.get(device)).toStrictEqual({update: {state: 'available'}});
+    });
 });