diff --git a/drivers/net/qlcnic/qlcnic.h b/drivers/net/qlcnic/qlcnic.h
index fa5b15c474b050d61266201c64efa062da1367a0..f7acb807a03d9a28949a2e4c52f264f91c4cb179 100644
--- a/drivers/net/qlcnic/qlcnic.h
+++ b/drivers/net/qlcnic/qlcnic.h
@@ -884,6 +884,7 @@ struct qlcnic_ipaddr {
 #define __QLCNIC_RESETTING		2
 #define __QLCNIC_START_FW 		4
 #define __QLCNIC_AER			5
+#define __QLCNIC_DIAG_RES_ALLOC		6
 
 #define QLCNIC_INTERRUPT_TEST		1
 #define QLCNIC_LOOPBACK_TEST		2
@@ -913,7 +914,6 @@ struct qlcnic_adapter {
 	struct net_device *netdev;
 	struct pci_dev *pdev;
 
-	bool 		blink_was_down;
 	unsigned long state;
 	u32 flags;
 
diff --git a/drivers/net/qlcnic/qlcnic_ethtool.c b/drivers/net/qlcnic/qlcnic_ethtool.c
index 615a5ab88456d6ddb465fb65f0f7722fbdea5104..de65847f3559290a58c8d59f0b765e6f54eb23d8 100644
--- a/drivers/net/qlcnic/qlcnic_ethtool.c
+++ b/drivers/net/qlcnic/qlcnic_ethtool.c
@@ -772,7 +772,6 @@ static int qlcnic_set_led(struct net_device *dev,
 
 	switch (state) {
 	case ETHTOOL_ID_ACTIVE:
-		adapter->blink_was_down = false;
 		if (!test_bit(__QLCNIC_DEV_UP, &adapter->state)) {
 			if (test_and_set_bit(__QLCNIC_RESETTING, &adapter->state))
 				return -EIO;
@@ -781,7 +780,7 @@ static int qlcnic_set_led(struct net_device *dev,
 				clear_bit(__QLCNIC_RESETTING, &adapter->state);
 				return -EIO;
 			}
-			adapter->blink_was_down = true;
+			set_bit(__QLCNIC_DIAG_RES_ALLOC, &adapter->state);
 		}
 
 		if (adapter->nic_ops->config_led(adapter, 1, 0xf) == 0)
@@ -792,18 +791,17 @@ static int qlcnic_set_led(struct net_device *dev,
 		break;
 
 	case ETHTOOL_ID_INACTIVE:
-		if (adapter->nic_ops->config_led(adapter, 0, 0xf) == 0)
-			return 0;
+		if (adapter->nic_ops->config_led(adapter, 0, 0xf))
+			dev_err(&adapter->pdev->dev,
+				"Failed to reset LED blink state.\n");
 
-		dev_err(&adapter->pdev->dev,
-			"Failed to reset LED blink state.\n");
 		break;
 
 	default:
 		return -EINVAL;
 	}
 
-	if (adapter->blink_was_down) {
+	if (test_and_clear_bit(__QLCNIC_DIAG_RES_ALLOC, &adapter->state)) {
 		qlcnic_diag_free_res(dev, max_sds_rings);
 		clear_bit(__QLCNIC_RESETTING, &adapter->state);
 	}