diff --git a/include/spdk/nvme.h b/include/spdk/nvme.h
index 182741dab..6dee3231c 100644
--- a/include/spdk/nvme.h
+++ b/include/spdk/nvme.h
@@ -3954,6 +3954,8 @@ struct spdk_nvme_transport_ops {
 	int (*ctrlr_get_memory_domains)(const struct spdk_nvme_ctrlr *ctrlr,
 					struct spdk_memory_domain **domains,
 					int array_size);
+
+	int (*ctrlr_ready)(struct spdk_nvme_ctrlr *ctrlr);
 };
 
 /**
diff --git a/lib/nvme/nvme_ctrlr.c b/lib/nvme/nvme_ctrlr.c
index c4a2d46fb..a031c04f3 100644
--- a/lib/nvme/nvme_ctrlr.c
+++ b/lib/nvme/nvme_ctrlr.c
@@ -1395,6 +1395,8 @@ nvme_ctrlr_state_string(enum nvme_ctrlr_state state)
 		return "set host ID";
 	case NVME_CTRLR_STATE_WAIT_FOR_HOST_ID:
 		return "wait for set host ID";
+	case NVME_CTRLR_STATE_TRANSPORT_READY:
+		return "transport ready";
 	case NVME_CTRLR_STATE_READY:
 		return "ready";
 	case NVME_CTRLR_STATE_ERROR:
@@ -2906,7 +2908,7 @@ nvme_ctrlr_set_host_id_done(void *arg, const struct spdk_nvme_cpl *cpl)
 		NVME_CTRLR_DEBUGLOG(ctrlr, "Set Features - Host ID was successful\n");
 	}
 
-	nvme_ctrlr_set_state(ctrlr, NVME_CTRLR_STATE_READY, NVME_TIMEOUT_INFINITE);
+	nvme_ctrlr_set_state(ctrlr, NVME_CTRLR_STATE_TRANSPORT_READY, ctrlr->opts.admin_timeout_ms);
 }
 
 static int
@@ -2922,7 +2924,7 @@ nvme_ctrlr_set_host_id(struct spdk_nvme_ctrlr *ctrlr)
 		 * Set Features - Host Identifier after Connect, so we don't need to do anything here.
 		 */
 		NVME_CTRLR_DEBUGLOG(ctrlr, "NVMe-oF transport - not sending Set Features - Host ID\n");
-		nvme_ctrlr_set_state(ctrlr, NVME_CTRLR_STATE_READY, NVME_TIMEOUT_INFINITE);
+		nvme_ctrlr_set_state(ctrlr, NVME_CTRLR_STATE_TRANSPORT_READY, ctrlr->opts.admin_timeout_ms);
 		return 0;
 	}
 
@@ -2939,7 +2941,7 @@ nvme_ctrlr_set_host_id(struct spdk_nvme_ctrlr *ctrlr)
 	/* If the user specified an all-zeroes host identifier, don't send the command. */
 	if (spdk_mem_all_zero(host_id, host_id_size)) {
 		NVME_CTRLR_DEBUGLOG(ctrlr, "User did not specify host ID - not sending Set Features - Host ID\n");
-		nvme_ctrlr_set_state(ctrlr, NVME_CTRLR_STATE_READY, NVME_TIMEOUT_INFINITE);
+		nvme_ctrlr_set_state(ctrlr, NVME_CTRLR_STATE_TRANSPORT_READY, ctrlr->opts.admin_timeout_ms);
 		return 0;
 	}
 
@@ -3948,6 +3950,16 @@ nvme_ctrlr_process_init(struct spdk_nvme_ctrlr *ctrlr)
 		rc = nvme_ctrlr_set_host_id(ctrlr);
 		break;
 
+	case NVME_CTRLR_STATE_TRANSPORT_READY:
+		rc = nvme_transport_ctrlr_ready(ctrlr);
+		if (rc) {
+			NVME_CTRLR_ERRLOG(ctrlr, "Transport controller ready step failed: rc %d\n", rc);
+			nvme_ctrlr_set_state(ctrlr, NVME_CTRLR_STATE_ERROR, NVME_TIMEOUT_INFINITE);
+		} else {
+			nvme_ctrlr_set_state(ctrlr, NVME_CTRLR_STATE_READY, NVME_TIMEOUT_INFINITE);
+		}
+		break;
+
 	case NVME_CTRLR_STATE_READY:
 		NVME_CTRLR_DEBUGLOG(ctrlr, "Ctrlr already in ready state\n");
 		return 0;
diff --git a/lib/nvme/nvme_internal.h b/lib/nvme/nvme_internal.h
index fe4657b89..2e3773261 100644
--- a/lib/nvme/nvme_internal.h
+++ b/lib/nvme/nvme_internal.h
@@ -775,6 +775,11 @@ enum nvme_ctrlr_state {
 	 */
 	NVME_CTRLR_STATE_WAIT_FOR_HOST_ID,
 
+	/**
+	 * Let transport layer do its part of initialization.
+	 */
+	NVME_CTRLR_STATE_TRANSPORT_READY,
+
 	/**
 	 * Controller initialization has completed and the controller is ready.
 	 */
@@ -1470,6 +1475,7 @@ struct spdk_nvme_ctrlr *nvme_transport_ctrlr_construct(const struct spdk_nvme_tr
 int nvme_transport_ctrlr_destruct(struct spdk_nvme_ctrlr *ctrlr);
 int nvme_transport_ctrlr_scan(struct spdk_nvme_probe_ctx *probe_ctx, bool direct_connect);
 int nvme_transport_ctrlr_enable(struct spdk_nvme_ctrlr *ctrlr);
+int nvme_transport_ctrlr_ready(struct spdk_nvme_ctrlr *ctrlr);
 int nvme_transport_ctrlr_set_reg_4(struct spdk_nvme_ctrlr *ctrlr, uint32_t offset, uint32_t value);
 int nvme_transport_ctrlr_set_reg_8(struct spdk_nvme_ctrlr *ctrlr, uint32_t offset, uint64_t value);
 int nvme_transport_ctrlr_get_reg_4(struct spdk_nvme_ctrlr *ctrlr, uint32_t offset, uint32_t *value);
diff --git a/lib/nvme/nvme_transport.c b/lib/nvme/nvme_transport.c
index 15623a4c8..277abbe7c 100644
--- a/lib/nvme/nvme_transport.c
+++ b/lib/nvme/nvme_transport.c
@@ -141,6 +141,19 @@ nvme_transport_ctrlr_enable(struct spdk_nvme_ctrlr *ctrlr)
 	return transport->ops.ctrlr_enable(ctrlr);
 }
 
+int
+nvme_transport_ctrlr_ready(struct spdk_nvme_ctrlr *ctrlr)
+{
+	const struct spdk_nvme_transport *transport = nvme_get_transport(ctrlr->trid.trstring);
+
+	assert(transport != NULL);
+	if (transport->ops.ctrlr_ready) {
+		return transport->ops.ctrlr_ready(ctrlr);
+	}
+
+	return 0;
+}
+
 int
 nvme_transport_ctrlr_set_reg_4(struct spdk_nvme_ctrlr *ctrlr, uint32_t offset, uint32_t value)
 {
diff --git a/test/unit/lib/nvme/nvme_ctrlr.c/nvme_ctrlr_ut.c b/test/unit/lib/nvme/nvme_ctrlr.c/nvme_ctrlr_ut.c
index 9d1a00df4..0e05b62ce 100644
--- a/test/unit/lib/nvme/nvme_ctrlr.c/nvme_ctrlr_ut.c
+++ b/test/unit/lib/nvme/nvme_ctrlr.c/nvme_ctrlr_ut.c
@@ -65,6 +65,14 @@ nvme_transport_ctrlr_get_memory_domains(const struct spdk_nvme_ctrlr *ctrlr,
 	return 0;
 }
 
+DEFINE_RETURN_MOCK(nvme_transport_ctrlr_ready, int);
+int
+nvme_transport_ctrlr_ready(struct spdk_nvme_ctrlr *ctrlr)
+{
+	HANDLE_RETURN_MOCK(nvme_transport_ctrlr_ready);
+	return 0;
+}
+
 struct spdk_nvme_ctrlr *nvme_transport_ctrlr_construct(const struct spdk_nvme_transport_id *trid,
 		const struct spdk_nvme_ctrlr_opts *opts,
 		void *devhandle)
@@ -3276,6 +3284,24 @@ test_nvme_ctrlr_get_memory_domains(void)
 	MOCK_CLEAR(nvme_transport_ctrlr_get_memory_domains);
 }
 
+static void
+test_nvme_transport_ctrlr_ready(void)
+{
+	DECLARE_AND_CONSTRUCT_CTRLR();
+
+	/* Transport init succeeded */
+	ctrlr.state = NVME_CTRLR_STATE_TRANSPORT_READY;
+	SPDK_CU_ASSERT_FATAL(nvme_ctrlr_process_init(&ctrlr) == 0);
+	CU_ASSERT(ctrlr.state == NVME_CTRLR_STATE_READY);
+
+	/* Transport init failed */
+	ctrlr.state = NVME_CTRLR_STATE_TRANSPORT_READY;
+	MOCK_SET(nvme_transport_ctrlr_ready, -1);
+	SPDK_CU_ASSERT_FATAL(nvme_ctrlr_process_init(&ctrlr) == -1);
+	CU_ASSERT(ctrlr.state == NVME_CTRLR_STATE_ERROR);
+	MOCK_CLEAR(nvme_transport_ctrlr_ready);
+}
+
 int
 main(int argc, char **argv)
 {
@@ -3331,6 +3357,7 @@ main(int argc, char **argv)
 	CU_ADD_TEST(suite, test_nvme_ctrlr_parse_ana_log_page);
 	CU_ADD_TEST(suite, test_nvme_ctrlr_ana_resize);
 	CU_ADD_TEST(suite, test_nvme_ctrlr_get_memory_domains);
+	CU_ADD_TEST(suite, test_nvme_transport_ctrlr_ready);
 
 	CU_basic_set_mode(CU_BRM_VERBOSE);
 	CU_basic_run_tests();