diff --git a/drivers/misc/habanalabs/common/device.c b/drivers/misc/habanalabs/common/device.c
index 334009e83823..c74bdf4ae6aa 100644
--- a/drivers/misc/habanalabs/common/device.c
+++ b/drivers/misc/habanalabs/common/device.c
@@ -103,8 +103,24 @@ static int hl_device_release(struct inode *inode, struct file *filp)
 		return 0;
 	}
 
-	hl_cb_mgr_fini(hpriv->hdev, &hpriv->cb_mgr);
-	hl_ctx_mgr_fini(hpriv->hdev, &hpriv->ctx_mgr);
+	hl_cb_mgr_fini(hdev, &hpriv->cb_mgr);
+	hl_ctx_mgr_fini(hdev, &hpriv->ctx_mgr);
+
+	if (hdev->reset_upon_device_release) {
+		u64 idle_mask[HL_BUSY_ENGINES_MASK_EXT_SIZE] = {0};
+
+		/* We try soft reset first */
+		hl_device_reset(hdev, false, false);
+
+		/* If device is not idle perform hard reset */
+		if (!hdev->asic_funcs->is_device_idle(hdev, idle_mask,
+				HL_BUSY_ENGINES_MASK_EXT_SIZE, NULL)) {
+			dev_info(hdev->dev,
+				"device is not idle (mask %#llx %#llx) after soft reset, performing hard reset",
+				idle_mask[0], idle_mask[1]);
+			hl_device_reset(hdev, true, false);
+		}
+	}
 
 	hl_hpriv_put(hpriv);
 
diff --git a/drivers/misc/habanalabs/common/habanalabs.h b/drivers/misc/habanalabs/common/habanalabs.h
index 4b321e4f8059..4fdb4fa5728d 100644
--- a/drivers/misc/habanalabs/common/habanalabs.h
+++ b/drivers/misc/habanalabs/common/habanalabs.h
@@ -1920,6 +1920,7 @@ struct hl_mmu_funcs {
  * @device_fini_pending: true if device_fini was called and might be
  *                       waiting for the reset thread to finish
  * @supports_staged_submission: true if staged submissions are supported
+ * @reset_upon_device_release: true if reset is required upon device release
  */
 struct hl_device {
 	struct pci_dev			*pdev;
@@ -2026,6 +2027,7 @@ struct hl_device {
 	u8				process_kill_trial_cnt;
 	u8				device_fini_pending;
 	u8				supports_staged_submission;
+	u8				reset_upon_device_release;
 
 	/* Parameters for bring-up */
 	u64				nic_ports_mask;