diff --git a/src/app/InteractionModelEngine.cpp b/src/app/InteractionModelEngine.cpp
index 43a0d7f0052290..37549d5021a6c2 100644
--- a/src/app/InteractionModelEngine.cpp
+++ b/src/app/InteractionModelEngine.cpp
@@ -458,15 +458,11 @@ Protocols::InteractionModel::Status InteractionModelEngine::OnReadInitialRequest
         return Status::ResourceExhausted;
     }
 
-    CHIP_ERROR err = handler->OnInitialRequest(std::move(aPayload));
-    if (err == CHIP_ERROR_NO_MEMORY)
-    {
-        return Status::ResourceExhausted;
-    }
+    handler->OnInitialRequest(std::move(aPayload));
 
     // TODO: Should probably map various TLV errors into InvalidAction, here
     // or inside the read handler.
-    return StatusIB(err).mStatus;
+    return Status::Success;
 }
 
 Protocols::InteractionModel::Status InteractionModelEngine::OnWriteRequest(Messaging::ExchangeContext * apExchangeContext,
diff --git a/src/app/ReadHandler.cpp b/src/app/ReadHandler.cpp
index 01d55319d95402..4ede156be3084e 100644
--- a/src/app/ReadHandler.cpp
+++ b/src/app/ReadHandler.cpp
@@ -88,7 +88,7 @@ void ReadHandler::Close()
     mManagementCallback.OnDone(*this);
 }
 
-CHIP_ERROR ReadHandler::OnInitialRequest(System::PacketBufferHandle && aPayload)
+void ReadHandler::OnInitialRequest(System::PacketBufferHandle && aPayload)
 {
     CHIP_ERROR err = CHIP_NO_ERROR;
     System::PacketBufferHandle response;
@@ -104,6 +104,12 @@ CHIP_ERROR ReadHandler::OnInitialRequest(System::PacketBufferHandle && aPayload)
 
     if (err != CHIP_NO_ERROR)
     {
+        Status status = Status::InvalidAction;
+        if (err == CHIP_IM_GLOBAL_STATUS(PathsExhausted))
+        {
+            status = Status::PathsExhausted;
+        }
+        StatusResponse::Send(status, mExchangeCtx.Get(), /* aExpectResponse = */ false);
         Close();
     }
     else
@@ -111,8 +117,6 @@ CHIP_ERROR ReadHandler::OnInitialRequest(System::PacketBufferHandle && aPayload)
         // Force us to be in a dirty state so we get processed by the reporting
         mFlags.Set(ReadHandlerFlags::ForceDirty);
     }
-
-    return err;
 }
 
 CHIP_ERROR ReadHandler::OnStatusResponse(Messaging::ExchangeContext * apExchangeContext, System::PacketBufferHandle && aPayload,
@@ -301,14 +305,7 @@ CHIP_ERROR ReadHandler::ProcessReadRequest(System::PacketBufferHandle && aPayloa
 
     ReturnErrorOnFailure(readRequestParser.Init(reader));
 #if CHIP_CONFIG_IM_ENABLE_SCHEMA_CHECK
-    err = readRequestParser.CheckSchemaValidity();
-    if (err != CHIP_NO_ERROR)
-    {
-        // The actual error we want to return to our consumer is an IM "invalid
-        // action" error, not whatever internal error CheckSchemaValidity
-        // happens to come up with.
-        return CHIP_IM_GLOBAL_STATUS(InvalidAction);
-    }
+    ReturnErrorOnFailure(readRequestParser.CheckSchemaValidity());
 #endif
 
     err = readRequestParser.GetAttributeRequests(&attributePathListParser);
diff --git a/src/app/ReadHandler.h b/src/app/ReadHandler.h
index 1688f2e11c2204..3e192a2abf5f59 100644
--- a/src/app/ReadHandler.h
+++ b/src/app/ReadHandler.h
@@ -240,7 +240,7 @@ class ReadHandler : public Messaging::ExchangeDelegate
      *  @retval #CHIP_NO_ERROR On success.
      *
      */
-    CHIP_ERROR OnInitialRequest(System::PacketBufferHandle && aPayload);
+    void OnInitialRequest(System::PacketBufferHandle && aPayload);
 
     /**
      *  Send ReportData to initiator
diff --git a/src/app/tests/TestReadInteraction.cpp b/src/app/tests/TestReadInteraction.cpp
index e29ee3ef87f771..3c43c4a61e7fb3 100644
--- a/src/app/tests/TestReadInteraction.cpp
+++ b/src/app/tests/TestReadInteraction.cpp
@@ -521,7 +521,7 @@ void TestReadInteraction::TestReadHandler(nlTestSuite * apSuite, void * apContex
         err = writer.Finalize(&readRequestbuf);
         NL_TEST_ASSERT(apSuite, err == CHIP_NO_ERROR);
 
-        err = readHandler.OnInitialRequest(std::move(readRequestbuf));
+        err = readHandler.ProcessReadRequest(std::move(readRequestbuf));
         NL_TEST_ASSERT(apSuite, err == CHIP_NO_ERROR);
     }
 
@@ -659,11 +659,16 @@ void TestReadInteraction::TestReadHandlerInvalidAttributePath(nlTestSuite * apSu
         err = writer.Finalize(&readRequestbuf);
         NL_TEST_ASSERT(apSuite, err == CHIP_NO_ERROR);
 
-        err = readHandler.OnInitialRequest(std::move(readRequestbuf));
-        NL_TEST_ASSERT(apSuite, err == CHIP_IM_GLOBAL_STATUS(InvalidAction));
+        err = readHandler.ProcessReadRequest(std::move(readRequestbuf));
+        ChipLogError(DataManagement, "The error is %" CHIP_ERROR_FORMAT, err.Format());
+#if CHIP_CONFIG_IM_ENABLE_SCHEMA_CHECK
+        NL_TEST_ASSERT(apSuite, err == CHIP_ERROR_IM_MALFORMED_ATTRIBUTE_PATH_IB);
+#else
+        NL_TEST_ASSERT(apSuite, err == CHIP_ERROR_END_OF_TLV);
+#endif // CHIP_CONFIG_IM_ENABLE_SCHEMA_CHECK
 
         //
-        // In the call above to OnInitialRequest, the handler will not actually close out the EC since
+        // In the call above to ProcessReadRequest, the handler will not actually close out the EC since
         // it expects the ExchangeManager to do so automatically given it's not calling WillSend() on the EC,
         // and is not sending a response back.
         //
@@ -3449,7 +3454,11 @@ void TestReadInteraction::TestReadHandlerMalformedReadRequest2(nlTestSuite * apS
                                                 Messaging::SendFlags(Messaging::SendMessageFlags::kExpectResponse));
         NL_TEST_ASSERT(apSuite, err == CHIP_NO_ERROR);
         ctx.DrainAndServiceIO();
+#if CHIP_CONFIG_IM_ENABLE_SCHEMA_CHECK
         NL_TEST_ASSERT(apSuite, delegate.mError == CHIP_IM_GLOBAL_STATUS(InvalidAction));
+#else
+        NL_TEST_ASSERT(apSuite, delegate.mError == CHIP_IM_GLOBAL_STATUS(InvalidAction));
+#endif
     }
     NL_TEST_ASSERT(apSuite, engine->GetNumActiveReadClients() == 0);
     engine->Shutdown();