diff --git a/src/messaging/tests/TestReliableMessageProtocol.cpp b/src/messaging/tests/TestReliableMessageProtocol.cpp
index 6b7d371ebf9a44..32d1b855a28ead 100644
--- a/src/messaging/tests/TestReliableMessageProtocol.cpp
+++ b/src/messaging/tests/TestReliableMessageProtocol.cpp
@@ -95,11 +95,19 @@ class MockAppDelegate : public ExchangeDelegate
                            System::PacketBufferHandle && buffer) override
     {
         IsOnMessageReceivedCalled = true;
+        ec->Close();
+        if (mTestSuite != nullptr)
+        {
+            NL_TEST_ASSERT(mTestSuite, buffer->TotalLength() == sizeof(PAYLOAD));
+            NL_TEST_ASSERT(mTestSuite, memcmp(buffer->Start(), PAYLOAD, buffer->TotalLength()) == 0);
+        }
     }
 
     void OnResponseTimeout(ExchangeContext * ec) override {}
 
     bool IsOnMessageReceivedCalled = false;
+
+    nlTestSuite * mTestSuite = nullptr;
 };
 
 class MockSessionEstablishmentExchangeDispatch : public Messaging::ExchangeMessageDispatch
@@ -389,6 +397,73 @@ void CheckFailedMessageRetainOnSend(nlTestSuite * inSuite, void * inContext)
     rm->ClearRetransTable(rc);
 }
 
+void CheckResendApplicationMessageWithPeerExchange(nlTestSuite * inSuite, void * inContext)
+{
+    TestContext & ctx = *reinterpret_cast<TestContext *>(inContext);
+
+    ctx.GetInetLayer().SystemLayer()->Init(nullptr);
+
+    chip::System::PacketBufferHandle buffer = chip::MessagePacketBuffer::NewWithData(PAYLOAD, sizeof(PAYLOAD));
+    NL_TEST_ASSERT(inSuite, !buffer.IsNull());
+
+    CHIP_ERROR err = CHIP_NO_ERROR;
+
+    MockAppDelegate mockReceiver;
+    err = ctx.GetExchangeManager().RegisterUnsolicitedMessageHandlerForType(Echo::MsgType::EchoRequest, &mockReceiver);
+    NL_TEST_ASSERT(inSuite, err == CHIP_NO_ERROR);
+
+    mockReceiver.mTestSuite = inSuite;
+
+    MockAppDelegate mockSender;
+    ExchangeContext * exchange = ctx.NewExchangeToPeer(&mockSender);
+    NL_TEST_ASSERT(inSuite, exchange != nullptr);
+
+    ReliableMessageMgr * rm     = ctx.GetExchangeManager().GetReliableMessageMgr();
+    ReliableMessageContext * rc = exchange->GetReliableMessageContext();
+    NL_TEST_ASSERT(inSuite, rm != nullptr);
+    NL_TEST_ASSERT(inSuite, rc != nullptr);
+
+    rc->SetConfig({
+        1, // CHIP_CONFIG_RMP_DEFAULT_INITIAL_RETRY_INTERVAL
+        1, // CHIP_CONFIG_RMP_DEFAULT_ACTIVE_RETRY_INTERVAL
+    });
+
+    // Let's drop the initial message
+    gLoopback.mSendMessageCount    = 0;
+    gLoopback.mNumMessagesToDrop   = 1;
+    gLoopback.mDroppedMessageCount = 0;
+
+    // Ensure the retransmit table is empty right now
+    NL_TEST_ASSERT(inSuite, rm->TestGetCountRetransTable() == 0);
+
+    err = exchange->SendMessage(Echo::MsgType::EchoRequest, std::move(buffer));
+    NL_TEST_ASSERT(inSuite, err == CHIP_NO_ERROR);
+    exchange->Close();
+
+    // Ensure the message was dropped, and was added to retransmit table
+    NL_TEST_ASSERT(inSuite, gLoopback.mNumMessagesToDrop == 0);
+    NL_TEST_ASSERT(inSuite, gLoopback.mDroppedMessageCount == 1);
+    NL_TEST_ASSERT(inSuite, rm->TestGetCountRetransTable() == 1);
+    NL_TEST_ASSERT(inSuite, !mockReceiver.IsOnMessageReceivedCalled);
+
+    // 1 tick is 64 ms, sleep 65 ms to trigger first re-transmit
+    test_os_sleep_ms(65);
+    ReliableMessageMgr::Timeout(&ctx.GetSystemLayer(), rm, CHIP_SYSTEM_NO_ERROR);
+
+    // Ensure the retransmit message was not dropped, and is no longer in the retransmit table
+    NL_TEST_ASSERT(inSuite, gLoopback.mSendMessageCount >= 2);
+    NL_TEST_ASSERT(inSuite, gLoopback.mDroppedMessageCount == 1);
+    NL_TEST_ASSERT(inSuite, rm->TestGetCountRetransTable() == 0);
+    NL_TEST_ASSERT(inSuite, mockReceiver.IsOnMessageReceivedCalled);
+
+    mockReceiver.mTestSuite = nullptr;
+
+    err = ctx.GetExchangeManager().UnregisterUnsolicitedMessageHandlerForType(Echo::MsgType::EchoRequest);
+    NL_TEST_ASSERT(inSuite, err == CHIP_NO_ERROR);
+
+    rm->ClearRetransTable(rc);
+}
+
 void CheckSendStandaloneAckMessage(nlTestSuite * inSuite, void * inContext)
 {
     TestContext & ctx = *reinterpret_cast<TestContext *>(inContext);
@@ -422,6 +497,7 @@ const nlTest sTests[] =
     NL_TEST_DEF("Test ReliableMessageMgr::CheckResendApplicationMessage", CheckResendApplicationMessage),
     NL_TEST_DEF("Test ReliableMessageMgr::CheckCloseExchangeAndResendApplicationMessage", CheckCloseExchangeAndResendApplicationMessage),
     NL_TEST_DEF("Test ReliableMessageMgr::CheckFailedMessageRetainOnSend", CheckFailedMessageRetainOnSend),
+    NL_TEST_DEF("Test ReliableMessageMgr::CheckResendApplicationMessageWithPeerExchange", CheckResendApplicationMessageWithPeerExchange),
     NL_TEST_DEF("Test ReliableMessageMgr::CheckSendStandaloneAckMessage", CheckSendStandaloneAckMessage),
 
     NL_TEST_SENTINEL()