diff --git a/src/app/CommandHandler.cpp b/src/app/CommandHandler.cpp
index d17c4f36cd33e1..9ad0b4eca7cbab 100644
--- a/src/app/CommandHandler.cpp
+++ b/src/app/CommandHandler.cpp
@@ -186,12 +186,19 @@ void CommandHandler::DecrementHoldOff()
         return;
     }
 
-    if (!mExchangeCtx->IsGroupExchangeContext() && !mSentStatusResponse)
+    if (!mSentStatusResponse)
     {
-        CHIP_ERROR err = SendCommandResponse();
-        if (err != CHIP_NO_ERROR)
+        if (!mExchangeCtx)
+        {
+            ChipLogProgress(DataManagement, "Skipping command response: exchange context is null");
+        }
+        else if (!mExchangeCtx->IsGroupExchangeContext())
         {
-            ChipLogError(DataManagement, "Failed to send command response: %" CHIP_ERROR_FORMAT, err.Format());
+            CHIP_ERROR err = SendCommandResponse();
+            if (err != CHIP_NO_ERROR)
+            {
+                ChipLogError(DataManagement, "Failed to send command response: %" CHIP_ERROR_FORMAT, err.Format());
+            }
         }
     }
 
diff --git a/src/app/tests/TestCommandInteraction.cpp b/src/app/tests/TestCommandInteraction.cpp
index 41245dca9be0a5..3821b7fad536eb 100644
--- a/src/app/tests/TestCommandInteraction.cpp
+++ b/src/app/tests/TestCommandInteraction.cpp
@@ -221,6 +221,7 @@ class TestCommandInteraction
     static void TestCommandHandlerWithProcessReceivedMsg(nlTestSuite * apSuite, void * apContext);
     static void TestCommandHandlerWithProcessReceivedEmptyDataMsg(nlTestSuite * apSuite, void * apContext);
     static void TestCommandHandlerRejectMultipleCommands(nlTestSuite * apSuite, void * apContext);
+    static void TestCommandHandlerReleaseWithExchangeClosed(nlTestSuite * apSuite, void * apContext);
 
     static void TestCommandSenderCommandSuccessResponseFlow(nlTestSuite * apSuite, void * apContext);
     static void TestCommandSenderCommandAsyncSuccessResponseFlow(nlTestSuite * apSuite, void * apContext);
@@ -927,6 +928,30 @@ void TestCommandInteraction::TestCommandHandlerRejectMultipleCommands(nlTestSuit
     NL_TEST_ASSERT(apSuite, ctx.GetExchangeManager().GetNumActiveExchanges() == 0);
 }
 
+void TestCommandInteraction::TestCommandHandlerReleaseWithExchangeClosed(nlTestSuite * apSuite, void * apContext)
+{
+    TestContext & ctx = *static_cast<TestContext *>(apContext);
+    CHIP_ERROR err    = CHIP_NO_ERROR;
+
+    app::CommandSender commandSender(&mockCommandSenderDelegate, &ctx.GetExchangeManager());
+
+    AddInvokeRequestData(apSuite, apContext, &commandSender);
+    asyncCommandHandle = nullptr;
+    asyncCommand       = true;
+    err                = commandSender.SendCommandRequest(ctx.GetSessionBobToAlice());
+
+    NL_TEST_ASSERT(apSuite, err == CHIP_NO_ERROR);
+
+    ctx.DrainAndServiceIO();
+
+    // Verify that async command handle has been allocated
+    NL_TEST_ASSERT(apSuite, asyncCommandHandle.Get() != nullptr);
+
+    // Close the exchange associated with the handle and verify the handle can be gracefully released
+    asyncCommandHandle.Get()->mExchangeCtx->Close();
+    asyncCommandHandle = nullptr;
+}
+
 } // namespace app
 } // namespace chip
 
@@ -948,6 +973,7 @@ const nlTest sTests[] =
     NL_TEST_DEF("TestCommandHandlerWithProcessReceivedNotExistCommand", chip::app::TestCommandInteraction::TestCommandHandlerWithProcessReceivedNotExistCommand),
     NL_TEST_DEF("TestCommandHandlerWithProcessReceivedEmptyDataMsg", chip::app::TestCommandInteraction::TestCommandHandlerWithProcessReceivedEmptyDataMsg),
     NL_TEST_DEF("TestCommandHandlerRejectMultipleCommands", chip::app::TestCommandInteraction::TestCommandHandlerRejectMultipleCommands),
+    NL_TEST_DEF("TestCommandHandlerReleaseWithExchangeClosed", chip::app::TestCommandInteraction::TestCommandHandlerReleaseWithExchangeClosed),
 
     NL_TEST_DEF("TestCommandSenderCommandSuccessResponseFlow", chip::app::TestCommandInteraction::TestCommandSenderCommandSuccessResponseFlow),
     NL_TEST_DEF("TestCommandSenderCommandAsyncSuccessResponseFlow", chip::app::TestCommandInteraction::TestCommandSenderCommandAsyncSuccessResponseFlow),