diff --git a/subsys/power/policy/policy_residency.c b/subsys/power/policy/policy_residency.c
index 8074fd7b51f..9f849a390cf 100644
--- a/subsys/power/policy/policy_residency.c
+++ b/subsys/power/policy/policy_residency.c
@@ -20,13 +20,21 @@ struct pm_state_info pm_policy_next_state(int32_t ticks)
 	int i;
 
 	for (i = ARRAY_SIZE(pm_min_residency) - 1; i >= 0; i--) {
+		uint32_t min_residency, exit_latency;
+
 		if (!pm_constraint_get(pm_min_residency[i].state)) {
 			continue;
 		}
 
+		min_residency = k_us_to_ticks_ceil32(
+			    pm_min_residency[i].min_residency_us);
+		exit_latency = k_us_to_ticks_ceil32(
+			    pm_min_residency[i].exit_latency_us);
+		__ASSERT(min_residency > exit_latency,
+				"min_residency_us < exit_latency_us");
+
 		if ((ticks == K_TICKS_FOREVER) ||
-		    (ticks >= k_us_to_ticks_ceil32(
-			    pm_min_residency[i].min_residency_us))) {
+		    (ticks >= (min_residency - exit_latency))) {
 			LOG_DBG("Selected power state %d "
 				"(ticks: %d, min_residency: %u)",
 				pm_min_residency[i].state, ticks,