diff --git a/tests/net/lib/lwm2m/lwm2m_rd_client/src/main.c b/tests/net/lib/lwm2m/lwm2m_rd_client/src/main.c
index 9d8ba7bd924..60a00b9addb 100644
--- a/tests/net/lib/lwm2m/lwm2m_rd_client/src/main.c
+++ b/tests/net/lib/lwm2m/lwm2m_rd_client/src/main.c
@@ -21,7 +21,7 @@ DEFINE_FFF_GLOBALS;
 /* Maximum number of iterations within the state machine of RD Client
  * service that is waited for until a possible event occurs
  */
-static const uint8_t RD_CLIENT_MAX_LOOKUP_ITERATIONS = 10;
+static const uint8_t RD_CLIENT_MAX_LOOKUP_ITERATIONS = 100;
 
 FAKE_VOID_FUNC(show_lwm2m_event, enum lwm2m_rd_client_event);
 FAKE_VOID_FUNC(show_lwm2m_observe, enum lwm2m_observe_event);
@@ -143,7 +143,10 @@ static void my_suite_before(void *data)
 
 	RESET_FAKE(show_lwm2m_event);
 	RESET_FAKE(show_lwm2m_observe);
+}
 
+static void my_suite_after(void *data)
+{
 	test_lwm2m_engine_stop_service();
 }
 
@@ -165,7 +168,7 @@ void message_reply_timeout_cb_default(struct lwm2m_message *msg)
 	msg->message_timeout_cb(msg);
 }
 
-ZTEST_SUITE(lwm2m_rd_client, NULL, NULL, my_suite_before, NULL, NULL);
+ZTEST_SUITE(lwm2m_rd_client, NULL, NULL, my_suite_before, my_suite_after, NULL);
 
 ZTEST(lwm2m_rd_client, test_start_registration_ok)
 {
diff --git a/tests/net/lib/lwm2m/lwm2m_rd_client/src/stubs.c b/tests/net/lib/lwm2m/lwm2m_rd_client/src/stubs.c
index 72c59de8c6f..877dfdc40d3 100644
--- a/tests/net/lib/lwm2m/lwm2m_rd_client/src/stubs.c
+++ b/tests/net/lib/lwm2m/lwm2m_rd_client/src/stubs.c
@@ -94,10 +94,11 @@ int lwm2m_engine_call_at(k_work_handler_t work, int64_t timestamp)
 uint16_t counter = RD_CLIENT_MAX_SERVICE_ITERATIONS;
 struct lwm2m_message *pending_message;
 void *(*pending_message_cb)();
+static bool running;
 
 static void service_work_fn(struct k_work *work)
 {
-	while (true) {
+	while (running) {
 		if (pending_message != NULL && pending_message_cb != NULL) {
 			pending_message_cb(pending_message);
 			pending_message = NULL;
@@ -132,6 +133,7 @@ K_WORK_DEFINE(service_work, service_work_fn);
 
 void test_lwm2m_engine_start_service(void)
 {
+	running = true;
 	counter = RD_CLIENT_MAX_SERVICE_ITERATIONS;
 	k_work_submit(&service_work);
 }
@@ -139,6 +141,7 @@ void test_lwm2m_engine_start_service(void)
 void test_lwm2m_engine_stop_service(void)
 {
 	pending_message_cb = NULL;
+	running = false;
 	k_work_cancel(&service_work);
 }