diff --git a/drivers/net/phy/air_en8811h.c b/drivers/net/phy/air_en8811h.c
index 0eeb7b9a4e26..38eb18f0e9bb 100644
--- a/drivers/net/phy/air_en8811h.c
+++ b/drivers/net/phy/air_en8811h.c
@@ -1125,13 +1125,6 @@ static int an8811hb_probe(struct phy_device *phydev)
 	if (ret)
 		goto err_dev_create;
 
-	/* Configure led gpio pins as output */
-	ret = air_phy_buckpbus_reg_modify(phydev, AN8811HB_GPIO_OUTPUT,
-					  AN8811HB_GPIO_OUTPUT_345,
-					  AN8811HB_GPIO_OUTPUT_345);
-	if (ret < 0)
-		goto err_dev_create;
-
 	return 0;
 
 err_dev_create:
@@ -1265,9 +1258,15 @@ static int an8811hb_config_init(struct phy_device *phydev)
 
 	ret = air_leds_init(phydev, EN8811H_LED_COUNT, AIR_PHY_LED_DUR,
 			    AIR_LED_MODE_USER_DEFINE);
-	if (ret < 0)
+	if (ret < 0) {
 		phydev_err(phydev, "Failed to initialize leds: %d\n", ret);
+		return ret;
+	}
 
+	/* Restore LED GPIO output enables after MCU initialization. */
+	ret = air_phy_buckpbus_reg_modify(phydev, AN8811HB_GPIO_OUTPUT,
+					  AN8811HB_GPIO_OUTPUT_345,
+					  AN8811HB_GPIO_OUTPUT_345);
 	return ret;
 }