diff --git a/include/kernel.h b/include/kernel.h
index 196a94e78a2e..9e70c05cc211 100644
--- a/include/kernel.h
+++ b/include/kernel.h
@@ -3114,7 +3114,8 @@ extern int k_delayed_work_submit_to_queue(struct k_work_q *work_q,
  * @param work Address of delayed work item.
  *
  * @retval 0 Work item countdown canceled.
- * @retval -EINVAL Work item is being processed or has completed its work.
+ * @retval -EINVAL Work item is being processed.
+ * @retval -EALREADY Work item has already been completed.
  * @req K-DWORK-001
  */
 extern int k_delayed_work_cancel(struct k_delayed_work *work);
diff --git a/kernel/work_q.c b/kernel/work_q.c
index 7023f70f07da..845a2670c8a3 100644
--- a/kernel/work_q.c
+++ b/kernel/work_q.c
@@ -56,7 +56,7 @@ void k_delayed_work_init(struct k_delayed_work *work, k_work_handler_t handler)
 static int work_cancel(struct k_delayed_work *work)
 {
 	CHECKIF(work->work_q == NULL) {
-		return -EAGAIN;
+		return -EALREADY;
 	}
 
 	if (k_work_pending(&work->work)) {
@@ -65,7 +65,11 @@ static int work_cancel(struct k_delayed_work *work)
 			return -EINVAL;
 		}
 	} else {
-		(void)z_abort_timeout(&work->timeout);
+		int err = z_abort_timeout(&work->timeout);
+
+		if (err) {
+			return -EALREADY;
+		}
 	}
 
 	/* Detach from workqueue */
@@ -92,7 +96,10 @@ int k_delayed_work_submit_to_queue(struct k_work_q *work_q,
 	/* Cancel if work has been submitted */
 	if (work->work_q == work_q) {
 		err = work_cancel(work);
-		if (err < 0) {
+		/* -EALREADY indicates the work has already completed so this
+		 * is likely a recurring work.
+		 */
+		if (err < 0 && err != -EALREADY) {
 			goto done;
 		}
 	}
diff --git a/tests/kernel/workq/work_queue_api/src/main.c b/tests/kernel/workq/work_queue_api/src/main.c
index c28f6ab2c546..612fa409ebc0 100644
--- a/tests/kernel/workq/work_queue_api/src/main.c
+++ b/tests/kernel/workq/work_queue_api/src/main.c
@@ -205,7 +205,7 @@ static void tdelayed_work_cancel(void *data)
 				      (struct k_work *)&delayed_work_sleepy), NULL);
 		/**TESTPOINT: delayed work cancel when completed*/
 		ret = k_delayed_work_cancel(&delayed_work_sleepy);
-		zassert_equal(ret, 0, NULL);
+		zassert_not_equal(ret, 0, NULL);
 	}
 	/*work items not cancelled: delayed_work[1], delayed_work_sleepy*/
 }