diff --git a/src/smf/gsm-sm.c b/src/smf/gsm-sm.c
index 32da155f27..7ec051e6f4 100644
--- a/src/smf/gsm-sm.c
+++ b/src/smf/gsm-sm.c
@@ -337,6 +337,7 @@ void smf_gsm_state_wait_epc_auth_initial(ogs_fsm_t *s, smf_event_t *e)
     ogs_diam_gy_message_t *gy_message = NULL;
     ogs_diam_gx_message_t *gx_message = NULL;
     uint32_t diam_err;
+    bool need_gy_terminate = false;
 
     ogs_assert(s);
     ogs_assert(e);
@@ -392,7 +393,7 @@ void smf_gsm_state_wait_epc_auth_initial(ogs_fsm_t *s, smf_event_t *e)
             case OGS_DIAM_GY_CC_REQUEST_TYPE_INITIAL_REQUEST:
                 ogs_assert(e->gtp_xact);
                 diam_err = smf_gy_handle_cca_initial_request(sess,
-                                gy_message, e->gtp_xact);
+                                gy_message, e->gtp_xact, &need_gy_terminate);
                 sess->sm_data.gy_ccr_init_in_flight = false;
                 sess->sm_data.gy_cca_init_err = diam_err;
                 goto test_can_proceed;
@@ -422,8 +423,16 @@ void smf_gsm_state_wait_epc_auth_initial(ogs_fsm_t *s, smf_event_t *e)
                 smf_epc_pfcp_send_session_establishment_request(
                     sess, e->gtp_xact, 0));
         } else {
-            /* FIXME: tear down Gx/Gy session
-             * if its sm_data.*init_err == ER_DIAMETER_SUCCESS */
+            /* Tear down Gx/Gy session if its sm_data.*init_err == ER_DIAMETER_SUCCESS */
+            if (sess->sm_data.gx_cca_init_err == ER_DIAMETER_SUCCESS) {
+                sess->sm_data.gx_ccr_term_in_flight = true;
+                smf_gx_send_ccr(sess, e->gtp_xact, OGS_DIAM_GX_CC_REQUEST_TYPE_TERMINATION_REQUEST);
+            }
+            if (smf_use_gy_iface() == 1 &&
+                (sess->sm_data.gy_cca_init_err == ER_DIAMETER_SUCCESS || need_gy_terminate)) {
+                sess->sm_data.gy_ccr_term_in_flight = true;
+                smf_gy_send_ccr(sess, e->gtp_xact, OGS_DIAM_GY_CC_REQUEST_TYPE_TERMINATION_REQUEST);
+            }
             uint8_t gtp_cause = gtp_cause_from_diameter(
                                     e->gtp_xact->gtp_version, diam_err, NULL);
             send_gtp_create_err_msg(sess, e->gtp_xact, gtp_cause);
diff --git a/src/smf/gy-handler.c b/src/smf/gy-handler.c
index 78dfa2e019..63b780a500 100644
--- a/src/smf/gy-handler.c
+++ b/src/smf/gy-handler.c
@@ -113,24 +113,41 @@ static void urr_update_time(smf_sess_t *sess, ogs_pfcp_urr_t *urr, ogs_diam_gy_m
     }
 }
 
-/* Returns ER_DIAMETER_SUCCESS on success, Diameter error code on failue. */
+/* Returns ER_DIAMETER_SUCCESS on success, Diameter error code on failue.
+ * Upon failure, CCR-Terminate is needed based on "need_termination" value (this
+ * may happen eg. if messaged RC is successful but MSCC RC is rejected). */
 uint32_t smf_gy_handle_cca_initial_request(
         smf_sess_t *sess, ogs_diam_gy_message_t *gy_message,
-        ogs_gtp_xact_t *gtp_xact)
+        ogs_gtp_xact_t *gtp_xact,
+        bool *need_termination)
 {
     smf_bearer_t *bearer;
 
     ogs_assert(sess);
     ogs_assert(gy_message);
     ogs_assert(gtp_xact);
+    ogs_assert(need_termination);
 
     ogs_debug("[Gy CCA Initial]");
     ogs_debug("    SGW_S5C_TEID[0x%x] PGW_S5C_TEID[0x%x]",
             sess->sgw_s5c_teid, sess->smf_n4_teid);
 
-    if (gy_message->result_code != ER_DIAMETER_SUCCESS)
+    *need_termination = false;
+    if (gy_message->result_code != ER_DIAMETER_SUCCESS) {
+        ogs_warn("Gy CCA Initial Diameter failure: res=%u",
+            gy_message->result_code);
         return gy_message->err ? *gy_message->err :
                                  ER_DIAMETER_AUTHENTICATION_REJECTED;
+    }
+    if (gy_message->cca.result_code != ER_DIAMETER_SUCCESS) {
+        ogs_warn("Gy CCA Initial Diameter Multiple-Services-Credit-Control Result-Code=%u",
+            gy_message->cca.result_code);
+        /* Message RC was successful but MSCC was rejected. The session needs to
+         * be tear down through CCR-T: */
+        *need_termination = true;
+        return gy_message->cca.err ? *gy_message->cca.err :
+                                     ER_DIAMETER_AUTHENTICATION_REJECTED;
+    }
 
     bearer = smf_default_bearer_in_sess(sess);
     ogs_assert(bearer);
@@ -173,8 +190,8 @@ uint32_t smf_gy_handle_cca_update_request(
             sess->sgw_s5c_teid, sess->smf_n4_teid);
 
     if (gy_message->result_code != ER_DIAMETER_SUCCESS) {
-        ogs_warn("Gy CCA Update Diameter failure: res=%u err=%u",
-            gy_message->result_code, *gy_message->err);
+        ogs_warn("Gy CCA Update Diameter failure: Result-Code=%u",
+            gy_message->result_code);
         return gy_message->err ? *gy_message->err :
                                  ER_DIAMETER_AUTHENTICATION_REJECTED;
     }
diff --git a/src/smf/gy-handler.h b/src/smf/gy-handler.h
index 019d9b29d9..ad8a089c0a 100644
--- a/src/smf/gy-handler.h
+++ b/src/smf/gy-handler.h
@@ -29,7 +29,8 @@ extern "C" {
 
 uint32_t smf_gy_handle_cca_initial_request(
         smf_sess_t *sess, ogs_diam_gy_message_t *gy_message,
-        ogs_gtp_xact_t *gtp_xact);
+        ogs_gtp_xact_t *gtp_xact,
+        bool *need_termination);
 uint32_t smf_gy_handle_cca_update_request(
         smf_sess_t *sess, ogs_diam_gy_message_t *gy_message,
         ogs_pfcp_xact_t *pfcp_xact);