diff --git a/src/app/BufferedReadCallback.cpp b/src/app/BufferedReadCallback.cpp
index 3752a3e65aef08..3e6c28abf28023 100644
--- a/src/app/BufferedReadCallback.cpp
+++ b/src/app/BufferedReadCallback.cpp
@@ -37,12 +37,8 @@ void BufferedReadCallback::OnReportBegin()
 void BufferedReadCallback::OnReportEnd()
 {
     CHIP_ERROR err = DispatchBufferedData(mBufferedPath, StatusIB(), true);
-    if (err != CHIP_NO_ERROR)
-    {
-        mCallback.OnError(err);
-        return;
-    }
-
+    SetFatalReportError(err);
+    ReturnOnFailure(err);
     mCallback.OnReportEnd();
 }
 
@@ -230,13 +226,12 @@ CHIP_ERROR BufferedReadCallback::DispatchBufferedData(const ConcreteAttributePat
 void BufferedReadCallback::OnAttributeData(const ConcreteDataAttributePath & aPath, TLV::TLVReader * apData,
                                            const StatusIB & aStatus)
 {
-    CHIP_ERROR err;
-
     //
     // First, let's dispatch to our registered callback any buffered up list data from previous calls.
     //
-    err = DispatchBufferedData(aPath, aStatus);
-    SuccessOrExit(err);
+    CHIP_ERROR err = DispatchBufferedData(aPath, aStatus);
+    SetFatalReportError(err);
+    ReturnOnFailure(err);
 
     //
     // We buffer up list data (only if the status was successful)
@@ -244,7 +239,8 @@ void BufferedReadCallback::OnAttributeData(const ConcreteDataAttributePath & aPa
     if (aPath.IsListOperation() && aStatus.mStatus == Protocols::InteractionModel::Status::Success)
     {
         err = BufferData(aPath, apData);
-        SuccessOrExit(err);
+        SetFatalReportError(err);
+        ReturnOnFailure(err);
     }
     else
     {
@@ -255,12 +251,6 @@ void BufferedReadCallback::OnAttributeData(const ConcreteDataAttributePath & aPa
     // Update our latched buffered path.
     //
     mBufferedPath = aPath;
-
-exit:
-    if (err != CHIP_NO_ERROR)
-    {
-        mCallback.OnError(err);
-    }
 }
 
 } // namespace app
diff --git a/src/app/BufferedReadCallback.h b/src/app/BufferedReadCallback.h
index b24257884e1a77..b3504e70fec7d5 100644
--- a/src/app/BufferedReadCallback.h
+++ b/src/app/BufferedReadCallback.h
@@ -44,7 +44,7 @@ class BufferedReadCallback : public ReadClient::Callback
 
 private:
     /*
-     * Generates the reconsistuted TLV array from the stored individual list elements
+     * Generates the reconstituted TLV array from the stored individual list elements
      */
     CHIP_ERROR GenerateListTLV(TLV::ScopedBufferTLVReader & reader);
 
diff --git a/src/app/ReadClient.cpp b/src/app/ReadClient.cpp
index 2d609eb1afa05a..87c208a9aa91f1 100644
--- a/src/app/ReadClient.cpp
+++ b/src/app/ReadClient.cpp
@@ -231,7 +231,7 @@ void ReadClient::Close(CHIP_ERROR aError, bool allowResubscription)
     }
 
     mExchange.Release();
-
+    mpCallback.ClearFatalReportError();
     mpCallback.OnDone(this);
 }
 
@@ -805,6 +805,7 @@ CHIP_ERROR ReadClient::ProcessAttributeReportIBs(TLV::TLVReader & aAttributeRepo
             ReturnErrorOnFailure(errorStatus.DecodeStatusIB(statusIB));
             NoteReportingData();
             mpCallback.OnAttributeData(attributePath, nullptr, statusIB);
+            ReturnErrorOnFailure(mpCallback.GetLastFatalReportError());
         }
         else if (CHIP_END_OF_TLV == err)
         {
@@ -861,6 +862,7 @@ CHIP_ERROR ReadClient::ProcessAttributeReportIBs(TLV::TLVReader & aAttributeRepo
 
             NoteReportingData();
             mpCallback.OnAttributeData(attributePath, &dataReader, statusIB);
+            ReturnErrorOnFailure(mpCallback.GetLastFatalReportError());
         }
     }
 
@@ -868,7 +870,6 @@ CHIP_ERROR ReadClient::ProcessAttributeReportIBs(TLV::TLVReader & aAttributeRepo
     {
         err = CHIP_NO_ERROR;
     }
-
     return err;
 }
 
@@ -905,6 +906,7 @@ CHIP_ERROR ReadClient::ProcessEventReportIBs(TLV::TLVReader & aEventReportIBsRea
 
             NoteReportingData();
             mpCallback.OnEventData(header, &dataReader, nullptr);
+            ReturnErrorOnFailure(mpCallback.GetLastFatalReportError());
         }
         else if (err == CHIP_END_OF_TLV)
         {
@@ -919,6 +921,7 @@ CHIP_ERROR ReadClient::ProcessEventReportIBs(TLV::TLVReader & aEventReportIBsRea
 
             NoteReportingData();
             mpCallback.OnEventData(header, nullptr, &statusIB);
+            ReturnErrorOnFailure(mpCallback.GetLastFatalReportError());
         }
     }
 
diff --git a/src/app/ReadClient.h b/src/app/ReadClient.h
index d8b8a971db8c28..4cb7acc370d90d 100644
--- a/src/app/ReadClient.h
+++ b/src/app/ReadClient.h
@@ -202,6 +202,8 @@ class ReadClient : public Messaging::ExchangeDelegate
          * This object MUST continue to exist after this call is completed. The application shall wait until it
          * receives an OnDone call to destroy the object.
          *
+         * This callback is expected to be called inside the ReadClient.
+         *
          * @param[in] aError       A system error code that conveys the overall error code.
          */
         virtual void OnError(CHIP_ERROR aError) {}
@@ -284,6 +286,25 @@ class ReadClient : public Messaging::ExchangeDelegate
          * things like min/max intervals based on the session parameters).
          */
         virtual void OnCASESessionEstablished(const SessionHandle & aSession, ReadPrepareParams & aSubscriptionParams) {}
+
+        /*
+         * Get the last internal fatal error in callback
+         */
+        CHIP_ERROR GetLastFatalReportError() const { return mLastFatalReportError; }
+
+    protected:
+        /*
+         * Set the fatal report fatal error in callback which would lead to ReadClient::Close()
+         */
+        void SetFatalReportError(CHIP_ERROR aError) { mLastFatalReportError = aError; }
+
+        /*
+         * Clear the fatal report fatal error
+         */
+        void ClearFatalReportError() { mLastFatalReportError = CHIP_NO_ERROR; }
+
+    private:
+        CHIP_ERROR mLastFatalReportError = CHIP_NO_ERROR;
     };
 
     enum class InteractionType : uint8_t