diff --git a/src/audio/codec_adapter/codec/cadence.c b/src/audio/codec_adapter/codec/cadence.c
index 5692b6a18..1a889bf9d 100644
--- a/src/audio/codec_adapter/codec/cadence.c
+++ b/src/audio/codec_adapter/codec/cadence.c
@@ -254,12 +254,15 @@ err:
 
 int cadence_codec_prepare(struct comp_dev *dev)
 {
-	int ret, mem_tabs_size, lib_init_status;
+	int ret = 0, mem_tabs_size, lib_init_status;
 	struct codec_data *codec = comp_get_codec(dev);
 	struct cadence_codec_data *cd = codec->private;
 
 	comp_dbg(dev, "cadence_codec_prepare() start");
 
+	if (codec->state == CODEC_PREPARED)
+		goto done;
+
 	API_CALL(cd, XA_API_CMD_INIT, XA_CMD_TYPE_INIT_API_PRE_CONFIG_PARAMS,
 		 NULL, ret);
 	if (ret != LIB_NO_ERROR) {
@@ -345,6 +348,7 @@ int cadence_codec_prepare(struct comp_dev *dev)
 free:
 	codec_free_memory(dev, cd->mem_tabs);
 err:
+done:
 	return ret;
 }
 
@@ -391,8 +395,19 @@ int cadence_codec_apply_config(struct comp_dev *dev)
 
 int cadence_codec_reset(struct comp_dev *dev)
 {
-	/* Nothing to do */
-	return 0;
+	int ret;
+	/* Current CADENCE API doesn't support reset of codec's
+	 * runtime parameters therefore we need to free all the resources
+	 * and start over.
+	 */
+	codec_free_all_memory(dev);
+	ret = cadence_codec_init(dev);
+	if (ret) {
+		comp_err(dev, "cadence_codec_reset() error %x: could not reinitialize codec after reset",
+			 ret);
+	}
+
+	return ret;
 }
 
 int cadence_codec_free(struct comp_dev *dev)
diff --git a/src/audio/codec_adapter/codec/generic.c b/src/audio/codec_adapter/codec/generic.c
index 0cf0e1eb5..d295b8d0b 100644
--- a/src/audio/codec_adapter/codec/generic.c
+++ b/src/audio/codec_adapter/codec/generic.c
@@ -217,9 +217,6 @@ int codec_prepare(struct comp_dev *dev)
 
 	comp_dbg(dev, "codec_prepare() start");
 
-	/* After reset the codec should remain prepared, hence there
-	 * is no need to re-prepare it again.
-	 */
 	if (cd->codec.state == CODEC_PREPARED)
 		return 0;
 	if (cd->codec.state < CODEC_INITIALIZED)
@@ -328,7 +325,7 @@ int codec_reset(struct comp_dev *dev)
 	/* Codec reset itself to the initial condition after prepare()
 	 * so let's change its state to reflect that.
 	 */
-	codec->state = CODEC_PREPARED;
+	codec->state = CODEC_INITIALIZED;
 
 	return 0;
 }