diff --git a/drivers/gpu/nvgpu/common/fifo/tsg.c b/drivers/gpu/nvgpu/common/fifo/tsg.c
index 09e1cedb7..40e30191e 100644
--- a/drivers/gpu/nvgpu/common/fifo/tsg.c
+++ b/drivers/gpu/nvgpu/common/fifo/tsg.c
@@ -347,13 +347,13 @@ int nvgpu_tsg_unbind_channel(struct nvgpu_tsg *tsg, struct nvgpu_channel *ch,
 			 */
 			(void) nvgpu_channel_mark_error(g, ch);
 			nvgpu_err(g, "unbind hal failed, err=%d", err);
-			goto fail;
+			nvgpu_tsg_abort(g, tsg, true);
 		}
 	}
 
 	nvgpu_ref_put(&tsg->refcount, nvgpu_tsg_release);
 
-	return 0;
+	return err;
 
 fail_common:
 	if (g->ops.tsg.unbind_channel != NULL) {
@@ -362,7 +362,7 @@ fail_common:
 			nvgpu_err(g, "unbind hal failed, err=%d", unbind_err);
 		}
 	}
-fail:
+
 	nvgpu_err(g, "Channel %d unbind failed, tearing down TSG %d",
 		ch->chid, tsg->tsgid);
 
@@ -399,6 +399,7 @@ fail:
 	nvgpu_rwsem_down_write(&tsg->ch_list_lock);
 	nvgpu_list_del(&ch->ch_entry);
 	ch->tsgid = NVGPU_INVALID_TSG_ID;
+	tsg->ch_count = nvgpu_safe_sub_u32(tsg->ch_count, 1U);
 	nvgpu_rwsem_up_write(&tsg->ch_list_lock);
 
 	nvgpu_ref_put(&tsg->refcount, nvgpu_tsg_release);
diff --git a/drivers/gpu/nvgpu/include/nvgpu/tsg.h b/drivers/gpu/nvgpu/include/nvgpu/tsg.h
index 8f8a6edf8..36f907cd7 100644
--- a/drivers/gpu/nvgpu/include/nvgpu/tsg.h
+++ b/drivers/gpu/nvgpu/include/nvgpu/tsg.h
@@ -456,6 +456,7 @@ struct nvgpu_tsg *nvgpu_tsg_check_and_get_from_id(struct gk20a *g, u32 tsgid);
  *  - Call #nvgpu_channel_update_runlist to remove the channel from the runlist.
  *  - Acquire #nvgpu_tsg.ch_list_lock of the tsg and delete channel from
  *    #nvgpu_tsg.ch_list.
+ *  - Remove channel from TSG's channel list.
  *  - Set #nvgpu_channel.tsgid to #NVGPU_INVALID_TSG_ID
  *  - Release #nvgpu_tsg.ch_list_lock of the tsg.
  * Call non NULL HAL to unbind channel from the tsg. This HAL is vgpu specific