diff --git a/net/local/local_connect.c b/net/local/local_connect.c
index 484543e64b8..b254dae62aa 100644
--- a/net/local/local_connect.c
+++ b/net/local/local_connect.c
@@ -184,6 +184,10 @@ static int inline local_stream_connect(FAR struct local_conn_s *client,
 
   DEBUGASSERT(client->lc_outfile.f_inode != NULL);
 
+  /* Set the busy "result" before giving the semaphore. */
+
+  client->u.client.lc_result = -EBUSY;
+
   /* Add ourself to the list of waiting connections and notify the server. */
 
   dq_addlast(&client->lc_node, &server->u.server.lc_waiters);
@@ -199,7 +203,6 @@ static int inline local_stream_connect(FAR struct local_conn_s *client,
 
   /* Wait for the server to accept the connections */
 
-  client->u.client.lc_result = -EBUSY;
   do
     {
       _local_semtake(&client->lc_waitsem);