diff --git a/ChangeLog b/ChangeLog
index e08ce2653ba..9be16a33a64 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -5522,4 +5522,8 @@
 	  (2013-9-6).
 	* drivers/usbdev/usbmsc_desc.c:  Fix a warning when USB MSC is
 	  compiled for a high-speed device (2013-9-7).
+	* drivers/usbhost/usbhost_storage.c:  If device is returning fatal
+	  transfer errors while attempt to initialize, don't bother with
+	  the startup retries; abort immediately so that the device will
+	  be reset and we can try again (2013-9-9).
 
diff --git a/arch/arm/src/lpc17xx/lpc17_usbhost.c b/arch/arm/src/lpc17xx/lpc17_usbhost.c
index 08bc9df8bf7..fc4f4e92c7a 100644
--- a/arch/arm/src/lpc17xx/lpc17_usbhost.c
+++ b/arch/arm/src/lpc17xx/lpc17_usbhost.c
@@ -1304,7 +1304,7 @@ static int lpc17_ctrltd(struct lpc17_usbhost_s *priv, uint32_t dirpid,
       else 
         {
           uvdbg("Bad TD completion status: %d\n", EDCTRL->tdstatus);
-          ret = -EIO;
+          ret = ed->tdstatus == TD_CC_STALL ? -EPERM : -EIO;
         }
     }
 
diff --git a/arch/arm/src/sama5/sam_ohci.c b/arch/arm/src/sama5/sam_ohci.c
index d943d01d904..a59d441b072 100644
--- a/arch/arm/src/sama5/sam_ohci.c
+++ b/arch/arm/src/sama5/sam_ohci.c
@@ -2991,7 +2991,7 @@ static int sam_transfer(FAR struct usbhost_driver_s *drvr, usbhost_ep_t ep,
       else
         {
           udbg("ERROR: Bad TD completion status: %d\n", ed->tdstatus);
-          ret = -EIO;
+          ret = ed->tdstatus == TD_CC_STALL ? -EPERM : -EIO;
         }
     }
 
diff --git a/drivers/usbhost/usbhost_storage.c b/drivers/usbhost/usbhost_storage.c
index d72203bdf15..c6126131f9b 100644
--- a/drivers/usbhost/usbhost_storage.c
+++ b/drivers/usbhost/usbhost_storage.c
@@ -1248,6 +1248,19 @@ static inline int usbhost_initvolume(FAR struct usbhost_state_s *priv)
           uvdbg("Request sense\n");
           ret = usbhost_requestsense(priv);
         }
+
+      /* It is acceptable for a mass storage device to respond to the
+       * Test Unit Ready and Request Sense commands with a stall if it is
+       * unable to respond.  But other failures mean that something is
+       * wrong and a device reset is in order.  The transfer functions will
+       * return -EPERM if the transfer failed due to a stall.
+       */
+
+      if (ret < 0 && ret != -EPERM)
+        {
+          udbg("ERROR: DRVR_TRANSFER returned: %d\n", ret);
+          break;
+        }
     }
 
   /* Did the unit become ready?  Did an error occur? Or did we time out? */
@@ -1569,6 +1582,7 @@ static inline int usbhost_tfree(FAR struct usbhost_state_s *priv)
       priv->tbuffer = NULL;
       priv->tbuflen = 0;
     }
+
   return result;
 }