diff --git a/Tethering/src/com/android/networkstack/tethering/Tethering.java b/Tethering/src/com/android/networkstack/tethering/Tethering.java
index b4e578116b..2e71fdae73 100644
--- a/Tethering/src/com/android/networkstack/tethering/Tethering.java
+++ b/Tethering/src/com/android/networkstack/tethering/Tethering.java
@@ -88,7 +88,6 @@ import android.net.IpPrefix;
 import android.net.LinkAddress;
 import android.net.LinkProperties;
 import android.net.Network;
-import android.net.NetworkCapabilities;
 import android.net.NetworkInfo;
 import android.net.TetherStatesParcel;
 import android.net.TetheredClient;
@@ -1856,7 +1855,11 @@ public class Tethering {
             final Network newUpstream = (ns != null) ? ns.network : null;
             if (mTetherUpstream != newUpstream) {
                 mTetherUpstream = newUpstream;
-                reportUpstreamChanged(ns);
+                reportUpstreamChanged(mTetherUpstream);
+                // Need to notify capabilities change after upstream network changed because new
+                // network's capabilities should be checked every time.
+                mNotificationUpdater.onUpstreamCapabilitiesChanged(
+                        (ns != null) ? ns.networkCapabilities : null);
             }
         }
 
@@ -2084,6 +2087,7 @@ public class Tethering {
                 if (mTetherUpstream != null) {
                     mTetherUpstream = null;
                     reportUpstreamChanged(null);
+                    mNotificationUpdater.onUpstreamCapabilitiesChanged(null);
                 }
                 mBpfCoordinator.stopPolling();
             }
@@ -2438,10 +2442,8 @@ public class Tethering {
         }
     }
 
-    private void reportUpstreamChanged(UpstreamNetworkState ns) {
+    private void reportUpstreamChanged(final Network network) {
         final int length = mTetheringEventCallbacks.beginBroadcast();
-        final Network network = (ns != null) ? ns.network : null;
-        final NetworkCapabilities capabilities = (ns != null) ? ns.networkCapabilities : null;
         try {
             for (int i = 0; i < length; i++) {
                 try {
@@ -2453,9 +2455,6 @@ public class Tethering {
         } finally {
             mTetheringEventCallbacks.finishBroadcast();
         }
-        // Need to notify capabilities change after upstream network changed because new network's
-        // capabilities should be checked every time.
-        mNotificationUpdater.onUpstreamCapabilitiesChanged(capabilities);
     }
 
     private void reportConfigurationChanged(TetheringConfigurationParcel config) {
diff --git a/Tethering/tests/unit/src/com/android/networkstack/tethering/TetheringTest.java b/Tethering/tests/unit/src/com/android/networkstack/tethering/TetheringTest.java
index a63b364663..98a3b1dcfa 100644
--- a/Tethering/tests/unit/src/com/android/networkstack/tethering/TetheringTest.java
+++ b/Tethering/tests/unit/src/com/android/networkstack/tethering/TetheringTest.java
@@ -2678,12 +2678,19 @@ public class TetheringTest {
     public void testUpstreamNetworkChanged() {
         final Tethering.TetherMainSM stateMachine = (Tethering.TetherMainSM)
                 mTetheringDependencies.mUpstreamNetworkMonitorSM;
+        // Gain upstream.
         final UpstreamNetworkState upstreamState = buildMobileIPv4UpstreamState();
         initTetheringUpstream(upstreamState);
         stateMachine.chooseUpstreamType(true);
-
         mTetheringEventCallback.expectUpstreamChanged(upstreamState.network);
-        verify(mNotificationUpdater, times(1)).onUpstreamCapabilitiesChanged(any());
+        verify(mNotificationUpdater)
+                .onUpstreamCapabilitiesChanged(upstreamState.networkCapabilities);
+
+        // Lose upstream.
+        initTetheringUpstream(null);
+        stateMachine.chooseUpstreamType(true);
+        mTetheringEventCallback.expectUpstreamChanged(NULL_NETWORK);
+        verify(mNotificationUpdater).onUpstreamCapabilitiesChanged(null);
     }
 
     @Test
@@ -2697,7 +2704,8 @@ public class TetheringTest {
         stateMachine.handleUpstreamNetworkMonitorCallback(EVENT_ON_CAPABILITIES, upstreamState);
         // Should have two onUpstreamCapabilitiesChanged().
         // One is called by reportUpstreamChanged(). One is called by EVENT_ON_CAPABILITIES.
-        verify(mNotificationUpdater, times(2)).onUpstreamCapabilitiesChanged(any());
+        verify(mNotificationUpdater, times(2))
+                .onUpstreamCapabilitiesChanged(upstreamState.networkCapabilities);
         reset(mNotificationUpdater);
 
         // Verify that onUpstreamCapabilitiesChanged won't be called if not current upstream network
@@ -2709,6 +2717,27 @@ public class TetheringTest {
         verify(mNotificationUpdater, never()).onUpstreamCapabilitiesChanged(any());
     }
 
+    @Test
+    public void testUpstreamCapabilitiesChanged_startStopTethering() throws Exception {
+        final TestNetworkAgent wifi = new TestNetworkAgent(mCm, buildWifiUpstreamState());
+
+        // Start USB tethering with no current upstream.
+        prepareUsbTethering();
+        sendUsbBroadcast(true, true, TETHER_USB_RNDIS_FUNCTION);
+
+        // Pretend wifi connected and expect the upstream to be set.
+        wifi.fakeConnect();
+        mCm.makeDefaultNetwork(wifi, CALLBACKS_FIRST);
+        mLooper.dispatchAll();
+        verify(mNotificationUpdater).onUpstreamCapabilitiesChanged(
+                wifi.networkCapabilities);
+
+        // Stop tethering.
+        // Expect that TetherModeAliveState#exit sends capabilities change notification to null.
+        runStopUSBTethering();
+        verify(mNotificationUpdater).onUpstreamCapabilitiesChanged(null);
+    }
+
     @Test
     public void testDumpTetheringLog() throws Exception {
         final FileDescriptor mockFd = mock(FileDescriptor.class);