diff --git a/net/vmw_vsock/af_vsock.c b/net/vmw_vsock/af_vsock.c
index a7713138d0617..dbc23890fa721 100644
--- a/net/vmw_vsock/af_vsock.c
+++ b/net/vmw_vsock/af_vsock.c
@@ -328,7 +328,10 @@ EXPORT_SYMBOL_GPL(vsock_find_connected_socket);
 
 void vsock_remove_sock(struct vsock_sock *vsk)
 {
-	vsock_remove_bound(vsk);
+	/* Transport reassignment must not remove the binding. */
+	if (sock_flag(sk_vsock(vsk), SOCK_DEAD))
+		vsock_remove_bound(vsk);
+
 	vsock_remove_connected(vsk);
 }
 EXPORT_SYMBOL_GPL(vsock_remove_sock);
@@ -789,6 +792,13 @@ static void __vsock_release(struct sock *sk, int level)
 		 */
 		lock_sock_nested(sk, level);
 
+		/* Indicate to vsock_remove_sock() that the socket is being released and
+		 * can be removed from the bound_table. Unlike transport reassignment
+		 * case, where the socket must remain bound despite vsock_remove_sock()
+		 * being called from the transport release() callback.
+		 */
+		sock_set_flag(sk, SOCK_DEAD);
+
 		if (vsk->transport)
 			vsk->transport->release(vsk);
 		else if (sk->sk_type == SOCK_STREAM)