diff --git a/components/bt/esp_ble_mesh/mesh_core/net.c b/components/bt/esp_ble_mesh/mesh_core/net.c
index 59576349d5..ec13cbf359 100644
--- a/components/bt/esp_ble_mesh/mesh_core/net.c
+++ b/components/bt/esp_ble_mesh/mesh_core/net.c
@@ -135,7 +135,8 @@ static bool msg_cache_match(struct bt_mesh_net_rx *rx,
     }
 
     /* Add to the cache */
-    msg_cache[msg_cache_next++] = hash;
+    rx->msg_cache_idx = msg_cache_next++;
+    msg_cache[rx->msg_cache_idx] = hash;
     msg_cache_next %= ARRAY_SIZE(msg_cache);
 
     return false;
@@ -1380,7 +1381,19 @@ void bt_mesh_net_recv(struct net_buf_simple *data, s8_t rssi,
     rx.local_match = (bt_mesh_fixed_group_match(rx.ctx.recv_dst) ||
                       bt_mesh_elem_find(rx.ctx.recv_dst));
 
-    bt_mesh_trans_recv(&buf, &rx);
+    /* The transport layer has indicated that it has rejected the message,
+    * but would like to see it again if it is received in the future.
+    * This can happen if a message is received when the device is in
+    * Low Power mode, but the message was not encrypted with the friend
+    * credentials. Remove it from the message cache so that we accept
+    * it again in the future.
+    */
+    if (bt_mesh_trans_recv(&buf, &rx) == -EAGAIN) {
+        BT_WARN("Removing rejected message from Network Message Cache");
+        msg_cache[rx.msg_cache_idx] = 0ULL;
+        /* Rewind the next index now that we're not using this entry */
+        msg_cache_next = rx.msg_cache_idx;
+    }
 
     /* Relay if this was a group/virtual address, or if the destination
      * was neither a local element nor an LPN we're Friends for.
diff --git a/components/bt/esp_ble_mesh/mesh_core/net.h b/components/bt/esp_ble_mesh/mesh_core/net.h
index 49907cef0b..75e60c8486 100644
--- a/components/bt/esp_ble_mesh/mesh_core/net.h
+++ b/components/bt/esp_ble_mesh/mesh_core/net.h
@@ -289,6 +289,7 @@ struct bt_mesh_net_rx {
            net_if: 2,      /* Network interface */
            local_match: 1, /* Matched a local element */
            friend_match: 1; /* Matched an LPN we're friends for */
+    u16_t  msg_cache_idx;  /* Index of entry in message cache */
     s8_t   rssi;
 };