diff --git a/drivers/gpu/drm/xe/xe_sync.c b/drivers/gpu/drm/xe/xe_sync.c
index 2e72c06fd40d..b0684e6d2047 100644
--- a/drivers/gpu/drm/xe/xe_sync.c
+++ b/drivers/gpu/drm/xe/xe_sync.c
@@ -85,8 +85,12 @@ static void user_fence_worker(struct work_struct *w)
 		mmput(ufence->mm);
 	}
 
-	wake_up_all(&ufence->xe->ufence_wq);
+	/*
+	 * Wake up waiters only after updating the ufence state, allowing the UMD
+	 * to safely reuse the same ufence without encountering -EBUSY errors.
+	 */
 	WRITE_ONCE(ufence->signalled, 1);
+	wake_up_all(&ufence->xe->ufence_wq);
 	user_fence_put(ufence);
 }