diff --git a/include/zephyr/usb_c/usbc.h b/include/zephyr/usb_c/usbc.h
index 59aae4d992..21053fc16c 100644
--- a/include/zephyr/usb_c/usbc.h
+++ b/include/zephyr/usb_c/usbc.h
@@ -109,6 +109,10 @@ enum usbc_policy_notify_t {
 	POWER_CHANGE_1A5,
 	/** Sink SubPower state a 5V / 3A */
 	POWER_CHANGE_3A0,
+	/** Sender Response Timeout */
+	SENDER_RESPONSE_TIMEOUT,
+	/** Source Capabilities Received */
+	SOURCE_CAPABILITIES_RECEIVED,
 };
 
 /**
diff --git a/subsys/usb/usb_c/usbc_pe_common.c b/subsys/usb/usb_c/usbc_pe_common.c
index b7d1edf485..024e40e362 100644
--- a/subsys/usb/usb_c/usbc_pe_common.c
+++ b/subsys/usb/usb_c/usbc_pe_common.c
@@ -702,10 +702,9 @@ void pe_drs_send_swap_run(void *obj)
 		return;
 	}
 
+	/* Transition to PE_SNK_READY on SenderResponseTimer timeout */
 	if (usbc_timer_expired(&pe->pd_t_sender_response)) {
-		/* Protocol Error */
-		policy_notify(dev, PROTOCOL_ERROR);
-		pe_send_soft_reset(dev, PD_PACKET_SOP);
+		pe_set_state(dev, PE_SNK_READY);
 	}
 }
 
diff --git a/subsys/usb/usb_c/usbc_pe_snk_states.c b/subsys/usb/usb_c/usbc_pe_snk_states.c
index 49362cd057..5759703e48 100644
--- a/subsys/usb/usb_c/usbc_pe_snk_states.c
+++ b/subsys/usb/usb_c/usbc_pe_snk_states.c
@@ -177,6 +177,9 @@ void pe_snk_evaluate_capability_entry(void *obj)
 
 	LOG_INF("PE_SNK_Evaluate_Capability");
 
+	/* Inform the DPM of the reception of the source capabilities */
+	policy_notify(dev, SOURCE_CAPABILITIES_RECEIVED);
+
 	header = prl_rx->emsg.header;
 
 	/* Reset Hard Reset counter to zero */
@@ -606,7 +609,12 @@ void pe_snk_get_source_cap_entry(void *obj)
 
 	LOG_INF("PE_SNK_Get_Source_Cap");
 
-	/* Send a Get_Source_Cap Message */
+	/*
+	 * On entry to the PE_SNK_Get_Source_Cap state the Policy Engine
+	 * Shall request the Protocol Layer to send a get Source
+	 * Capabilities message in order to retrieve the Source’s
+	 * capabilities.
+	 */
 	pe_send_ctrl_msg(dev, PD_PACKET_SOP, PD_CTRL_GET_SOURCE_CAP);
 }
 
@@ -619,12 +627,34 @@ void pe_snk_get_source_cap_run(void *obj)
 	const struct device *dev = pe->dev;
 	struct usbc_port_data *data = dev->data;
 	struct protocol_layer_rx_t *prl_rx = data->prl_rx;
+	union pd_header header;
 
 	/* Wait until message is sent or dropped */
 	if (atomic_test_and_clear_bit(pe->flags, PE_FLAGS_TX_COMPLETE)) {
+		/* The Policy Engine Shall then start the SenderResponseTimer. */
+		usbc_timer_start(&pe->pd_t_sender_response);
+	}
+	/*
+	 * The Policy Engine Shall transition to the PE_SNK_Evaluate_Capability
+	 * State when:
+	 *	1: In SPR Mode and SPR Source Capabilities were requested and
+	 *	   a Source_Capabilities Message is received
+	 */
+	else if (atomic_test_and_clear_bit(pe->flags, PE_FLAGS_MSG_RECEIVED)) {
+		header = prl_rx->emsg.header;
+
+		if (received_control_message(dev, header, PD_DATA_SOURCE_CAP)) {
+			pe_set_state(dev, PE_SNK_EVALUATE_CAPABILITY);
+		}
+	}
+	/*
+	 * The Policy Engine Shall transition to the PE_SNK_Ready state when:
+	 *	1: The SenderResponseTimer times out.
+	 */
+	else if (usbc_timer_expired(&pe->pd_t_sender_response)) {
 		pe_set_state(dev, PE_SNK_READY);
-	} else if (atomic_test_and_clear_bit(pe->flags, PE_FLAGS_MSG_DISCARDED)) {
-		pe_send_soft_reset(dev, prl_rx->emsg.type);
+		/* Inform the DPM of the sender response timeout */
+		policy_notify(dev, SENDER_RESPONSE_TIMEOUT);
 	}
 }