diff --git a/VERSION b/VERSION
index e9548af..7d08a22 100755
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-2.12.15
+2.12.16
diff --git a/go.mod b/go.mod
index b8a0cf1..5d67097 100644
--- a/go.mod
+++ b/go.mod
@@ -17,7 +17,7 @@
 	github.com/grpc-ecosystem/go-grpc-middleware v1.3.0
 	github.com/looplab/fsm v0.2.0
 	github.com/opencord/omci-lib-go/v2 v2.2.3
-	github.com/opencord/voltha-lib-go/v7 v7.6.5
+	github.com/opencord/voltha-lib-go/v7 v7.6.6
 	github.com/opencord/voltha-protos/v5 v5.6.2
 	github.com/stretchr/testify v1.7.0
 	google.golang.org/grpc v1.44.0
diff --git a/go.sum b/go.sum
index 6147b32..8caefe3 100644
--- a/go.sum
+++ b/go.sum
@@ -207,8 +207,8 @@
 github.com/onsi/gomega v1.14.0/go.mod h1:cIuvLEne0aoVhAgh/O6ac0Op8WWw9H6eYCriF+tEHG0=
 github.com/opencord/omci-lib-go/v2 v2.2.3 h1:cE9+67m8HmZmlET57eyQmqOOAJlfvvKrLgiJMiwhSMg=
 github.com/opencord/omci-lib-go/v2 v2.2.3/go.mod h1:o1S/jhDLHNikFU7uG2TR5UOM5KmKlqwLlVncXi0FBYQ=
-github.com/opencord/voltha-lib-go/v7 v7.6.5 h1:5WYdjjIQX387Xhy2DPXtF2kuImQ0QTInllVWfRidqTo=
-github.com/opencord/voltha-lib-go/v7 v7.6.5/go.mod h1:uGmArLg+nSZd49YXv7ZaD48FA5c+siEFxnyRuldwv6Y=
+github.com/opencord/voltha-lib-go/v7 v7.6.6 h1:TrLo0nykH2MXPngKzTtmL9/u2gjxs98m1/F0m3FWY2U=
+github.com/opencord/voltha-lib-go/v7 v7.6.6/go.mod h1:uGmArLg+nSZd49YXv7ZaD48FA5c+siEFxnyRuldwv6Y=
 github.com/opencord/voltha-protos/v5 v5.6.2 h1:evT3MYShV8uzLQAfF+qXS6nbdKRNewxifDK49XzqtVM=
 github.com/opencord/voltha-protos/v5 v5.6.2/go.mod h1:E/Jn3DNu8VGRBCgIWSSg4sWtTBiNuQGSFvHyNH1XlyM=
 github.com/opentracing/opentracing-go v1.1.0/go.mod h1:UkNAQd3GIcIGf0SeVgPpRdFStlNbqXla1AfSYxPUl2o=
diff --git a/vendor/github.com/opencord/voltha-lib-go/v7/pkg/grpc/client.go b/vendor/github.com/opencord/voltha-lib-go/v7/pkg/grpc/client.go
index effe0b3..e8a0832 100644
--- a/vendor/github.com/opencord/voltha-lib-go/v7/pkg/grpc/client.go
+++ b/vendor/github.com/opencord/voltha-lib-go/v7/pkg/grpc/client.go
@@ -262,6 +262,9 @@
 		c.stateLock.Lock()
 		if !c.done && (c.state == stateConnected || c.state == stateValidatingConnection) {
 			// Handle only connected state here.  We need the validating state to know if we need to backoff before a retry
+			if c.state == stateConnected {
+				c.state = stateDisconnected
+			}
 			logger.Warnw(ctx, "sending-disconnect-event", log.Fields{"api-endpoint": c.serverEndPoint, "client": c.clientEndpoint, "curr-state": stateConnected, "new-state": c.state})
 			c.events <- eventDisconnected
 		} else {
@@ -529,7 +532,7 @@
 				connectionValidationFail := false
 				c.stateLock.Lock()
 				logger.Debugw(ctx, "endpoint-disconnected", log.Fields{"api-endpoint": c.serverEndPoint, "curr-state": c.state, "client": c.clientEndpoint})
-				if c.state == stateConnected || c.state == stateValidatingConnection {
+				if c.state == stateValidatingConnection {
 					connectionValidationFail = true
 					c.state = stateDisconnected
 				}
@@ -551,7 +554,7 @@
 				}
 				c.connectionLock.RLock()
 				if !c.done {
-					c.events <- eventValidatingConnection
+					c.events <- eventConnecting
 				}
 				c.connectionLock.RUnlock()
 
diff --git a/vendor/modules.txt b/vendor/modules.txt
index 469babc..abc812b 100644
--- a/vendor/modules.txt
+++ b/vendor/modules.txt
@@ -153,7 +153,7 @@
 github.com/opencord/omci-lib-go/v2
 github.com/opencord/omci-lib-go/v2/generated
 github.com/opencord/omci-lib-go/v2/meframe
-# github.com/opencord/voltha-lib-go/v7 v7.6.5
+# github.com/opencord/voltha-lib-go/v7 v7.6.6
 ## explicit
 github.com/opencord/voltha-lib-go/v7/pkg/config
 github.com/opencord/voltha-lib-go/v7/pkg/db