diff --git a/drivers/gpio/gpiolib.c b/drivers/gpio/gpiolib.c
index 3289b53a7ba1..565ab945698c 100644
--- a/drivers/gpio/gpiolib.c
+++ b/drivers/gpio/gpiolib.c
@@ -2649,8 +2649,10 @@ int gpiod_direction_output(struct gpio_desc *desc, int value)
 		if (!ret)
 			goto set_output_value;
 		/* Emulate open drain by not actively driving the line high */
-		if (value)
-			return gpiod_direction_input(desc);
+		if (value) {
+			ret = gpiod_direction_input(desc);
+			goto set_output_flag;
+		}
 	}
 	else if (test_bit(FLAG_OPEN_SOURCE, &desc->flags)) {
 		ret = gpio_set_drive_single_ended(gc, gpio_chip_hwgpio(desc),
@@ -2658,8 +2660,10 @@ int gpiod_direction_output(struct gpio_desc *desc, int value)
 		if (!ret)
 			goto set_output_value;
 		/* Emulate open source by not actively driving the line low */
-		if (!value)
-			return gpiod_direction_input(desc);
+		if (!value) {
+			ret = gpiod_direction_input(desc);
+			goto set_output_flag;
+		}
 	} else {
 		gpio_set_drive_single_ended(gc, gpio_chip_hwgpio(desc),
 					    PIN_CONFIG_DRIVE_PUSH_PULL);
@@ -2667,6 +2671,17 @@ int gpiod_direction_output(struct gpio_desc *desc, int value)
 
 set_output_value:
 	return gpiod_direction_output_raw_commit(desc, value);
+
+set_output_flag:
+	/*
+	 * When emulating open-source or open-drain functionalities by not
+	 * actively driving the line (setting mode to input) we still need to
+	 * set the IS_OUT flag or otherwise we won't be able to set the line
+	 * value anymore.
+	 */
+	if (ret == 0)
+		set_bit(FLAG_IS_OUT, &desc->flags);
+	return ret;
 }
 EXPORT_SYMBOL_GPL(gpiod_direction_output);
 
@@ -2980,8 +2995,6 @@ static void gpio_set_open_drain_value_commit(struct gpio_desc *desc, bool value)
 
 	if (value) {
 		err = chip->direction_input(chip, offset);
-		if (!err)
-			clear_bit(FLAG_IS_OUT, &desc->flags);
 	} else {
 		err = chip->direction_output(chip, offset, 0);
 		if (!err)
@@ -3011,8 +3024,6 @@ static void gpio_set_open_source_value_commit(struct gpio_desc *desc, bool value
 			set_bit(FLAG_IS_OUT, &desc->flags);
 	} else {
 		err = chip->direction_input(chip, offset);
-		if (!err)
-			clear_bit(FLAG_IS_OUT, &desc->flags);
 	}
 	trace_gpio_direction(desc_to_gpio(desc), !value, err);
 	if (err < 0)