diff --git a/drivers/net/tulip/uli526x.c b/drivers/net/tulip/uli526x.c
index a7afeea156bd..a59c1f224aa8 100644
--- a/drivers/net/tulip/uli526x.c
+++ b/drivers/net/tulip/uli526x.c
@@ -482,9 +482,11 @@ static void uli526x_init(struct net_device *dev)
 	struct uli526x_board_info *db = netdev_priv(dev);
 	unsigned long ioaddr = db->ioaddr;
 	u8	phy_tmp;
+	u8	timeout;
 	u16	phy_value;
 	u16 phy_reg_reset;
 
+
 	ULI526X_DBUG(0, "uli526x_init()", 0);
 
 	/* Reset M526x MAC controller */
@@ -509,11 +511,19 @@ static void uli526x_init(struct net_device *dev)
 	/* Parser SROM and media mode */
 	db->media_mode = uli526x_media_mode;
 
-	/* Phyxcer capability setting */
+	/* phyxcer capability setting */
 	phy_reg_reset = phy_read(db->ioaddr, db->phy_addr, 0, db->chip_id);
 	phy_reg_reset = (phy_reg_reset | 0x8000);
 	phy_write(db->ioaddr, db->phy_addr, 0, phy_reg_reset, db->chip_id);
+
+	/* See IEEE 802.3-2002.pdf (Section 2, Chapter "22.2.4 Management
+	 * functions") or phy data sheet for details on phy reset
+	 */
 	udelay(500);
+	timeout = 10;
+	while (timeout-- &&
+		phy_read(db->ioaddr, db->phy_addr, 0, db->chip_id) & 0x8000)
+			udelay(100);
 
 	/* Process Phyxcer Media Mode */
 	uli526x_set_phyxcer(db);