diff --git a/common/coap-server/src/main/java/org/thingsboard/server/coapserver/DefaultCoapServerService.java b/common/coap-server/src/main/java/org/thingsboard/server/coapserver/DefaultCoapServerService.java
index 3b7248ee72..081f1a9db5 100644
--- a/common/coap-server/src/main/java/org/thingsboard/server/coapserver/DefaultCoapServerService.java
+++ b/common/coap-server/src/main/java/org/thingsboard/server/coapserver/DefaultCoapServerService.java
@@ -106,26 +106,46 @@ public class DefaultCoapServerService implements CoapServerService, SmartInitial
     private CoapServer createCoapServer() throws UnknownHostException {
         Configuration networkConfig = createNetworkConfiguration();
         server = new CoapServer(networkConfig);
+        try {
+            CoapEndpoint.Builder noSecCoapEndpointBuilder = new CoapEndpoint.Builder();
+            InetAddress addr = InetAddress.getByName(coapServerContext.getHost());
+            InetSocketAddress sockAddr = new InetSocketAddress(addr, coapServerContext.getPort());
+            noSecCoapEndpointBuilder.setInetSocketAddress(sockAddr);
+
+            noSecCoapEndpointBuilder.setConfiguration(networkConfig);
+            CoapEndpoint noSecCoapEndpoint = noSecCoapEndpointBuilder.build();
+            server.addEndpoint(noSecCoapEndpoint);
+            if (isDtlsEnabled()) {
+                createDtlsEndpoint(networkConfig);
+                dtlsSessionsExecutor = ThingsBoardExecutors.newSingleThreadScheduledExecutor(getClass().getSimpleName());
+                dtlsSessionsExecutor.scheduleAtFixedRate(this::evictTimeoutSessions, new Random().nextInt((int) getDtlsSessionReportTimeout()), getDtlsSessionReportTimeout(), TimeUnit.MILLISECONDS);
+            }
+            Resource root = server.getRoot();
+            TbCoapServerMessageDeliverer messageDeliverer = new TbCoapServerMessageDeliverer(root);
+            server.setMessageDeliverer(messageDeliverer);
 
-        CoapEndpoint.Builder noSecCoapEndpointBuilder = new CoapEndpoint.Builder();
-        InetAddress addr = InetAddress.getByName(coapServerContext.getHost());
-        InetSocketAddress sockAddr = new InetSocketAddress(addr, coapServerContext.getPort());
-        noSecCoapEndpointBuilder.setInetSocketAddress(sockAddr);
-
-        noSecCoapEndpointBuilder.setConfiguration(networkConfig);
-        CoapEndpoint noSecCoapEndpoint = noSecCoapEndpointBuilder.build();
-        server.addEndpoint(noSecCoapEndpoint);
-        if (isDtlsEnabled()) {
-            createDtlsEndpoint(networkConfig);
-            dtlsSessionsExecutor = ThingsBoardExecutors.newSingleThreadScheduledExecutor(getClass().getSimpleName());
-            dtlsSessionsExecutor.scheduleAtFixedRate(this::evictTimeoutSessions, new Random().nextInt((int) getDtlsSessionReportTimeout()), getDtlsSessionReportTimeout(), TimeUnit.MILLISECONDS);
+            server.start();
+            return server;
+        } catch (RuntimeException | UnknownHostException e) {
+            log.error("Failed to start CoAP server, releasing resources", e);
+            try {
+                if (dtlsSessionsExecutor != null) {
+                    dtlsSessionsExecutor.shutdownNow();
+                }
+                if (server != null) {
+                    server.destroy();
+                }
+            } catch (Exception suppressed) {
+                e.addSuppressed(suppressed);
+            } finally {
+                server = null;
+                dtlsSessionsExecutor = null;
+                dtlsConnector = null;
+                dtlsCoapEndpoint = null;
+                tbDtlsCertificateVerifier = null;
+            }
+            throw e;
         }
-        Resource root = server.getRoot();
-        TbCoapServerMessageDeliverer messageDeliverer = new TbCoapServerMessageDeliverer(root);
-        server.setMessageDeliverer(messageDeliverer);
-
-        server.start();
-        return server;
     }
 
     private boolean isDtlsEnabled() {
diff --git a/common/coap-server/src/test/java/org/thingsboard/server/coapserver/DefaultCoapServerServiceTest.java b/common/coap-server/src/test/java/org/thingsboard/server/coapserver/DefaultCoapServerServiceTest.java
new file mode 100644
index 0000000000..5606fe18d7
--- /dev/null
+++ b/common/coap-server/src/test/java/org/thingsboard/server/coapserver/DefaultCoapServerServiceTest.java
@@ -0,0 +1,79 @@
+/**
+ * Copyright © 2016-2026 The Thingsboard Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.thingsboard.server.coapserver;
+
+import org.junit.jupiter.api.AfterEach;
+import org.junit.jupiter.api.BeforeEach;
+import org.junit.jupiter.api.Test;
+import org.junit.jupiter.api.extension.ExtendWith;
+import org.mockito.Mock;
+import org.mockito.junit.jupiter.MockitoExtension;
+import org.springframework.test.util.ReflectionTestUtils;
+
+import java.net.DatagramSocket;
+import java.net.InetAddress;
+import java.net.InetSocketAddress;
+
+import static org.assertj.core.api.Assertions.assertThat;
+import static org.assertj.core.api.Assertions.assertThatThrownBy;
+import static org.mockito.Mockito.when;
+
+@ExtendWith(MockitoExtension.class)
+public class DefaultCoapServerServiceTest {
+
+    private static final String HOST = "127.0.0.1";
+
+    @Mock
+    private CoapServerContext mockCoapServerContext;
+
+    private DefaultCoapServerService service;
+    private DatagramSocket occupiedSocket;
+    private int occupiedPort;
+
+    @BeforeEach
+    public void setUp() throws Exception {
+        occupiedSocket = new DatagramSocket(new InetSocketAddress(InetAddress.getByName(HOST), 0));
+        occupiedPort = occupiedSocket.getLocalPort();
+
+        service = new DefaultCoapServerService();
+        ReflectionTestUtils.setField(service, "coapServerContext", mockCoapServerContext);
+
+        when(mockCoapServerContext.getHost()).thenReturn(HOST);
+        when(mockCoapServerContext.getPort()).thenReturn(occupiedPort);
+        when(mockCoapServerContext.getDtlsSettings()).thenReturn(null);
+    }
+
+    @AfterEach
+    public void tearDown() {
+        if (occupiedSocket != null && !occupiedSocket.isClosed()) {
+            occupiedSocket.close();
+        }
+    }
+
+    @Test
+    public void whenPlainBindFails_thenInitThrowsAndReleasesCoapServer() {
+        assertThatThrownBy(() -> service.init())
+                .isInstanceOf(IllegalStateException.class)
+                .hasMessageContaining("None of the server endpoints could be started");
+
+        assertThat(ReflectionTestUtils.getField(service, "server")).isNull();
+        assertThat(ReflectionTestUtils.getField(service, "dtlsSessionsExecutor")).isNull();
+        assertThat(ReflectionTestUtils.getField(service, "dtlsConnector")).isNull();
+        assertThat(ReflectionTestUtils.getField(service, "dtlsCoapEndpoint")).isNull();
+        assertThat(ReflectionTestUtils.getField(service, "tbDtlsCertificateVerifier")).isNull();
+    }
+
+}