diff --git a/kernel/time/timekeeping.c b/kernel/time/timekeeping.c
index 2527a483d75c..9e1cbc590988 100644
--- a/kernel/time/timekeeping.c
+++ b/kernel/time/timekeeping.c
@@ -2404,6 +2404,11 @@ static __always_inline void timekeeping_apply_adjustment(struct timekeeper *tk,
 	 *	xtime_nsec_2 = xtime_nsec_1 - offset
 	 * Which simplifies to:
 	 *	xtime_nsec -= offset
+	 *
+	 * When subtracting offset from xtime_nsec, the same amount
+	 * (in appropriate units) has to be added to ntp_error, in
+	 * order to correctly track the delta between the time
+	 * reported in xtime_nsec, and the intended time.
 	 */
 	if ((mult_adj > 0) && (tk->tkr_mono.mult + mult_adj < mult_adj)) {
 		/* NTP adjustment caused clocksource mult overflow */
@@ -2414,6 +2419,7 @@ static __always_inline void timekeeping_apply_adjustment(struct timekeeper *tk,
 	tk->tkr_mono.mult += mult_adj;
 	tk->xtime_interval += interval;
 	tk->tkr_mono.xtime_nsec -= offset;
+	tk->ntp_error += offset << tk->ntp_error_shift;
 }
 
 /*