diff --git a/dlls/msv1_0/main.c b/dlls/msv1_0/main.c
index e4890d00a42..a877d974486 100644
--- a/dlls/msv1_0/main.c
+++ b/dlls/msv1_0/main.c
@@ -862,7 +862,7 @@ static NTSTATUS NTAPI ntlm_SpInitLsaModeContext( LSA_SEC_HANDLE cred_handle, LSA
     }
 
 done:
-    if (status != SEC_E_OK && status != SEC_I_CONTINUE_NEEDED)
+    if (status != SEC_E_OK && status != SEC_I_CONTINUE_NEEDED && !ctx_handle && !input)
     {
         ntlm_cleanup( ctx );
         free( ctx );