diff --git a/src/libvlr/vlr_access_req_fsm.c b/src/libvlr/vlr_access_req_fsm.c
index 5f4795f..bcf589e 100644
--- a/src/libvlr/vlr_access_req_fsm.c
+++ b/src/libvlr/vlr_access_req_fsm.c
@@ -40,6 +40,7 @@
 	OSMO_VALUE_STRING(PR_ARQ_E_START),
 	OSMO_VALUE_STRING(PR_ARQ_E_ID_IMSI),
 	OSMO_VALUE_STRING(PR_ARQ_E_AUTH_RES),
+	OSMO_VALUE_STRING(PR_ARQ_E_AUTH_FAILURE),
 	OSMO_VALUE_STRING(PR_ARQ_E_CIPH_RES),
 	OSMO_VALUE_STRING(PR_ARQ_E_UPD_LOC_RES),
 	OSMO_VALUE_STRING(PR_ARQ_E_TRACE_RES),
@@ -344,6 +345,7 @@
 					0, 0);
 		vsub->auth_fsm = auth_fsm_start(vsub, fi,
 						PR_ARQ_E_AUTH_RES,
+						PR_ARQ_E_AUTH_FAILURE,
 						par->is_r99,
 						par->is_utran);
 	} else {
@@ -438,15 +440,19 @@
 {
 	enum gsm48_reject_value *cause = data;
 
-	OSMO_ASSERT(event == PR_ARQ_E_AUTH_RES);
+	switch (event) {
+	case PR_ARQ_E_AUTH_RES:
+		/* Node 2 */
+		_proc_arq_vlr_node2(fi);
+		return;
 
-	if (!cause || *cause) {
+	case PR_ARQ_E_AUTH_FAILURE:
 		proc_arq_fsm_done(fi, cause? *cause : GSM48_REJECT_NETWORK_FAILURE);
 		return;
-	}
 
-	/* Node 2 */
-	_proc_arq_vlr_node2(fi);
+	default:
+		OSMO_ASSERT(false);
+	}
 }
 
 static void proc_arq_vlr_fn_w_ciph(struct osmo_fsm_inst *fi,
@@ -551,7 +557,8 @@
 	},
 	[PR_ARQ_S_WAIT_AUTH] = {
 		.name = OSMO_STRINGIFY(PR_ARQ_S_WAIT_AUTH),
-		.in_event_mask = S(PR_ARQ_E_AUTH_RES),
+		.in_event_mask = S(PR_ARQ_E_AUTH_RES) |
+				 S(PR_ARQ_E_AUTH_FAILURE),
 		.out_state_mask = S(PR_ARQ_S_DONE) |
 				  S(PR_ARQ_S_WAIT_CIPH) |
 				  S(PR_ARQ_S_WAIT_UPD_LOC_CHILD) |
diff --git a/src/libvlr/vlr_auth_fsm.c b/src/libvlr/vlr_auth_fsm.c
index a6b5cd2..0583d7c 100644
--- a/src/libvlr/vlr_auth_fsm.c
+++ b/src/libvlr/vlr_auth_fsm.c
@@ -51,6 +51,9 @@
 	bool auth_requested;
 
 	int auth_tuple_max_reuse_count; /* see vlr->cfg instead */
+
+	uint32_t parent_event_success;
+	uint32_t parent_event_failure;
 };
 
 /***********************************************************************
@@ -240,14 +243,21 @@
 /* Terminate the Auth FSM Instance and notify parent */
 static void auth_fsm_term(struct osmo_fsm_inst *fi, enum gsm48_reject_value result)
 {
+	struct auth_fsm_priv *afp = fi->priv;
+
 	LOGPFSM(fi, "Authentication terminating with result %s\n",
 		vlr_auth_fsm_result_name(result));
 
-	/* Do one final state transition (mostly for logging purpose) */
-	if (!result)
+	/* Do one final state transition (mostly for logging purpose) and set the parent_term_event according to success
+	 * or failure. */
+	if (!result) {
+		/* No reject value means success */
 		osmo_fsm_inst_state_chg(fi, VLR_SUB_AS_AUTHENTICATED, 0, 0);
-	else
+		fi->proc.parent_term_event = afp->parent_event_success;
+	} else {
 		osmo_fsm_inst_state_chg(fi, VLR_SUB_AS_AUTH_FAILED, 0, 0);
+		fi->proc.parent_term_event = afp->parent_event_failure;
+	}
 
 	/* return the result to the parent FSM */
 	osmo_fsm_inst_term(fi, OSMO_FSM_TERM_REGULAR, &result);
@@ -593,23 +603,23 @@
 /* MSC->VLR: Start Procedure Authenticate_VLR (TS 23.012 Ch. 4.1.2.2) */
 struct osmo_fsm_inst *auth_fsm_start(struct vlr_subscr *vsub,
 				     struct osmo_fsm_inst *parent,
-				     uint32_t parent_term_event,
+				     uint32_t parent_event_success,
+				     uint32_t parent_event_failure,
 				     bool is_r99,
 				     bool is_utran)
 {
 	struct osmo_fsm_inst *fi;
 	struct auth_fsm_priv *afp;
 
-	fi = osmo_fsm_inst_alloc_child(&vlr_auth_fsm, parent,
-					parent_term_event);
+	fi = osmo_fsm_inst_alloc_child(&vlr_auth_fsm, parent, parent_event_failure);
 	if (!fi) {
-		osmo_fsm_inst_dispatch(parent, parent_term_event, 0);
+		osmo_fsm_inst_dispatch(parent, parent_event_failure, 0);
 		return NULL;
 	}
 
 	afp = talloc_zero(fi, struct auth_fsm_priv);
 	if (!afp) {
-		osmo_fsm_inst_dispatch(parent, parent_term_event, 0);
+		osmo_fsm_inst_dispatch(parent, parent_event_failure, 0);
 		return NULL;
 	}
 
@@ -618,6 +628,8 @@
 		afp->by_imsi = true;
 	afp->is_r99 = is_r99;
 	afp->is_utran = is_utran;
+	afp->parent_event_success = parent_event_success;
+	afp->parent_event_failure = parent_event_failure;
 	fi->priv = afp;
 	vsub->auth_fsm = fi;
 
diff --git a/src/libvlr/vlr_auth_fsm.h b/src/libvlr/vlr_auth_fsm.h
index 73ab53f..44a5650 100644
--- a/src/libvlr/vlr_auth_fsm.h
+++ b/src/libvlr/vlr_auth_fsm.h
@@ -31,7 +31,8 @@
 
 struct osmo_fsm_inst *auth_fsm_start(struct vlr_subscr *vsub,
 				     struct osmo_fsm_inst *parent,
-				     uint32_t parent_term_event,
+				     uint32_t parent_event_success,
+				     uint32_t parent_event_failure,
 				     bool is_r99,
 				     bool is_utran);
 
diff --git a/src/libvlr/vlr_lu_fsm.c b/src/libvlr/vlr_lu_fsm.c
index 224dd9f..1287bb6 100644
--- a/src/libvlr/vlr_lu_fsm.c
+++ b/src/libvlr/vlr_lu_fsm.c
@@ -643,6 +643,7 @@
 	OSMO_VALUE_STRING(VLR_ULA_E_SEND_ID_ACK),
 	OSMO_VALUE_STRING(VLR_ULA_E_SEND_ID_NACK),
 	OSMO_VALUE_STRING(VLR_ULA_E_AUTH_RES),
+	OSMO_VALUE_STRING(VLR_ULA_E_AUTH_FAILURE),
 	OSMO_VALUE_STRING(VLR_ULA_E_CIPH_RES),
 	OSMO_VALUE_STRING(VLR_ULA_E_ID_IMSI),
 	OSMO_VALUE_STRING(VLR_ULA_E_ID_IMEI),
@@ -910,7 +911,9 @@
 		osmo_fsm_inst_state_chg(fi, VLR_ULA_S_WAIT_AUTH,
 					LU_TIMEOUT_LONG, 0);
 		vsub->auth_fsm = auth_fsm_start(lfp->vsub,
-						fi, VLR_ULA_E_AUTH_RES,
+						fi,
+						VLR_ULA_E_AUTH_RES,
+						VLR_ULA_E_AUTH_FAILURE,
 						lfp->is_r99,
 						lfp->is_utran);
 	} else {
@@ -1143,17 +1146,21 @@
 	struct lu_fsm_priv *lfp = lu_fsm_fi_priv(fi);
 	enum gsm48_reject_value *res = data;
 
-	OSMO_ASSERT(event == VLR_ULA_E_AUTH_RES);
-
 	lfp->upd_hlr_vlr_fsm = NULL;
 
-	if (!res || *res) {
+	switch (event) {
+	case VLR_ULA_E_AUTH_RES:
+		/* Result == Pass */
+		vlr_loc_upd_post_auth(fi);
+		return;
+
+	case VLR_ULA_E_AUTH_FAILURE:
 		lu_fsm_failure(fi, res? *res : GSM48_REJECT_NETWORK_FAILURE);
 		return;
-	}
 
-	/* Result == Pass */
-	vlr_loc_upd_post_auth(fi);
+	default:
+		OSMO_ASSERT(false);
+	}
 }
 
 static void lu_fsm_wait_ciph(struct osmo_fsm_inst *fi, uint32_t event,
@@ -1368,7 +1375,8 @@
 		.action = lu_fsm_wait_pvlr,
 	},
 	[VLR_ULA_S_WAIT_AUTH] = {
-		.in_event_mask = S(VLR_ULA_E_AUTH_RES),
+		.in_event_mask = S(VLR_ULA_E_AUTH_RES) |
+				 S(VLR_ULA_E_AUTH_FAILURE),
 		.out_state_mask = S(VLR_ULA_S_WAIT_CIPH) |
 				  S(VLR_ULA_S_WAIT_LU_COMPL) |
 				  S(VLR_ULA_S_WAIT_HLR_UPD) |