diff --git a/protocols/kad/CHANGELOG.md b/protocols/kad/CHANGELOG.md
index 1d124fb37a2..5cd537cae9e 100644
--- a/protocols/kad/CHANGELOG.md
+++ b/protocols/kad/CHANGELOG.md
@@ -19,6 +19,8 @@
   See [PR 5317](https://github.com/libp2p/rust-libp2p/pull/5317).
 - Use `web-time` instead of `instant`.
   See [PR 5347](https://github.com/libp2p/rust-libp2p/pull/5347).
+- Correctly handle the `NoKnownPeers` error on automatic bootstrap.
+  See [PR 5349](https://github.com/libp2p/rust-libp2p/pull/5349).
 
 ## 0.45.3
 
diff --git a/protocols/kad/src/behaviour.rs b/protocols/kad/src/behaviour.rs
index 5d8a8bb0fd8..c9690d2c873 100644
--- a/protocols/kad/src/behaviour.rs
+++ b/protocols/kad/src/behaviour.rs
@@ -939,6 +939,7 @@ where
         };
         let peers = self.kbuckets.closest_keys(&local_key).collect::<Vec<_>>();
         if peers.is_empty() {
+            self.bootstrap_status.reset_timers();
             Err(NoKnownPeers())
         } else {
             self.bootstrap_status.on_started();
diff --git a/protocols/kad/src/bootstrap.rs b/protocols/kad/src/bootstrap.rs
index bcb9d0cccf3..fd9e3d41be6 100644
--- a/protocols/kad/src/bootstrap.rs
+++ b/protocols/kad/src/bootstrap.rs
@@ -61,19 +61,23 @@ impl Status {
         }
     }
 
+    pub(crate) fn reset_timers(&mut self) {
+        // Canceling the `throttle_timer` if any and resetting the `delay` if any.
+        self.throttle_timer = None;
+
+        if let Some((interval, delay)) = self.interval_and_delay.as_mut() {
+            delay.reset(*interval);
+        }
+    }
+
     pub(crate) fn on_started(&mut self) {
         // No periodic or automatic bootstrap will be triggered as long as
         // `self.current_bootstrap_requests > 0` but the user could still manually
         // trigger a bootstrap.
         self.current_bootstrap_requests += 1;
 
-        // Canceling the `throttle_timer` if any since a bootstrap request is being triggered right now.
-        self.throttle_timer = None;
-
-        // Resetting the `delay` if any since a bootstrap request is being triggered right now.
-        if let Some((interval, delay)) = self.interval_and_delay.as_mut() {
-            delay.reset(*interval);
-        }
+        // Resetting the Status timers since a bootstrap request is being triggered right now.
+        self.reset_timers();
     }
 
     pub(crate) fn on_finish(&mut self) {