diff --git a/src/lib/support/StateMachine.h b/src/lib/support/StateMachine.h
index 4cbdf767ac772d..eb96d3d3b9dfe7 100644
--- a/src/lib/support/StateMachine.h
+++ b/src/lib/support/StateMachine.h
@@ -48,12 +48,12 @@ struct VariantState : Variant<Ts...>
 {
 
 private:
-    template <typename T>
-    void Enter()
+    template <typename T, typename E>
+    void Enter(Optional<E> & event)
     {
         if (chip::Variant<Ts...>::template Is<T>())
         {
-            chip::Variant<Ts...>::template Get<T>().Enter();
+            event = chip::Variant<Ts...>::template Get<T>().Enter();
         }
     }
 
@@ -93,9 +93,12 @@ struct VariantState : Variant<Ts...>
         return instance;
     }
 
-    void Enter()
+    template <typename E>
+    Optional<E> Enter()
     {
-        [](...) {}((this->template Enter<Ts>(), 0)...);
+        Optional<E> event;
+        [](...) {}((this->template Enter<Ts, E>(event), 0)...);
+        return event;
     }
 
     void Exit()
@@ -116,25 +119,6 @@ struct VariantState : Variant<Ts...>
     }
 };
 
-/**
- * The interface for dispatching events into the State Machine.
- * @tparam TEvent a variant holding the Events for the State Machine.
- */
-template <typename TEvent>
-class Context
-{
-public:
-    virtual ~Context() = default;
-
-    /**
-     * Dispatch an event to the current state.
-     * @note This call can result in the current state being deleted.  Do not
-     * access current state memory after calling this method.
-     * @param evt a variant holding an Event for the State Machine.
-     */
-    virtual void Dispatch(const TEvent & evt) = 0;
-};
-
 /**
  * This is a functional approach to the State Machine design pattern.  The design is
  * borrowed from http://www.vishalchovatiya.com/state-design-pattern-in-modern-cpp
@@ -203,48 +187,27 @@ class Context
  * @tparam TTransitions an object that implements the () operator for transitions.
  */
 template <typename TState, typename TEvent, typename TTransitions>
-class StateMachine : public Context<TEvent>
+class StateMachine
 {
 public:
     StateMachine(TTransitions & tr) : mCurrentState(tr.GetInitState()), mTransitions(tr) {}
-    ~StateMachine() override = default;
-    void Dispatch(const TEvent & evt) override
-    {
-        auto inProcess = !events.empty();
-        events.push_back(evt);
-        if (!inProcess)
-        {
-            HandleEvents();
-        }
-    }
 
-    TState mCurrentState;
-
-private:
-    void HandleEvents()
+    void Dispatch(const TEvent & evt)
     {
-        while (!events.empty())
+        Optional<TEvent> optEvent(evt);
+        Optional<TState> optState;
+        while (optEvent.HasValue() && (optState = mTransitions(mCurrentState, evt)).HasValue())
         {
-            auto count    = events.size();
-            auto optState = mTransitions(mCurrentState, events.front());
-            if (optState.HasValue())
-            {
-                auto newState = optState.Value();
-                newState.LogTransition(mCurrentState.GetName());
-                mCurrentState.Exit();
-                mCurrentState = newState;
-                while (events.size() > count)
-                {
-                    events.pop_back(); // events discarded per design
-                }
-                mCurrentState.Enter();
-            }
-            events.pop_front();
+            auto newState = optState.Value();
+            newState.LogTransition(mCurrentState.GetName());
+            mCurrentState.Exit();
+            mCurrentState = newState;
+            optEvent = mCurrentState.template Enter<TEvent>();
         }
     }
 
+    TState mCurrentState;
     TTransitions & mTransitions;
-    std::deque<TEvent> events{};
 };
 
 } // namespace StateMachine
diff --git a/src/lib/support/tests/TestStateMachine.cpp b/src/lib/support/tests/TestStateMachine.cpp
index a9fbafd419a729..053e94f240988b 100644
--- a/src/lib/support/tests/TestStateMachine.cpp
+++ b/src/lib/support/tests/TestStateMachine.cpp
@@ -36,7 +36,6 @@ struct Event4
 };
 
 using Event   = chip::Variant<Event1, Event2, Event3, Event4>;
-using Context = chip::StateMachine::Context<Event>;
 
 struct MockState
 {
@@ -45,7 +44,7 @@ struct MockState
     unsigned mLogged;
     const char * mPrevious;
 
-    void Enter() { ++mEntered; }
+    chip::StateMachine::Optional<Event> Enter() { ++mEntered; return {}; }
     void Exit() { ++mExited; }
     void LogTransition(const char * previous)
     {
@@ -56,46 +55,40 @@ struct MockState
 
 struct BaseState
 {
-    void Enter() { mMock.Enter(); }
+    chip::StateMachine::Optional<Event> Enter() { return mMock.Enter(); }
     void Exit() { mMock.Exit(); }
     void LogTransition(const char * previous) { mMock.LogTransition(previous); }
     const char * GetName() { return mName; }
 
-    chip::StateMachine::Context<Event> & mCtx;
     const char * mName;
     MockState & mMock;
 };
 
 struct State1 : public BaseState
 {
-    State1(Context & ctx, const char * name, MockState & mock) : BaseState{ ctx, name, mock } {}
+    State1(MockState & mock) : BaseState{ "State2", mock } {}
 };
 
 struct State2 : public BaseState
 {
-    State2(Context & ctx, const char * name, MockState & mock) : BaseState{ ctx, name, mock } {}
+    State2(MockState & mock) : BaseState{ "State2", mock } {}
 };
 
 using State = chip::StateMachine::VariantState<State1, State2>;
 
 struct StateFactory
 {
-    Context & mCtx;
     MockState ms1{ 0, 0, 0, nullptr };
     MockState ms2{ 0, 0, 0, nullptr };
 
-    StateFactory(Context & ctx) : mCtx(ctx) {}
+    auto CreateState1() { return State::Create<State1>(ms1); }
 
-    auto CreateState1() { return State::Create<State1>(mCtx, "State1", ms1); }
-
-    auto CreateState2() { return State::Create<State2>(mCtx, "State2", ms2); }
+    auto CreateState2() { return State::Create<State2>(ms2); }
 };
 
 struct Transitions
 {
-    Context & mCtx;
     StateFactory mFactory;
-    Transitions(Context & ctx) : mCtx(ctx), mFactory(ctx) {}
 
     using OptState = chip::StateMachine::Optional<State>;
     State GetInitState() { return mFactory.CreateState1(); }
@@ -111,15 +104,10 @@ struct Transitions
         }
         else if (state.Is<State1>() && event.Is<Event4>())
         {
-            // legal - Dispatches event without transition
-            mCtx.Dispatch(Event::Create<Event2>());
-            return {};
+            return mFactory.CreateState2();
         }
         else if (state.Is<State2>() && event.Is<Event4>())
         {
-            // illegal - Returned Transition will cause events
-            // dispatched from the transitions table to be ignored.
-            mCtx.Dispatch(Event::Create<Event2>());
             return mFactory.CreateState1();
         }
         else
@@ -135,7 +123,7 @@ class SimpleStateMachine
     Transitions mTransitions;
     chip::StateMachine::StateMachine<State, Event, Transitions> mStateMachine;
 
-    SimpleStateMachine() : mTransitions(mStateMachine), mStateMachine(mTransitions) {}
+    SimpleStateMachine() : mStateMachine(mTransitions) {}
     ~SimpleStateMachine() {}
 };