diff --git a/subsys/bluetooth/controller/ll_sw/ull_scan_aux.c b/subsys/bluetooth/controller/ll_sw/ull_scan_aux.c
index db510e6a3d3..c1b484d757e 100644
--- a/subsys/bluetooth/controller/ll_sw/ull_scan_aux.c
+++ b/subsys/bluetooth/controller/ll_sw/ull_scan_aux.c
@@ -361,19 +361,30 @@ void ull_scan_aux_setup(memq_link_t *link, struct node_rx_hdr *rx)
 
 	ptr = h->data;
 
+#if defined(CONFIG_BT_CTLR_SYNC_PERIODIC)
+	bool is_aux_addr_match = false;
+#endif /* CONFIG_BT_CTLR_SYNC_PERIODIC */
+
 	if (h->adv_addr) {
 #if defined(CONFIG_BT_CTLR_SYNC_PERIODIC)
 		/* Check if Periodic Advertising Synchronization to be created
 		 */
 		if (sync && (scan->periodic.state != LL_SYNC_STATE_CREATED)) {
-			/* Check address and update internal state */
 #if defined(CONFIG_BT_CTLR_PRIVACY)
-			ull_sync_setup_addr_check(scan, pdu->tx_addr, ptr,
-						  ftr->rl_idx);
+			uint8_t rl_idx = ftr->rl_idx;
 #else /* !CONFIG_BT_CTLR_PRIVACY */
-			ull_sync_setup_addr_check(scan, pdu->tx_addr, ptr, 0U);
+			uint8_t rl_idx = 0U;
 #endif /* !CONFIG_BT_CTLR_PRIVACY */
 
+			/* Check address and update internal state */
+			is_aux_addr_match =
+				ull_sync_setup_addr_check(scan, pdu->tx_addr,
+							  ptr, rl_idx);
+			if (is_aux_addr_match) {
+				scan->periodic.state = LL_SYNC_STATE_ADDR_MATCH;
+			} else {
+				scan->periodic.state = LL_SYNC_STATE_IDLE;
+			}
 		}
 #endif /* CONFIG_BT_CTLR_SYNC_PERIODIC */
 
@@ -406,14 +417,22 @@ void ull_scan_aux_setup(memq_link_t *link, struct node_rx_hdr *rx)
 		si = (void *)ptr;
 		ptr += sizeof(*si);
 
+#if defined(CONFIG_BT_CTLR_SYNC_PERIODIC)
 		/* Check if Periodic Advertising Synchronization to be created.
 		 * Setup synchronization if address and SID match in the
 		 * Periodic Advertiser List or with the explicitly supplied.
+		 *
+		 * is_aux_addr_match, device address in auxiliary channel PDU;
+		 * scan->periodic.param has not been assigned yet.
+		 * Otherwise, address was in primary channel PDU and we are now
+		 * checking SID (in SyncInfo) in auxiliary channel PDU.
 		 */
-		if (IS_ENABLED(CONFIG_BT_CTLR_SYNC_PERIODIC) && sync && adi &&
-		    ull_sync_setup_sid_match(scan, adi->sid)) {
+		if (sync && aux && (is_aux_addr_match ||
+				    (scan->periodic.param == aux)) &&
+		    adi && ull_sync_setup_sid_match(scan, adi->sid)) {
 			ull_sync_setup(scan, aux, rx, si);
 		}
+#endif /* CONFIG_BT_CTLR_SYNC_PERIODIC */
 	}
 
 	if (h->tx_pwr) {
@@ -522,6 +541,15 @@ void ull_scan_aux_setup(memq_link_t *link, struct node_rx_hdr *rx)
 		aux->parent = lll ? (void *)lll : (void *)sync_lll;
 
 #if defined(CONFIG_BT_CTLR_SYNC_PERIODIC)
+		/* Store the aux context that has Periodic Advertising
+		 * Synchronization address match.
+		 */
+		if (sync && (scan->periodic.state == LL_SYNC_STATE_ADDR_MATCH)) {
+			scan->periodic.param = aux;
+		}
+
+		/* Store the node rx allocated for incomplete report, if needed.
+		 */
 		aux->rx_incomplete = rx_incomplete;
 		rx_incomplete = NULL;
 #endif /* CONFIG_BT_CTLR_SYNC_PERIODIC */
@@ -708,6 +736,7 @@ void ull_scan_aux_setup(memq_link_t *link, struct node_rx_hdr *rx)
 #if defined(CONFIG_BT_CTLR_SYNC_PERIODIC)
 	if (sync && (scan->periodic.state != LL_SYNC_STATE_CREATED)) {
 		scan->periodic.state = LL_SYNC_STATE_IDLE;
+		scan->periodic.param = NULL;
 	}
 #endif /* CONFIG_BT_CTLR_SYNC_PERIODIC */
 
diff --git a/subsys/bluetooth/controller/ll_sw/ull_scan_types.h b/subsys/bluetooth/controller/ll_sw/ull_scan_types.h
index d10ef58b0c0..8b07b4324c2 100644
--- a/subsys/bluetooth/controller/ll_sw/ull_scan_types.h
+++ b/subsys/bluetooth/controller/ll_sw/ull_scan_types.h
@@ -22,7 +22,7 @@ struct ll_scan_set {
 	struct {
 		uint8_t sid;
 
-		uint8_t adv_addr_type:1;
+		uint8_t adv_addr_type:2;
 		uint8_t filter_policy:1;
 		uint8_t cancelled:1;
 		uint8_t state:2;
@@ -34,6 +34,11 @@ struct ll_scan_set {
 		 * cancelling sync create, hence the volatile keyword.
 		 */
 		struct ll_sync_set *volatile sync;
+
+		/* Non-NULL when Periodic Advertising Synchronisation address
+		 * matched.
+		 */
+		void *param;
 	} periodic;
 #endif
 };
diff --git a/subsys/bluetooth/controller/ll_sw/ull_sync.c b/subsys/bluetooth/controller/ll_sw/ull_sync.c
index 8e6108fec30..cc67829cc35 100644
--- a/subsys/bluetooth/controller/ll_sw/ull_sync.c
+++ b/subsys/bluetooth/controller/ll_sw/ull_sync.c
@@ -157,11 +157,13 @@ uint8_t ll_sync_create(uint8_t options, uint8_t sid, uint8_t adv_addr_type,
 
 	scan->periodic.cancelled = 0U;
 	scan->periodic.state = LL_SYNC_STATE_IDLE;
+	scan->periodic.param = NULL;
 	scan->periodic.filter_policy =
 		options & BT_HCI_LE_PER_ADV_CREATE_SYNC_FP_USE_LIST;
 	if (IS_ENABLED(CONFIG_BT_CTLR_PHY_CODED)) {
 		scan_coded->periodic.cancelled = 0U;
 		scan_coded->periodic.state = LL_SYNC_STATE_IDLE;
+		scan_coded->periodic.param = NULL;
 		scan_coded->periodic.filter_policy =
 			scan->periodic.filter_policy;
 	}
@@ -591,7 +593,7 @@ void ull_sync_release(struct ll_sync_set *sync)
 	mem_release(sync, &sync_free);
 }
 
-void ull_sync_setup_addr_check(struct ll_scan_set *scan, uint8_t addr_type,
+bool ull_sync_setup_addr_check(struct ll_scan_set *scan, uint8_t addr_type,
 			       uint8_t *addr, uint8_t rl_idx)
 {
 	/* Check if Periodic Advertiser list to be used */
@@ -607,7 +609,7 @@ void ull_sync_setup_addr_check(struct ll_scan_set *scan, uint8_t addr_type,
 				     BDADDR_SIZE);
 
 			/* Address matched */
-			scan->periodic.state = LL_SYNC_STATE_ADDR_MATCH;
+			return true;
 
 		/* Check in Resolving List */
 		} else if (IS_ENABLED(CONFIG_BT_CTLR_PRIVACY) &&
@@ -618,15 +620,18 @@ void ull_sync_setup_addr_check(struct ll_scan_set *scan, uint8_t addr_type,
 			 */
 			scan->periodic.adv_addr_type = addr_type;
 
+			/* Mark it as identity address from RPA (0x02, 0x03) */
+			scan->periodic.adv_addr_type += 2U;
+
 			/* Address matched */
-			scan->periodic.state = LL_SYNC_STATE_ADDR_MATCH;
+			return true;
 		}
 
 	/* Check with explicitly supplied address */
 	} else if ((addr_type == scan->periodic.adv_addr_type) &&
 		   !memcmp(addr, scan->periodic.adv_addr, BDADDR_SIZE)) {
 		/* Address matched */
-		scan->periodic.state = LL_SYNC_STATE_ADDR_MATCH;
+		return true;
 
 	/* Check identity address with explicitly supplied address */
 	} else if (IS_ENABLED(CONFIG_BT_CTLR_PRIVACY) &&
@@ -634,10 +639,15 @@ void ull_sync_setup_addr_check(struct ll_scan_set *scan, uint8_t addr_type,
 		ll_rl_id_addr_get(rl_idx, &addr_type, addr);
 		if ((addr_type == scan->periodic.adv_addr_type) &&
 		    !memcmp(addr, scan->periodic.adv_addr, BDADDR_SIZE)) {
+			/* Mark it as identity address from RPA (0x02, 0x03) */
+			scan->periodic.adv_addr_type += 2U;
+
 			/* Identity address matched */
-			scan->periodic.state = LL_SYNC_STATE_ADDR_MATCH;
+			return true;
 		}
 	}
+
+	return false;
 }
 
 bool ull_sync_setup_sid_match(struct ll_scan_set *scan, uint8_t sid)
@@ -666,6 +676,7 @@ void ull_sync_setup(struct ll_scan_set *scan, struct ll_scan_aux_set *aux,
 	struct lll_sync *lll;
 	uint16_t sync_handle;
 	uint32_t interval_us;
+	uint32_t overhead_us;
 	struct pdu_adv *pdu;
 	uint16_t interval;
 	uint8_t chm_last;
@@ -699,7 +710,7 @@ void ull_sync_setup(struct ll_scan_set *scan, struct ll_scan_aux_set *aux,
 	/* Remember the peer address.
 	 * NOTE: Peer identity address is copied here when privacy is enable.
 	 */
-	sync->peer_id_addr_type = scan->periodic.adv_addr_type;
+	sync->peer_id_addr_type = scan->periodic.adv_addr_type & 0x01;
 	(void)memcpy(sync->peer_id_addr, scan->periodic.adv_addr,
 		     sizeof(sync->peer_id_addr));
 #endif /* CONFIG_BT_CTLR_CHECK_SAME_PEER_SYNC ||
@@ -749,6 +760,7 @@ void ull_sync_setup(struct ll_scan_set *scan, struct ll_scan_aux_set *aux,
 
 	/* Set the state to sync create */
 	scan->periodic.state = LL_SYNC_STATE_CREATED;
+	scan->periodic.param = NULL;
 	if (IS_ENABLED(CONFIG_BT_CTLR_PHY_CODED)) {
 		struct ll_scan_set *scan_1m;
 
@@ -758,8 +770,10 @@ void ull_sync_setup(struct ll_scan_set *scan, struct ll_scan_aux_set *aux,
 
 			scan_coded = ull_scan_set_get(SCAN_HANDLE_PHY_CODED);
 			scan_coded->periodic.state = LL_SYNC_STATE_CREATED;
+			scan_coded->periodic.param = NULL;
 		} else {
 			scan_1m->periodic.state = LL_SYNC_STATE_CREATED;
+			scan_1m->periodic.param = NULL;
 		}
 	}
 
@@ -793,6 +807,22 @@ void ull_sync_setup(struct ll_scan_set *scan, struct ll_scan_aux_set *aux,
 	sync_offset_us -= EVENT_JITTER_US;
 	sync_offset_us -= ready_delay_us;
 
+	/* Minimum prepare tick offset + minimum preempt tick offset are the
+	 * overheads before ULL scheduling can setup radio for reception
+	 */
+	overhead_us = HAL_TICKER_TICKS_TO_US(HAL_TICKER_CNTR_CMP_OFFSET_MIN << 1);
+
+	/* CPU execution overhead to setup the radio for reception */
+	overhead_us += EVENT_OVERHEAD_END_US + EVENT_OVERHEAD_START_US;
+
+	/* If not sufficient CPU processing time, skip to receiving next
+	 * event.
+	 */
+	if ((sync_offset_us - ftr->radio_end_us) < overhead_us) {
+		sync_offset_us += interval_us;
+		lll->event_counter++;
+	}
+
 	interval_us -= lll->window_widening_periodic_us;
 
 	/* TODO: active_to_start feature port */
diff --git a/subsys/bluetooth/controller/ll_sw/ull_sync_internal.h b/subsys/bluetooth/controller/ll_sw/ull_sync_internal.h
index 62d50bd8021..48c5e8aaef7 100644
--- a/subsys/bluetooth/controller/ll_sw/ull_sync_internal.h
+++ b/subsys/bluetooth/controller/ll_sw/ull_sync_internal.h
@@ -9,7 +9,7 @@ int ull_sync_reset(void);
 uint16_t ull_sync_handle_get(struct ll_sync_set *sync);
 struct ll_sync_set *ull_sync_is_enabled_get(uint16_t handle);
 void ull_sync_release(struct ll_sync_set *sync);
-void ull_sync_setup_addr_check(struct ll_scan_set *scan, uint8_t addr_type,
+bool ull_sync_setup_addr_check(struct ll_scan_set *scan, uint8_t addr_type,
 			       uint8_t *addr, uint8_t rl_idx);
 bool ull_sync_setup_sid_match(struct ll_scan_set *scan, uint8_t sid);
 void ull_sync_setup(struct ll_scan_set *scan, struct ll_scan_aux_set *aux,