diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8c0c08731d9..962b55474f3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -13,6 +13,7 @@
 
 ### Bugfix
 * Use all allowed channels with Brazil domain
+* Corrected memory leak on Border Router key storage that could occur when key storage is allocated on low memory situation
 
 ## Release v12.7.0 (14-12-2020)
 
diff --git a/source/6LoWPAN/ws/ws_pae_key_storage.c b/source/6LoWPAN/ws/ws_pae_key_storage.c
index 7ee66a073a9..e8026364a3d 100644
--- a/source/6LoWPAN/ws/ws_pae_key_storage.c
+++ b/source/6LoWPAN/ws/ws_pae_key_storage.c
@@ -186,6 +186,7 @@ static int8_t ws_pae_key_storage_allocate(const void *instance, uint16_t key_sto
     if (new_storage_array == NULL) {
         key_storage_array->storage_array_handle = ns_dyn_mem_alloc(key_storage_size);
         if (!key_storage_array->storage_array_handle) {
+            ns_dyn_mem_free(key_storage_array);
             return -1;
         }
         key_storage_array->allocated = true;