diff --git a/ChangeLog.d/fix-secure-element-key-creation.txt b/ChangeLog.d/fix-secure-element-key-creation.txt
new file mode 100644
index 0000000000..23a46c068d
--- /dev/null
+++ b/ChangeLog.d/fix-secure-element-key-creation.txt
@@ -0,0 +1,5 @@
+Bugfix
+   * Fix error handling when creating a key in a dynamic secure element
+     (feature enabled by MBEDTLS_PSA_CRYPTO_SE_C). In a low memory condition,
+     the creation could return PSA_SUCCESS but using or destroying the key
+     would not work. Fixes #8537.
diff --git a/library/psa_crypto.c b/library/psa_crypto.c
index 0a9011ad84..02554d1d4b 100644
--- a/library/psa_crypto.c
+++ b/library/psa_crypto.c
@@ -1835,6 +1835,9 @@ static psa_status_t psa_start_key_creation(
 
         status = psa_copy_key_material_into_slot(
             slot, (uint8_t *) (&slot_number), sizeof(slot_number));
+        if (status != PSA_SUCCESS) {
+            return status;
+        }
     }
 
     if (*p_drv == NULL && method == PSA_KEY_CREATION_REGISTER) {