diff --git a/docs/library/machine.USBDevice.rst b/docs/library/machine.USBDevice.rst
index 82897b280d..e02d3c02df 100644
--- a/docs/library/machine.USBDevice.rst
+++ b/docs/library/machine.USBDevice.rst
@@ -130,15 +130,25 @@ Methods
 
       Second argument is a memoryview to read the USB control request
       data for this stage. The memoryview is only valid until the
-      callback function returns.
+      callback function returns. Data in this memoryview will be the same
+      across each of the three stages of a single transfer.
+
+      A successful transfer consists of this callback being called in sequence
+      for the three stages. Generally speaking, if a device wants to do
+      something in response to a control request then it's best to wait until
+      the ACK stage to confirm the host controller completed the transfer as
+      expected.
 
       The callback should return one of the following values:
 
-      - ``False`` to stall the endpoint and reject the transfer.
+      - ``False`` to stall the endpoint and reject the transfer. It won't
+        proceed to any remaining stages.
       - ``True`` to continue the transfer to the next stage.
-      - A buffer object to provide data for this stage of the transfer.
-        This should be a writable buffer for an ``OUT`` direction transfer, or a
-        readable buffer with data for an ``IN`` direction transfer.
+      - A buffer object can be returned at the SETUP stage when the transfer
+        will send or receive additional data. Typically this is the case when
+        the ``wLength`` field in the request has a non-zero value. This should
+        be a writable buffer for an ``OUT`` direction transfer, or a readable
+        buffer with data for an ``IN`` direction transfer.
 
     - ``xfer_cb`` - This callback is called whenever a non-control
       transfer submitted by calling :func:`USBDevice.submit_xfer` completes.
diff --git a/shared/tinyusb/mp_usbd_runtime.c b/shared/tinyusb/mp_usbd_runtime.c
index 0b4c79831b..7ff7dd4ab2 100644
--- a/shared/tinyusb/mp_usbd_runtime.c
+++ b/shared/tinyusb/mp_usbd_runtime.c
@@ -295,6 +295,7 @@ static bool runtime_dev_control_xfer_cb(uint8_t rhport, uint8_t stage, tusb_cont
     mp_obj_usb_device_t *usbd = MP_OBJ_TO_PTR(MP_STATE_VM(usbd));
     tusb_dir_t dir = request->bmRequestType_bit.direction;
     mp_buffer_info_t buf_info;
+    bool result;
 
     if (!usbd) {
         return false;
@@ -319,7 +320,7 @@ static bool runtime_dev_control_xfer_cb(uint8_t rhport, uint8_t stage, tusb_cont
 
     // Check if callback returned any data to submit
     if (mp_get_buffer(cb_res, &buf_info, dir == TUSB_DIR_IN ? MP_BUFFER_READ : MP_BUFFER_RW)) {
-        bool result = tud_control_xfer(USBD_RHPORT,
+        result = tud_control_xfer(USBD_RHPORT,
             request,
             buf_info.buf,
             buf_info.len);
@@ -328,17 +329,21 @@ static bool runtime_dev_control_xfer_cb(uint8_t rhport, uint8_t stage, tusb_cont
             // Keep buffer object alive until the transfer completes
             usbd->xfer_data[0][dir] = cb_res;
         }
-
-        return result;
     } else {
         // Expect True or False to stall or continue
+        result = mp_obj_is_true(cb_res);
 
-        if (stage == CONTROL_STAGE_ACK) {
+        if (stage == CONTROL_STAGE_SETUP && result) {
+            // If no additional data but callback says to continue transfer then
+            // queue a status response.
+            tud_control_status(rhport, request);
+        } else if (stage == CONTROL_STAGE_ACK) {
             // Allow data to be GCed once it's no longer in use
             usbd->xfer_data[0][dir] = mp_const_none;
         }
-        return mp_obj_is_true(cb_res);
     }
+
+    return result;
 }
 
 static bool runtime_dev_xfer_cb(uint8_t rhport, uint8_t ep_addr, xfer_result_t result, uint32_t xferred_bytes) {