diff --git a/changelogs/fragments/psrp-reset.yml b/changelogs/fragments/psrp-reset.yml
new file mode 100644
index 00000000000..a9af487d9e1
--- /dev/null
+++ b/changelogs/fragments/psrp-reset.yml
@@ -0,0 +1,3 @@
+bugfixes:
+- psrp - Fix error when resetting a connection that was initialised but not connected - (https://github.com/ansible/ansible/issues/74092).
+- psrp - Try to clean up any server-side resources when resetting a connection.
diff --git a/lib/ansible/plugins/connection/psrp.py b/lib/ansible/plugins/connection/psrp.py
index 086897b38e0..b643c1e485e 100644
--- a/lib/ansible/plugins/connection/psrp.py
+++ b/lib/ansible/plugins/connection/psrp.py
@@ -410,7 +410,16 @@ class Connection(ConnectionBase):
 
     def reset(self):
         if not self._connected:
+            self.runspace = None
             return
+
+        # Try out best to ensure the runspace is closed to free up server side resources
+        try:
+            self.close()
+        except Exception as e:
+            # There's a good chance the connection was already closed so just log the error and move on
+            display.debug("PSRP reset - failed to closed runspace: %s" % to_text(e))
+
         display.vvvvv("PSRP: Reset Connection", host=self._psrp_host)
         self.runspace = None
         self._connect()