diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9daf03f5..bb257d81 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -3,6 +3,7 @@ All notable changes to this project will be documented in this file.
 This project uses the changelog in accordance with [keepchangelog](http://keepachangelog.com/). Please use this to write notable changes, which is not the same as git commit log...
 
 ## [unreleased][unreleased]
+ - Fixed factory reset hanging (@augustozanellato)
  - Changed fds_write_sync to take length in bytes instead of next multiple of 4 (@doegox)
  - Fixed field LED when LF reading and HF cloning (@doegox)
  - Added renaming of slot into "cloned" when having cloned an ID/UID with a button (@doegox)
diff --git a/firmware/application/src/utils/fds_util.c b/firmware/application/src/utils/fds_util.c
index 4ce63344..46407ea0 100644
--- a/firmware/application/src/utils/fds_util.c
+++ b/firmware/application/src/utils/fds_util.c
@@ -15,6 +15,7 @@ static struct {
     uint16_t key;       // file key
     bool success;       // task is success
     bool waiting;       // task waiting done.
+    bool ignore_pm;     // ignore peer manager records, defaults to true, set to false by fds_wipe
 } fds_operation_info;
 
 
@@ -192,10 +193,12 @@ static bool is_peer_manager_record(uint16_t id_or_key) {
  */
 static void fds_evt_handler(fds_evt_t const *p_evt) {
     // Skip peermanager event
-    if (is_peer_manager_record(p_evt->write.record_key)
+    if (fds_operation_info.ignore_pm && (
+            is_peer_manager_record(p_evt->write.record_key)
             || is_peer_manager_record(p_evt->write.file_id)
             || is_peer_manager_record(p_evt->del.record_key)
             || is_peer_manager_record(p_evt->del.file_id)
+        )
        ) {
         return;
     }
@@ -264,6 +267,7 @@ static void fds_evt_handler(fds_evt_t const *p_evt) {
  *Initialize the FDS library of NRF52
  */
 void fds_util_init() {
+    fds_operation_info.ignore_pm = true;
     // reset waiting flag
     fds_operation_info.waiting = false;
     //Register the incident first
@@ -311,6 +315,7 @@ static bool fds_next_record_delete_sync() {
 
 bool fds_wipe(void) {
     NRF_LOG_INFO("Full fds wipe requested");
+    fds_operation_info.ignore_pm = false;  // wipe should also delete peer manager files.
     while (fds_next_record_delete_sync()) {
         bsp_wdt_feed();
     }