diff --git a/arch/sandbox/dts/test.dts b/arch/sandbox/dts/test.dts
index cd53c170171..b7402d7042a 100644
--- a/arch/sandbox/dts/test.dts
+++ b/arch/sandbox/dts/test.dts
@@ -457,6 +457,10 @@
 		mux-control-names = "mux0";
 	};
 
+	multimatch-test {
+		compatible = "sandbox,multimatch-test";
+	};
+
 	phy_provider0: gen_phy@0 {
 		compatible = "sandbox,phy";
 		#phy-cells = <1>;
diff --git a/drivers/core/lists.c b/drivers/core/lists.c
index c7be504b6fc..2545dc142f6 100644
--- a/drivers/core/lists.c
+++ b/drivers/core/lists.c
@@ -204,10 +204,8 @@ int lists_bind_fdt(struct udevice *parent, ofnode node, struct udevice **devp,
 	const struct udevice_id *id;
 	struct driver *entry;
 	struct udevice *dev;
-	bool found = false;
 	const char *name, *compat_list, *compat;
 	int compat_length, i;
-	int result = 0;
 	int ret = 0;
 
 	if (devp)
@@ -237,55 +235,56 @@ int lists_bind_fdt(struct udevice *parent, ofnode node, struct udevice **devp,
 		log_debug("   - attempt to match compatible string '%s'\n",
 			  compat);
 
-		id = NULL;
 		for (entry = driver; entry != driver + n_ents; entry++) {
+			/* Search for drivers with matching drv or existing of_match */
 			if (drv) {
 				if (drv != entry)
 					continue;
-				if (!entry->of_match)
-					break;
+			} else if (!entry->of_match) {
+				continue;
 			}
-			ret = driver_check_compatible(entry->of_match, &id,
-						      compat);
-			if (!ret)
-				break;
-		}
-		if (entry == driver + n_ents)
-			continue;
 
-		if (pre_reloc_only) {
-			if (!ofnode_pre_reloc(node) &&
-			    !(entry->flags & DM_FLAG_PRE_RELOC)) {
-				log_debug("Skipping device pre-relocation\n");
-				return 0;
+			id = NULL;
+			if (entry->of_match) {
+				ret = driver_check_compatible(entry->of_match, &id,
+							      compat);
+				if (ret)
+					continue;
+				log_debug("   - found match at driver '%s' for '%s'\n",
+					  entry->name, id->compatible);
+			}
+
+			if (pre_reloc_only) {
+				if (!ofnode_pre_reloc(node) &&
+				    !(entry->flags & DM_FLAG_PRE_RELOC)) {
+					log_debug("Skipping device pre-relocation\n");
+					return 0;
+				}
+			}
+
+			ret = device_bind_with_driver_data(parent, entry, name,
+							   id ? id->data : 0, node,
+							   &dev);
+			if (!drv && ret == -ENODEV) {
+				log_debug("   - Driver '%s' refuses to bind\n", entry->name);
+				continue;
+			}
+			if (ret) {
+				dm_warn("Error binding driver '%s': %d\n", entry->name,
+					ret);
+				return log_msg_ret("bind", ret);
 			}
-		}
 
-		if (entry->of_match)
-			log_debug("   - found match at driver '%s' for '%s'\n",
-				  entry->name, id->compatible);
-		ret = device_bind_with_driver_data(parent, entry, name,
-						   id ? id->data : 0, node,
-						   &dev);
-		if (ret == -ENODEV) {
-			log_debug("Driver '%s' refuses to bind\n", entry->name);
-			continue;
-		}
-		if (ret) {
-			dm_warn("Error binding driver '%s': %d\n", entry->name,
-				ret);
-			return log_msg_ret("bind", ret);
-		} else {
-			found = true;
 			if (devp)
 				*devp = dev;
+
+			return 0;
 		}
-		break;
 	}
 
-	if (!found && !result && ret != -ENODEV)
+	if (ret != -ENODEV)
 		log_debug("No match for node '%s'\n", name);
 
-	return result;
+	return 0;
 }
 #endif
diff --git a/test/dm/core.c b/test/dm/core.c
index 53693f4f7ed..78ee14af228 100644
--- a/test/dm/core.c
+++ b/test/dm/core.c
@@ -1410,3 +1410,18 @@ static int dm_test_try_first_device(struct unit_test_state *uts)
 	return 0;
 }
 DM_TEST(dm_test_try_first_device, 0);
+
+/* Test that all drivers are iterated when bind returns -ENODEV */
+static int dm_test_multimatch(struct unit_test_state *uts)
+{
+	struct udevice *dev;
+
+	ut_assertok(uclass_find_device_by_name(UCLASS_TEST, "multimatch-test",
+					       &dev));
+	ut_assertnonnull(dev);
+	ut_asserteq_str("test_multimatch_second", dev->driver->name);
+	ut_asserteq(2, dm_testdrv_op_count[DM_TEST_OP_BIND]);
+
+	return 0;
+}
+DM_TEST(dm_test_multimatch, UTF_SCAN_FDT);
diff --git a/test/dm/test-driver.c b/test/dm/test-driver.c
index 759de3a5f77..d628a6d766f 100644
--- a/test/dm/test-driver.c
+++ b/test/dm/test-driver.c
@@ -197,3 +197,29 @@ U_BOOT_DRIVER(test_act_dma_vital_clk_drv) = {
 	.unbind	= test_manual_unbind,
 	.flags	= DM_FLAG_VITAL | DM_FLAG_ACTIVE_DMA,
 };
+
+static int test_multimatch_first_bind(struct udevice *dev)
+{
+	dm_testdrv_op_count[DM_TEST_OP_BIND]++;
+
+	return -ENODEV;
+}
+
+static const struct udevice_id test_multimatch_ids[] = {
+	{ .compatible = "sandbox,multimatch-test" },
+	{ }
+};
+
+U_BOOT_DRIVER(test_multimatch_first) = {
+	.name	= "test_multimatch_first",
+	.id	= UCLASS_TEST,
+	.of_match = test_multimatch_ids,
+	.bind	= test_multimatch_first_bind,
+};
+
+U_BOOT_DRIVER(test_multimatch_second) = {
+	.name	= "test_multimatch_second",
+	.id	= UCLASS_TEST,
+	.of_match = test_multimatch_ids,
+	.bind	= test_manual_bind,
+};