diff --git a/mysql-test/suite/innodb/r/innodb-alter-debug.result b/mysql-test/suite/innodb/r/innodb-alter-debug.result
index aae9432fc35..8962d6ba400 100644
--- a/mysql-test/suite/innodb/r/innodb-alter-debug.result
+++ b/mysql-test/suite/innodb/r/innodb-alter-debug.result
@@ -134,7 +134,7 @@ DROP TABLE t1;
 #
 CREATE TABLE t1(a INT PRIMARY KEY, b INT, INDEX(b)) ENGINE=InnoDB;
 SET @save_dbug=@@debug_dbug;
-SET debug_dbug='+d,innodb_table_deadlock';
+SET debug_dbug='+d,deadlock_table_fail';
 ALTER TABLE t1 DROP INDEX b, ALGORITHM=INPLACE;
 ERROR 40001: Deadlock found when trying to get lock; try restarting transaction
 SET debug_dbug=@save_dbug;
diff --git a/mysql-test/suite/innodb/t/innodb-alter-debug.test b/mysql-test/suite/innodb/t/innodb-alter-debug.test
index 2241ef5d295..c4a68ac71b7 100644
--- a/mysql-test/suite/innodb/t/innodb-alter-debug.test
+++ b/mysql-test/suite/innodb/t/innodb-alter-debug.test
@@ -180,7 +180,7 @@ DROP TABLE t1;
 
 CREATE TABLE t1(a INT PRIMARY KEY, b INT, INDEX(b)) ENGINE=InnoDB;
 SET @save_dbug=@@debug_dbug;
-SET debug_dbug='+d,innodb_table_deadlock';
+SET debug_dbug='+d,deadlock_table_fail';
 --error ER_LOCK_DEADLOCK
 ALTER TABLE t1 DROP INDEX b, ALGORITHM=INPLACE;
 SET debug_dbug=@save_dbug;
diff --git a/storage/innobase/handler/handler0alter.cc b/storage/innobase/handler/handler0alter.cc
index 1b184422a80..c2dc68f18d0 100644
--- a/storage/innobase/handler/handler0alter.cc
+++ b/storage/innobase/handler/handler0alter.cc
@@ -8884,6 +8884,7 @@ free_and_exit:
     }
   }
 
+  DBUG_ASSERT(!prebuilt->table->indexes.start->online_log);
   DBUG_ASSERT(prebuilt->table->indexes.start->online_status ==
               ONLINE_INDEX_COMPLETE);
 
@@ -10938,6 +10939,12 @@ ha_innobase::commit_inplace_alter_table(
 						   LOCK_X);
 		}
 
+		DBUG_EXECUTE_IF("deadlock_table_fail",
+				{
+				  error= DB_DEADLOCK;
+				  trx_rollback_for_mysql(trx);
+				});
+
 		if (error != DB_SUCCESS) {
 lock_fail:
 			my_error_innodb(
@@ -10945,6 +10952,16 @@ lock_fail:
 			if (fts_exist) {
 				purge_sys.resume_FTS();
 			}
+
+			/* Deadlock encountered and rollbacked the
+			transaction. So restart the transaction
+			to remove the newly created table or
+			index from data dictionary and table cache
+			in rollback_inplace_alter_table() */
+			if (trx->state == TRX_STATE_NOT_STARTED) {
+				trx_start_for_ddl(trx);
+			}
+
 			DBUG_RETURN(true);
 		} else if ((ctx->new_table->flags2
 			    & (DICT_TF2_FTS_HAS_DOC_ID | DICT_TF2_FTS))