diff --git a/vpd-manager/include/manager.hpp b/vpd-manager/include/manager.hpp
index cb64123b4..fd5ca8c63 100644
--- a/vpd-manager/include/manager.hpp
+++ b/vpd-manager/include/manager.hpp
@@ -255,6 +255,12 @@ class Manager
      * @param[in] i_msg - The callback message.
      */
     void processAssetTagChangeCallback(sdbusplus::message_t& i_msg);
+
+    /**
+     * @brief API to process list of EEPROMs for which VPD collection thread
+     * creation has failed.
+     */
+    void ProcessFailedEeproms();
 #endif
 
     /**
diff --git a/vpd-manager/include/worker.hpp b/vpd-manager/include/worker.hpp
index a0da85d9a..660ac76fa 100644
--- a/vpd-manager/include/worker.hpp
+++ b/vpd-manager/include/worker.hpp
@@ -146,6 +146,22 @@ class Worker
         return m_activeCollectionThreadCount;
     }
 
+    /**
+     * @brief API to get the list of EEPROMs for which VPD collection thread
+     * creation has failed.
+     *
+     * This API returns the list of EEPROMs for which VPD collection thread
+     * creation has failed by reference. Manager needs to process this list of
+     * EEPROMs and take appropriate action.
+     *
+     * @return reference to list of EEPROM paths for which VPD collection thread
+     * creation has failed
+     */
+    std::forward_list<std::string>& getListOfEepromPathsThreadFailed() noexcept
+    {
+        return m_failedEepromPaths;
+    }
+
   private:
     /**
      * @brief An API to parse and publish a FRU VPD over D-Bus.
@@ -533,5 +549,8 @@ class Worker
     // Counting semaphore to limit the number of threads.
     std::counting_semaphore<constants::MAX_THREADS> m_semaphore{
         constants::MAX_THREADS};
+
+    // List of EEPROM paths for which VPD collection thread creation has failed.
+    std::forward_list<std::string> m_failedEepromPaths;
 };
 } // namespace vpd
diff --git a/vpd-manager/src/manager.cpp b/vpd-manager/src/manager.cpp
index 7f9efd487..550955403 100644
--- a/vpd-manager/src/manager.cpp
+++ b/vpd-manager/src/manager.cpp
@@ -236,6 +236,8 @@ void Manager::SetTimerToDetectSVPDOnDbus()
             m_interface->set_property("CollectionStatus",
                                       std::string("InProgress"));
             m_worker->collectFrusFromJson();
+
+            ProcessFailedEeproms();
         }
     });
 }
@@ -910,4 +912,17 @@ void Manager::performVpdRecollection()
                             std::string(l_ex.what()));
     }
 }
+
+void Manager::ProcessFailedEeproms()
+{
+    if (m_worker.get() != nullptr)
+    {
+        // TODO:
+        // - iterate through list of EEPROMs for which thread creation has
+        // failed
+        // - get list of FRUs under the EEPROM
+        // - For each FRU, extract the object path and do collect single FRU
+        m_worker->getListOfEepromPathsThreadFailed().clear();
+    }
+}
 } // namespace vpd
diff --git a/vpd-manager/src/worker.cpp b/vpd-manager/src/worker.cpp
index 531dc6e59..6711d76a0 100644
--- a/vpd-manager/src/worker.cpp
+++ b/vpd-manager/src/worker.cpp
@@ -1508,22 +1508,36 @@ void Worker::collectFrusFromJson()
             continue;
         }
 
-        std::thread{[vpdFilePath, this]() {
-            auto l_futureObject = std::async(&Worker::parseAndPublishVPD, this,
-                                             vpdFilePath);
-
-            std::tuple<bool, std::string> l_threadInfo = l_futureObject.get();
+        try
+        {
+            std::thread{[vpdFilePath, this]() {
+                const auto& l_parseResult = parseAndPublishVPD(vpdFilePath);
 
-            // thread returned.
-            m_mutex.lock();
-            m_activeCollectionThreadCount--;
-            m_mutex.unlock();
+                m_mutex.lock();
+                m_activeCollectionThreadCount--;
+                m_mutex.unlock();
 
-            if (!m_activeCollectionThreadCount)
+                if (!m_activeCollectionThreadCount &&
+                    m_failedEepromPaths.empty())
+                {
+                    m_isAllFruCollected = true;
+                }
+            }}.detach();
+        }
+        catch (const std::exception& l_ex)
+        {
+            try
             {
-                m_isAllFruCollected = true;
+                // add vpdFilePath(EEPROM path) to failed list
+                m_failedEepromPaths.push_front(vpdFilePath);
             }
-        }}.detach();
+            catch (const std::exception& l_ex)
+            {
+                logging::logMessage(
+                    "Failed to add [" + vpdFilePath +
+                    "] to failed EEPROM list. Error: " + l_ex.what());
+            }
+        }
     }
 }