diff --git a/cmd/prepare-storage.go b/cmd/prepare-storage.go
index 848190c35..76a7401df 100644
--- a/cmd/prepare-storage.go
+++ b/cmd/prepare-storage.go
@@ -221,10 +221,16 @@ func IsServerResolvable(endpoint Endpoint) error {
 // connect to list of endpoints and load all XL disk formats, validate the formats are correct
 // and are in quorum, if no formats are found attempt to initialize all of them for the first
 // time. additionally make sure to close all the disks used in this attempt.
-func connectLoadInitFormats(retryCount int, firstDisk bool, endpoints Endpoints, zoneCount, setCount, drivesPerSet int, deploymentID string) ([]StorageAPI, *formatXLV3, error) {
+func connectLoadInitFormats(retryCount int, firstDisk bool, endpoints Endpoints, zoneCount, setCount, drivesPerSet int, deploymentID string) (storageDisks []StorageAPI, format *formatXLV3, err error) {
 	// Initialize all storage disks
 	storageDisks, errs := initStorageDisksWithErrors(endpoints)
 
+	defer func(storageDisks []StorageAPI) {
+		if err != nil {
+			closeStorageDisks(storageDisks)
+		}
+	}(storageDisks)
+
 	for i, err := range errs {
 		if err != nil {
 			if err != errDiskNotFound {
@@ -256,7 +262,7 @@ func connectLoadInitFormats(retryCount int, firstDisk bool, endpoints Endpoints,
 	// most part unless one of the formats is not consistent
 	// with expected XL format. For example if a user is
 	// trying to pool FS backend into an XL set.
-	if err := checkFormatXLValues(formatConfigs, drivesPerSet); err != nil {
+	if err = checkFormatXLValues(formatConfigs, drivesPerSet); err != nil {
 		return nil, nil, err
 	}
 
@@ -266,7 +272,7 @@ func connectLoadInitFormats(retryCount int, firstDisk bool, endpoints Endpoints,
 			zoneCount, setCount, drivesPerSet)
 
 		// Initialize erasure code format on disks
-		format, err := initFormatXL(context.Background(), storageDisks, setCount, drivesPerSet, deploymentID)
+		format, err = initFormatXL(context.Background(), storageDisks, setCount, drivesPerSet, deploymentID)
 		if err != nil {
 			return nil, nil, err
 		}
@@ -293,7 +299,7 @@ func connectLoadInitFormats(retryCount int, firstDisk bool, endpoints Endpoints,
 	// This migration failed to capture '.This' field properly which indicates
 	// the disk UUID association. Below function is called to handle and fix
 	// this regression, for more info refer https://github.com/minio/minio/issues/5667
-	if err := fixFormatXLV3(storageDisks, endpoints, formatConfigs); err != nil {
+	if err = fixFormatXLV3(storageDisks, endpoints, formatConfigs); err != nil {
 		return nil, nil, err
 	}
 
@@ -302,7 +308,7 @@ func connectLoadInitFormats(retryCount int, firstDisk bool, endpoints Endpoints,
 		return nil, nil, errXLV3ThisEmpty
 	}
 
-	format, err := getFormatXLInQuorum(formatConfigs)
+	format, err = getFormatXLInQuorum(formatConfigs)
 	if err != nil {
 		return nil, nil, err
 	}
diff --git a/cmd/xl-sets.go b/cmd/xl-sets.go
index 775f7b0e7..583d16a82 100644
--- a/cmd/xl-sets.go
+++ b/cmd/xl-sets.go
@@ -238,6 +238,9 @@ func (s *xlSets) connectDisks() {
 			}
 			disk.SetDiskID(format.XL.This)
 			s.xlDisksMu.Lock()
+			if s.xlDisks[setIndex][diskIndex] != nil {
+				s.xlDisks[setIndex][diskIndex].Close()
+			}
 			s.xlDisks[setIndex][diskIndex] = disk
 			s.xlDisksMu.Unlock()
 			go func(setIndex int) {
@@ -333,16 +336,21 @@ func newXLSets(endpoints Endpoints, storageDisks []StorageAPI, format *formatXLV
 			endpoints = append(endpoints, s.endpoints[i*drivesPerSet+j])
 			// Rely on endpoints list to initialize, init lockers and available disks.
 			s.xlLockers[i][j] = newLockAPI(s.endpoints[i*drivesPerSet+j])
-			if storageDisks[i*drivesPerSet+j] == nil {
+			disk := storageDisks[i*drivesPerSet+j]
+			if disk == nil {
 				continue
 			}
-			if diskID, derr := storageDisks[i*drivesPerSet+j].GetDiskID(); derr == nil {
-				m, n, err := findDiskIndexByDiskID(format, diskID)
-				if err != nil {
-					continue
-				}
-				s.xlDisks[m][n] = storageDisks[i*drivesPerSet+j]
+			diskID, derr := disk.GetDiskID()
+			if derr != nil {
+				disk.Close()
+				continue
 			}
+			m, n, err := findDiskIndexByDiskID(format, diskID)
+			if err != nil {
+				disk.Close()
+				continue
+			}
+			s.xlDisks[m][n] = disk
 		}
 
 		// Initialize xl objects for a given set.
@@ -1375,11 +1383,13 @@ func (s *xlSets) ReloadFormat(ctx context.Context, dryRun bool) (err error) {
 
 		diskID, err := disk.GetDiskID()
 		if err != nil {
+			disk.Close()
 			continue
 		}
 
 		m, n, err := findDiskIndexByDiskID(refFormat, diskID)
 		if err != nil {
+			disk.Close()
 			continue
 		}
 
@@ -1583,11 +1593,13 @@ func (s *xlSets) HealFormat(ctx context.Context, dryRun bool) (res madmin.HealRe
 
 			diskID, err := disk.GetDiskID()
 			if err != nil {
+				disk.Close()
 				continue
 			}
 
 			m, n, err := findDiskIndexByDiskID(refFormat, diskID)
 			if err != nil {
+				disk.Close()
 				continue
 			}