diff --git a/db/db_compaction_test.cc b/db/db_compaction_test.cc
index e46a2cf2f..4bd1d41f3 100644
--- a/db/db_compaction_test.cc
+++ b/db/db_compaction_test.cc
@@ -12,7 +12,9 @@
 #include "port/port.h"
 #include "rocksdb/experimental.h"
 #include "rocksdb/utilities/convenience.h"
+#include "util/fault_injection_test_env.h"
 #include "util/sync_point.h"
+
 namespace rocksdb {
 
 // SYNC_POINT is not supported in released Windows mode.
@@ -4029,6 +4031,46 @@ TEST_F(DBCompactionTest, PartialManualCompaction) {
   dbfull()->CompactRange(cro, nullptr, nullptr);
 }
 
+TEST_F(DBCompactionTest, ManualCompactionFailsInReadOnlyMode) {
+  // Regression test for bug where manual compaction hangs forever when the DB
+  // is in read-only mode. Verify it now at least returns, despite failing.
+  const int kNumL0Files = 4;
+  std::unique_ptr<FaultInjectionTestEnv> mock_env(
+      new FaultInjectionTestEnv(Env::Default()));
+  Options opts = CurrentOptions();
+  opts.disable_auto_compactions = true;
+  opts.env = mock_env.get();
+  DestroyAndReopen(opts);
+
+  Random rnd(301);
+  for (int i = 0; i < kNumL0Files; ++i) {
+    // Make sure files are overlapping in key-range to prevent trivial move.
+    Put("key1", RandomString(&rnd, 1024));
+    Put("key2", RandomString(&rnd, 1024));
+    Flush();
+  }
+  ASSERT_EQ(kNumL0Files, NumTableFilesAtLevel(0));
+
+  // Enter read-only mode by failing a write.
+  mock_env->SetFilesystemActive(false);
+  // Make sure this is outside `CompactRange`'s range so that it doesn't fail
+  // early trying to flush memtable.
+  ASSERT_NOK(Put("key3", RandomString(&rnd, 1024)));
+
+  // In the bug scenario, the first manual compaction would fail and forget to
+  // unregister itself, causing the second one to hang forever due to conflict
+  // with a non-running compaction.
+  CompactRangeOptions cro;
+  cro.exclusive_manual_compaction = false;
+  Slice begin_key("key1");
+  Slice end_key("key2");
+  ASSERT_NOK(dbfull()->CompactRange(cro, &begin_key, &end_key));
+  ASSERT_NOK(dbfull()->CompactRange(cro, &begin_key, &end_key));
+
+  // Close before mock_env destruct.
+  Close();
+}
+
 #endif // !defined(ROCKSDB_LITE)
 }  // namespace rocksdb
 
diff --git a/db/db_impl_compaction_flush.cc b/db/db_impl_compaction_flush.cc
index 49a23b48e..92b8c19e3 100644
--- a/db/db_impl_compaction_flush.cc
+++ b/db/db_impl_compaction_flush.cc
@@ -2170,6 +2170,10 @@ Status DBImpl::BackgroundCompaction(bool* made_progress,
       manual_compaction->in_progress = false;
       manual_compaction = nullptr;
     }
+    if (c) {
+      c->ReleaseCompactionFiles(status);
+      c.reset();
+    }
     return status;
   }