A system and method are described that are carried out by a mobility management component for providing enhanced short message service (SMS) memory handling in the absence of a user equipment (UE) signaling capability to indicate that an SMS memory is available after the UE issues a signal indicating an SMS memory unavailable error condition to the mobility management component. The method includes receiving the signal indicating an SMS memory unavailable error condition from the UE. In accordance with receiving the signal, an SMS memory error condition timer is set for the UE and issues an SMS memory failure message to temporarily cause suspension of sending SMS messages, via a short message service center (SMSC), to the UE. In response to expiration of a time period after the setting the SMS memory error condition timer, the mobility management component issues an SMS memory available message to resume SMS message delivery to the UE.