A method for automatically detecting and correcting one or more hang conditions within one or more of a master device and target device of a serial bus interface when one or more signals are held in an invalid state. A hang timer monitors one or more operations of the serial bus when the serial bus is participating in a serial bus transfer. If the transfer does not end before the bus timeout value has been exceeded, the hang timer will issue a reset to the state machine forcing the state machine back to an idle state. The hang timer will also disable the serial bus drivers of the state machine, whereby the hang condition is corrected.