diff --git a/ironic/conductor/utils.py b/ironic/conductor/utils.py
index 473c3d4783..a20431089f 100644
--- a/ironic/conductor/utils.py
+++ b/ironic/conductor/utils.py
@@ -288,8 +288,8 @@ def node_power_action(task, new_state, timeout=None):
     # NOTE(dtantsur): wipe token on shutting down, otherwise a reboot in
     # fast-track (or an accidentally booted agent) will cause subsequent
     # actions to fail.
-    if target_state in (states.POWER_OFF, states.SOFT_POWER_OFF,
-                        states.REBOOT, states.SOFT_REBOOT):
+    if new_state in (states.POWER_OFF, states.SOFT_POWER_OFF,
+                     states.REBOOT, states.SOFT_REBOOT):
         wipe_internal_info_on_power_off(node)
     node.save()
 
diff --git a/ironic/tests/unit/conductor/test_utils.py b/ironic/tests/unit/conductor/test_utils.py
index a449bf8de0..c096a54261 100644
--- a/ironic/tests/unit/conductor/test_utils.py
+++ b/ironic/tests/unit/conductor/test_utils.py
@@ -278,10 +278,13 @@ class NodePowerActionTestCase(db_base.DbTestCase):
     @mock.patch.object(fake.FakePower, 'get_power_state', autospec=True)
     def test_node_power_action_power_reboot(self, get_power_mock, reboot_mock):
         """Test for reboot a node."""
+        dii = {'agent_secret_token': 'token',
+               'agent_cached_deploy_steps': ['steps']}
         node = obj_utils.create_test_node(self.context,
                                           uuid=uuidutils.generate_uuid(),
                                           driver='fake-hardware',
-                                          power_state=states.POWER_ON)
+                                          power_state=states.POWER_ON,
+                                          driver_internal_info=dii)
         task = task_manager.TaskManager(self.context, node.uuid)
 
         conductor_utils.node_power_action(task, states.REBOOT)
@@ -292,6 +295,7 @@ class NodePowerActionTestCase(db_base.DbTestCase):
         self.assertEqual(states.POWER_ON, node['power_state'])
         self.assertIsNone(node['target_power_state'])
         self.assertIsNone(node['last_error'])
+        self.assertNotIn('agent_secret_token', node['driver_internal_info'])
 
     @mock.patch.object(fake.FakePower, 'get_power_state', autospec=True)
     def test_node_power_action_invalid_state(self, get_power_mock):
diff --git a/releasenotes/notes/token-reboot-3f18cf73e4dd10d3.yaml b/releasenotes/notes/token-reboot-3f18cf73e4dd10d3.yaml
new file mode 100644
index 0000000000..2c1904a895
--- /dev/null
+++ b/releasenotes/notes/token-reboot-3f18cf73e4dd10d3.yaml
@@ -0,0 +1,4 @@
+---
+fixes:
+  - |
+    Fixes wiping agent token on rebooting via API.