diff --git a/src/core/net/srp_server.cpp b/src/core/net/srp_server.cpp
index 02863ccda..8f7af84c0 100644
--- a/src/core/net/srp_server.cpp
+++ b/src/core/net/srp_server.cpp
@@ -1781,7 +1781,14 @@ Error Server::Host::MergeServicesAndResourcesFrom(Host &aHost)
         newService->mIsDeleted      = false;
         newService->mIsCommitted    = true;
         newService->mTimeLastUpdate = TimerMilli::GetNow();
-        newService->mDescription.TakeResourcesFrom(service->mDescription);
+
+        if (!service->mIsSubType)
+        {
+            // (1) Service description is shared across a base type and all its subtypes.
+            // (2) `TakeResourcesFrom()` releases resources pinned to its argument.
+            // Therefore, make sure the function is called only for the base type.
+            newService->mDescription.TakeResourcesFrom(service->mDescription);
+        }
 
         newService->Log((existingService != nullptr) ? Service::kUpdateExisting : Service::kAddNew);
     }
diff --git a/tests/scripts/thread-cert/test_dnssd.py b/tests/scripts/thread-cert/test_dnssd.py
index a508d47a0..98dbb20de 100755
--- a/tests/scripts/thread-cert/test_dnssd.py
+++ b/tests/scripts/thread-cert/test_dnssd.py
@@ -156,6 +156,18 @@ class TestDnssd(thread_cert.TestCase):
             'aaaa_ttl': lambda x: x > 0,
         }
 
+        instance4_verify_info = {
+            'port': 44444,
+            'priority': 4,
+            'weight': 4,
+            'host': 'host3.default.service.arpa.',
+            'address': client3_addrs,
+            'txt_data': 'KEY=414243',  # KEY=ABC
+            'srv_ttl': lambda x: x > 0,
+            'txt_ttl': lambda x: x > 0,
+            'aaaa_ttl': lambda x: x > 0,
+        }
+
         # Browse for main service
         service_instances = client1.dns_browse(f'{SERVICE}.{DOMAIN}', server.get_mleid(), 53)
         self.assertEqual({'ins1', 'ins2', 'ins3'}, set(service_instances.keys()))
@@ -182,6 +194,20 @@ class TestDnssd(thread_cert.TestCase):
         service_instance = client1.dns_resolve_service('ins2', f'{SERVICE}.{DOMAIN}', server.get_mleid(), 53)
         self._assert_service_instance_equal(service_instance, instance2_verify_info)
 
+        #---------------------------------------------------------------
+        # Add another service with TXT entries to the existing host and
+        # verify that it is properly merged.
+
+        client3.srp_client_add_service('ins4', SERVICE + ",_s1", 44444, 4, 4, txt_entries=['KEY=ABC'])
+        self.simulator.go(5)
+
+        service_instances = client1.dns_browse(f'{SERVICE}.{DOMAIN}', server.get_mleid(), 53)
+        self.assertEqual({'ins1', 'ins2', 'ins3', 'ins4'}, set(service_instances.keys()))
+        self._assert_service_instance_equal(service_instances['ins1'], instance1_verify_info)
+        self._assert_service_instance_equal(service_instances['ins2'], instance2_verify_info)
+        self._assert_service_instance_equal(service_instances['ins3'], instance3_verify_info)
+        self._assert_service_instance_equal(service_instances['ins4'], instance4_verify_info)
+
     def _assert_service_instance_equal(self, instance, info):
         for f in ('port', 'priority', 'weight', 'host', 'txt_data'):
             self.assertEqual(instance[f], info[f], instance)