diff --git a/CMakeLists.txt b/CMakeLists.txt
index 0788c10a5ebf3..be99801239562 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -695,7 +695,7 @@ add_custom_command(
 # Make sure Picolibc is built before the rest of the system; there's no explicit
 # reference to any of the files as they're all picked up by various compiler
 # settings
-if(CONFIG_PICOLIBC_USE_MODULE)
+if(CONFIG_PICOLIBC AND CONFIG_PICOLIBC_MODULE)
   set(picolibc_dependency PicolibcBuild)
 endif()
 
diff --git a/cmake/compiler/gcc/compiler_flags.cmake b/cmake/compiler/gcc/compiler_flags.cmake
index 2dbb1e3e08eae..f59f7c65b5435 100644
--- a/cmake/compiler/gcc/compiler_flags.cmake
+++ b/cmake/compiler/gcc/compiler_flags.cmake
@@ -104,6 +104,7 @@ set_compiler_property(PROPERTY warning_error_coding_guideline
 set_compiler_property(PROPERTY cstd -std=)
 
 if (NOT CONFIG_NEWLIB_LIBC AND
+    NOT (CONFIG_PICOLIBC AND NOT CONFIG_PICOLIBC_MODULE) AND
     NOT COMPILER STREQUAL "xcc" AND
     NOT CONFIG_HAS_ESPRESSIF_HAL AND
     NOT CONFIG_NATIVE_APPLICATION)
diff --git a/cmake/toolchain/zephyr/generic.cmake b/cmake/toolchain/zephyr/generic.cmake
index f59d18c56fcd9..8f3f8252c80f9 100644
--- a/cmake/toolchain/zephyr/generic.cmake
+++ b/cmake/toolchain/zephyr/generic.cmake
@@ -4,4 +4,8 @@ include(${ZEPHYR_SDK_INSTALL_DIR}/cmake/zephyr/generic.cmake)
 
 set(TOOLCHAIN_KCONFIG_DIR ${ZEPHYR_SDK_INSTALL_DIR}/cmake/zephyr)
 
+if(SDK_VERSION VERSION_GREATER_EQUAL 0.16)
+  set(TOOLCHAIN_HAS_PICOLIBC ON CACHE BOOL "True if toolchain supports picolibc")
+endif()
+
 message(STATUS "Found toolchain: zephyr ${SDK_VERSION} (${ZEPHYR_SDK_INSTALL_DIR})")
diff --git a/lib/libc/Kconfig b/lib/libc/Kconfig
index 697a6ee99439d..6a53a65eb2ce5 100644
--- a/lib/libc/Kconfig
+++ b/lib/libc/Kconfig
@@ -19,6 +19,8 @@ config PICOLIBC_SUPPORTED
 	bool
 	depends on ARC || ARM || ARM64 || MIPS || RISCV
 	depends on "$(ZEPHYR_TOOLCHAIN_VARIANT)" != "arcmwdt"
+        # Picolibc with C++ support in Zephyr SDK is handled by Zephyr SDK's own Kconfig.
+        depends on !(CPLUSPLUS && "$(ZEPHYR_TOOLCHAIN_VARIANT)" = "zephyr")
 	default y
 	help
 	  Selected when the target has support for picolibc.
@@ -42,6 +44,7 @@ config PICOLIBC
 	select THREAD_LOCAL_STORAGE if ARCH_HAS_THREAD_LOCAL_STORAGE && TOOLCHAIN_SUPPORTS_THREAD_LOCAL_STORAGE
 	select LIBC_ERRNO if THREAD_LOCAL_STORAGE
 	depends on !NATIVE_APPLICATION
+	depends on PICOLIBC_SUPPORTED
 	help
 	  Build with picolibc library. The picolibc library is built as
 	  a module if PICOLIBC_MODULE is set, otherwise picolibc is
diff --git a/lib/libc/picolibc/CMakeLists.txt b/lib/libc/picolibc/CMakeLists.txt
index bfbe4bca8c332..02a487a68fdb5 100644
--- a/lib/libc/picolibc/CMakeLists.txt
+++ b/lib/libc/picolibc/CMakeLists.txt
@@ -7,7 +7,7 @@ zephyr_library_sources(libc-hooks.c)
 # used by the network stack
 zephyr_compile_definitions(__LINUX_ERRNO_EXTENSIONS__)
 
-if(NOT CONFIG_PICOLIBC_USE_MODULE)
+if(CONFIG_PICOLIBC AND NOT CONFIG_PICOLIBC_MODULE)
 
   # Use picolibc provided with the toolchain
 
diff --git a/lib/libc/picolibc/Kconfig b/lib/libc/picolibc/Kconfig
index 492a02a87f03c..94cfec08e4b34 100644
--- a/lib/libc/picolibc/Kconfig
+++ b/lib/libc/picolibc/Kconfig
@@ -4,9 +4,10 @@
 if PICOLIBC
 
 config PICOLIBC_USE_MODULE
-	bool "Use picolibc module"
+	bool "Picolibc as module"
 	default y
-	select PICOLIBC_MODULE
+	depends on ZEPHYR_PICOLIBC_MODULE
+	depends on !CPLUSPLUS
 	help
 	  Use picolibc module instead of picolibc included with toolchain
 
@@ -148,6 +149,6 @@ config PICOLIBC_GLOBAL_ERRNO
 	  which can be used to avoid TLS variable usage by the library if
 	  necessary.
 
-endif # PICOLIBC_USE_MODULE
+endif # PICOLIBC_MODULE
 
 endif # PICOLIBC
diff --git a/samples/subsys/cpp/cpp_synchronization/sample.yaml b/samples/subsys/cpp/cpp_synchronization/sample.yaml
index e3e9669a1ad09..621224a7b5589 100644
--- a/samples/subsys/cpp/cpp_synchronization/sample.yaml
+++ b/samples/subsys/cpp/cpp_synchronization/sample.yaml
@@ -13,3 +13,18 @@ tests:
         - "Create semaphore (.*)"
         - "main: Hello World!"
         - "coop_thread_entry: Hello World!"
+  sample.cpp.synchronization.picolibc:
+    filter: (TOOLCHAIN_HAS_PICOLIBC == 1) and CONFIG_PICOLIBC_SUPPORTED
+    extra_configs:
+      - CONFIG_PICOLIBC=y
+    tags: cpp
+    toolchain_exclude: issm xcc
+    integration_platforms:
+      - qemu_x86
+    harness: console
+    harness_config:
+      type: multi_line
+      regex:
+        - "Create semaphore (.*)"
+        - "main: Hello World!"
+        - "coop_thread_entry: Hello World!"
diff --git a/tests/subsys/cpp/cxx/testcase.yaml b/tests/subsys/cpp/cxx/testcase.yaml
index 378bdaef530f0..079152b8940d6 100644
--- a/tests/subsys/cpp/cxx/testcase.yaml
+++ b/tests/subsys/cpp/cxx/testcase.yaml
@@ -22,6 +22,6 @@ tests:
       - CONFIG_NEWLIB_LIBC_NANO=y
   cpp.main.picolibc:
     tags: picolibc
-    filter: CONFIG_PICOLIBC_SUPPORTED
+    filter: (TOOLCHAIN_HAS_PICOLIBC == 1) and CONFIG_PICOLIBC_SUPPORTED
     extra_configs:
       - CONFIG_PICOLIBC=y
diff --git a/tests/subsys/cpp/libcxx/testcase.yaml b/tests/subsys/cpp/libcxx/testcase.yaml
index 3a8f23b18da45..98f9007c9a673 100644
--- a/tests/subsys/cpp/libcxx/testcase.yaml
+++ b/tests/subsys/cpp/libcxx/testcase.yaml
@@ -21,6 +21,15 @@ tests:
       - CONFIG_NEWLIB_LIBC_NANO=y
     integration_platforms:
       - mps2_an385
+  cpp.libcxx.picolibc:
+    filter: (TOOLCHAIN_HAS_PICOLIBC == 1) and CONFIG_PICOLIBC_SUPPORTED
+    toolchain_exclude: xcc
+    tags: cpp
+    timeout: 60
+    extra_configs:
+      - CONFIG_PICOLIBC=y
+    integration_platforms:
+      - mps2_an385
   cpp.libcxx.arcmwdtlib:
     toolchain_allow: arcmwdt
     min_flash: 54