diff --git a/subsys/fs/zms/Kconfig b/subsys/fs/zms/Kconfig
index ad424608e0e..3beb3b0dc34 100644
--- a/subsys/fs/zms/Kconfig
+++ b/subsys/fs/zms/Kconfig
@@ -63,6 +63,7 @@ config ZMS_CUSTOM_BLOCK_SIZE
 config ZMS_LOOKUP_CACHE_FOR_SETTINGS
 	bool "ZMS Storage lookup cache optimized for settings"
 	depends on ZMS_LOOKUP_CACHE && SETTINGS_ZMS
+	depends on !ZMS_ID_64BIT
 	help
 	  Enable usage of lookup cache based on hashes to get, the best ZMS performance,
 	  provided that the ZMS is used only for the purpose of providing the settings
diff --git a/subsys/fs/zms/zms.c b/subsys/fs/zms/zms.c
index 86a4d469f90..6d3a2b30a3a 100644
--- a/subsys/fs/zms/zms.c
+++ b/subsys/fs/zms/zms.c
@@ -63,6 +63,7 @@ static inline size_t zms_lookup_cache_pos(zms_id_t id)
 
 	uint32_t key_value_bit;
 	uint32_t key_value_ord;
+	uint32_t hash;
 
 	key_value_bit = (id >> LOG2(ZMS_NAME_ID_OFFSET)) & 1;
 	key_value_ord = id & (ZMS_NAME_ID_OFFSET - 1);
@@ -95,6 +96,7 @@ static inline size_t zms_lookup_cache_pos(zms_id_t id)
 
 	hash = (key_value_hash << 2) | (key_value_bit << 1) | key_value_ll;
 #endif /* CONFIG_SETTINGS_ZMS_LEGACY */
+
 #elif defined(CONFIG_ZMS_ID_64BIT)
 	/* 64-bit integer hash function found by https://github.com/skeeto/hash-prospector. */
 	uint64_t hash = id;
@@ -557,6 +559,18 @@ static bool zms_gc_done_ate_valid(struct zms_fs *fs, const struct zms_ate *entry
 		(entry->id == ZMS_HEAD_ID));
 }
 
+/* zms_sector_closed checks whether the current sector is closed, which would imply
+ * that the empty ATE and close ATE are both valid and have matching cycle counters
+ *
+ * return true if closed, false otherwise
+ */
+static bool zms_sector_closed(struct zms_fs *fs, struct zms_ate *empty_ate,
+			      struct zms_ate *close_ate)
+{
+	return (zms_empty_ate_valid(fs, empty_ate) && zms_close_ate_valid(fs, close_ate) &&
+		(empty_ate->cycle_cnt == close_ate->cycle_cnt));
+}
+
 /* Read empty and close ATE of the sector where belongs address "addr" and
  * validates that the sector is closed.
  * retval: 0 if sector is not close
@@ -574,8 +588,7 @@ static int zms_validate_closed_sector(struct zms_fs *fs, uint64_t addr, struct z
 		return rc;
 	}
 
-	if (zms_empty_ate_valid(fs, empty_ate) && zms_close_ate_valid(fs, close_ate) &&
-	    (empty_ate->cycle_cnt == close_ate->cycle_cnt)) {
+	if (zms_sector_closed(fs, empty_ate, close_ate)) {
 		/* Closed sector validated */
 		return 1;
 	}
@@ -603,7 +616,7 @@ static int zms_flash_write_entry(struct zms_fs *fs, zms_id_t id, const void *dat
 #endif
 		entry.offset = (uint32_t)SECTOR_OFFSET(fs->data_wra);
 	} else if ((len > 0) && (len <= ZMS_DATA_IN_ATE_SIZE)) {
-		/* Copy data into entry if data is sufficiently small */
+		/* Copy data into entry for small data (at most ZMS_DATA_IN_ATE_SIZE bytes) */
 		memcpy(&entry.data, data, len);
 	}
 
@@ -853,8 +866,9 @@ static int zms_add_empty_ate(struct zms_fs *fs, uint64_t addr)
 	LOG_DBG("Adding empty ate at %llx", (uint64_t)(addr + fs->sector_size - fs->ate_size));
 	empty_ate.id = ZMS_HEAD_ID;
 	empty_ate.len = 0xffff;
-	empty_ate.metadata =
-		FIELD_PREP(ZMS_MAGIC_NUMBER_MASK, ZMS_MAGIC_NUMBER) | ZMS_DEFAULT_VERSION;
+	empty_ate.metadata = FIELD_PREP(ZMS_VERSION_MASK, ZMS_DEFAULT_VERSION) |
+			     FIELD_PREP(ZMS_MAGIC_NUMBER_MASK, ZMS_MAGIC_NUMBER) |
+			     FIELD_PREP(ZMS_ATE_FORMAT_MASK, ZMS_DEFAULT_ATE_FORMAT);
 
 	rc = zms_get_sector_cycle(fs, addr, &cycle_cnt);
 	if (rc == -ENOENT) {
@@ -1101,7 +1115,7 @@ static int zms_gc(struct zms_fs *fs)
 			LOG_DBG("Moving %lld, len %d", (long long)gc_ate.id, gc_ate.len);
 
 			if (gc_ate.len > ZMS_DATA_IN_ATE_SIZE) {
-				/* Only copy Data with large enough len
+				/* Copy Data only when len > ZMS_DATA_IN_ATE_SIZE
 				 * Otherwise, Data is already inside ATE
 				 */
 				data_addr = (gc_prev_addr & ADDR_SECT_MASK);
@@ -1205,16 +1219,28 @@ static int zms_init(struct zms_fs *fs)
 	for (i = 0; i < fs->sector_count; i++) {
 		addr = zms_close_ate_addr(fs, ((uint64_t)i << ADDR_SECT_SHIFT));
 
-		/* verify if the sector is closed */
-		sec_closed = zms_validate_closed_sector(fs, addr, &empty_ate, &close_ate);
-		if (sec_closed < 0) {
-			rc = sec_closed;
+		/* read the header ATEs */
+		rc = zms_get_sector_header(fs, addr, &empty_ate, &close_ate);
+		if (rc) {
 			goto end;
 		}
 		/* update cycle count */
 		fs->sector_cycle = empty_ate.cycle_cnt;
 
-		if (sec_closed == 1) {
+		/* Check the ATE format indicator so that we know how to validate ATEs.
+		 * The metadata field has the same offset and size in all ATE formats
+		 * (the same is guaranteed for crc8 and cycle_cnt).
+		 * Currently, ZMS can only recognize one of its supported ATE formats
+		 * (the one chosen at build time), so their indicators are defined for
+		 * the possibility of a future extension.
+		 * If this indicator is unknown, then consider the header ATEs invalid,
+		 * because we might not be dealing with ZMS contents at all.
+		 */
+		if (ZMS_GET_ATE_FORMAT(empty_ate.metadata) != ZMS_DEFAULT_ATE_FORMAT) {
+			continue;
+		}
+
+		if (zms_sector_closed(fs, &empty_ate, &close_ate)) {
 			/* closed sector */
 			closed_sectors++;
 			/* Let's verify that this is a ZMS storage system */
@@ -1272,7 +1298,8 @@ static int zms_init(struct zms_fs *fs)
 			goto end;
 		}
 
-		if (zms_empty_ate_valid(fs, &empty_ate)) {
+		if ((ZMS_GET_ATE_FORMAT(empty_ate.metadata) == ZMS_DEFAULT_ATE_FORMAT) &&
+		    zms_empty_ate_valid(fs, &empty_ate)) {
 			/* Empty ATE is valid, let's verify that this is a ZMS storage system */
 			if (ZMS_GET_MAGIC_NUMBER(empty_ate.metadata) == ZMS_MAGIC_NUMBER) {
 				zms_magic_exist = true;
diff --git a/subsys/fs/zms/zms_priv.h b/subsys/fs/zms/zms_priv.h
index 97e202c2d53..44cfb2f3d28 100644
--- a/subsys/fs/zms/zms_priv.h
+++ b/subsys/fs/zms/zms_priv.h
@@ -32,12 +32,26 @@
 #define ZMS_VERSION_MASK        GENMASK(7, 0)
 #define ZMS_GET_VERSION(x)      FIELD_GET(ZMS_VERSION_MASK, x)
 #define ZMS_DEFAULT_VERSION     1
+#define ZMS_MAGIC_NUMBER        0x42 /* murmur3a hash of "ZMS" (MSB) */
 #define ZMS_MAGIC_NUMBER_MASK   GENMASK(15, 8)
 #define ZMS_GET_MAGIC_NUMBER(x) FIELD_GET(ZMS_MAGIC_NUMBER_MASK, x)
+#define ZMS_ATE_FORMAT_MASK     GENMASK(19, 16)
+#define ZMS_GET_ATE_FORMAT(x)   FIELD_GET(ZMS_ATE_FORMAT_MASK, x)
 #define ZMS_MIN_ATE_NUM         5
 
 #define ZMS_INVALID_SECTOR_NUM -1
 
+#define ZMS_ATE_FORMAT_ID_32BIT 0
+#define ZMS_ATE_FORMAT_ID_64BIT 1
+
+#if !defined(CONFIG_ZMS_ID_64BIT)
+#define ZMS_DEFAULT_ATE_FORMAT ZMS_ATE_FORMAT_ID_32BIT
+#define ZMS_HEAD_ID            GENMASK(31, 0)
+#else
+#define ZMS_DEFAULT_ATE_FORMAT ZMS_ATE_FORMAT_ID_64BIT
+#define ZMS_HEAD_ID            GENMASK64(63, 0)
+#endif /* CONFIG_ZMS_ID_64BIT */
+
 /**
  * @ingroup zms_data_structures
  * ZMS Allocation Table Entry (ATE) structure
@@ -52,7 +66,7 @@ struct zms_ate {
 	/** data len within sector */
 	uint16_t len;
 
-#if !defined(CONFIG_ZMS_ID_64BIT)
+#if ZMS_DEFAULT_ATE_FORMAT == ZMS_ATE_FORMAT_ID_32BIT
 	/** data id */
 	uint32_t id;
 	union {
@@ -76,7 +90,8 @@ struct zms_ate {
 			};
 		};
 	};
-#else
+
+#elif ZMS_DEFAULT_ATE_FORMAT == ZMS_ATE_FORMAT_ID_64BIT
 	/** data id */
 	uint64_t id;
 	union {
@@ -87,20 +102,10 @@ struct zms_ate {
 		/** Used to store metadata information such as storage version. */
 		uint32_t metadata;
 	};
-#endif /* CONFIG_ZMS_ID_64BIT */
+#endif /* ZMS_DEFAULT_ATE_FORMAT */
 
 } __packed;
 
 #define ZMS_DATA_IN_ATE_SIZE SIZEOF_FIELD(struct zms_ate, data)
 
-#if !defined(CONFIG_ZMS_ID_64BIT)
-#define ZMS_HEAD_ID      GENMASK(31, 0)
-#define ZMS_MAGIC_NUMBER 0x42 /* murmur3a hash of "ZMS" (MSB) */
-
-#else
-#define ZMS_HEAD_ID      GENMASK64(63, 0)
-#define ZMS_MAGIC_NUMBER 0xb8 /* murmur3a hash of "ZMS64" (MSB) */
-
-#endif /* CONFIG_ZMS_ID_64BIT */
-
 #endif /* __ZMS_PRIV_H_ */
diff --git a/tests/subsys/fs/zms/src/main.c b/tests/subsys/fs/zms/src/main.c
index 8dc8cadba34..bcdb739161d 100644
--- a/tests/subsys/fs/zms/src/main.c
+++ b/tests/subsys/fs/zms/src/main.c
@@ -588,8 +588,9 @@ ZTEST_F(zms, test_zms_gc_corrupt_close_ate)
 	memset(&empty_ate, 0, sizeof(struct zms_ate));
 	empty_ate.id = ZMS_HEAD_ID;
 	empty_ate.len = 0xffff;
-	empty_ate.metadata =
-		FIELD_PREP(ZMS_MAGIC_NUMBER_MASK, ZMS_MAGIC_NUMBER) | ZMS_DEFAULT_VERSION;
+	empty_ate.metadata = FIELD_PREP(ZMS_VERSION_MASK, ZMS_DEFAULT_VERSION) |
+			     FIELD_PREP(ZMS_MAGIC_NUMBER_MASK, ZMS_MAGIC_NUMBER) |
+			     FIELD_PREP(ZMS_ATE_FORMAT_MASK, ZMS_DEFAULT_ATE_FORMAT);
 	empty_ate.cycle_cnt = 1;
 	empty_ate.crc8 =
 		crc8_ccitt(0xff, (uint8_t *)&empty_ate + SIZEOF_FIELD(struct zms_ate, crc8),
diff --git a/tests/subsys/fs/zms/testcase.yaml b/tests/subsys/fs/zms/testcase.yaml
index 18886b0e23d..14cb7e9c36a 100644
--- a/tests/subsys/fs/zms/testcase.yaml
+++ b/tests/subsys/fs/zms/testcase.yaml
@@ -32,5 +32,4 @@ tests:
       - CONFIG_ZMS_ID_64BIT=y
       - CONFIG_ZMS_LOOKUP_CACHE=y
       - CONFIG_ZMS_LOOKUP_CACHE_SIZE=64
-      - CONFIG_FLASH_SIMULATOR_DOUBLE_WRITES=y
     platform_allow: qemu_x86