diff --git a/boards/shields/nxp_m2_wifi_bt/boards/mimxrt1060_evk_mimxrt1062_qspi_C.overlay b/boards/shields/nxp_m2_wifi_bt/boards/mimxrt1060_evk_mimxrt1062_qspi_C.overlay
index c3802f5bc5ab8..3471cb7b7d14a 100644
--- a/boards/shields/nxp_m2_wifi_bt/boards/mimxrt1060_evk_mimxrt1062_qspi_C.overlay
+++ b/boards/shields/nxp_m2_wifi_bt/boards/mimxrt1060_evk_mimxrt1062_qspi_C.overlay
@@ -34,6 +34,13 @@
 	pinctrl-names = "default", "slow", "med", "fast", "nopull";
 };
 
+&usdhc1 {
+	nxp_wifi {
+		pwr-gpios = <&gpio1 19 GPIO_ACTIVE_HIGH>;
+		sd-gpios = <&gpio1 24 GPIO_ACTIVE_HIGH>;
+	};
+};
+
 &pinctrl {
 	/* removes pull on dat3 for card detect */
 	pinmux_usdhc1_dat3_nopull: pinmux_usdhc1_dat3_nopull {
diff --git a/drivers/wifi/nxp/nxp_wifi_drv.c b/drivers/wifi/nxp/nxp_wifi_drv.c
index 98ded6bd4f1d6..6afb615afb07c 100644
--- a/drivers/wifi/nxp/nxp_wifi_drv.c
+++ b/drivers/wifi/nxp/nxp_wifi_drv.c
@@ -1,5 +1,5 @@
 /**
- * Copyright 2023-2024 NXP
+ * Copyright 2023-2025 NXP
  * SPDX-License-Identifier: Apache-2.0
  *
  * @file nxp_wifi_drv.c
@@ -394,6 +394,77 @@ int nxp_wifi_wlan_event_callback(enum wlan_event_reason reason, void *data)
 	return 0;
 }
 
+static int nxp_wifi_cpu_reset(uint8_t enable)
+{
+	int err = 0;
+#if DT_NODE_HAS_PROP(DT_DRV_INST(0), sd_gpios) &&    \
+	DT_NODE_HAS_PROP(DT_DRV_INST(0), pwr_gpios)
+
+	struct gpio_dt_spec sdio_reset = GPIO_DT_SPEC_GET(DT_DRV_INST(0), sd_gpios);
+	struct gpio_dt_spec pwr_gpios = GPIO_DT_SPEC_GET(DT_DRV_INST(0), pwr_gpios);
+
+	if (!gpio_is_ready_dt(&sdio_reset)) {
+		LOG_ERR("Error: failed to configure sdio_reset %s pin %d", sdio_reset.port->name,
+				sdio_reset.pin);
+		return -EIO;
+	}
+
+	/* Configure sdio_reset as output  */
+	err = gpio_pin_configure_dt(&sdio_reset, GPIO_OUTPUT);
+	if (err) {
+		LOG_ERR("Error %d: failed to configure sdio_reset %s pin %d", err,
+				sdio_reset.port->name, sdio_reset.pin);
+		return err;
+	}
+
+	if (!gpio_is_ready_dt(&pwr_gpios)) {
+		LOG_ERR("Error: failed to configure pwr_gpios %s pin %d", pwr_gpios.port->name,
+				pwr_gpios.pin);
+		return -EIO;
+	}
+
+	/* Configure wlan-power-io as an output  */
+	err = gpio_pin_configure_dt(&pwr_gpios, GPIO_OUTPUT);
+	if (err) {
+		LOG_ERR("Error %d: failed to configure pwr_gpios %s pin %d", err,
+				pwr_gpios.port->name, pwr_gpios.pin);
+		return err;
+	}
+
+	if (enable) {
+		/* Set SDIO reset pin as high  */
+		err = gpio_pin_set_dt(&sdio_reset, 1);
+		if (err) {
+			return err;
+		}
+		/* wait for reset done */
+		k_sleep(K_MSEC(100));
+
+		/* Set power gpio pin as high  */
+		err = gpio_pin_set_dt(&pwr_gpios, 1);
+		if (err) {
+			return err;
+		}
+	} else {
+		/* Set SDIO reset pin as low */
+		err = gpio_pin_set_dt(&sdio_reset, 0);
+		if (err) {
+			return err;
+		}
+
+		/* Set power gpio pin as low */
+		err = gpio_pin_set_dt(&pwr_gpios, 0);
+		if (err) {
+			return err;
+		}
+	}
+	/* wait for reset done */
+	k_sleep(K_MSEC(100));
+#endif
+
+	return err;
+}
+
 static int nxp_wifi_wlan_init(void)
 {
 	int status = NXP_WIFI_RET_SUCCESS;
@@ -407,7 +478,9 @@ static int nxp_wifi_wlan_init(void)
 		k_event_init(&s_nxp_wifi_SyncEvent);
 	}
 
-	if (status == NXP_WIFI_RET_SUCCESS) {
+	ret = nxp_wifi_cpu_reset(true);
+
+	if ((status == NXP_WIFI_RET_SUCCESS) && (ret == 0)) {
 		ret = wlan_init(wlan_fw_bin, wlan_fw_bin_len);
 		if (ret != WM_SUCCESS) {
 			status = NXP_WIFI_RET_FAIL;
diff --git a/dts/bindings/sdhc/nxp,imx-usdhc.yaml b/dts/bindings/sdhc/nxp,imx-usdhc.yaml
index 4e217d0c7dbbe..d702622d7f875 100644
--- a/dts/bindings/sdhc/nxp,imx-usdhc.yaml
+++ b/dts/bindings/sdhc/nxp,imx-usdhc.yaml
@@ -46,6 +46,14 @@ properties:
       property value should ensure the flags properly describe the signal
       that is presented to the driver.
 
+  sd-gpios:
+    type: phandle-array
+    description: |
+      SDIO Reset pin
+      This pin defaults to active high when consumed by the SD card. The
+      property value should ensure the flags properly describe the signal
+      that is presented to the driver.
+
   cd-gpios:
     type: phandle-array
     description: |
diff --git a/dts/bindings/wifi/nxp,wifi.yaml b/dts/bindings/wifi/nxp,wifi.yaml
index bbb3502669005..8827014cbd2b2 100644
--- a/dts/bindings/wifi/nxp,wifi.yaml
+++ b/dts/bindings/wifi/nxp,wifi.yaml
@@ -1,4 +1,4 @@
-# Copyright 2023-2024 NXP
+# Copyright 2023-2025 NXP
 #
 # SPDX-License-Identifier: Apache-2.0
 
@@ -17,3 +17,18 @@ properties:
       This pin defaults to active low when consumed by the SDK card. The
       property value should ensure the flags properly describ the signal
       that is presendted to the driver.
+  pwr-gpios:
+    type: phandle-array
+    description: |
+      Power pin
+      This pin defaults to active high when consumed by the wlan cpu power.
+      The property value should ensure the flags properly describe the signal
+      that is presented to the driver.
+
+  sd-gpios:
+    type: phandle-array
+    description: |
+      SDIO Reset pin
+      This pin defaults to active high when consumed by the SD card. The
+      property value should ensure the flags properly describe the signal
+      that is presented to the driver.
diff --git a/samples/net/wifi/shell/boards/mimxrt1060_evk_mimxrt1062_qspi_C.conf b/samples/net/wifi/shell/boards/mimxrt1060_evk_mimxrt1062_qspi_C.conf
index 583de34c4e90e..89d19a8ed820c 100644
--- a/samples/net/wifi/shell/boards/mimxrt1060_evk_mimxrt1062_qspi_C.conf
+++ b/samples/net/wifi/shell/boards/mimxrt1060_evk_mimxrt1062_qspi_C.conf
@@ -8,7 +8,6 @@ CONFIG_NXP_MONOLITHIC_WIFI=y
 
 # wifi driver
 CONFIG_NXP_WIFI_TX_TASK_PRIO=3
-CONFIG_NXP_WIFI_DRIVER_TASK_PRIO=3
 
 # net
 CONFIG_NET_PKT_RX_COUNT=80
@@ -26,7 +25,7 @@ CONFIG_ZPERF_WORK_Q_THREAD_PRIORITY=3
 CONFIG_NET_SOCKETS_SERVICE_THREAD_PRIO=3
 CONFIG_NET_CONTEXT_PRIORITY=y
 CONFIG_NET_MGMT_THREAD_PRIO_CUSTOM=y
-CONFIG_NET_MGMT_THREAD_PRIORITY=5
+CONFIG_NET_MGMT_THREAD_PRIORITY=3
 CONFIG_IDLE_STACK_SIZE=1024
 
 # stack size
diff --git a/samples/net/wifi/shell/nxp/overlay_hosted_mcu.conf b/samples/net/wifi/shell/nxp/overlay_hosted_mcu.conf
index aa1fe8bbe9713..cc97e1e2955b2 100644
--- a/samples/net/wifi/shell/nxp/overlay_hosted_mcu.conf
+++ b/samples/net/wifi/shell/nxp/overlay_hosted_mcu.conf
@@ -40,11 +40,14 @@ CONFIG_NET_IPV4=y
 CONFIG_NET_IPV6=y
 CONFIG_NET_ZPERF=y
 CONFIG_NET_ZPERF_MAX_PACKET_SIZE=1500
-CONFIG_NET_PKT_RX_COUNT=80
-CONFIG_NET_PKT_TX_COUNT=80
-CONFIG_NET_BUF_RX_COUNT=160
-CONFIG_NET_BUF_TX_COUNT=160
-CONFIG_NET_BUF_DATA_SIZE=1744
+CONFIG_NET_PKT_RX_COUNT=72
+CONFIG_NET_PKT_TX_COUNT=36
+CONFIG_NET_BUF_RX_COUNT=80
+CONFIG_NET_BUF_TX_COUNT=40
+CONFIG_NET_BUF_DATA_SIZE=1600
+CONFIG_NET_TCP_MAX_SEND_WINDOW_SIZE=46720
+CONFIG_NET_TCP_MAX_RECV_WINDOW_SIZE=46720
+CONFIG_NET_TC_TX_SKIP_FOR_HIGH_PRIO=y
 CONFIG_NET_TC_TX_COUNT=1
 CONFIG_NET_TC_RX_COUNT=1
 CONFIG_NET_MGMT_EVENT_QUEUE_SIZE=40