diff --git a/arch/risc-v/src/esp32c3/Kconfig b/arch/risc-v/src/esp32c3/Kconfig
index bb9660c401..f128e898d7 100644
--- a/arch/risc-v/src/esp32c3/Kconfig
+++ b/arch/risc-v/src/esp32c3/Kconfig
@@ -436,6 +436,13 @@ config ESP32C3_WIFI_FS_MOUNTPT
 	help
 		Mount point of Wi-Fi storage file system.
 
+config ESP32C3_WIFI_STA_DISCONNECT_PM
+	bool "Power Management for station when disconnected"
+	default n
+	---help---
+		Select this option to enable power management for station when disconnected.
+		Chip will do modem-sleep when RF module is not in use anymore.
+
 endmenu # ESP32C3_WIRELESS
 
 menu "SPI Flash configuration"
diff --git a/arch/risc-v/src/esp32c3/Make.defs b/arch/risc-v/src/esp32c3/Make.defs
index 76c01ae949..16b6961c71 100644
--- a/arch/risc-v/src/esp32c3/Make.defs
+++ b/arch/risc-v/src/esp32c3/Make.defs
@@ -102,7 +102,7 @@ endif
 
 ifeq ($(CONFIG_ESP32C3_WIRELESS),y)
 WIRELESS_DRV_UNPACK  = esp-wireless-drivers-3rdparty
-WIRELESS_DRV_ID      = 3cc7f67
+WIRELESS_DRV_ID      = 2b53111
 WIRELESS_DRV_ZIP     = $(WIRELESS_DRV_ID).zip
 WIRELESS_DRV_URL     = https://github.com/espressif/esp-wireless-drivers-3rdparty/archive
 
diff --git a/arch/risc-v/src/esp32c3/esp32c3_wifi_adapter.c b/arch/risc-v/src/esp32c3/esp32c3_wifi_adapter.c
index 22d7d9da79..9d66ae4592 100644
--- a/arch/risc-v/src/esp32c3/esp32c3_wifi_adapter.c
+++ b/arch/risc-v/src/esp32c3/esp32c3_wifi_adapter.c
@@ -4820,6 +4820,12 @@ int esp_wifi_adapter_init(void)
   wifi_cfg.ampdu_rx_enable = 0;
 #endif
 
+#ifdef CONFIG_ESP32C3_WIFI_STA_DISCONNECT_PM
+  wifi_cfg.sta_disconnected_pm = true;
+#else
+  wifi_cfg.sta_disconnected_pm = false;
+#endif
+
   wifi_cfg.rx_ba_win          = CONFIG_ESP32C3_WIFI_RXBA_AMPDU_WZ;
   wifi_cfg.static_rx_buf_num  = CONFIG_ESP32C3_WIFI_STATIC_RXBUF_NUM;
   wifi_cfg.dynamic_rx_buf_num = CONFIG_ESP32C3_WIFI_DYNAMIC_RXBUF_NUM;
diff --git a/arch/xtensa/src/esp32/Kconfig b/arch/xtensa/src/esp32/Kconfig
index 9556521373..cb76b0dbbe 100644
--- a/arch/xtensa/src/esp32/Kconfig
+++ b/arch/xtensa/src/esp32/Kconfig
@@ -957,6 +957,13 @@ config ESP32_WIFI_FS_MOUNTPT
 	help
 		Mount point of WiFi storage file system.
 
+config ESP32_WIFI_STA_DISCONNECT_PM
+	bool "Power Management for station when disconnected"
+	default n
+	---help---
+		Select this option to enable power management for station when disconnected.
+		Chip will do modem-sleep when RF module is not in use anymore.
+
 endmenu # ESP32_WIRELESS
 
 menu "Real-Time Timer"
diff --git a/arch/xtensa/src/esp32/Make.defs b/arch/xtensa/src/esp32/Make.defs
index 97c3ca80a2..6696776ba0 100644
--- a/arch/xtensa/src/esp32/Make.defs
+++ b/arch/xtensa/src/esp32/Make.defs
@@ -190,7 +190,7 @@ endif
 
 ifeq ($(CONFIG_ESP32_WIRELESS),y)
 WIRELESS_DRV_UNPACK  = esp-wireless-drivers-3rdparty
-WIRELESS_DRV_ID      = e766ea3
+WIRELESS_DRV_ID      = 2b53111
 WIRELESS_DRV_ZIP     = $(WIRELESS_DRV_ID).zip
 WIRELESS_DRV_URL     = https://github.com/espressif/esp-wireless-drivers-3rdparty/archive
 
diff --git a/arch/xtensa/src/esp32/esp32_wifi_adapter.c b/arch/xtensa/src/esp32/esp32_wifi_adapter.c
index a1b8e7f4b7..c7e9860a68 100644
--- a/arch/xtensa/src/esp32/esp32_wifi_adapter.c
+++ b/arch/xtensa/src/esp32/esp32_wifi_adapter.c
@@ -4895,6 +4895,12 @@ int esp_wifi_adapter_init(void)
   wifi_cfg.ampdu_rx_enable = 0;
 #endif
 
+#ifdef CONFIG_ESP32_WIFI_STA_DISCONNECT_PM
+  wifi_cfg.sta_disconnected_pm = true;
+#else
+  wifi_cfg.sta_disconnected_pm = false;
+#endif
+
   wifi_cfg.rx_ba_win          = CONFIG_ESP32_WIFI_RXBA_AMPDU_WZ;
   wifi_cfg.static_rx_buf_num  = CONFIG_ESP32_WIFI_STATIC_RXBUF_NUM;
   wifi_cfg.dynamic_rx_buf_num = CONFIG_ESP32_WIFI_DYNAMIC_RXBUF_NUM;
diff --git a/boards/xtensa/esp32/esp32-devkitc/scripts/esp32_flash.ld b/boards/xtensa/esp32/esp32-devkitc/scripts/esp32_flash.ld
index c2aaf5f6e1..ae05e4481c 100644
--- a/boards/xtensa/esp32/esp32-devkitc/scripts/esp32_flash.ld
+++ b/boards/xtensa/esp32/esp32-devkitc/scripts/esp32_flash.ld
@@ -58,6 +58,9 @@ SECTIONS
     *libarch.a:esp32_spiflash.*(.literal .text .literal.* .text.*)
     *(.wifirxiram .wifirxiram.*)
     *(.wifi0iram  .wifi0iram.*)
+    *(.wifislpiram .wifislpiram.*)
+    *(.wifislprxiram .wifislprxiram.*)
+    *(.phyiram .phyiram.*)
     _iram_text_end = ABSOLUTE(.);
 
     /* Module text area starts at the end of iram0_0_seg */
diff --git a/boards/xtensa/esp32/esp32-ethernet-kit/scripts/esp32_flash.ld b/boards/xtensa/esp32/esp32-ethernet-kit/scripts/esp32_flash.ld
index aaf4fac567..36ca15d7ec 100644
--- a/boards/xtensa/esp32/esp32-ethernet-kit/scripts/esp32_flash.ld
+++ b/boards/xtensa/esp32/esp32-ethernet-kit/scripts/esp32_flash.ld
@@ -61,6 +61,9 @@ SECTIONS
     *libarch.a:esp32_spiflash.*(.literal .text .literal.* .text.*)
     *(.wifirxiram .wifirxiram.*)
     *(.wifirxiram .wifi0iram.*)
+    *(.wifislpiram .wifislpiram.*)
+    *(.wifislprxiram .wifislprxiram.*)
+    *(.phyiram .phyiram.*)
     _iram_text_end = ABSOLUTE(.);
 
     /* Module text area starts at the end of iram0_0_seg */
diff --git a/boards/xtensa/esp32/esp32-wrover-kit/scripts/esp32_flash.ld b/boards/xtensa/esp32/esp32-wrover-kit/scripts/esp32_flash.ld
index b24007de6e..20d81352d5 100644
--- a/boards/xtensa/esp32/esp32-wrover-kit/scripts/esp32_flash.ld
+++ b/boards/xtensa/esp32/esp32-wrover-kit/scripts/esp32_flash.ld
@@ -61,6 +61,9 @@ SECTIONS
     *libarch.a:esp32_spiflash.*(.literal .text .literal.* .text.*)
     *(.wifirxiram .wifirxiram.*)
     *(.wifirxiram .wifi0iram.*)
+    *(.wifislpiram .wifislpiram.*)
+    *(.wifislprxiram .wifislprxiram.*)
+    *(.phyiram .phyiram.*)
     _iram_text_end = ABSOLUTE(.);
 
     /* Module text area starts at the end of iram0_0_seg */