diff --git a/CMakeLists.txt b/CMakeLists.txt
index f1fb89660f9..a229c06413e 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -214,7 +214,7 @@ endif()
 zephyr_compile_options(${OPTIMIZATION_FLAG})
 
 if(CONFIG_LTO)
-  add_compile_options($<TARGET_PROPERTY:compiler,optimization_lto>)
+  zephyr_compile_options($<TARGET_PROPERTY:compiler,optimization_lto>)
   add_link_options($<TARGET_PROPERTY:linker,lto_arguments>)
 endif()
 
diff --git a/lib/libc/newlib/CMakeLists.txt b/lib/libc/newlib/CMakeLists.txt
index 6556a3e814c..35c6a9b6337 100644
--- a/lib/libc/newlib/CMakeLists.txt
+++ b/lib/libc/newlib/CMakeLists.txt
@@ -3,6 +3,9 @@
 zephyr_library()
 zephyr_library_sources(libc-hooks.c)
 
+# Do not allow LTO when compiling libc-hooks.c file
+set_source_files_properties(libc-hooks.c PROPERTIES COMPILE_OPTIONS $<TARGET_PROPERTY:compiler,prohibit_lto>)
+
 # Zephyr normally uses -ffreestanding, which with current GNU toolchains
 # means that the flag macros used by newlib 3.x <inttypes.h> to signal
 # support for PRI.64 macros are not present.  To make them available we
diff --git a/lib/libc/picolibc/CMakeLists.txt b/lib/libc/picolibc/CMakeLists.txt
index 23e84231e2a..87fb0d9d8ec 100644
--- a/lib/libc/picolibc/CMakeLists.txt
+++ b/lib/libc/picolibc/CMakeLists.txt
@@ -3,6 +3,9 @@
 zephyr_library()
 zephyr_library_sources(libc-hooks.c)
 
+# Do not allow LTO when compiling libc-hooks.c file
+set_source_files_properties(libc-hooks.c PROPERTIES COMPILE_OPTIONS $<TARGET_PROPERTY:compiler,prohibit_lto>)
+
 # define __LINUX_ERRNO_EXTENSIONS__ so we get errno defines like -ESHUTDOWN
 # used by the network stack
 zephyr_compile_definitions(__LINUX_ERRNO_EXTENSIONS__)