diff --git a/lib/cpp/Kconfig b/lib/cpp/Kconfig
index b7bfbf24b1a..131415b87aa 100644
--- a/lib/cpp/Kconfig
+++ b/lib/cpp/Kconfig
@@ -85,7 +85,7 @@ config MINIMAL_LIBCPP
 config GLIBCXX_LIBCPP
 	bool "GNU C++ Standard Library"
 	depends on !NATIVE_APPLICATION
-	depends on NEWLIB_LIBC || (PICOLIBC && !PICOLIBC_USE_MODULE)
+	depends on NEWLIB_LIBC || PICOLIBC
 	help
 	  Build with GNU C++ Standard Library (libstdc++) provided by the GNU
 	  Compiler Collection (GCC)-based toolchain.
diff --git a/lib/libc/Kconfig b/lib/libc/Kconfig
index 697a6ee9943..9e8b618975f 100644
--- a/lib/libc/Kconfig
+++ b/lib/libc/Kconfig
@@ -15,10 +15,12 @@ config SUPPORT_MINIMAL_LIBC
 	bool
 	default y
 
+# Picolibc with C++ support in Zephyr SDK is handled by Zephyr SDK's own Kconfig.
 config PICOLIBC_SUPPORTED
 	bool
 	depends on ARC || ARM || ARM64 || MIPS || RISCV
 	depends on "$(ZEPHYR_TOOLCHAIN_VARIANT)" != "arcmwdt"
+	depends on !(CPP && "$(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/Kconfig b/lib/libc/picolibc/Kconfig
index 492a02a87f0..b52301fff71 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 !GLIBCXX_LIBCPP
 	help
 	  Use picolibc module instead of picolibc included with toolchain