diff --git a/soc/nxp/rw/Kconfig.defconfig b/soc/nxp/rw/Kconfig.defconfig
index 3c4677b784c..f1890af7cf9 100644
--- a/soc/nxp/rw/Kconfig.defconfig
+++ b/soc/nxp/rw/Kconfig.defconfig
@@ -63,6 +63,33 @@ if PM
 config SYS_CLOCK_TICKS_PER_SEC
 	default 1000
 	depends on $(dt_nodelabel_enabled,standby)
-endif
+
+# Enable PM_DEVICE by default if STANDBY mode is enabled
+# as we use the TURN_OFF and TURN_ON actions to recover
+# from Standby mode (PM Mode 3)
+config PM_DEVICE
+	default y
+	depends on "$(dt_nodelabel_enabled,standby)"
+
+# Enable PM_POLICY_DEVICE_CONSTRAINTS by default when doing PM_DEVICE.
+# This will allow support of device power states.
+config PM_POLICY_DEVICE_CONSTRAINTS
+	default y if PM_DEVICE
+
+# Enable the counter if STANDBY mode is enabled
+# RTC counter is the wakeup source from STANDBY mode
+config COUNTER
+	default y
+	depends on "$(dt_nodelabel_enabled,standby)"
+
+config MCUX_OS_TIMER_PM_POWERED_OFF
+	default y
+
+# PM code that runs from the idle loop has a large
+# footprint. Hence increase the size when PM is enabled.
+config IDLE_STACK_SIZE
+	default 640
+
+endif # PM
 
 endif # SOC_SERIES_RW6XX
diff --git a/soc/nxp/rw/power.c b/soc/nxp/rw/power.c
index f4176b6349c..fdc24019dd7 100644
--- a/soc/nxp/rw/power.c
+++ b/soc/nxp/rw/power.c
@@ -1,5 +1,5 @@
 /*
- * Copyright 2023, NXP
+ * Copyright 2023-2025 NXP
  *
  * SPDX-License-Identifier: Apache-2.0
  */
@@ -11,6 +11,8 @@
 #include "fsl_power.h"
 
 #include <zephyr/logging/log.h>
+#include <zephyr/drivers/timer/system_timer.h>
+
 LOG_MODULE_DECLARE(soc, CONFIG_SOC_LOG_LEVEL);
 
 /* Active mode */
@@ -26,6 +28,8 @@ LOG_MODULE_DECLARE(soc, CONFIG_SOC_LOG_LEVEL);
 
 #define NODE_ID DT_INST(0, nxp_pdcfg_power)
 
+extern void clock_init(void);
+
 power_sleep_config_t slp_cfg;
 
 #if DT_NODE_HAS_STATUS_OKAY(DT_NODELABEL(pin0)) || DT_NODE_HAS_STATUS_OKAY(DT_NODELABEL(pin1))
@@ -56,6 +60,81 @@ static void pin1_isr(const struct device *dev)
 }
 #endif
 
+#ifdef CONFIG_MPU
+
+#define MPU_NUM_REGIONS 8
+
+typedef struct mpu_conf {
+	uint32_t CTRL;
+	uint32_t RNR;
+	uint32_t RBAR[MPU_NUM_REGIONS];
+	uint32_t RLAR[MPU_NUM_REGIONS];
+	uint32_t RBAR_A1;
+	uint32_t RLAR_A1;
+	uint32_t RBAR_A2;
+	uint32_t RLAR_A2;
+	uint32_t RBAR_A3;
+	uint32_t RLAR_A3;
+	uint32_t MAIR0;
+	uint32_t MAIR1;
+} mpu_conf;
+mpu_conf saved_mpu_conf;
+
+static void save_mpu_state(void)
+{
+	uint32_t index;
+
+	/*
+	 * MPU is divided in `MPU_NUM_REGIONS` regions.
+	 * Here we save those regions configuration to be restored after PM3 entry
+	 */
+	for (index = 0U; index < MPU_NUM_REGIONS; index++) {
+		MPU->RNR = index;
+		saved_mpu_conf.RBAR[index] = MPU->RBAR;
+		saved_mpu_conf.RLAR[index] = MPU->RLAR;
+	}
+
+	saved_mpu_conf.CTRL = MPU->CTRL;
+	saved_mpu_conf.RNR = MPU->RNR;
+	saved_mpu_conf.RBAR_A1 = MPU->RBAR_A1;
+	saved_mpu_conf.RLAR_A1 = MPU->RLAR_A1;
+	saved_mpu_conf.RBAR_A2 = MPU->RBAR_A2;
+	saved_mpu_conf.RLAR_A2 = MPU->RLAR_A2;
+	saved_mpu_conf.RBAR_A3 = MPU->RBAR_A3;
+	saved_mpu_conf.RLAR_A3 = MPU->RLAR_A3;
+	saved_mpu_conf.MAIR0 = MPU->MAIR0;
+	saved_mpu_conf.MAIR1 = MPU->MAIR1;
+}
+
+static void restore_mpu_state(void)
+{
+	uint32_t index;
+
+	for (index = 0U; index < MPU_NUM_REGIONS; index++) {
+		MPU->RNR = index;
+		MPU->RBAR = saved_mpu_conf.RBAR[index];
+		MPU->RLAR = saved_mpu_conf.RLAR[index];
+	}
+
+	MPU->RNR = saved_mpu_conf.RNR;
+	MPU->RBAR_A1 = saved_mpu_conf.RBAR_A1;
+	MPU->RLAR_A1 = saved_mpu_conf.RLAR_A1;
+	MPU->RBAR_A2 = saved_mpu_conf.RBAR_A2;
+	MPU->RLAR_A2 = saved_mpu_conf.RLAR_A2;
+	MPU->RBAR_A3 = saved_mpu_conf.RBAR_A3;
+	MPU->RLAR_A3 = saved_mpu_conf.RLAR_A3;
+	MPU->MAIR0 = saved_mpu_conf.MAIR0;
+	MPU->MAIR1 = saved_mpu_conf.MAIR1;
+
+	/*
+	 * CTRL register must be restored last in case MPU was enabled,
+	 * because some MPU registers can't be programmed while the MPU is enabled
+	 */
+	MPU->CTRL = saved_mpu_conf.CTRL;
+}
+
+#endif /* CONFIG_MPU */
+
 /* Invoke Low Power/System Off specific Tasks */
 __weak void pm_state_set(enum pm_state state, uint8_t substate_id)
 {
@@ -92,6 +171,28 @@ __weak void pm_state_set(enum pm_state state, uint8_t substate_id)
 		break;
 	case PM_STATE_SUSPEND_TO_IDLE:
 		POWER_EnterPowerMode(POWER_MODE2, &slp_cfg);
+		break;
+	case PM_STATE_STANDBY:
+#ifdef CONFIG_MPU
+		/* Save MPU state before entering PM3 */
+		save_mpu_state();
+#endif /* CONFIG_MPU */
+
+		POWER_EnableWakeup(DT_IRQN(DT_NODELABEL(rtc)));
+		if (POWER_EnterPowerMode(POWER_MODE3, &slp_cfg)) {
+#ifdef CONFIG_MPU
+			/* Restore MPU as is lost after PM3 exit*/
+			restore_mpu_state();
+#endif /* CONFIG_MPU */
+			clock_init();
+
+			sys_clock_idle_exit();
+		}
+
+		/* Clear the RTC wakeup bits */
+		POWER_ClearWakeupStatus(DT_IRQN(DT_NODELABEL(rtc)));
+		POWER_DisableWakeup(DT_IRQN(DT_NODELABEL(rtc)));
+
 		break;
 	default:
 		LOG_DBG("Unsupported power state %u", state);
@@ -142,4 +243,8 @@ void nxp_rw6xx_power_init(void)
 	IRQ_CONNECT(DT_IRQN(DT_NODELABEL(pin1)), DT_IRQ(DT_NODELABEL(pin1), priority), pin1_isr,
 		    NULL, 0);
 #endif
+
+	/* Clear the RTC wakeup bits */
+	POWER_ClearWakeupStatus(DT_IRQN(DT_NODELABEL(rtc)));
+	POWER_DisableWakeup(DT_IRQN(DT_NODELABEL(rtc)));
 }