diff --git a/modules/hostap/Kconfig b/modules/hostap/Kconfig
index 95dd2531503..f488bb50dfe 100644
--- a/modules/hostap/Kconfig
+++ b/modules/hostap/Kconfig
@@ -596,4 +596,25 @@ config WIFI_NM_WPA_CTRL_RESP_TIMEOUT_S
 	  Timeout for the control interface commands to get a response from the
 	  supplicant.
 
+config WIFI_NM_HOSTAPD_REGULATORY_REGION
+	string "Select Wi-Fi Regulatory Domain"
+	default "00"
+	depends on WIFI_NM_HOSTAPD_AP
+	help
+	  Region/Country code (ISO/IEC 3166-1).Used to set regulatory domain.
+	  Set as needed to indicate country in which device is operating.
+	  This can limit available channels and transmit power.
+	  These two octets are used as the first two octets of the Country String
+	  (dot11CountryString). "00" stands for World Wide mode.
+
+config WIFI_NM_HOSTAPD_REGULATORY_ENV
+	int "Select Wi-Fi Regulatory Environment"
+	default 32
+	depends on WIFI_NM_HOSTAPD_AP
+	help
+	  The third octet of the Country String (dot11CountryString)
+	  This parameter is used to set the third octet of the country string.
+	  All supported environments of current region can be used with
+	  default value of 0x20 or 32.
+
 endif # WIFI_NM_WPA_SUPPLICANT
diff --git a/modules/hostap/src/hapd_main.c b/modules/hostap/src/hapd_main.c
index 6c5e9c6d998..994b5d9270d 100644
--- a/modules/hostap/src/hapd_main.c
+++ b/modules/hostap/src/hapd_main.c
@@ -351,7 +351,10 @@ struct hostapd_config *hostapd_config_read2(const char *fname)
 	bss->logger_stdout_level = HOSTAPD_LEVEL_INFO;
 	bss->logger_stdout       = 0xffff;
 	bss->nas_identifier      = os_strdup("ap.example.com");
-	os_memcpy(conf->country, "US ", 3);
+	/* Set regulatory domain */
+	os_memcpy(conf->country, CONFIG_WIFI_NM_HOSTAPD_REGULATORY_REGION, 2);
+	/* Set regulatory environment */
+	conf->country[2]     = CONFIG_WIFI_NM_HOSTAPD_REGULATORY_ENV;
 	conf->hw_mode        = HOSTAPD_MODE_IEEE80211G;
 	bss->wps_state       = WPS_STATE_CONFIGURED;
 	bss->eap_server      = 1;