diff --git a/kernel/Kconfig b/kernel/Kconfig
index 211830cfe86..41e97e1809a 100644
--- a/kernel/Kconfig
+++ b/kernel/Kconfig
@@ -651,6 +651,7 @@ menu "Work Queue Options"
 config SYSTEM_WORKQUEUE_STACK_SIZE
 	int "System workqueue stack size"
 	default 4096 if COVERAGE_GCOV
+	default 2560 if WIFI_NM_WPA_SUPPLICANT
 	default 1024
 
 config SYSTEM_WORKQUEUE_PRIORITY
diff --git a/lib/posix/Kconfig b/lib/posix/Kconfig
index 199ed956af2..3fd01313474 100644
--- a/lib/posix/Kconfig
+++ b/lib/posix/Kconfig
@@ -5,6 +5,7 @@
 
 config POSIX_MAX_FDS
 	int "Maximum number of open file descriptors"
+	default 16 if WIFI_NM_WPA_SUPPLICANT
 	default 16 if POSIX_API
 	default 4
 	help
diff --git a/modules/hostap/Kconfig b/modules/hostap/Kconfig
index ae340bef0ad..5ff3c13a494 100644
--- a/modules/hostap/Kconfig
+++ b/modules/hostap/Kconfig
@@ -21,29 +21,15 @@ config WIFI_NM_WPA_SUPPLICANT_THREAD_STACK_SIZE
 	int "Stack size for wpa_supplicant thread"
 	default 8192
 
-config NET_SOCKETPAIR_BUFFER_SIZE
-	default 4096
-
-config POSIX_MAX_FDS
-	# l2_packet - 1
-	# ctrl_iface - 2 * socketpairs = 4(local and global)
-	# z_wpa_event_sock - 1 socketpair = 2
-	# Remaining left for the applications running in default configuration
-	default 16 if !POSIX_API
-
-# Control interface is stack heavy (buffers + snprintfs)
-# Making calls to RPU from net_mgmt callbacks (status - RSSI)
-config NET_MGMT_EVENT_STACK_SIZE
-	default 4096
-
-config NET_SOCKETS_POLL_MAX
-	default 6
-
+# Currently we default POSIX_MAX_FDS to 16 in lib/posix/Kconfig
+# l2_packet - 1
+# ctrl_iface - 2 * socketpairs = 4(local and global)
+# z_wpa_event_sock - 1 socketpair = 2
+# Remaining left for the applications running in default configuration
 
 # Supplicant API is stack heavy (buffers + snprintfs) and control interface
 # uses socketpair which pushes the stack usage causing overflow for 2048 bytes.
-config SYSTEM_WORKQUEUE_STACK_SIZE
-	default 2560
+# So we set SYSTEM_WORKQUEUE_STACK_SIZE default to 2560 in kernel/Kconfig
 
 module = WIFI_NM_WPA_SUPPLICANT
 module-str = WPA supplicant
diff --git a/subsys/net/ip/Kconfig.mgmt b/subsys/net/ip/Kconfig.mgmt
index 2ecfc9d028c..cc5c514afde 100644
--- a/subsys/net/ip/Kconfig.mgmt
+++ b/subsys/net/ip/Kconfig.mgmt
@@ -21,6 +21,7 @@ if NET_MGMT_EVENT
 
 config NET_MGMT_EVENT_STACK_SIZE
 	int "Stack size for the inner thread handling event callbacks"
+	default 4096 if WIFI_NM_WPA_SUPPLICANT
 	default 2048 if COVERAGE_GCOV
 	default 840 if X86
 	default 800 if THREAD_LOCAL_STORAGE
diff --git a/subsys/net/lib/sockets/Kconfig b/subsys/net/lib/sockets/Kconfig
index b47fb91ab06..b2da30c1e48 100644
--- a/subsys/net/lib/sockets/Kconfig
+++ b/subsys/net/lib/sockets/Kconfig
@@ -42,6 +42,7 @@ config NET_SOCKETS_POSIX_NAMES
 
 config NET_SOCKETS_POLL_MAX
 	int "Max number of supported poll() entries"
+	default 6 if WIFI_NM_WPA_SUPPLICANT
 	default 3
 	help
 	  Maximum number of entries supported for poll() call.
@@ -261,6 +262,7 @@ if NET_SOCKETPAIR
 
 config NET_SOCKETPAIR_BUFFER_SIZE
 	int "Size of the intermediate buffer, in bytes"
+	default 4096 if WIFI_NM_WPA_SUPPLICANT
 	default 64
 	range 1 4096
 	help