diff --git a/subsys/bluetooth/controller/hal/nrf5/radio.c b/subsys/bluetooth/controller/hal/nrf5/radio.c
index b4fa3e1ce83..e7c9a9c07e2 100644
--- a/subsys/bluetooth/controller/hal/nrf5/radio.c
+++ b/subsys/bluetooth/controller/hal/nrf5/radio.c
@@ -94,31 +94,41 @@ void radio_aa_set(u8_t *aa)
 	NRF_RADIO->BASE0 = (aa[2] << 24) | (aa[1] << 16) | (aa[0] << 8);
 }
 
-void radio_pkt_configure(u8_t preamble16, u8_t bits_len, u8_t max_len)
+void radio_pkt_configure(u8_t bits_len, u8_t max_len, u8_t flags)
 {
-#if defined(CONFIG_SOC_SERIES_NRF51X)
-	ARG_UNUSED(preamble16);
+	u8_t p16 = (flags >> 1) & 0x01; /* 16-bit preamble */
+	u8_t dc = flags & 0x01; /* Adv or Data channel */
+	u32_t extra;
 
-	if (bits_len == 8) {
+#if defined(CONFIG_SOC_SERIES_NRF51X)
+	ARG_UNUSED(p16);
+
+	extra = 0;
+
+	/* nRF51 supports only 27 byte PDU when using h/w CCM for encryption. */
+	if (dc) {
 		bits_len = 5;
 	}
-#endif
+#else /* !CONFIG_SOC_SERIES_NRF51X */
+	extra = (((p16) ? RADIO_PCNF0_PLEN_16bit : RADIO_PCNF0_PLEN_8bit) <<
+		 RADIO_PCNF0_PLEN_Pos) & RADIO_PCNF0_PLEN_Msk;
 
-	NRF_RADIO->PCNF0 = ((((1UL) << RADIO_PCNF0_S0LEN_Pos) &
-			     RADIO_PCNF0_S0LEN_Msk) |
-			     ((((u32_t)bits_len) << RADIO_PCNF0_LFLEN_Pos) &
-			       RADIO_PCNF0_LFLEN_Msk) |
-#if !defined(CONFIG_SOC_SERIES_NRF51X)
-			     (((RADIO_PCNF0_S1INCL_Include) <<
-			       RADIO_PCNF0_S1INCL_Pos) &
-			       RADIO_PCNF0_S1INCL_Msk) |
-			     ((((preamble16) ? RADIO_PCNF0_PLEN_16bit :
-			       RADIO_PCNF0_PLEN_8bit) << RADIO_PCNF0_PLEN_Pos) &
-			       RADIO_PCNF0_PLEN_Msk) |
-#endif
-			     ((((u32_t)8-bits_len) <<
-			       RADIO_PCNF0_S1LEN_Pos) &
-			       RADIO_PCNF0_S1LEN_Msk));
+	/* To use same Data Channel PDU structure with nRF5 specific overhead
+	 * byte, include the S1 field in radio packet configuration.
+	 */
+	if (dc) {
+		extra |= (RADIO_PCNF0_S1INCL_Include <<
+			  RADIO_PCNF0_S1INCL_Pos) & RADIO_PCNF0_S1INCL_Msk;
+	}
+#endif /* !CONFIG_SOC_SERIES_NRF51X */
+
+	NRF_RADIO->PCNF0 = (((1UL) << RADIO_PCNF0_S0LEN_Pos) &
+			    RADIO_PCNF0_S0LEN_Msk) |
+			   ((((u32_t)bits_len) << RADIO_PCNF0_LFLEN_Pos) &
+			    RADIO_PCNF0_LFLEN_Msk) |
+			   ((((u32_t)8-bits_len) << RADIO_PCNF0_S1LEN_Pos) &
+			    RADIO_PCNF0_S1LEN_Msk) |
+			   extra;
 
 	NRF_RADIO->PCNF1 = (((((u32_t)max_len) << RADIO_PCNF1_MAXLEN_Pos) &
 			     RADIO_PCNF1_MAXLEN_Msk) |
diff --git a/subsys/bluetooth/controller/hal/radio.h b/subsys/bluetooth/controller/hal/radio.h
index 95e416dceb7..d66e26995ee 100644
--- a/subsys/bluetooth/controller/hal/radio.h
+++ b/subsys/bluetooth/controller/hal/radio.h
@@ -31,7 +31,7 @@ void radio_tx_power_set(u32_t power);
 void radio_freq_chan_set(u32_t chan);
 void radio_whiten_iv_set(u32_t iv);
 void radio_aa_set(u8_t *aa);
-void radio_pkt_configure(u8_t preamble16, u8_t bits_len, u8_t max_len);
+void radio_pkt_configure(u8_t bits_len, u8_t max_len, u8_t flags);
 void radio_pkt_rx_set(void *rx_packet);
 void radio_pkt_tx_set(void *tx_packet);
 void radio_rx_enable(void);
diff --git a/subsys/bluetooth/controller/ll_sw/ctrl.c b/subsys/bluetooth/controller/ll_sw/ctrl.c
index 8a8707c78e3..b9eb36d84b0 100644
--- a/subsys/bluetooth/controller/ll_sw/ctrl.c
+++ b/subsys/bluetooth/controller/ll_sw/ctrl.c
@@ -4309,7 +4309,7 @@ static void adv_obs_configure(u8_t phy)
 
 	adv_obs_conn_configure(phy);
 	radio_aa_set((u8_t *)&aa);
-	radio_pkt_configure(phy, 6, 37);
+	radio_pkt_configure(8, PDU_AC_PAYLOAD_SIZE_MAX, (phy << 1));
 	radio_crc_configure(((0x5bUL) | ((0x06UL) << 8) | ((0x00UL) << 16)),
 			    0x555555);
 }
@@ -6112,12 +6112,12 @@ static void rx_packet_set(struct connection *conn, struct pdu_data *pdu_data_rx)
 
 	phy = RADIO_PHY_CONN;
 	if (conn->enc_rx) {
-		radio_pkt_configure(phy, 8, (max_rx_octets + 4));
+		radio_pkt_configure(8, (max_rx_octets + 4), (phy << 1) | 0x01);
 
 		radio_pkt_rx_set(radio_ccm_rx_pkt_set(&conn->ccm_rx,
 						      pdu_data_rx));
 	} else {
-		radio_pkt_configure(phy, 8, max_rx_octets);
+		radio_pkt_configure(8, max_rx_octets, (phy << 1) | 0x01);
 
 		radio_pkt_rx_set(pdu_data_rx);
 	}
@@ -6136,12 +6136,12 @@ static void tx_packet_set(struct connection *conn, struct pdu_data *pdu_data_tx)
 
 	phy = RADIO_PHY_CONN;
 	if (conn->enc_tx) {
-		radio_pkt_configure(phy, 8, (max_tx_octets + 4));
+		radio_pkt_configure(8, (max_tx_octets + 4), (phy << 1) | 0x01);
 
 		radio_pkt_tx_set(radio_ccm_tx_pkt_set(&conn->ccm_tx,
 						      pdu_data_tx));
 	} else {
-		radio_pkt_configure(phy, 8, max_tx_octets);
+		radio_pkt_configure(8, max_tx_octets, (phy << 1) | 0x01);
 
 		radio_pkt_tx_set(pdu_data_tx);
 	}
diff --git a/subsys/bluetooth/controller/ll_sw/ll.c b/subsys/bluetooth/controller/ll_sw/ll.c
index 4afd135ec39..a529a93eff9 100644
--- a/subsys/bluetooth/controller/ll_sw/ll.c
+++ b/subsys/bluetooth/controller/ll_sw/ll.c
@@ -324,7 +324,6 @@ void ll_adv_params_set(u16_t interval, u8_t adv_type,
 		pdu->len = BDADDR_SIZE;
 	}
 	pdu->rx_addr = _ll_adv_params.rx_addr;
-	pdu->resv = 0;
 
 	/* update the current scan data */
 	radio_adv_data = radio_scan_data_get();
@@ -337,7 +336,6 @@ void ll_adv_params_set(u16_t interval, u8_t adv_type,
 	if (pdu->len == 0) {
 		pdu->len = BDADDR_SIZE;
 	}
-	pdu->resv = 0;
 }
 
 void ll_adv_data_set(u8_t len, u8_t const *const data)
@@ -384,7 +382,6 @@ void ll_adv_data_set(u8_t len, u8_t const *const data)
 		memcpy(&pdu->payload.adv_ind.data[0], data, len);
 		pdu->len = BDADDR_SIZE + len;
 	}
-	pdu->resv = 0;
 
 	/* commit the update so controller picks it. */
 	radio_adv_data->last = last;
@@ -418,7 +415,6 @@ void ll_scan_data_set(u8_t len, u8_t const *const data)
 	memcpy(&pdu->payload.scan_rsp.addr[0], &_ll_adv_params.adv_addr[0],
 	       BDADDR_SIZE);
 	memcpy(&pdu->payload.scan_rsp.data[0], data, len);
-	pdu->resv = 0;
 
 	/* commit the update so controller picks it. */
 	radio_scan_data->last = last;
diff --git a/subsys/bluetooth/controller/ll_sw/pdu.h b/subsys/bluetooth/controller/ll_sw/pdu.h
index 86e6eef57bd..4ba91905cc4 100644
--- a/subsys/bluetooth/controller/ll_sw/pdu.h
+++ b/subsys/bluetooth/controller/ll_sw/pdu.h
@@ -12,8 +12,9 @@
 
 /* PDU Sizes */
 #define PDU_EM_SIZE_MAX 3
-#define PDU_AC_SIZE_OVERHEAD 3
-#define PDU_AC_SIZE_MAX (37 + PDU_AC_SIZE_OVERHEAD)
+#define PDU_AC_SIZE_OVERHEAD 2
+#define PDU_AC_PAYLOAD_SIZE_MAX 37
+#define PDU_AC_SIZE_MAX (PDU_AC_PAYLOAD_SIZE_MAX + PDU_AC_SIZE_OVERHEAD)
 
 struct pdu_adv_payload_adv_ind {
 	u8_t addr[BDADDR_SIZE];
@@ -79,8 +80,6 @@ struct pdu_adv {
 
 	u8_t len:8;
 
-	u8_t resv:8; /* TODO: remove nRF specific code */
-
 	union {
 		struct pdu_adv_payload_adv_ind adv_ind;
 		struct pdu_adv_payload_direct_ind direct_ind;