diff --git a/include/sys/cbprintf.h b/include/sys/cbprintf.h
index 0c56267bcd9..195089eb234 100644
--- a/include/sys/cbprintf.h
+++ b/include/sys/cbprintf.h
@@ -45,9 +45,13 @@ extern "C" {
  */
 
 /** @brief Required alignment of the buffer used for packaging. */
+#ifdef __xtensa__
+#define CBPRINTF_PACKAGE_ALIGNMENT 16
+#else
 #define CBPRINTF_PACKAGE_ALIGNMENT \
 	(IS_ENABLED(CONFIG_CBPRINTF_PACKAGE_LONGDOUBLE) ? \
 		sizeof(long double) : MAX(sizeof(double), sizeof(long long)))
+#endif
 
 /** @brief Signature for a cbprintf callback function.
  *
@@ -107,10 +111,17 @@ typedef int (*cbprintf_cb)(/* int c, void *ctx */);
  * store the packed information. If input buffer was too small it is set to
  * -ENOSPC.
  *
+ * @param align_offset input buffer alignment offset in bytes. Where offset 0
+ * means that buffer is aligned to CBPRINTF_PACKAGE_ALIGNMENT. Xtensa requires
+ * that @p packaged is aligned to CBPRINTF_PACKAGE_ALIGNMENT so it must be
+ * multiply of CBPRINTF_PACKAGE_ALIGNMENT or 0.
+ *
  * @param ... formatted string with arguments. Format string must be constant.
  */
-#define CBPRINTF_STATIC_PACKAGE(packaged, inlen, outlen, ... /* fmt, ... */) \
-		Z_CBPRINTF_STATIC_PACKAGE(packaged, inlen, outlen, __VA_ARGS__)
+#define CBPRINTF_STATIC_PACKAGE(packaged, inlen, outlen, align_offset, \
+				... /* fmt, ... */) \
+	Z_CBPRINTF_STATIC_PACKAGE(packaged, inlen, outlen, \
+				  align_offset, __VA_ARGS__)
 
 /** @brief Capture state required to output formatted data later.
  *
@@ -126,11 +137,16 @@ typedef int (*cbprintf_cb)(/* int c, void *ctx */);
  * @param packaged pointer to where the packaged data can be stored.  Pass a
  * null pointer to store nothing but still calculate the total space required.
  * The data stored here is relocatable, that is it can be moved to another
- * contiguous block of memory. The pointer must be aligned to a multiple of
- * the largest element in the argument list.
+ * contiguous block of memory. However, under condition that alignment is
+ * maintained. It must be aligned to at least the size of a pointer.
  *
- * @param len this must be set to the number of bytes available at @p packaged.
- * Ignored if @p packaged is NULL.
+ * @param len this must be set to the number of bytes available at @p packaged
+ * if it is not null. If @p packaged is null then it indicates hypothetical
+ * buffer alignment offset in bytes compared to CBPRINTF_PACKAGE_ALIGNMENT
+ * alignment. Buffer alignment offset impacts returned size of the package.
+ * Xtensa requires that buffer is always aligned to CBPRINTF_PACKAGE_ALIGNMENT
+ * so it must be multiply of CBPRINTF_PACKAGE_ALIGNMENT or 0 when @p packaged is
+ * null.
  *
  * @param format a standard ISO C format string with characters and conversion
  * specifications.
diff --git a/include/sys/cbprintf_internal.h b/include/sys/cbprintf_internal.h
index 4c32e61d3e2..e2e8f919b11 100644
--- a/include/sys/cbprintf_internal.h
+++ b/include/sys/cbprintf_internal.h
@@ -193,23 +193,27 @@ static inline void cbprintf_wcpy(int *dst, int *src, uint32_t len)
  *
  * @param _idx index. Index is postincremented.
  *
+ * @param _align_offset Current index with alignment offset.
+ *
  * @param _max maximum index (buffer capacity).
  *
  * @param _arg argument.
  */
-#define Z_CBPRINTF_PACK_ARG2(_buf, _idx, _max, _arg) do { \
+#define Z_CBPRINTF_PACK_ARG2(_buf, _idx, _align_offset, _max, _arg) do { \
 	BUILD_ASSERT(!((sizeof(double) < VA_STACK_ALIGN(long double)) && \
 			Z_CBPRINTF_IS_LONGDOUBLE(_arg) && \
 			!IS_ENABLED(CONFIG_CBPRINTF_PACKAGE_LONGDOUBLE)),\
 			"Packaging of long double not enabled in Kconfig."); \
-	while (_idx % Z_CBPRINTF_ALIGNMENT(_arg)) { \
+	while (_align_offset % Z_CBPRINTF_ALIGNMENT(_arg)) { \
 		_idx += sizeof(int); \
+		_align_offset += sizeof(int); \
 	} \
 	uint32_t _arg_size = Z_CBPRINTF_ARG_SIZE(_arg); \
 	if (_buf && _idx < _max) { \
 		Z_CBPRINTF_STORE_ARG(&_buf[_idx], _arg); \
 	} \
 	_idx += _arg_size; \
+	_align_offset += _arg_size; \
 } while (0)
 
 /** @brief Package single argument.
@@ -219,7 +223,7 @@ static inline void cbprintf_wcpy(int *dst, int *src, uint32_t len)
  * @param arg argument.
  */
 #define Z_CBPRINTF_PACK_ARG(arg) \
-	Z_CBPRINTF_PACK_ARG2(_pbuf, _pkg_len, _pmax, arg)
+	Z_CBPRINTF_PACK_ARG2(_pbuf, _pkg_len, _pkg_offset, _pmax, arg)
 
 /** @brief Package descriptor.
  *
@@ -246,35 +250,41 @@ union z_cbprintf_hdr {
  *
  * @param _outlen number of bytes required to store the package.
  *
+ * @param _align_offset Input buffer alignment offset in words. Where offset 0
+ * means that buffer is aligned to CBPRINTF_PACKAGE_ALIGNMENT.
+ *
  * @param ... String with variable list of arguments.
  */
-#define Z_CBPRINTF_STATIC_PACKAGE_GENERIC(buf, _inlen, _outlen, \
+#define Z_CBPRINTF_STATIC_PACKAGE_GENERIC(buf, _inlen, _outlen, _align_offset, \
 					  ... /* fmt, ... */) \
 do { \
 	_Pragma("GCC diagnostic push") \
 	_Pragma("GCC diagnostic ignored \"-Wpointer-arith\"") \
+	BUILD_ASSERT(!IS_ENABLED(CONFIG_XTENSA) || \
+		     (IS_ENABLED(CONFIG_XTENSA) && \
+		      !(_align_offset % CBPRINTF_PACKAGE_ALIGNMENT)), \
+			"Xtensa requires aligned package."); \
+	BUILD_ASSERT((_align_offset % sizeof(int)) == 0, \
+			"Alignment offset must be multiply of a word."); \
 	if (IS_ENABLED(CONFIG_CBPRINTF_STATIC_PACKAGE_CHECK_ALIGNMENT)) { \
 		__ASSERT(!((uintptr_t)buf & (CBPRINTF_PACKAGE_ALIGNMENT - 1)), \
 			"Buffer must be aligned."); \
 	} \
 	uint8_t *_pbuf = buf; \
-	size_t _pmax = (buf != NULL) ? _inlen : SIZE_MAX; \
-	size_t _pkg_len = 0; \
+	int _pmax = (buf != NULL) ? _inlen : INT32_MAX; \
+	int _pkg_len = 0; \
+	int _pkg_offset = _align_offset; \
 	union z_cbprintf_hdr *_len_loc; \
 	/* package starts with string address and field with length */ \
-	if (_pmax < sizeof(char *) + 2 * sizeof(uint16_t)) { \
+	if (_pmax < sizeof(union z_cbprintf_hdr)) { \
+		_outlen = -ENOSPC; \
 		break; \
 	} \
 	_len_loc = (union z_cbprintf_hdr *)_pbuf; \
 	_pkg_len += sizeof(union z_cbprintf_hdr); \
-	if (_pbuf) { \
-		*(char **)&_pbuf[_pkg_len] = GET_ARG_N(1, __VA_ARGS__); \
-	} \
-	_pkg_len += sizeof(char *); \
+	_pkg_offset += sizeof(union z_cbprintf_hdr); \
 	/* Pack remaining arguments */\
-	COND_CODE_0(NUM_VA_ARGS_LESS_1(__VA_ARGS__), (), ( \
-	    FOR_EACH(Z_CBPRINTF_PACK_ARG, (;), GET_ARGS_LESS_N(1, __VA_ARGS__));\
-	)) \
+	FOR_EACH(Z_CBPRINTF_PACK_ARG, (;), __VA_ARGS__);\
 	/* Store length */ \
 	_outlen = (_pkg_len > _pmax) ? -ENOSPC : _pkg_len; \
 	/* Store length in the header, set number of dumped strings to 0 */ \
@@ -286,16 +296,19 @@ do { \
 } while (0)
 
 #if Z_C_GENERIC
-#define Z_CBPRINTF_STATIC_PACKAGE(packaged, inlen, outlen, ... /* fmt, ... */) \
-	Z_CBPRINTF_STATIC_PACKAGE_GENERIC(packaged, inlen, outlen, __VA_ARGS__)
+#define Z_CBPRINTF_STATIC_PACKAGE(packaged, inlen, outlen, align_offset, \
+				  ... /* fmt, ... */) \
+	Z_CBPRINTF_STATIC_PACKAGE_GENERIC(packaged, inlen, outlen, \
+					  align_offset, __VA_ARGS__)
 #else
-#define Z_CBPRINTF_STATIC_PACKAGE(packaged, inlen, outlen, ... /* fmt, ... */) \
+#define Z_CBPRINTF_STATIC_PACKAGE(packaged, inlen, outlen, align_offset, \
+				  ... /* fmt, ... */) \
 do { \
 	/* Small trick needed to avoid warning on always true */ \
 	if (((uintptr_t)packaged + 1) != 1) { \
 		outlen = cbprintf_package(packaged, inlen, __VA_ARGS__); \
 	} else { \
-		outlen = cbprintf_package(NULL, 0, __VA_ARGS__); \
+		outlen = cbprintf_package(NULL, align_offset, __VA_ARGS__); \
 	} \
 } while (0)
 #endif /* Z_C_GENERIC */
diff --git a/lib/os/cbprintf_packaged.c b/lib/os/cbprintf_packaged.c
index 24e50d2f512..ab514118b2b 100644
--- a/lib/os/cbprintf_packaged.c
+++ b/lib/os/cbprintf_packaged.c
@@ -205,6 +205,18 @@ int cbvprintf_package(void *packaged, size_t len,
 	const char *s;
 	bool parsing = false;
 
+	/* Buffer must be aligned at least to size of a pointer. */
+	if ((uintptr_t)packaged & (sizeof(void *) - 1)) {
+		return -EFAULT;
+	}
+
+#if defined(__xtensa__)
+	/* Xtensa requires package to be 16 bytes aligned. */
+	if ((uintptr_t)packaged & (CBPRINTF_PACKAGE_ALIGNMENT - 1)) {
+		return -EFAULT;
+	}
+#endif
+
 	/*
 	 * Make room to store the arg list size and the number of
 	 * appended strings. They both occupy 1 byte each.
@@ -218,9 +230,17 @@ int cbvprintf_package(void *packaged, size_t len,
 	/*
 	 * When buf0 is NULL we don't store anything.
 	 * Instead we count the needed space to store the data.
+	 * In this case, incoming len argument indicates the anticipated
+	 * buffer "misalignment" offset.
 	 */
 	if (!buf0) {
-		len = 0;
+#if defined(__xtensa__)
+		if (len % CBPRINTF_PACKAGE_ALIGNMENT) {
+			return -EFAULT;
+		}
+#endif
+		buf += len % CBPRINTF_PACKAGE_ALIGNMENT;
+		len = -(len % CBPRINTF_PACKAGE_ALIGNMENT);
 	}
 
 	/*
@@ -374,11 +394,6 @@ int cbvprintf_package(void *packaged, size_t len,
 		/* align destination buffer location */
 		buf = (void *) ROUND_UP(buf, align);
 
-		/* Check if buffer is properly aligned. */
-		if ((uintptr_t)buf0 & (align - 1)) {
-			return -EFAULT;
-		}
-
 		/* make sure the data fits */
 		if (buf0 && buf - buf0 + size > len) {
 			return -ENOSPC;