diff --git a/cmake/modules/extensions.cmake b/cmake/modules/extensions.cmake
index 6df0ef51f67..22e72ff6356 100644
--- a/cmake/modules/extensions.cmake
+++ b/cmake/modules/extensions.cmake
@@ -1522,7 +1522,7 @@ function(zephyr_code_relocate)
   if(CODE_REL_PHDR)
     set(CODE_REL_LOCATION "${CODE_REL_LOCATION}\ :${CODE_REL_PHDR}")
   endif()
-  # We use the "|" character to separate code relocation directives, instead of
+  # Each code relocation directive is placed on an independent line, instead of
   # using set_property(APPEND) to produce a ";"-separated CMake list. This way,
   # each directive can embed multiple CMake lists, representing flags and files,
   # the latter of which can come from generator expressions.
@@ -1530,7 +1530,7 @@ function(zephyr_code_relocate)
     PROPERTY INTERFACE_SOURCES)
   set_property(TARGET code_data_relocation_target
     PROPERTY INTERFACE_SOURCES
-    "${code_rel_str}|${CODE_REL_LOCATION}:${flag_list}:${file_list}")
+    "${code_rel_str}\n${CODE_REL_LOCATION}:${flag_list}:${file_list}")
 endfunction()
 
 # Usage:
diff --git a/scripts/build/gen_relocate_app.py b/scripts/build/gen_relocate_app.py
index f1bcccf1df6..95cb0e557b9 100755
--- a/scripts/build/gen_relocate_app.py
+++ b/scripts/build/gen_relocate_app.py
@@ -526,10 +526,10 @@ def create_dict_wrt_mem():
     rel_dict = dict()
     phdrs = dict()
 
-    input_rel_dict = args.input_rel_dict.read()
-    if input_rel_dict == '':
+    input_rel_dict = args.input_rel_dict.read().splitlines()
+    if not input_rel_dict:
         sys.exit("Disable CONFIG_CODE_DATA_RELOCATION if no file needs relocation")
-    for line in input_rel_dict.split('|'):
+    for line in input_rel_dict:
         if ':' not in line:
             continue