diff --git a/drivers/timer/arm_arch_timer.c b/drivers/timer/arm_arch_timer.c
index 599aef09f04..69a40331c92 100644
--- a/drivers/timer/arm_arch_timer.c
+++ b/drivers/timer/arm_arch_timer.c
@@ -62,8 +62,6 @@ int z_clock_driver_init(const struct device *device)
 
 void z_clock_set_timeout(int32_t ticks, bool idle)
 {
-	ARG_UNUSED(idle);
-
 #if defined(CONFIG_TICKLESS_KERNEL)
 
 	if (ticks == K_TICKS_FOREVER && idle) {
@@ -90,6 +88,8 @@ void z_clock_set_timeout(int32_t ticks, bool idle)
 	arm_arch_timer_set_irq_mask(false);
 	k_spin_unlock(&lock, key);
 
+#else  /* CONFIG_TICKLESS_KERNEL */
+	ARG_UNUSED(idle);
 #endif
 }