diff --git a/arch/arm/core/swap_helper.S b/arch/arm/core/swap_helper.S
index 1e5f2d94143..c21ca43bce0 100644
--- a/arch/arm/core/swap_helper.S
+++ b/arch/arm/core/swap_helper.S
@@ -190,14 +190,6 @@ _thread_irq_disabled:
     pop {r2, lr}
 #endif /* CONFIG_MPU_STACK_GUARD */
 
-#ifdef CONFIG_BUILTIN_STACK_GUARD
-    /* r2 contains k_thread */
-    add r0, r2, #0
-    push {r2, lr}
-    blx configure_builtin_stack_guard
-    pop {r2, lr}
-#endif /* CONFIG_BUILTIN_STACK_GUARD */
-
 #ifdef CONFIG_USERSPACE
     /* restore mode */
     ldr r0, [r2, #_thread_offset_to_mode]
@@ -231,8 +223,24 @@ _thread_irq_disabled:
 #error Unknown ARM architecture
 #endif /* CONFIG_ARMV6_M_ARMV8_M_BASELINE */
 
+#ifdef CONFIG_BUILTIN_STACK_GUARD
+    /* clear stack pointer limit before setting the PSP */
+    push {r3}
+    mov r3, #0
+    msr PSPLIM, r3
+    pop {r3}
+#endif
+
     msr PSP, ip
 
+#ifdef CONFIG_BUILTIN_STACK_GUARD
+    /* r2 contains k_thread */
+    add r0, r2, #0
+    push {r2, lr}
+    blx configure_builtin_stack_guard
+    pop {r2, lr}
+#endif /* CONFIG_BUILTIN_STACK_GUARD */
+
 #ifdef CONFIG_EXECUTION_BENCHMARKING
     stm sp!,{r0-r3} /* Save regs r0 to r4 on stack */
     push {lr}
diff --git a/arch/arm/core/thread.c b/arch/arm/core/thread.c
index 330a698f8ef..f5c3470f0a0 100644
--- a/arch/arm/core/thread.c
+++ b/arch/arm/core/thread.c
@@ -142,12 +142,21 @@ FUNC_NORETURN void _arch_user_mode_enter(k_thread_entry_t user_entry,
  *
  * This function configures per thread stack guards by reprogramming
  * the built-in Process Stack Pointer Limit Register (PSPLIM).
+ * The functionality is meant to be used during context switch.
  *
  * @param thread thread info data structure.
  */
 void configure_builtin_stack_guard(struct k_thread *thread)
 {
 #if defined(CONFIG_USERSPACE)
+	if (thread->arch.mode & CONTROL_nPRIV_Msk) {
+		/* Only configure stack limit for threads in privileged mode
+		 * (i.e supervisor threads or user threads doing system call).
+		 * User threads executing in user mode do not require a stack
+		 * limit protection.
+		 */
+		return;
+	}
 	u32_t guard_start = thread->arch.priv_stack_start ?
 			    (u32_t)thread->arch.priv_stack_start :
 			    (u32_t)thread->stack_obj;
diff --git a/arch/arm/core/userspace.S b/arch/arm/core/userspace.S
index d5f4e209882..530f2591807 100644
--- a/arch/arm/core/userspace.S
+++ b/arch/arm/core/userspace.S
@@ -56,9 +56,25 @@ SECTION_FUNC(TEXT,_arm_userspace_enter)
     ldr ip, =CONFIG_PRIVILEGED_STACK_SIZE
     add r0, r0, ip
 
+#if defined(CONFIG_BUILTIN_STACK_GUARD)
+    /* clear stack pointer limit before setting the PSP */
+    push {r3}
+    mov r3, #0
+    msr PSPLIM, r3
+    pop {r3}
+#endif
+
     mov ip, sp
     msr PSP, r0
 
+#if defined(CONFIG_BUILTIN_STACK_GUARD)
+    /* set stack pointer limit to the start of the priv stack */
+    ldr r0, =_kernel
+    ldr r0, [r0, #_kernel_offset_to_current]
+    ldr r0, [r0, #_thread_offset_to_priv_stack_start]    /* priv stack ptr */
+    msr PSPLIM, r0
+#endif
+
     /* load up stack info from user stack */
     ldr r0, [ip]
     ldr ip, [ip, #4]
@@ -96,6 +112,14 @@ SECTION_FUNC(TEXT,_arm_userspace_enter)
     /* r0 contains user stack start, ip contains user stack size */
     add r0, r0, ip   /* calculate top of stack */
 
+#if defined(CONFIG_BUILTIN_STACK_GUARD)
+    /* clear stack limit (stack protection not required in user mode) */
+    push {r3}
+    mov r3, #0
+    msr PSPLIM, r3
+    pop {r3}
+#endif
+
     /* set stack to user stack */
     msr PSP, r0
 
@@ -169,6 +193,16 @@ valid_syscall:
     /* switch to privileged stack */
     msr PSP, ip
 
+#if defined(CONFIG_BUILTIN_STACK_GUARD)
+    /* Set stack pointer limit (needed in privileged mode) */
+    push {r6}
+    ldr r6, =_kernel
+    ldr r6, [r6, #_kernel_offset_to_current]
+    ldr r6, [r6, #_thread_offset_to_priv_stack_start]    /* priv stack ptr */
+    msr PSPLIM, r6
+    pop {r6}
+#endif
+
     /* push args to complete stack frame */
     push {r4,r5}
 
@@ -183,6 +217,14 @@ dispatch_syscall:
     /* restore LR */
     ldr lr, [sp,#12]
 
+#if defined(CONFIG_BUILTIN_STACK_GUARD)
+    /* clear stack limit (stack protection not required in user mode) */
+    push {r3}
+    mov r3, #0
+    msr PSPLIM, r3
+    pop {r3}
+#endif
+
     /* set stack back to unprivileged stack */
     ldr ip, [sp,#8]
     msr PSP, ip