diff --git a/CMakeLists.txt b/CMakeLists.txt
index 6022d234f2e..2114ee7d90f 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -211,7 +211,7 @@ zephyr_compile_options($<TARGET_PROPERTY:compiler,no_common>)
 # @Intent: Set compiler specific flag for production of debug information
 zephyr_compile_options($<TARGET_PROPERTY:compiler,debug>)
 
-if($ENV{ZEPHYR_BUILD_COLOUR_DIAGNOSTIC})
+if(CONFIG_COMPILER_COLOR_DIAGNOSTICS)
 # @Intent: Set compiler specific flag for diagnostic messages
 zephyr_compile_options($<TARGET_PROPERTY:compiler,diagnostic>)
 endif()
diff --git a/Kconfig.zephyr b/Kconfig.zephyr
index 09840d9b0b2..9571d374a32 100644
--- a/Kconfig.zephyr
+++ b/Kconfig.zephyr
@@ -235,6 +235,12 @@ config NO_OPTIMIZATIONS
 
 endchoice
 
+config COMPILER_COLOR_DIAGNOSTICS
+	bool "Enable colored diganostics"
+	default y
+	help
+	  Compiler diagnostic messages are colorized.
+
 config COMPILER_OPT
 	string "Custom compiler options"
 	help