diff --git a/arch/arc/Kconfig b/arch/arc/Kconfig
index 0ffff3732a7..b566ff83958 100644
--- a/arch/arc/Kconfig
+++ b/arch/arc/Kconfig
@@ -126,7 +126,7 @@ config	FAULT_DUMP
 	  0: Off.
 
 config	XIP
-	default n if NSIM
+	default n if UART_NSIM
 	default y
 
 config GEN_ISR_TABLES