diff --git a/.github/workflows/chef.yaml b/.github/workflows/chef.yaml
index be4f1ce9d98052..330118bd958cfc 100644
--- a/.github/workflows/chef.yaml
+++ b/.github/workflows/chef.yaml
@@ -96,7 +96,7 @@ jobs:
         if: github.actor != 'restyled-io[bot]'
 
         container:
-            image: ghcr.io/project-chip/chip-build-telink:12
+            image: ghcr.io/project-chip/chip-build-telink:16
             options: --user root
 
         steps:
diff --git a/.github/workflows/examples-telink.yaml b/.github/workflows/examples-telink.yaml
index 993f63d1e4bb5d..7951fe5ac46d1e 100644
--- a/.github/workflows/examples-telink.yaml
+++ b/.github/workflows/examples-telink.yaml
@@ -36,7 +36,7 @@ jobs:
         if: github.actor != 'restyled-io[bot]'
 
         container:
-            image: ghcr.io/project-chip/chip-build-telink:12
+            image: ghcr.io/project-chip/chip-build-telink:16
             volumes:
                 - "/tmp/bloat_reports:/tmp/bloat_reports"
 
diff --git a/config/telink/chip-module/Kconfig.defaults b/config/telink/chip-module/Kconfig.defaults
index 9933e961ffbfb5..d70fff0d50f3fa 100644
--- a/config/telink/chip-module/Kconfig.defaults
+++ b/config/telink/chip-module/Kconfig.defaults
@@ -143,6 +143,10 @@ config B9X_BLE_CTRL_MASTER_MAX_NUM
 config B9X_BLE_CTRL_SLAVE_MAX_NUM
     default 1
 
+config B9X_BLE_CTRL_RF_POWER
+    default 3 if PM 
+    default 9
+
 choice B9X_BLE_CTRL_MAC_TYPE
     default B9X_BLE_CTRL_MAC_TYPE_RANDOM_STATIC
 endchoice
@@ -220,6 +224,10 @@ config OPENTHREAD_SLAAC
 config OPENTHREAD_MANUAL_START
     default y
 
+config OPENTHREAD_DEFAULT_TX_POWER
+    default 3 if PM
+    default 9
+
 config NET_TX_STACK_SIZE
     default 554 if PM
 
@@ -247,15 +255,6 @@ config MBEDTLS_USER_CONFIG_ENABLE
 config MBEDTLS_USER_CONFIG_FILE
     default "telink-mbedtls-config.h"
 
-config MBEDTLS_ENABLE_HEAP
-    default y
-
-# TBD: Something wrong with this heap. Need to be investigated. Cirrently just set minimal size
-config MBEDTLS_HEAP_SIZE
-    default 0
-
-config OPENTHREAD_EXTERNAL_HEAP
-    default y
 
 # getopt version
 config GETOPT_LONG
diff --git a/examples/all-clusters-app/telink/prj.conf b/examples/all-clusters-app/telink/prj.conf
index 8551f44e560424..f0e82ad971d4d8 100644
--- a/examples/all-clusters-app/telink/prj.conf
+++ b/examples/all-clusters-app/telink/prj.conf
@@ -55,7 +55,3 @@ CONFIG_CHIP_FACTORY_DATA_MERGE_WITH_FIRMWARE=n
 
 # Enable Power Management
 CONFIG_PM=n
-
-# Custom RF power values
-CONFIG_B9X_BLE_CTRL_RF_POWER_P9P11DBM=y
-CONFIG_OPENTHREAD_DEFAULT_TX_POWER=9
diff --git a/examples/all-clusters-minimal-app/telink/prj.conf b/examples/all-clusters-minimal-app/telink/prj.conf
index 0e540f339d8d1f..8b63c719c3875c 100644
--- a/examples/all-clusters-minimal-app/telink/prj.conf
+++ b/examples/all-clusters-minimal-app/telink/prj.conf
@@ -53,7 +53,3 @@ CONFIG_CHIP_CERTIFICATION_DECLARATION_STORAGE=n
 
 # Enable Power Management
 CONFIG_PM=n
-
-# Custom RF power values
-CONFIG_B9X_BLE_CTRL_RF_POWER_P9P11DBM=y
-CONFIG_OPENTHREAD_DEFAULT_TX_POWER=9
diff --git a/examples/bridge-app/telink/prj.conf b/examples/bridge-app/telink/prj.conf
index fa580fce1076c5..c6365484b80b22 100644
--- a/examples/bridge-app/telink/prj.conf
+++ b/examples/bridge-app/telink/prj.conf
@@ -56,7 +56,3 @@ CONFIG_CHIP_CERTIFICATION_DECLARATION_STORAGE=n
 
 # Enable Power Management
 CONFIG_PM=n
-
-# Custom RF power values
-CONFIG_B9X_BLE_CTRL_RF_POWER_P9P11DBM=y
-CONFIG_OPENTHREAD_DEFAULT_TX_POWER=9
diff --git a/examples/chef/telink/prj.conf b/examples/chef/telink/prj.conf
index 9a15c1d2ac621e..b5986b7d07a5bc 100755
--- a/examples/chef/telink/prj.conf
+++ b/examples/chef/telink/prj.conf
@@ -55,7 +55,3 @@ CONFIG_CHIP_CERTIFICATION_DECLARATION_STORAGE=n
 
 # Enable Power Management
 CONFIG_PM=n
-
-# Custom RF power values
-CONFIG_B9X_BLE_CTRL_RF_POWER_P9P11DBM=y
-CONFIG_OPENTHREAD_DEFAULT_TX_POWER=9
diff --git a/examples/lighting-app/telink/prj.conf b/examples/lighting-app/telink/prj.conf
index c5371f92565214..0c71925928bec0 100644
--- a/examples/lighting-app/telink/prj.conf
+++ b/examples/lighting-app/telink/prj.conf
@@ -56,7 +56,3 @@ CONFIG_CHIP_CERTIFICATION_DECLARATION_STORAGE=n
 
 # Enable Power Management
 CONFIG_PM=n
-
-# Custom RF power values
-CONFIG_B9X_BLE_CTRL_RF_POWER_P9P11DBM=y
-CONFIG_OPENTHREAD_DEFAULT_TX_POWER=9
\ No newline at end of file
diff --git a/examples/ota-requestor-app/telink/prj.conf b/examples/ota-requestor-app/telink/prj.conf
index e854a2167fc02a..82f29519af3bcb 100755
--- a/examples/ota-requestor-app/telink/prj.conf
+++ b/examples/ota-requestor-app/telink/prj.conf
@@ -56,7 +56,3 @@ CONFIG_CHIP_LIB_SHELL=n
 
 # Enable Power Management
 CONFIG_PM=n
-
-# Custom RF power values
-CONFIG_B9X_BLE_CTRL_RF_POWER_P9P11DBM=y
-CONFIG_OPENTHREAD_DEFAULT_TX_POWER=9
diff --git a/examples/platform/telink/project_include/OpenThreadConfig.h b/examples/platform/telink/project_include/OpenThreadConfig.h
index 381b5e09bb07fc..eabe238820ae7f 100644
--- a/examples/platform/telink/project_include/OpenThreadConfig.h
+++ b/examples/platform/telink/project_include/OpenThreadConfig.h
@@ -35,9 +35,6 @@
 
 #define OPENTHREAD_CONFIG_LOG_OUTPUT OPENTHREAD_CONFIG_LOG_OUTPUT_DEBUG_UART
 
-#undef OPENTHREAD_CONFIG_ENABLE_BUILTIN_MBEDTLS_MANAGEMENT
-#define OPENTHREAD_CONFIG_ENABLE_BUILTIN_MBEDTLS_MANAGEMENT 1
-
 #undef OPENTHREAD_CONFIG_LOG_LEVEL
 #if (CONFIG_LOG_MODE_MINIMAL)
 #define OPENTHREAD_CONFIG_LOG_LEVEL OT_LOG_LEVEL_NONE
diff --git a/examples/shell/telink/prj.conf b/examples/shell/telink/prj.conf
index 53bdac24f943de..88846b63b4aa15 100755
--- a/examples/shell/telink/prj.conf
+++ b/examples/shell/telink/prj.conf
@@ -55,7 +55,3 @@ CONFIG_CHIP_CERTIFICATION_DECLARATION_STORAGE=n
 
 # Enable Power Management
 CONFIG_PM=n
-
-# Custom RF power values
-CONFIG_B9X_BLE_CTRL_RF_POWER_P9P11DBM=y
-CONFIG_OPENTHREAD_DEFAULT_TX_POWER=9
diff --git a/src/platform/Zephyr/PlatformManagerImpl.cpp b/src/platform/Zephyr/PlatformManagerImpl.cpp
index 0e5aac4bda8dda..c900d072778c61 100644
--- a/src/platform/Zephyr/PlatformManagerImpl.cpp
+++ b/src/platform/Zephyr/PlatformManagerImpl.cpp
@@ -45,7 +45,7 @@ PlatformManagerImpl PlatformManagerImpl::sInstance{ sChipThreadStack };
 
 static k_timer sOperationalHoursSavingTimer;
 
-#if !CONFIG_NORDIC_SECURITY_BACKEND
+#if !CONFIG_NORDIC_SECURITY_BACKEND && !defined(CONFIG_MBEDTLS_ZEPHYR_ENTROPY)
 static int app_entropy_source(void * data, unsigned char * output, size_t len, size_t * olen)
 {
     const struct device * entropy = DEVICE_DT_GET(DT_CHOSEN(zephyr_entropy));
@@ -71,7 +71,7 @@ static int app_entropy_source(void * data, unsigned char * output, size_t len, s
 
     return ret;
 }
-#endif // !CONFIG_NORDIC_SECURITY_BACKEND
+#endif // !CONFIG_NORDIC_SECURITY_BACKEND && !defined(CONFIG_MBEDTLS_ZEPHYR_ENTROPY)
 
 void PlatformManagerImpl::OperationalHoursSavingTimerEventHandler(k_timer * timer)
 {
@@ -108,20 +108,20 @@ CHIP_ERROR PlatformManagerImpl::_InitChipStack(void)
 {
     CHIP_ERROR err;
 
-#if !CONFIG_NORDIC_SECURITY_BACKEND
+#if !CONFIG_NORDIC_SECURITY_BACKEND && !defined(CONFIG_MBEDTLS_ZEPHYR_ENTROPY)
     // Minimum required from source before entropy is released ( with mbedtls_entropy_func() ) (in bytes)
     const size_t kThreshold = 16;
-#endif // !CONFIG_NORDIC_SECURITY_BACKEND
+#endif // !CONFIG_NORDIC_SECURITY_BACKEND && !defined(CONFIG_MBEDTLS_ZEPHYR_ENTROPY)
 
     // Initialize the configuration system.
     err = Internal::ZephyrConfig::Init();
     SuccessOrExit(err);
 
-#if !CONFIG_NORDIC_SECURITY_BACKEND
+#if !CONFIG_NORDIC_SECURITY_BACKEND && !defined(CONFIG_MBEDTLS_ZEPHYR_ENTROPY)
     // Add entropy source based on Zephyr entropy driver
     err = chip::Crypto::add_entropy_source(app_entropy_source, NULL, kThreshold);
     SuccessOrExit(err);
-#endif // !CONFIG_NORDIC_SECURITY_BACKEND
+#endif // !CONFIG_NORDIC_SECURITY_BACKEND && !defined(CONFIG_MBEDTLS_ZEPHYR_ENTROPY)
 
     // Call _InitChipStack() on the generic implementation base class to finish the initialization process.
     err = Internal::GenericPlatformManagerImpl_Zephyr<PlatformManagerImpl>::_InitChipStack();
diff --git a/src/platform/telink/telink-mbedtls-config.h b/src/platform/telink/telink-mbedtls-config.h
index ccd3de88f1f77e..23d7d97bc43c9a 100644
--- a/src/platform/telink/telink-mbedtls-config.h
+++ b/src/platform/telink/telink-mbedtls-config.h
@@ -24,6 +24,14 @@
 #ifndef MBEDTLS_TSLR9_CONF_H
 #define MBEDTLS_TSLR9_CONF_H
 
+#ifdef MBEDTLS_PLATFORM_MEMORY
+#undef MBEDTLS_PLATFORM_MEMORY
+#endif
+
+#ifdef MBEDTLS_MEMORY_BUFFER_ALLOC_C
+#undef MBEDTLS_MEMORY_BUFFER_ALLOC_C
+#endif
+
 #define MBEDTLS_HKDF_C
 #define MBEDTLS_PKCS5_C
 #define MBEDTLS_X509_CREATE_C