diff --git a/subsys/pm/Kconfig b/subsys/pm/Kconfig
index 6c097321c47..19078d02b81 100644
--- a/subsys/pm/Kconfig
+++ b/subsys/pm/Kconfig
@@ -53,6 +53,26 @@ config PM_NEED_ALL_DEVICES_IDLE
 	  When this option is enabled, check that no devices are busy before
 	  entering into system low power mode.
 
+choice PM_PREWAKEUP_CONV_MODE
+	prompt "Pre-wakeup microseconds to ticks conversion method"
+	default PM_PREWAKEUP_CONV_MODE_NEAR
+	help
+	  Exit latency for each power state is given in microseconds. It is converted
+	  to ticks and system clock is set to wake up the core earlier before scheduled
+	  wake up. This option specifies rounding that is used when converting exit
+	  latency from microseconds to system ticks.
+
+config PM_PREWAKEUP_CONV_MODE_NEAR
+	bool "Nearest"
+
+config PM_PREWAKEUP_CONV_MODE_CEIL
+	bool "Round up"
+
+config PM_PREWAKEUP_CONV_MODE_FLOOR
+	bool "Round down"
+
+endchoice
+
 endif # PM
 
 config PM_DEVICE
diff --git a/subsys/pm/pm.c b/subsys/pm/pm.c
index d85fd7ca7cd..cc2eeb39b93 100644
--- a/subsys/pm/pm.c
+++ b/subsys/pm/pm.c
@@ -26,6 +26,11 @@ LOG_MODULE_REGISTER(pm, CONFIG_PM_LOG_LEVEL);
 static ATOMIC_DEFINE(z_post_ops_required, CONFIG_MP_MAX_NUM_CPUS);
 static sys_slist_t pm_notifiers = SYS_SLIST_STATIC_INIT(&pm_notifiers);
 
+/* Convert exit-latency-us to ticks using specified method. */
+#define EXIT_LATENCY_US_TO_TICKS(us)						    \
+	IS_ENABLED(CONFIG_PM_PREWAKEUP_CONV_MODE_NEAR) ? k_us_to_ticks_near32(us) : \
+	IS_ENABLED(CONFIG_PM_PREWAKEUP_CONV_MODE_CEIL) ? k_us_to_ticks_ceil32(us) : \
+		k_us_to_ticks_floor32(us)
 /*
  * Properly initialize cpu power states. Do not make assumptions that
  * ACTIVE_STATE is 0
@@ -145,6 +150,7 @@ bool pm_system_suspend(int32_t kernel_ticks)
 	uint8_t id = CPU_ID;
 	k_spinlock_key_t key;
 	int32_t ticks, events_ticks;
+	uint32_t exit_latency_ticks;
 
 	SYS_PORT_TRACING_FUNC_ENTER(pm, system_suspend, kernel_ticks);
 
@@ -194,16 +200,13 @@ bool pm_system_suspend(int32_t kernel_ticks)
 	}
 #endif
 
-	if ((z_cpus_pm_state[id].exit_latency_us != 0) &&
-	    (ticks != K_TICKS_FOREVER)) {
+	exit_latency_ticks = EXIT_LATENCY_US_TO_TICKS(z_cpus_pm_state[id].exit_latency_us);
+	if ((exit_latency_ticks > 0) && (ticks != K_TICKS_FOREVER)) {
 		/*
 		 * We need to set the timer to interrupt a little bit early to
 		 * accommodate the time required by the CPU to fully wake up.
 		 */
-		sys_clock_set_timeout(ticks -
-		     k_us_to_ticks_ceil32(
-			     z_cpus_pm_state[id].exit_latency_us),
-				     true);
+		sys_clock_set_timeout(ticks - exit_latency_ticks, true);
 	}
 
 	/*