diff --git a/MAINTAINERS.yml b/MAINTAINERS.yml
index db87c7a143d..b7ce60cd3a1 100644
--- a/MAINTAINERS.yml
+++ b/MAINTAINERS.yml
@@ -2587,7 +2587,6 @@ Utilities:
     - tests/unit/list/
     - tests/unit/intmath/
     - tests/unit/pot/
-    - tests/lib/time/
     - tests/lib/onoff/
     - tests/lib/sys_util/
     - tests/lib/sprintf/
diff --git a/tests/lib/time/CMakeLists.txt b/tests/lib/c_lib/time/CMakeLists.txt
similarity index 100%
rename from tests/lib/time/CMakeLists.txt
rename to tests/lib/c_lib/time/CMakeLists.txt
diff --git a/tests/lib/c_lib/time/prj.conf b/tests/lib/c_lib/time/prj.conf
new file mode 100644
index 00000000000..97b1a4e7da2
--- /dev/null
+++ b/tests/lib/c_lib/time/prj.conf
@@ -0,0 +1,2 @@
+CONFIG_ZTEST=y
+CONFIG_PICOLIBC=y
diff --git a/tests/lib/time/src/main.c b/tests/lib/c_lib/time/src/main.c
similarity index 83%
rename from tests/lib/time/src/main.c
rename to tests/lib/c_lib/time/src/main.c
index 227ed25131f..e7346738a16 100644
--- a/tests/lib/time/src/main.c
+++ b/tests/lib/c_lib/time/src/main.c
@@ -37,7 +37,7 @@ ZTEST(libc_time, test_time_passing)
 		time_current = time(NULL);
 		zassert_equal(time_current, time_initial + i,
 			      "Current time (%d) does not match expected time (%d)",
-			      (int) time_current, (int) (time_initial + i));
+			      (int)time_current, (int)(time_initial + i));
 	}
 }
 
@@ -49,14 +49,12 @@ ZTEST(libc_time, test_time_param)
 
 	time_result = time(&time_param);
 
-	zassert_equal(time_result, time_param,
-		      "time() result does not match param value");
+	zassert_equal(time_result, time_param, "time() result does not match param value");
 
 	for (i = 0; i < 10; i++) {
 		k_sleep(K_SECONDS(1));
 
-		zassert_equal(time_result, time_param,
-		      "time() result does not match param value");
+		zassert_equal(time_result, time_param, "time() result does not match param value");
 	}
 }
 
diff --git a/tests/lib/time/testcase.yaml b/tests/lib/c_lib/time/testcase.yaml
similarity index 100%
rename from tests/lib/time/testcase.yaml
rename to tests/lib/c_lib/time/testcase.yaml
diff --git a/tests/lib/time/prj.conf b/tests/lib/time/prj.conf
deleted file mode 100644
index dd87f5a1338..00000000000
--- a/tests/lib/time/prj.conf
+++ /dev/null
@@ -1,4 +0,0 @@
-CONFIG_ZTEST=y
-CONFIG_POSIX_TIMERS=y
-CONFIG_XSI_SINGLE_PROCESS=y
-CONFIG_PICOLIBC=y