diff --git a/include/zephyr/net/net_conn_mgr.h b/include/zephyr/net/conn_mgr.h
similarity index 56%
rename from include/zephyr/net/net_conn_mgr.h
rename to include/zephyr/net/conn_mgr.h
index 1d85a23a5cd..bd6b4e5d3fc 100644
--- a/include/zephyr/net/net_conn_mgr.h
+++ b/include/zephyr/net/conn_mgr.h
@@ -4,8 +4,8 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 
-#ifndef ZEPHYR_INCLUDE_NET_CONN_MGR_H_
-#define ZEPHYR_INCLUDE_NET_CONN_MGR_H_
+#ifndef ZEPHYR_INCLUDE_CONN_MGR_H_
+#define ZEPHYR_INCLUDE_CONN_MGR_H_
 
 #ifdef __cplusplus
 extern "C" {
@@ -13,11 +13,11 @@ extern "C" {
 
 #if defined(CONFIG_NET_CONNECTION_MANAGER)
 
-void net_conn_mgr_resend_status(void);
+void conn_mgr_resend_status(void);
 
 #else
 
-#define net_conn_mgr_resend_status(...)
+#define conn_mgr_resend_status(...)
 
 #endif /* CONFIG_NET_CONNECTION_MANAGER */
 
@@ -25,4 +25,4 @@ void net_conn_mgr_resend_status(void);
 }
 #endif
 
-#endif /* ZEPHYR_INCLUDE_NET_CONN_MGR_H_ */
+#endif /* ZEPHYR_INCLUDE_CONN_MGR_H_ */
diff --git a/include/zephyr/shell/shell_mqtt.h b/include/zephyr/shell/shell_mqtt.h
index f709ffd1ed0..c1120527f5d 100644
--- a/include/zephyr/shell/shell_mqtt.h
+++ b/include/zephyr/shell/shell_mqtt.h
@@ -12,7 +12,7 @@
 #include <zephyr/net/socket.h>
 #include <zephyr/net/net_mgmt.h>
 #include <zephyr/net/net_event.h>
-#include <zephyr/net/net_conn_mgr.h>
+#include <zephyr/net/conn_mgr.h>
 #include <zephyr/net/mqtt.h>
 #include <zephyr/sys/ring_buffer.h>
 
diff --git a/samples/net/gsm_modem/src/main.c b/samples/net/gsm_modem/src/main.c
index 3ee50df53e0..8e9d0a7521a 100644
--- a/samples/net/gsm_modem/src/main.c
+++ b/samples/net/gsm_modem/src/main.c
@@ -10,7 +10,7 @@
 #include <zephyr/drivers/uart.h>
 #include <zephyr/net/net_mgmt.h>
 #include <zephyr/net/net_event.h>
-#include <zephyr/net/net_conn_mgr.h>
+#include <zephyr/net/conn_mgr.h>
 #include <zephyr/drivers/modem/gsm_ppp.h>
 #include <zephyr/devicetree.h>
 
diff --git a/samples/net/mqtt_sn_publisher/src/main.c b/samples/net/mqtt_sn_publisher/src/main.c
index ebeda9f455a..efacb696dd0 100644
--- a/samples/net/mqtt_sn_publisher/src/main.c
+++ b/samples/net/mqtt_sn_publisher/src/main.c
@@ -11,7 +11,7 @@
 
 #include <zephyr/kernel.h>
 #include <zephyr/net/mqtt_sn.h>
-#include <zephyr/net/net_conn_mgr.h>
+#include <zephyr/net/conn_mgr.h>
 #include <zephyr/net/net_mgmt.h>
 #include <zephyr/net/socket.h>
 
@@ -79,7 +79,7 @@ static void init_app(void)
 		net_mgmt_init_event_callback(&mgmt_cb, net_event_handler, EVENT_MASK);
 		net_mgmt_add_event_callback(&mgmt_cb);
 
-		net_conn_mgr_resend_status();
+		conn_mgr_resend_status();
 	}
 }
 
diff --git a/samples/net/mqtt_sn_publisher/src/udp.c b/samples/net/mqtt_sn_publisher/src/udp.c
index fb96e71ae79..a47bc693221 100644
--- a/samples/net/mqtt_sn_publisher/src/udp.c
+++ b/samples/net/mqtt_sn_publisher/src/udp.c
@@ -10,7 +10,7 @@
 #include <stdio.h>
 #include <zephyr/kernel.h>
 #include <zephyr/net/mqtt_sn.h>
-#include <zephyr/net/net_conn_mgr.h>
+#include <zephyr/net/conn_mgr.h>
 #include <zephyr/net/net_mgmt.h>
 #include <zephyr/net/socket.h>
 
diff --git a/samples/net/sockets/dumb_http_server_mt/src/main.c b/samples/net/sockets/dumb_http_server_mt/src/main.c
index a4f3d1365f5..77b7a836f75 100644
--- a/samples/net/sockets/dumb_http_server_mt/src/main.c
+++ b/samples/net/sockets/dumb_http_server_mt/src/main.c
@@ -16,7 +16,7 @@ LOG_MODULE_REGISTER(net_dumb_http_srv_mt_sample);
 
 #include <zephyr/net/net_mgmt.h>
 #include <zephyr/net/net_event.h>
-#include <zephyr/net/net_conn_mgr.h>
+#include <zephyr/net/conn_mgr.h>
 
 #define MY_PORT 8080
 
@@ -426,7 +426,7 @@ int main(void)
 					     event_handler, EVENT_MASK);
 		net_mgmt_add_event_callback(&mgmt_cb);
 
-		net_conn_mgr_resend_status();
+		conn_mgr_resend_status();
 	}
 
 	if (!IS_ENABLED(CONFIG_NET_CONNECTION_MANAGER)) {
diff --git a/samples/net/sockets/echo_client/src/echo-client.c b/samples/net/sockets/echo_client/src/echo-client.c
index 351131edbf7..c211de8f3c9 100644
--- a/samples/net/sockets/echo_client/src/echo-client.c
+++ b/samples/net/sockets/echo_client/src/echo-client.c
@@ -29,7 +29,7 @@ LOG_MODULE_REGISTER(net_echo_client_sample, LOG_LEVEL_DBG);
 
 #include <zephyr/net/net_mgmt.h>
 #include <zephyr/net/net_event.h>
-#include <zephyr/net/net_conn_mgr.h>
+#include <zephyr/net/conn_mgr.h>
 
 #if defined(CONFIG_USERSPACE)
 #include <zephyr/app_memory/app_memdomain.h>
@@ -271,7 +271,7 @@ static void init_app(void)
 					     event_handler, EVENT_MASK);
 		net_mgmt_add_event_callback(&mgmt_cb);
 
-		net_conn_mgr_resend_status();
+		conn_mgr_resend_status();
 	}
 
 	init_vlan();
diff --git a/samples/net/sockets/echo_server/src/echo-server.c b/samples/net/sockets/echo_server/src/echo-server.c
index 2b9cd278514..c5a1ae0e0a6 100644
--- a/samples/net/sockets/echo_server/src/echo-server.c
+++ b/samples/net/sockets/echo_server/src/echo-server.c
@@ -20,7 +20,7 @@ LOG_MODULE_REGISTER(net_echo_server_sample, LOG_LEVEL_DBG);
 
 #include <zephyr/net/net_mgmt.h>
 #include <zephyr/net/net_event.h>
-#include <zephyr/net/net_conn_mgr.h>
+#include <zephyr/net/conn_mgr.h>
 
 #include "common.h"
 #include "certificate.h"
@@ -196,7 +196,7 @@ static void init_app(void)
 					     event_handler, EVENT_MASK);
 		net_mgmt_add_event_callback(&mgmt_cb);
 
-		net_conn_mgr_resend_status();
+		conn_mgr_resend_status();
 	}
 
 	init_vlan();
@@ -210,7 +210,7 @@ static int cmd_sample_quit(const struct shell *sh,
 {
 	want_to_quit = true;
 
-	net_conn_mgr_resend_status();
+	conn_mgr_resend_status();
 
 	quit();
 
diff --git a/samples/net/sockets/txtime/src/main.c b/samples/net/sockets/txtime/src/main.c
index 674fd83e54e..38ed702797b 100644
--- a/samples/net/sockets/txtime/src/main.c
+++ b/samples/net/sockets/txtime/src/main.c
@@ -16,7 +16,7 @@ LOG_MODULE_REGISTER(net_txtime_sample, LOG_LEVEL_DBG);
 
 #include <zephyr/net/net_mgmt.h>
 #include <zephyr/net/net_event.h>
-#include <zephyr/net/net_conn_mgr.h>
+#include <zephyr/net/conn_mgr.h>
 
 #include <zephyr/net/socket.h>
 #include <zephyr/net/ethernet.h>
@@ -497,7 +497,7 @@ static int cmd_sample_quit(const struct shell *sh,
 
 	quit();
 
-	net_conn_mgr_resend_status();
+	conn_mgr_resend_status();
 
 	return 0;
 }
@@ -535,7 +535,7 @@ int main(void)
 			net_mgmt_add_event_callback(&dhcpv4_cb);
 		}
 
-		net_conn_mgr_resend_status();
+		conn_mgr_resend_status();
 	}
 
 	/* The VLAN in this example is created for demonstration purposes.
diff --git a/samples/subsys/mgmt/updatehub/src/main.c b/samples/subsys/mgmt/updatehub/src/main.c
index efb941d7f53..9e51c7e7b2d 100644
--- a/samples/subsys/mgmt/updatehub/src/main.c
+++ b/samples/subsys/mgmt/updatehub/src/main.c
@@ -8,7 +8,7 @@
 #include <zephyr/mgmt/updatehub.h>
 #include <zephyr/net/net_mgmt.h>
 #include <zephyr/net/net_event.h>
-#include <zephyr/net/net_conn_mgr.h>
+#include <zephyr/net/conn_mgr.h>
 #include <zephyr/net/wifi_mgmt.h>
 
 #if defined(CONFIG_UPDATEHUB_DTLS)
@@ -150,6 +150,6 @@ int main(void)
 
 	net_mgmt_init_event_callback(&mgmt_cb, event_handler, EVENT_MASK);
 	net_mgmt_add_event_callback(&mgmt_cb);
-	net_conn_mgr_resend_status();
+	conn_mgr_resend_status();
 	return 0;
 }
diff --git a/subsys/mgmt/mcumgr/transport/src/smp_udp.c b/subsys/mgmt/mcumgr/transport/src/smp_udp.c
index aab40d4e211..ef01ac8515b 100644
--- a/subsys/mgmt/mcumgr/transport/src/smp_udp.c
+++ b/subsys/mgmt/mcumgr/transport/src/smp_udp.c
@@ -30,7 +30,7 @@
 #include <zephyr/mgmt/mcumgr/mgmt/handlers.h>
 #include <zephyr/net/net_mgmt.h>
 #include <zephyr/net/net_event.h>
-#include <zephyr/net/net_conn_mgr.h>
+#include <zephyr/net/conn_mgr.h>
 #endif
 
 #define LOG_LEVEL CONFIG_MCUMGR_LOG_LEVEL
@@ -316,7 +316,7 @@ static void smp_udp_start(void)
 	net_mgmt_init_event_callback(&smp_udp_mgmt_cb, smp_udp_net_event_handler,
 				     (NET_EVENT_L4_CONNECTED | NET_EVENT_L4_DISCONNECTED));
 	net_mgmt_add_event_callback(&smp_udp_mgmt_cb);
-	net_conn_mgr_resend_status();
+	conn_mgr_resend_status();
 }
 
 MCUMGR_HANDLER_DEFINE(smp_udp, smp_udp_start);
diff --git a/subsys/net/CMakeLists.txt b/subsys/net/CMakeLists.txt
index 35fab9994e4..f9cf4940a43 100644
--- a/subsys/net/CMakeLists.txt
+++ b/subsys/net/CMakeLists.txt
@@ -20,3 +20,4 @@ if(CONFIG_NETWORKING)
 endif()
 
 add_subdirectory(lib)
+add_subdirectory_ifdef(CONFIG_NET_CONNECTION_MANAGER conn_mgr)
diff --git a/subsys/net/Kconfig b/subsys/net/Kconfig
index a8b8f94c44b..fad47cfe881 100644
--- a/subsys/net/Kconfig
+++ b/subsys/net/Kconfig
@@ -80,6 +80,8 @@ source "subsys/net/pkt_filter/Kconfig"
 
 source "subsys/net/lib/Kconfig"
 
+source "subsys/net/conn_mgr/Kconfig"
+
 endif
 
 endmenu
diff --git a/subsys/net/lib/conn_mgr/CMakeLists.txt b/subsys/net/conn_mgr/CMakeLists.txt
similarity index 100%
rename from subsys/net/lib/conn_mgr/CMakeLists.txt
rename to subsys/net/conn_mgr/CMakeLists.txt
diff --git a/subsys/net/lib/conn_mgr/Kconfig b/subsys/net/conn_mgr/Kconfig
similarity index 100%
rename from subsys/net/lib/conn_mgr/Kconfig
rename to subsys/net/conn_mgr/Kconfig
diff --git a/subsys/net/lib/conn_mgr/conn_mgr.c b/subsys/net/conn_mgr/conn_mgr.c
similarity index 82%
rename from subsys/net/lib/conn_mgr/conn_mgr.c
rename to subsys/net/conn_mgr/conn_mgr.c
index c81033ec30d..ebae5e1df75 100644
--- a/subsys/net/lib/conn_mgr/conn_mgr.c
+++ b/subsys/net/conn_mgr/conn_mgr.c
@@ -15,7 +15,7 @@ LOG_MODULE_REGISTER(conn_mgr, CONFIG_NET_CONNECTION_MANAGER_LOG_LEVEL);
 #include <zephyr/net/net_mgmt.h>
 
 #include <zephyr/net/conn_mgr_connectivity.h>
-#include <conn_mgr.h>
+#include "conn_mgr_private.h"
 
 #if defined(CONFIG_NET_TC_THREAD_COOPERATIVE)
 #define THREAD_PRIORITY K_PRIO_COOP(CONFIG_NUM_COOP_PRIORITIES - 1)
@@ -27,43 +27,43 @@ uint16_t iface_states[CONN_MGR_IFACE_MAX];
 
 K_SEM_DEFINE(conn_mgr_lock, 1, K_SEM_MAX_LIMIT);
 
-static enum net_conn_mgr_state conn_mgr_iface_status(int index)
+static enum conn_mgr_state conn_mgr_iface_status(int index)
 {
 	if (iface_states[index] & NET_STATE_IFACE_UP) {
-		return NET_CONN_MGR_STATE_CONNECTED;
+		return CONN_MGR_STATE_CONNECTED;
 	}
 
-	return NET_CONN_MGR_STATE_DISCONNECTED;
+	return CONN_MGR_STATE_DISCONNECTED;
 }
 
 #if defined(CONFIG_NET_IPV6)
-static enum net_conn_mgr_state conn_mgr_ipv6_status(int index)
+static enum conn_mgr_state conn_mgr_ipv6_status(int index)
 {
 	if ((iface_states[index] & CONN_MGR_IPV6_STATUS_MASK) ==
 	    CONN_MGR_IPV6_STATUS_MASK) {
 		NET_DBG("IPv6 connected on iface index %u", index + 1);
-		return NET_CONN_MGR_STATE_CONNECTED;
+		return CONN_MGR_STATE_CONNECTED;
 	}
 
-	return NET_CONN_MGR_STATE_DISCONNECTED;
+	return CONN_MGR_STATE_DISCONNECTED;
 }
 #else
-#define conn_mgr_ipv6_status(...) NET_CONN_MGR_STATE_CONNECTED
+#define conn_mgr_ipv6_status(...) CONN_MGR_STATE_CONNECTED
 #endif /* CONFIG_NET_IPV6 */
 
 #if defined(CONFIG_NET_IPV4)
-static enum net_conn_mgr_state conn_mgr_ipv4_status(int index)
+static enum conn_mgr_state conn_mgr_ipv4_status(int index)
 {
 	if ((iface_states[index] & CONN_MGR_IPV4_STATUS_MASK) ==
 	    CONN_MGR_IPV4_STATUS_MASK) {
 		NET_DBG("IPv4 connected on iface index %u", index + 1);
-		return NET_CONN_MGR_STATE_CONNECTED;
+		return CONN_MGR_STATE_CONNECTED;
 	}
 
-	return NET_CONN_MGR_STATE_DISCONNECTED;
+	return CONN_MGR_STATE_DISCONNECTED;
 }
 #else
-#define conn_mgr_ipv4_status(...) NET_CONN_MGR_STATE_CONNECTED
+#define conn_mgr_ipv4_status(...) CONN_MGR_STATE_CONNECTED
 #endif /* CONFIG_NET_IPV4 */
 
 static void conn_mgr_notify_status(int index)
@@ -90,7 +90,7 @@ static void conn_mgr_act_on_changes(void)
 	int idx;
 
 	for (idx = 0; idx < ARRAY_SIZE(iface_states); idx++) {
-		enum net_conn_mgr_state state;
+		enum conn_mgr_state state;
 
 		if (iface_states[idx] == 0) {
 			/* This interface is not used */
@@ -101,12 +101,11 @@ static void conn_mgr_act_on_changes(void)
 			continue;
 		}
 
-		state = NET_CONN_MGR_STATE_CONNECTED;
+		state = CONN_MGR_STATE_CONNECTED;
 
 		state &= conn_mgr_iface_status(idx);
 		if (state) {
-			enum net_conn_mgr_state ip_state =
-				NET_CONN_MGR_STATE_DISCONNECTED;
+			enum conn_mgr_state ip_state = CONN_MGR_STATE_DISCONNECTED;
 
 			if (IS_ENABLED(CONFIG_NET_IPV6)) {
 				ip_state |= conn_mgr_ipv6_status(idx);
@@ -121,12 +120,12 @@ static void conn_mgr_act_on_changes(void)
 
 		iface_states[idx] &= ~NET_STATE_CHANGED;
 
-		if (state == NET_CONN_MGR_STATE_CONNECTED &&
+		if (state == CONN_MGR_STATE_CONNECTED &&
 		    !(iface_states[idx] & NET_STATE_CONNECTED)) {
 			iface_states[idx] |= NET_STATE_CONNECTED;
 
 			conn_mgr_notify_status(idx);
-		} else if (state != NET_CONN_MGR_STATE_CONNECTED &&
+		} else if (state != CONN_MGR_STATE_CONNECTED &&
 			   (iface_states[idx] & NET_STATE_CONNECTED)) {
 			iface_states[idx] &= ~NET_STATE_CONNECTED;
 
@@ -194,7 +193,7 @@ K_THREAD_DEFINE(conn_mgr, CONFIG_NET_CONNECTION_MANAGER_STACK_SIZE,
 		(k_thread_entry_t)conn_mgr_handler, NULL, NULL, NULL,
 		THREAD_PRIORITY, 0, 0);
 
-void net_conn_mgr_resend_status(void)
+void conn_mgr_resend_status(void)
 {
 	int idx;
 
diff --git a/subsys/net/lib/conn_mgr/conn_mgr.ld b/subsys/net/conn_mgr/conn_mgr.ld
similarity index 100%
rename from subsys/net/lib/conn_mgr/conn_mgr.ld
rename to subsys/net/conn_mgr/conn_mgr.ld
diff --git a/subsys/net/lib/conn_mgr/conn_mgr_connectivity.c b/subsys/net/conn_mgr/conn_mgr_connectivity.c
similarity index 100%
rename from subsys/net/lib/conn_mgr/conn_mgr_connectivity.c
rename to subsys/net/conn_mgr/conn_mgr_connectivity.c
diff --git a/subsys/net/lib/conn_mgr/conn_mgr.h b/subsys/net/conn_mgr/conn_mgr_private.h
similarity index 87%
rename from subsys/net/lib/conn_mgr/conn_mgr.h
rename to subsys/net/conn_mgr/conn_mgr_private.h
index 0f1c8ecd24b..821780aeda4 100644
--- a/subsys/net/lib/conn_mgr/conn_mgr.h
+++ b/subsys/net/conn_mgr/conn_mgr_private.h
@@ -4,8 +4,8 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 
-#ifndef __CONN_MGR_H__
-#define __CONN_MGR_H__
+#ifndef __CONN_MGR_PRV_H__
+#define __CONN_MGR_PRV_H__
 
 #if defined(CONFIG_NET_IPV6) && defined(CONFIG_NET_IPV4)
 #define CONN_MGR_IFACE_MAX		MAX(CONFIG_NET_IF_MAX_IPV6_COUNT, \
@@ -42,11 +42,11 @@
 
 extern struct k_sem conn_mgr_lock;
 
-enum net_conn_mgr_state {
-	NET_CONN_MGR_STATE_DISCONNECTED	= 0,
-	NET_CONN_MGR_STATE_CONNECTED	= 1,
+enum conn_mgr_state {
+	CONN_MGR_STATE_DISCONNECTED	= 0,
+	CONN_MGR_STATE_CONNECTED	= 1,
 };
 
 void conn_mgr_init_events_handler(void);
 
-#endif /* __CONN_MGR_H__ */
+#endif /* __CONN_MGR_PRV_H__ */
diff --git a/subsys/net/lib/conn_mgr/events_handler.c b/subsys/net/conn_mgr/events_handler.c
similarity index 99%
rename from subsys/net/lib/conn_mgr/events_handler.c
rename to subsys/net/conn_mgr/events_handler.c
index 551420df49f..fa227048e23 100644
--- a/subsys/net/lib/conn_mgr/events_handler.c
+++ b/subsys/net/conn_mgr/events_handler.c
@@ -11,7 +11,7 @@ LOG_MODULE_DECLARE(conn_mgr, CONFIG_NET_CONNECTION_MANAGER_LOG_LEVEL);
 #include <zephyr/net/net_if.h>
 #include <zephyr/net/net_mgmt.h>
 
-#include <conn_mgr.h>
+#include "conn_mgr_private.h"
 
 extern uint16_t iface_states[CONN_MGR_IFACE_MAX];
 
diff --git a/subsys/net/lib/CMakeLists.txt b/subsys/net/lib/CMakeLists.txt
index 9161026d910..6c045b58692 100644
--- a/subsys/net/lib/CMakeLists.txt
+++ b/subsys/net/lib/CMakeLists.txt
@@ -11,7 +11,6 @@ add_subdirectory_ifdef(CONFIG_TFTP_LIB               tftp)
 add_subdirectory_ifdef(CONFIG_NET_CONFIG_SETTINGS    config)
 add_subdirectory_ifdef(CONFIG_NET_SOCKETS            sockets)
 add_subdirectory_ifdef(CONFIG_TLS_CREDENTIALS        tls_credentials)
-add_subdirectory_ifdef(CONFIG_NET_CONNECTION_MANAGER conn_mgr)
 add_subdirectory_ifdef(CONFIG_NET_CAPTURE            capture)
 add_subdirectory_ifdef(CONFIG_NET_ZPERF              zperf)
 
diff --git a/subsys/net/lib/Kconfig b/subsys/net/lib/Kconfig
index ca59d89a66b..5df4a445885 100644
--- a/subsys/net/lib/Kconfig
+++ b/subsys/net/lib/Kconfig
@@ -37,8 +37,6 @@ endmenu
 
 menu "Network additional services"
 
-source "subsys/net/lib/conn_mgr/Kconfig"
-
 source "subsys/net/lib/capture/Kconfig"
 
 source "subsys/net/lib/zperf/Kconfig"
diff --git a/subsys/shell/backends/shell_mqtt.c b/subsys/shell/backends/shell_mqtt.c
index 8b535a96015..58654dcf400 100644
--- a/subsys/shell/backends/shell_mqtt.c
+++ b/subsys/shell/backends/shell_mqtt.c
@@ -716,7 +716,7 @@ static int enable(const struct shell_transport *transport, bool blocking)
 
 	/* Listen for network connection status */
 	net_mgmt_add_event_callback(&sh_mqtt->mgmt_cb);
-	net_conn_mgr_resend_status();
+	conn_mgr_resend_status();
 
 	return 0;
 }