diff --git a/modules/trusted-firmware-m/CMakeLists.txt b/modules/trusted-firmware-m/CMakeLists.txt
index 05553a31992..cce52e45eb3 100644
--- a/modules/trusted-firmware-m/CMakeLists.txt
+++ b/modules/trusted-firmware-m/CMakeLists.txt
@@ -253,6 +253,8 @@ if (CONFIG_BUILD_WITH_TFM)
 
   list(APPEND TFM_CMAKE_ARGS -DTFM_TESTS_REVISION_CHECKS=OFF)
 
+  list(APPEND TFM_CMAKE_ARGS -DETHOS_DRIVER_PATH=${CONFIG_TFM_ETHOS_DRIVER_PATH_LOCAL})
+
   file(MAKE_DIRECTORY ${TFM_BINARY_DIR})
   add_custom_target(tfm_cmake
     DEPENDS ${TFM_BINARY_DIR}/CMakeCache.txt
diff --git a/modules/trusted-firmware-m/Kconfig.tfm b/modules/trusted-firmware-m/Kconfig.tfm
index 9e86bda7c6f..ade226a0a4f 100644
--- a/modules/trusted-firmware-m/Kconfig.tfm
+++ b/modules/trusted-firmware-m/Kconfig.tfm
@@ -310,6 +310,17 @@ config TFM_MCUBOOT_PATH_DOWNLOAD
 
 endchoice
 
+config TFM_ETHOS_DRIVER_PATH_LOCAL
+	string "Path to a locally available Ethos-U driver or an empty string"
+	default "${ZEPHYR_HAL_ETHOS_U_MODULE_DIR}"
+	help
+	  Path to a locally available Ethos-U driver to be used for TF-M builds or
+	  an empty string to allow TF-M to automatically fetch the Ethos-U
+	  driver from an external repository at build time.
+	  By default Zephyr's Ethos-U driver will be used. It is present in
+	  the hal_ethos_u module.
+	  Alternatively, applications can point to their own paths for Ethos-U driver.
+
 config TFM_QCBOR_PATH
 	string
 	prompt "Path to QCBOR or DOWNLOAD to fetch automatically"
diff --git a/west.yml b/west.yml
index 7890912a9de..fc4b808e1cc 100644
--- a/west.yml
+++ b/west.yml
@@ -353,7 +353,7 @@ manifest:
       groups:
         - tee
     - name: trusted-firmware-m
-      revision: fa020a8b001843bb5a115bc4692eaf6787e3d1de
+      revision: 3fb1f9e536b8fae5879c482ddd0f728052c3b509
       path: modules/tee/tf-m/trusted-firmware-m
       groups:
         - tee