diff --git a/doc/reference/power_management/index.rst b/doc/reference/power_management/index.rst
index 4ab7df3c0f2..ff062b80d54 100644
--- a/doc/reference/power_management/index.rst
+++ b/doc/reference/power_management/index.rst
@@ -480,9 +480,9 @@ the following configuration flags.
    This flag is enabled if the SOC interface and the devices support device power
    management.
 
-:code:`CONFIG_PM_DEVICE_IDLE`
+:code:`CONFIG_PM_DEVICE_RUNTIME`
 
-   This flag enables the Device Idle Power Management.
+   This flag enables the Runtime Power Management.
 
 API Reference
 *************
diff --git a/doc/zephyr.doxyfile.in b/doc/zephyr.doxyfile.in
index e21e7aa40e3..c27e278645f 100644
--- a/doc/zephyr.doxyfile.in
+++ b/doc/zephyr.doxyfile.in
@@ -1989,7 +1989,7 @@ PREDEFINED             = "CONFIG_ARCH_HAS_CUSTOM_BUSY_WAIT" \
                          "CONFIG_NET_UDP" \
                          "CONFIG_PM" \
                          "CONFIG_PM_DEVICE" \
-                         "CONFIG_PM_DEVICE_IDLE" \
+                         "CONFIG_PM_DEVICE_RUNTIME" \
                          "CONFIG_PWM_CAPTURE" \
                          "CONFIG_SCHED_CPU_MASK" \
                          "CONFIG_SCHED_DEADLINE" \
diff --git a/include/pm/device_runtime.h b/include/pm/device_runtime.h
index 418254a9ea2..aa67a3e333b 100644
--- a/include/pm/device_runtime.h
+++ b/include/pm/device_runtime.h
@@ -23,7 +23,7 @@ extern "C" {
  * @{
  */
 
-#ifdef CONFIG_PM_DEVICE_IDLE
+#ifdef CONFIG_PM_DEVICE_RUNTIME
 
 /**
  * @brief Enable device idle PM
diff --git a/samples/subsys/pm/device_pm/prj.conf b/samples/subsys/pm/device_pm/prj.conf
index 0d337662acb..4921dcc3392 100644
--- a/samples/subsys/pm/device_pm/prj.conf
+++ b/samples/subsys/pm/device_pm/prj.conf
@@ -1,3 +1,3 @@
 CONFIG_PM=y
 CONFIG_PM_DEVICE=y
-CONFIG_PM_DEVICE_IDLE=y
+CONFIG_PM_DEVICE_RUNTIME=y
diff --git a/subsys/pm/CMakeLists.txt b/subsys/pm/CMakeLists.txt
index 6dc9fc8a6df..a409f4c55af 100644
--- a/subsys/pm/CMakeLists.txt
+++ b/subsys/pm/CMakeLists.txt
@@ -3,5 +3,5 @@
 zephyr_sources_ifdef(CONFIG_PM    power.c)
 zephyr_sources_ifdef(CONFIG_PM    pm_ctrl.c)
 zephyr_sources_ifdef(CONFIG_PM_DEVICE device.c)
-zephyr_sources_ifdef(CONFIG_PM_DEVICE_IDLE	    device_pm.c)
+zephyr_sources_ifdef(CONFIG_PM_DEVICE_RUNTIME device_pm.c)
 add_subdirectory(policy)
diff --git a/subsys/pm/Kconfig b/subsys/pm/Kconfig
index 1a1facac742..d5b6fdfaaef 100644
--- a/subsys/pm/Kconfig
+++ b/subsys/pm/Kconfig
@@ -65,13 +65,12 @@ config PM_MAX_DEVICES
 	depends on PM_DEVICE
 	default 15
 
-config PM_DEVICE_IDLE
-	bool "Device Idle Power Management"
+config PM_DEVICE_RUNTIME
+	bool "Runtime Device Power Management"
 	depends on PM_DEVICE
 	select POLL
 	help
-	  Enable device Idle Power Management to save power.
-	  With device Idle PM enabled, devices can be suspended or
-	  resumed based on the device usage even while the CPU or
-	  system is running.
+	  Enable Runtime Power Management to save power. With device runtime PM
+	  enabled, devices can be suspended or resumed based on the device
+	  usage even while the CPU or system is running.
 endmenu
diff --git a/tests/subsys/pm/power_mgmt/prj.conf b/tests/subsys/pm/power_mgmt/prj.conf
index 51b5e0595a8..fe0acad1c70 100644
--- a/tests/subsys/pm/power_mgmt/prj.conf
+++ b/tests/subsys/pm/power_mgmt/prj.conf
@@ -1,6 +1,6 @@
 CONFIG_ZTEST=y
 CONFIG_PM=y
 CONFIG_PM_DEVICE=y
-CONFIG_PM_DEVICE_IDLE=y
+CONFIG_PM_DEVICE_RUNTIME=y
 CONFIG_PM_POLICY_APP=y
 CONFIG_MP_NUM_CPUS=1