diff --git a/config/nrfconnect/chip-module/Kconfig.defaults b/config/nrfconnect/chip-module/Kconfig.defaults
index 7dc0ac6c9d..301b536b1f 100644
--- a/config/nrfconnect/chip-module/Kconfig.defaults
+++ b/config/nrfconnect/chip-module/Kconfig.defaults
@@ -55,9 +55,13 @@ config HEAP_MEM_POOL_SIZE
     default 80000 if CHIP_WIFI
 
 config CHIP_MALLOC_SYS_HEAP_SIZE
-    default 28672 if CHIP_WIFI
+    default 30720 if CHIP_WIFI
     default 8192 if NET_L2_OPENTHREAD
 
+# We use sys_heap based allocators, so make sure we don't reserve unused libc heap anyway
+config COMMON_LIBC_MALLOC_ARENA_SIZE
+    default -1
+
 config NVS_LOOKUP_CACHE_SIZE
     default 512