diff --git a/modules/hostap/CMakeLists.txt b/modules/hostap/CMakeLists.txt
index 8a89329b10c839..e1bd8c6c232bcd 100644
--- a/modules/hostap/CMakeLists.txt
+++ b/modules/hostap/CMakeLists.txt
@@ -206,6 +206,7 @@ zephyr_library_sources_ifdef(CONFIG_WIFI_NM_WPA_SUPPLICANT_AP
 	${HOSTAP_SRC_BASE}/ap/mbo_ap.c
 	${HOSTAP_SRC_BASE}/ap/ctrl_iface_ap.c
 	${HOSTAP_SRC_BASE}/utils/crc32.c
+	${HOSTAP_SRC_BASE}/utils/ip_addr.c
 )
 
 zephyr_library_compile_definitions_ifdef(CONFIG_WIFI_NM_WPA_SUPPLICANT_AP
@@ -226,7 +227,6 @@ zephyr_include_directories_ifdef(CONFIG_WIFI_NM_HOSTAPD_AP
 
 zephyr_library_sources_ifdef(CONFIG_WIFI_NM_HOSTAPD_AP
 	${HOSTAP_SRC_BASE}/ap/acs.c
-	${HOSTAP_SRC_BASE}/utils/ip_addr.c
 	${WIFI_NM_HOSTAPD_BASE}/config_file.c
 	${WIFI_NM_HOSTAPD_BASE}/ctrl_iface.c
 	${WIFI_NM_HOSTAPD_BASE}/ctrl_iface_zephyr.c
@@ -243,6 +243,27 @@ zephyr_library_compile_definitions_ifdef(CONFIG_WIFI_NM_HOSTAPD_AP
 zephyr_library_sources_ifdef(CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO_NONE
 	${HOSTAP_SRC_BASE}/crypto/crypto_none.c
 	${HOSTAP_SRC_BASE}/crypto/tls_none.c
+
+	# FIXME: why do we need these when crypto is not selected?
+	${HOSTAP_SRC_BASE}/crypto/aes-wrap.c
+	${HOSTAP_SRC_BASE}/crypto/aes-internal.c
+	${HOSTAP_SRC_BASE}/crypto/aes-internal-enc.c
+	${HOSTAP_SRC_BASE}/crypto/aes-omac1.c
+	${HOSTAP_SRC_BASE}/crypto/md5.c
+	${HOSTAP_SRC_BASE}/crypto/md5-internal.c
+	${HOSTAP_SRC_BASE}/crypto/sha1.c
+	${HOSTAP_SRC_BASE}/crypto/sha1-internal.c
+	${HOSTAP_SRC_BASE}/crypto/sha1-pbkdf2.c
+	${HOSTAP_SRC_BASE}/crypto/sha1-prf.c
+	${HOSTAP_SRC_BASE}/crypto/sha256.c
+	${HOSTAP_SRC_BASE}/crypto/sha256-internal.c
+	${HOSTAP_SRC_BASE}/crypto/sha256-prf.c
+	${HOSTAP_SRC_BASE}/crypto/sha384.c
+	${HOSTAP_SRC_BASE}/crypto/sha384-internal.c
+	${HOSTAP_SRC_BASE}/crypto/sha384-prf.c
+	${HOSTAP_SRC_BASE}/crypto/sha512.c
+	${HOSTAP_SRC_BASE}/crypto/sha512-internal.c
+	${HOSTAP_SRC_BASE}/crypto/rc4.c
 )
 
 zephyr_library_compile_definitions_ifdef(CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO_NONE
@@ -609,6 +630,7 @@ zephyr_library_sources_ifdef(CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO_ENTERPRISE
 	${HOSTAP_SRC_BASE}/crypto/ms_funcs.c
 	${HOSTAP_SRC_BASE}/crypto/aes-eax.c
 	${HOSTAP_SRC_BASE}/crypto/md4-internal.c
+	${HOSTAP_SRC_BASE}/crypto/sha1-internal.c
 	${HOSTAP_SRC_BASE}/crypto/fips_prf_internal.c
 	${HOSTAP_SRC_BASE}/crypto/milenage.c
 )
diff --git a/modules/hostap/Kconfig b/modules/hostap/Kconfig
index 09a43d7d07e33a..e22059f00f067d 100644
--- a/modules/hostap/Kconfig
+++ b/modules/hostap/Kconfig
@@ -247,6 +247,7 @@ config WIFI_NM_WPA_SUPPLICANT_P2P
 	bool "P2P mode support"
 	select WIFI_NM_WPA_SUPPLICANT_AP
 	select WIFI_NM_WPA_SUPPLICANT_WPS
+	select WIFI_NM_WPA_SUPPLICANT_EAPOL
 
 config WIFI_NM_WPA_SUPPLICANT_EAPOL
 	bool "EAPoL supplicant"
@@ -439,9 +440,6 @@ config EAP_EKE
 config EAP_IKEv2
 	bool
 
-config IEEE8021X_EAPOL
-	bool
-
 config CRYPTO_INTERNAL
 	bool
 
@@ -545,4 +543,11 @@ config WIFI_NM_WPA_SUPPLICANT_CRYPTO_TEST
 	bool
 	depends on WIFI_NM_WPA_SUPPLICANT_CRYPTO_MBEDTLS_PSA
 
+config WIFI_NM_WPA_CTRL_RESP_TIMEOUT_S
+	int "WPA supplicant control interface response timeout in seconds"
+	default 15
+	help
+	  Timeout for the control interface commands to get a response from the
+	  supplicant.
+
 endif # WIFI_NM_WPA_SUPPLICANT
diff --git a/modules/hostap/src/supp_api.c b/modules/hostap/src/supp_api.c
index 24561086f384f4..52772b4becfc64 100644
--- a/modules/hostap/src/supp_api.c
+++ b/modules/hostap/src/supp_api.c
@@ -1116,6 +1116,45 @@ int supplicant_disconnect(const struct device *dev)
 	return wpas_disconnect_network(dev, WPAS_MODE_INFRA);
 }
 
+static enum wifi_mfp_options get_mfp(enum mfp_options supp_mfp_option)
+{
+	switch (supp_mfp_option) {
+	case NO_MGMT_FRAME_PROTECTION:
+		return WIFI_MFP_DISABLE;
+	case MGMT_FRAME_PROTECTION_OPTIONAL:
+		return WIFI_MFP_OPTIONAL;
+	case MGMT_FRAME_PROTECTION_REQUIRED:
+		return WIFI_MFP_REQUIRED;
+	default:
+		wpa_printf(MSG_ERROR, "Invalid mfp mapping %d", supp_mfp_option);
+		break;
+	}
+
+	return WIFI_MFP_DISABLE;
+}
+
+static enum wifi_iface_mode get_iface_mode(enum wpas_mode supp_mode)
+{
+	switch (supp_mode) {
+	case WPAS_MODE_INFRA:
+		return WIFI_MODE_INFRA;
+	case WPAS_MODE_IBSS:
+		return WIFI_MODE_IBSS;
+	case WPAS_MODE_AP:
+		return WIFI_MODE_AP;
+	case WPAS_MODE_P2P_GO:
+		return WIFI_MODE_P2P_GO;
+	case WPAS_MODE_P2P_GROUP_FORMATION:
+		return WIFI_MODE_P2P_GROUP_FORMATION;
+	case WPAS_MODE_MESH:
+		return WIFI_MODE_MESH;
+	default:
+		break;
+	}
+
+	return WIFI_MODE_UNKNOWN;
+}
+
 int supplicant_status(const struct device *dev, struct wifi_iface_status *status)
 {
 	struct net_if *iface = net_if_lookup_by_dev(dev);
@@ -1169,7 +1208,7 @@ int supplicant_status(const struct device *dev, struct wifi_iface_status *status
 		os_memcpy(status->bssid, wpa_s->bssid, WIFI_MAC_ADDR_LEN);
 		status->band = wpas_band_to_zephyr(wpas_freq_to_band(wpa_s->assoc_freq));
 		status->security = wpas_key_mgmt_to_zephyr(key_mgmt, proto);
-		status->mfp = ssid->ieee80211w; /* Same mapping */
+		status->mfp = get_mfp(ssid->ieee80211w);
 		ieee80211_freq_to_chan(wpa_s->assoc_freq, &channel);
 		status->channel = channel;
 
@@ -1187,7 +1226,7 @@ int supplicant_status(const struct device *dev, struct wifi_iface_status *status
 
 		os_memcpy(status->ssid, _ssid, ssid_len);
 		status->ssid_len = ssid_len;
-		status->iface_mode = ssid->mode;
+		status->iface_mode = get_iface_mode(ssid->mode);
 
 		if (wpa_s->connection_set == 1) {
 			status->link_mode = wpa_s->connection_he ? WIFI_6 :
@@ -1847,7 +1886,6 @@ int supplicant_ap_config_params(const struct device *dev, struct wifi_ap_config_
 
 	return ret;
 }
-#endif
 
 int supplicant_ap_status(const struct device *dev, struct wifi_iface_status *status)
 {
@@ -1895,12 +1933,12 @@ int supplicant_ap_status(const struct device *dev, struct wifi_iface_status *sta
 	ssid = &bss->ssid;
 
 	os_memcpy(status->bssid, hapd->own_addr, WIFI_MAC_ADDR_LEN);
-	status->iface_mode = WPAS_MODE_AP;
+	status->iface_mode = WIFI_MODE_AP;
 	status->band = wpas_band_to_zephyr(wpas_freq_to_band(iface->freq));
 	key_mgmt = bss->wpa_key_mgmt;
 	proto = bss->wpa;
 	status->security = wpas_key_mgmt_to_zephyr(key_mgmt, proto);
-	status->mfp = bss->ieee80211w;
+	status->mfp = get_mfp(bss->ieee80211w);
 	status->channel = conf->channel;
 	os_memcpy(status->ssid, ssid->ssid, ssid->ssid_len);
 
@@ -1922,6 +1960,7 @@ int supplicant_ap_status(const struct device *dev, struct wifi_iface_status *sta
 	k_mutex_unlock(&wpa_supplicant_mutex);
 	return ret;
 }
+#endif /* CONFIG_WIFI_NM_HOSTAPD_AP */
 
 int supplicant_ap_enable(const struct device *dev,
 			 struct wifi_connect_req_params *params)
diff --git a/modules/hostap/src/supp_main.c b/modules/hostap/src/supp_main.c
index b47b322e2aa3ad..826e15e9d8d3de 100644
--- a/modules/hostap/src/supp_main.c
+++ b/modules/hostap/src/supp_main.c
@@ -94,11 +94,9 @@ DEFINE_WIFI_NM_INSTANCE(wifi_supplicant, &mgmt_ops);
 
 #ifdef CONFIG_WIFI_NM_HOSTAPD_AP
 static const struct wifi_mgmt_ops mgmt_ap_ops = {
-	.set_btwt = supplicant_set_btwt,
 	.ap_enable = supplicant_ap_enable,
 	.ap_disable = supplicant_ap_disable,
 	.ap_sta_disconnect = supplicant_ap_sta_disconnect,
-	.ap_bandwidth = supplicant_ap_bandwidth,
 	.iface_status = supplicant_ap_status,
 #ifdef CONFIG_WIFI_NM_WPA_SUPPLICANT_DPP
 	.dpp_dispatch = hapd_dpp_dispatch,
diff --git a/modules/hostap/src/supp_main.h b/modules/hostap/src/supp_main.h
index e80ced0343184c..981bdf66958514 100644
--- a/modules/hostap/src/supp_main.h
+++ b/modules/hostap/src/supp_main.h
@@ -15,7 +15,7 @@
 	!defined(CONFIG_EAP_PSK) && !defined(CONFIG_EAP_PAX) && \
 	!defined(CONFIG_EAP_SAKE) && !defined(CONFIG_EAP_GPSK) && \
 	!defined(CONFIG_EAP_PWD) && !defined(CONFIG_EAP_EKE) && \
-	!defined(CONFIG_EAP_IKEV2 && !defined(CONFIG_EAP_GTC)
+	!defined(CONFIG_EAP_IKEV2) && !defined(CONFIG_EAP_GTC)
 #error "At least one of the following EAP methods need to be defined    \
 	CONFIG_EAP_TLS    \
 	CONFIG_EAP_TTLS   \
@@ -52,12 +52,17 @@ static inline void net_dhcpv4_stop(struct net_if *iface)
 
 struct wpa_global *zephyr_get_default_supplicant_context(void);
 struct wpa_supplicant *zephyr_get_handle_by_ifname(const char *ifname);
+
 #ifdef CONFIG_WIFI_NM_HOSTAPD_AP
+#include "common.h"
+#include "wpa_debug_zephyr.h"
+
 struct hostapd_iface *zephyr_get_hapd_handle_by_ifname(const char *ifname);
 void wpa_supplicant_msg_send(void *ctx, int level, enum wpa_msg_type type, const char *txt,
 			     size_t len);
 void hostapd_msg_send(void *ctx, int level, enum wpa_msg_type type, const char *buf, size_t len);
 #endif
+
 struct wpa_supplicant_event_msg {
 #ifdef CONFIG_WIFI_NM_HOSTAPD_AP
 	int hostapd;
diff --git a/tests/net/wifi/configs/CMakeLists.txt b/tests/net/wifi/configs/CMakeLists.txt
new file mode 100644
index 00000000000000..518596a02f7800
--- /dev/null
+++ b/tests/net/wifi/configs/CMakeLists.txt
@@ -0,0 +1,8 @@
+# SPDX-License-Identifier: Apache-2.0
+
+cmake_minimum_required(VERSION 3.20.0)
+find_package(Zephyr REQUIRED HINTS $ENV{ZEPHYR_BASE})
+project(build_all)
+
+FILE(GLOB app_sources src/*.c)
+target_sources(app PRIVATE ${app_sources})
diff --git a/tests/net/wifi/configs/prj.conf b/tests/net/wifi/configs/prj.conf
new file mode 100644
index 00000000000000..2a2f4d2cf6b853
--- /dev/null
+++ b/tests/net/wifi/configs/prj.conf
@@ -0,0 +1,33 @@
+CONFIG_TEST=y
+CONFIG_TEST_USERSPACE=y
+CONFIG_NET_TEST=y
+
+CONFIG_NETWORKING=y
+CONFIG_NET_IPV4=y
+CONFIG_NET_IPV6=y
+CONFIG_NET_CONFIG_SETTINGS=n
+
+CONFIG_WIFI=y
+CONFIG_WIFI_NM=y
+
+CONFIG_SHELL=y
+CONFIG_NET_SHELL=y
+CONFIG_NET_L2_WIFI_SHELL=y
+CONFIG_NET_L2_WIFI_MGMT=y
+
+CONFIG_WIFI_SHELL_MAX_AP_STA=2
+CONFIG_WIFI_MGMT_RAW_SCAN_RESULTS=y
+CONFIG_WIFI_MGMT_FORCED_PASSIVE_SCAN=y
+CONFIG_WIFI_MGMT_SCAN_SSID_FILT_MAX=3
+CONFIG_WIFI_MGMT_SCAN_CHAN_MAX_MANUAL=10
+CONFIG_WIFI_NM_MAX_MANAGED_INTERFACES=2
+CONFIG_WIFI_MGMT_AP_STA_SKIP_INACTIVITY_POLL=y
+CONFIG_WIFI_MGMT_AP_MAX_NUM_STA=10
+
+CONFIG_WIFI_NM_WPA_SUPPLICANT=y
+CONFIG_WIFI_NM_WPA_SUPPLICANT_DEBUG_LEVEL=0
+CONFIG_WIFI_NM_WPA_SUPPLICANT_WEP=y
+CONFIG_WIFI_NM_WPA_SUPPLICANT_ADVANCED_FEATURES=y
+CONFIG_WIFI_NM_WPA_SUPPLICANT_AP=y
+CONFIG_WIFI_NM_WPA_SUPPLICANT_CLI=y
+CONFIG_WPA_CLI=y
diff --git a/tests/net/wifi/configs/src/main.c b/tests/net/wifi/configs/src/main.c
new file mode 100644
index 00000000000000..a05ee59143061f
--- /dev/null
+++ b/tests/net/wifi/configs/src/main.c
@@ -0,0 +1,10 @@
+/*
+ * Copyright (c) 2024 Nordic Semiconductor ASA
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+int main(void)
+{
+	return 0;
+}
diff --git a/tests/net/wifi/configs/testcase.yaml b/tests/net/wifi/configs/testcase.yaml
new file mode 100644
index 00000000000000..017407bc8467c2
--- /dev/null
+++ b/tests/net/wifi/configs/testcase.yaml
@@ -0,0 +1,66 @@
+common:
+  build_only: true
+  tags:
+    - drivers
+    - wifi
+    - net
+  platform_allow:
+    - native_sim
+    - native_sim/native/64
+tests:
+  wifi.build.crypto_default:
+    extra_configs:
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO=y
+  wifi.build.crypto_alt:
+    extra_configs:
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO_ALT=y
+  wifi.build.crypto_none:
+    extra_configs:
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO_NONE=y
+  # FIXME: The psa crypto does not work atm so commented out
+  #        the build test temporarily.
+  # wifi.build.crypto_psa:
+  #  extra_configs:
+  #    - CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO_MBEDTLS_PSA=y
+  wifi.build.crypto_enterprise:
+    extra_configs:
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO_ALT=y
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO_ENTERPRISE=y
+      - CONFIG_MBEDTLS_TLS_VERSION_1_2=y
+      - CONFIG_EAP_TLS=y
+      - CONFIG_EAP_TTLS=y
+      - CONFIG_EAP_PEAP=y
+      - CONFIG_EAP_MD5=y
+      - CONFIG_EAP_MSCHAPV2=y
+      - CONFIG_EAP_LEAP=y
+      - CONFIG_EAP_PSK=y
+      - CONFIG_EAP_PAX=y
+      - CONFIG_EAP_SAKE=y
+      - CONFIG_EAP_GPSK=y
+      - CONFIG_EAP_PWD=y
+      - CONFIG_EAP_EKE=y
+      - CONFIG_EAP_IKEV2=y
+      - CONFIG_EAP_SIM=y
+      - CONFIG_EAP_AKA=y
+  wifi.build.wpa3:
+    extra_configs:
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_WPA3=y
+      - CONFIG_MBEDTLS_TLS_VERSION_1_2=y
+  wifi.build.wps:
+    extra_configs:
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_WPS=y
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_EAPOL=y
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO=y
+  wifi.build.p2p:
+    extra_configs:
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_P2P=y
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO=y
+  wifi.build.hostapd_ap:
+    extra_configs:
+      - CONFIG_WIFI_NM_HOSTAPD_AP=y
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_INF_MON=n
+  wifi.build.dpp:
+    extra_configs:
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO_ALT=y
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_CRYPTO_ENTERPRISE=y
+      - CONFIG_WIFI_NM_WPA_SUPPLICANT_DPP=y
diff --git a/west.yml b/west.yml
index 924ea20615cc33..18967c457865ee 100644
--- a/west.yml
+++ b/west.yml
@@ -259,7 +259,7 @@ manifest:
         - hal
     - name: hostap
       path: modules/lib/hostap
-      revision: ac59d28778b20cd68702f55dad2a27d648e3d571
+      revision: e481fe559e17052ec8ea04388a934f3d30816737
     - name: libmetal
       revision: a6851ba6dba8c9e87d00c42f171a822f7a29639b
       path: modules/hal/libmetal