diff --git a/config/esp32/components/chip/CMakeLists.txt b/config/esp32/components/chip/CMakeLists.txt
index d0c1fc4463f442..f27b29baf91ff9 100644
--- a/config/esp32/components/chip/CMakeLists.txt
+++ b/config/esp32/components/chip/CMakeLists.txt
@@ -472,7 +472,15 @@ if (CONFIG_SEC_CERT_DAC_PROVIDER)
 endif()
 
 if (CONFIG_ENABLE_ESP_INSIGHTS_TRACE)
-    idf_component_get_property(esp_insights_lib espressif__esp_insights COMPONENT_LIB)
+    idf_build_get_property(build_components BUILD_COMPONENTS)
+    # esp_insights can be used as an independent component or through component manager so,
+    # We should check and add the right component.
+    if("espressif__esp_insights" IN_LIST build_components)
+        idf_component_get_property(esp_insights_lib espressif__esp_insights COMPONENT_LIB)
+    elseif("esp_insights" IN_LIST build_components)
+        idf_component_get_property(esp_insights_lib esp_insights COMPONENT_LIB)
+    endif()
+
     list(APPEND chip_libraries $<TARGET_FILE:${esp_insights_lib}>)
 endif()