diff --git a/config/esp32/components/chip/Kconfig b/config/esp32/components/chip/Kconfig
index 7f6694a615bf6d..6cfa14a9895297 100644
--- a/config/esp32/components/chip/Kconfig
+++ b/config/esp32/components/chip/Kconfig
@@ -280,6 +280,14 @@ menu "CHIP Device Layer"
             help
                 Enables or Disables the support for Commissionable Device Type.
 
+        config ENABLE_BG_EVENT_PROCESSING
+            bool "Enable Background event processing"
+            default n
+            help
+                Few cryptographic operations requires more time for processing,
+                When this option is enabled, main matter task can delegate some
+                time consuming operations to background task so that main matter
+                task is not blocked and can process other work.
     endmenu
 
     menu "Device Identification Options"
diff --git a/examples/platform/esp32/common/CHIPDeviceManager.cpp b/examples/platform/esp32/common/CHIPDeviceManager.cpp
index 037ca40f2c0c3b..22063fc67851ea 100644
--- a/examples/platform/esp32/common/CHIPDeviceManager.cpp
+++ b/examples/platform/esp32/common/CHIPDeviceManager.cpp
@@ -83,7 +83,10 @@ CHIP_ERROR CHIPDeviceManager::Init(CHIPDeviceManagerCallbacks * cb)
     ReturnErrorOnFailure(PlatformMgr().StartBackgroundEventLoopTask());
 
     // Start a task to run the CHIP Device event loop.
-    return PlatformMgr().StartEventLoopTask();
+    ReturnErrorOnFailure(PlatformMgr().StartEventLoopTask());
+
+    // This is a no op if CONFIG_ENABLE_BG_EVENT_PROCESSING is disabled
+    return PlatformMgr().StartBackgroundEventLoopTask();
 }
 } // namespace DeviceManager
 } // namespace chip
diff --git a/src/platform/ESP32/CHIPDevicePlatformConfig.h b/src/platform/ESP32/CHIPDevicePlatformConfig.h
index 96b910785cf620..f98fa12272e1fc 100644
--- a/src/platform/ESP32/CHIPDevicePlatformConfig.h
+++ b/src/platform/ESP32/CHIPDevicePlatformConfig.h
@@ -100,3 +100,4 @@
 #define CHIP_DEVICE_CONFIG_ENABLE_DEVICE_INSTANCE_INFO_PROVIDER CONFIG_ENABLE_ESP32_DEVICE_INSTANCE_INFO_PROVIDER
 #define CHIP_DEVICE_CONFIG_DISCOVERY_TIMEOUT_SECS CONFIG_CHIP_DISCOVERY_TIMEOUT_SECS
 #define CHIP_DEVICE_CONFIG_ENABLE_BOTH_COMMISSIONER_AND_COMMISSIONEE CONFIG_ENABLE_ESP32_BLE_CONTROLLER
+#define CHIP_DEVICE_CONFIG_ENABLE_BG_EVENT_PROCESSING CONFIG_ENABLE_BG_EVENT_PROCESSING