diff --git a/examples/all-clusters-app/esp32/main/Kconfig.projbuild b/examples/all-clusters-app/esp32/main/Kconfig.projbuild
index e1d8805e689326..2cec0c32093734 100644
--- a/examples/all-clusters-app/esp32/main/Kconfig.projbuild
+++ b/examples/all-clusters-app/esp32/main/Kconfig.projbuild
@@ -59,10 +59,6 @@ menu "Demo"
             depends on IDF_TARGET_ESP32H2
     endchoice
 
-    config CHIP_PROJECT_CONFIG
-        string "CHIP Project Configuration file"
-        default "main/include/CHIPProjectConfig.h"
-
     choice
       prompt "Rendezvous Mode"
       default RENDEZVOUS_MODE_BLE if BT_ENABLED
diff --git a/examples/all-clusters-app/esp32/main/include/CHIPProjectConfig.h b/examples/all-clusters-app/esp32/main/include/CHIPProjectConfig.h
deleted file mode 100644
index 9fff1bd10e67b4..00000000000000
--- a/examples/all-clusters-app/esp32/main/include/CHIPProjectConfig.h
+++ /dev/null
@@ -1,38 +0,0 @@
-/*
- *
- *    Copyright (c) 2023 Project CHIP Authors
- *    All rights reserved.
- *
- *    Licensed under the Apache License, Version 2.0 (the "License");
- *    you may not use this file except in compliance with the License.
- *    You may obtain a copy of the License at
- *
- *        http://www.apache.org/licenses/LICENSE-2.0
- *
- *    Unless required by applicable law or agreed to in writing, software
- *    distributed under the License is distributed on an "AS IS" BASIS,
- *    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- *    See the License for the specific language governing permissions and
- *    limitations under the License.
- */
-
-/**
- *    @file
- *          Example project configuration file for CHIP.
- *
- *          This is a place to put application or project-specific overrides
- *          to the default configuration values for general CHIP features.
- *
- */
-
-#pragma once
-
-/**
- * @def CONFIG_BUILD_FOR_HOST_UNIT_TEST
- *
- * @brief Defines whether we're currently building for unit testing, which enables a set of features
- *        that are only utilized in those tests. This flag should not be enabled on devices. If you have a test
- *        that uses this flag, either appropriately conditionalize the entire test on this flag, or to exclude
- *        the compliation of that test source file entirely.
- */
-#define CONFIG_BUILD_FOR_HOST_UNIT_TEST 1
diff --git a/examples/all-clusters-minimal-app/esp32/main/Kconfig.projbuild b/examples/all-clusters-minimal-app/esp32/main/Kconfig.projbuild
index 9fe8f460e6b0a4..171af4f0ba2c24 100644
--- a/examples/all-clusters-minimal-app/esp32/main/Kconfig.projbuild
+++ b/examples/all-clusters-minimal-app/esp32/main/Kconfig.projbuild
@@ -48,10 +48,6 @@ menu "Demo"
             depends on IDF_TARGET_ESP32C2
     endchoice
 
-    config CHIP_PROJECT_CONFIG
-        string "CHIP Project Configuration file"
-        default "main/include/CHIPProjectConfig.h"
-
     choice
       prompt "Rendezvous Mode"
       default RENDEZVOUS_MODE_BLE if BT_ENABLED
diff --git a/examples/all-clusters-minimal-app/esp32/main/include/CHIPProjectConfig.h b/examples/all-clusters-minimal-app/esp32/main/include/CHIPProjectConfig.h
deleted file mode 100644
index 9fff1bd10e67b4..00000000000000
--- a/examples/all-clusters-minimal-app/esp32/main/include/CHIPProjectConfig.h
+++ /dev/null
@@ -1,38 +0,0 @@
-/*
- *
- *    Copyright (c) 2023 Project CHIP Authors
- *    All rights reserved.
- *
- *    Licensed under the Apache License, Version 2.0 (the "License");
- *    you may not use this file except in compliance with the License.
- *    You may obtain a copy of the License at
- *
- *        http://www.apache.org/licenses/LICENSE-2.0
- *
- *    Unless required by applicable law or agreed to in writing, software
- *    distributed under the License is distributed on an "AS IS" BASIS,
- *    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- *    See the License for the specific language governing permissions and
- *    limitations under the License.
- */
-
-/**
- *    @file
- *          Example project configuration file for CHIP.
- *
- *          This is a place to put application or project-specific overrides
- *          to the default configuration values for general CHIP features.
- *
- */
-
-#pragma once
-
-/**
- * @def CONFIG_BUILD_FOR_HOST_UNIT_TEST
- *
- * @brief Defines whether we're currently building for unit testing, which enables a set of features
- *        that are only utilized in those tests. This flag should not be enabled on devices. If you have a test
- *        that uses this flag, either appropriately conditionalize the entire test on this flag, or to exclude
- *        the compliation of that test source file entirely.
- */
-#define CONFIG_BUILD_FOR_HOST_UNIT_TEST 1
diff --git a/src/platform/ESP32/CHIPPlatformConfig.h b/src/platform/ESP32/CHIPPlatformConfig.h
index 041b8e99612891..d9012d41da58a8 100644
--- a/src/platform/ESP32/CHIPPlatformConfig.h
+++ b/src/platform/ESP32/CHIPPlatformConfig.h
@@ -101,3 +101,9 @@
 #ifdef CONFIG_CHIP_ENABLE_BDX_LOG_TRANSFER
 #define CHIP_CONFIG_ENABLE_BDX_LOG_TRANSFER 1
 #endif // CONFIG_CHIP_ENABLE_BDX_LOG_TRANSFER
+
+#ifdef CONFIG_BUILD_CHIP_TESTS
+// CHIP tests use APIs that are declared when CONFIG_BUILD_FOR_HOST_UNIT_TEST is enabled
+// Enable CONFIG_BUILD_FOR_HOST_UNIT_TEST when building CHIP test binaries
+#define CONFIG_BUILD_FOR_HOST_UNIT_TEST 1
+#endif
diff --git a/src/test_driver/esp32/main/include/CHIPProjectConfig.h b/src/test_driver/esp32/main/include/CHIPProjectConfig.h
index 1e4dc9626b5033..3a25601cfd884e 100644
--- a/src/test_driver/esp32/main/include/CHIPProjectConfig.h
+++ b/src/test_driver/esp32/main/include/CHIPProjectConfig.h
@@ -30,6 +30,4 @@
 // Enable support functions for parsing command-line arguments
 #define CHIP_CONFIG_ENABLE_ARG_PARSER 1
 
-#define CONFIG_BUILD_FOR_HOST_UNIT_TEST 1
-
 #endif // CHIP_PROJECT_CONFIG_H