diff --git a/config/nrfconnect/chip-module/CMakeLists.txt b/config/nrfconnect/chip-module/CMakeLists.txt
index 92d88e95112fa6..70edc0c7087865 100644
--- a/config/nrfconnect/chip-module/CMakeLists.txt
+++ b/config/nrfconnect/chip-module/CMakeLists.txt
@@ -236,11 +236,6 @@ if (CONFIG_CHIP_ENABLE_DNSSD_SRP)
     chip_gn_arg_string("chip_mdns" "platform")
 endif()
 
-if (CONFIG_CHIP_FIRMWARE_BUILD_UNIX_TIME)
-    string(TIMESTAMP CHIP_FIRMWARE_BUILD_UNIX_TIME "%s")
-    chip_gn_arg_string("chip_device_config_firmware_build_unix_time" ${CHIP_FIRMWARE_BUILD_UNIX_TIME})
-endif()
-
 if (CHIP_PROJECT_CONFIG)
     chip_gn_arg_string("chip_project_config_include"        ${CHIP_PROJECT_CONFIG})
     chip_gn_arg_string("chip_system_project_config_include" ${CHIP_PROJECT_CONFIG})
diff --git a/config/zephyr/Kconfig b/config/zephyr/Kconfig
index b197f0491a9689..b17cb0780a4bec 100644
--- a/config/zephyr/Kconfig
+++ b/config/zephyr/Kconfig
@@ -229,13 +229,6 @@ config CHIP_MALLOC_SYS_HEAP_SIZE
 
 endif
 
-config CHIP_FIRMWARE_BUILD_UNIX_TIME
-	bool "Make Unix time of compilation available in source code"
-	default y
-	help
-	  When enabled, the Unix time of the firmware build is exposed to the
-	  source code and used to initialize the last known UTC time.
-
 config APP_LINK_WITH_CHIP
 	bool "Link 'app' with Connected Home over IP"
 	default y
diff --git a/scripts/examples/nrfconnect_example.sh b/scripts/examples/nrfconnect_example.sh
index c7378923f82bbf..9c2ffa69380f75 100755
--- a/scripts/examples/nrfconnect_example.sh
+++ b/scripts/examples/nrfconnect_example.sh
@@ -23,7 +23,7 @@ BOARD="$2"
 shift 2
 
 # Disable debug symbols and firmware build time to increase ccache hit ratio in CI
-COMMON_CI_FLAGS=(-DCONFIG_CHIP_DEBUG_SYMBOLS=n -DCONFIG_CHIP_FIRMWARE_BUILD_UNIX_TIME=n)
+COMMON_CI_FLAGS=(-DCONFIG_CHIP_DEBUG_SYMBOLS=n)
 
 if [[ ! -f "$APP/nrfconnect/CMakeLists.txt" || -z "$BOARD" ]]; then
     echo "Usage: $0 <application> <board>" >&2
diff --git a/src/platform/BUILD.gn b/src/platform/BUILD.gn
index a5bb4df51d30e2..1ca7fee1a8fdd9 100644
--- a/src/platform/BUILD.gn
+++ b/src/platform/BUILD.gn
@@ -41,9 +41,6 @@ if (chip_device_platform != "none" && chip_device_platform != "external") {
     # Time the firmware was built.
     chip_device_config_firmware_build_time = ""
 
-    # Unix time the firmware was built at (seconds since the epoch)
-    chip_device_config_firmware_build_unix_time = ""
-
     # Use OpenThread ftd or mtd library
     chip_device_config_thread_ftd = chip_openthread_ftd
 
@@ -142,9 +139,6 @@ if (chip_device_platform != "none" && chip_device_platform != "external") {
     if (chip_device_config_firmware_build_time != "") {
       defines += [ "CHIP_DEVICE_CONFIG_FIRMWARE_BUILD_TIME=\"${chip_device_config_firmware_build_time}\"" ]
     }
-    if (chip_device_config_firmware_build_unix_time != "") {
-      defines += [ "CHIP_DEVICE_CONFIG_FIRMWARE_BUILD_UNIX_TIME=${chip_device_config_firmware_build_unix_time}" ]
-    }
 
     if (chip_use_transitional_commissionable_data_provider) {
       defines += [ "CHIP_USE_TRANSITIONAL_COMMISSIONABLE_DATA_PROVIDER=1" ]
diff --git a/src/platform/Zephyr/SystemTimeSupport.cpp b/src/platform/Zephyr/SystemTimeSupport.cpp
index 3e847e17635603..08d8408bd8aa38 100644
--- a/src/platform/Zephyr/SystemTimeSupport.cpp
+++ b/src/platform/Zephyr/SystemTimeSupport.cpp
@@ -42,15 +42,10 @@ ClockImpl gClockImpl;
 
 namespace {
 
-// Last known UTC time in Unix format.
-#ifdef CHIP_DEVICE_CONFIG_FIRMWARE_BUILD_UNIX_TIME
-Microseconds64 gRealTime = Seconds64(CHIP_DEVICE_CONFIG_FIRMWARE_BUILD_UNIX_TIME);
-#else
-Microseconds64 gRealTime = Seconds64(CHIP_SYSTEM_CONFIG_VALID_REAL_TIME_THRESHOLD);
-#endif
+constexpr Microseconds64 kUnknownRealTime = Seconds64::zero();
 
-// Monotonic time of setting the last known UTC time.
-Microseconds64 gRealTimeSetTime;
+// Unix epoch time of boot event
+Microseconds64 gBootRealTime = kUnknownRealTime;
 
 } // namespace
 
@@ -66,7 +61,11 @@ Milliseconds64 ClockImpl::GetMonotonicMilliseconds64()
 
 CHIP_ERROR ClockImpl::GetClock_RealTime(Microseconds64 & aCurTime)
 {
-    aCurTime = GetMonotonicMicroseconds64() - gRealTimeSetTime + gRealTime;
+    // The real time can be configured by an application if it has access to a reliable time source.
+    // Otherwise, just return an error so that Matter stack can fallback to Last Known UTC Time.
+    ReturnErrorCodeIf(gBootRealTime == kUnknownRealTime, CHIP_ERROR_INCORRECT_STATE);
+
+    aCurTime = gBootRealTime + GetMonotonicMicroseconds64();
 
     return CHIP_NO_ERROR;
 }
@@ -83,8 +82,7 @@ CHIP_ERROR ClockImpl::GetClock_RealTimeMS(Milliseconds64 & aCurTime)
 
 CHIP_ERROR ClockImpl::SetClock_RealTime(Microseconds64 aNewCurTime)
 {
-    gRealTime        = aNewCurTime;
-    gRealTimeSetTime = GetMonotonicMicroseconds64();
+    gBootRealTime = aNewCurTime - GetMonotonicMicroseconds64();
 
     return CHIP_NO_ERROR;
 }