diff --git a/docker/Dockerfile.ci_cortexm b/docker/Dockerfile.ci_cortexm
index 50062d9dea35b..a6ea27cf41813 100644
--- a/docker/Dockerfile.ci_cortexm
+++ b/docker/Dockerfile.ci_cortexm
@@ -76,12 +76,15 @@ COPY install/ubuntu_install_sccache.sh /install/ubuntu_install_sccache.sh
 RUN bash /install/ubuntu_install_sccache.sh
 ENV PATH /opt/sccache:$PATH
 
-# Zephyr SDK deps
+# Zephyr Project
 COPY install/ubuntu_install_zephyr.sh /install/ubuntu_install_zephyr.sh
 COPY install/ubuntu_init_zephyr_project.sh /install/ubuntu_init_zephyr_project.sh
-COPY install/ubuntu_install_zephyr_sdk.sh /install/ubuntu_install_zephyr_sdk.sh
 RUN bash /install/ubuntu_install_zephyr.sh
 ENV ZEPHYR_BASE=/opt/zephyrproject/zephyr
+
+#Zephyr SDK
+COPY install/ubuntu_install_zephyr_sdk.sh /install/ubuntu_install_zephyr_sdk.sh
+RUN bash /install/ubuntu_install_zephyr_sdk.sh /opt/zephyr-sdk
 ENV PATH /opt/zephyr-sdk/sysroots/x86_64-pokysdk-linux/usr/bin:$PATH
 
 # NRF
diff --git a/docker/Dockerfile.ci_riscv b/docker/Dockerfile.ci_riscv
index a640e996c7be9..c115df423fc32 100644
--- a/docker/Dockerfile.ci_riscv
+++ b/docker/Dockerfile.ci_riscv
@@ -80,13 +80,17 @@ COPY install/ubuntu_install_sccache.sh /install/ubuntu_install_sccache.sh
 RUN bash /install/ubuntu_install_sccache.sh
 ENV PATH /opt/sccache:$PATH
 
-# Zephyr SDK deps
+# Zephyr Project
 COPY install/ubuntu_install_zephyr.sh /install/ubuntu_install_zephyr.sh
 COPY install/ubuntu_init_zephyr_project.sh /install/ubuntu_init_zephyr_project.sh
-COPY install/ubuntu_install_zephyr_sdk.sh /install/ubuntu_install_zephyr_sdk.sh
 RUN bash /install/ubuntu_install_zephyr.sh
 ENV ZEPHYR_BASE=/opt/zephyrproject/zephyr
 
+#Zephyr SDK
+COPY install/ubuntu_install_zephyr_sdk.sh /install/ubuntu_install_zephyr_sdk.sh
+RUN bash /install/ubuntu_install_zephyr_sdk.sh /opt/zephyr-sdk
+ENV PATH /opt/zephyr-sdk/sysroots/x86_64-pokysdk-linux/usr/bin:$PATH
+
 # Download RISC-V gcc toolchain (linux)
 COPY install/ubuntu_download_xuantie_gcc_linux.sh /install/ubuntu_download_xuantie_gcc_linux.sh
 RUN bash /install/ubuntu_download_xuantie_gcc_linux.sh /opt/riscv/riscv64-unknown-linux-gnu
diff --git a/docker/install/ubuntu_install_zephyr.sh b/docker/install/ubuntu_install_zephyr.sh
index 6eaa5e5aa16c7..75565f749071c 100755
--- a/docker/install/ubuntu_install_zephyr.sh
+++ b/docker/install/ubuntu_install_zephyr.sh
@@ -38,7 +38,11 @@ sudo apt-get update
 
 sudo apt-install-and-clear -y cmake
 
-pip3 install west
+# Current Zephyr version is compatible with python3.8.
+# We use a different python env for Zephyr to test the
+# real world scenario where TVM and Zephyr could be in different
+# python environments.
+python3.8 -m pip install west
 
 # Init ZephyrProject
 ZEPHYR_PROJECT_PATH=/opt/zephyrproject
@@ -58,10 +62,4 @@ chmod -R o+w ${ZEPHYR_PROJECT_PATH}
 mkdir zephyr/.cache
 chmod o+rwx zephyr/.cache
 
-pip3 install -r /opt/zephyrproject/zephyr/scripts/requirements.txt
-
-# the requirements above overwrite junintparser with an older version, but it is not
-# used so overwrite it again with the correct version
-pip3 install junitparser==2.4.2
-
-bash /install/ubuntu_install_zephyr_sdk.sh /opt/zephyr-sdk
+python3.8 -m pip install -r /opt/zephyrproject/zephyr/scripts/requirements.txt
diff --git a/docker/install/ubuntu_install_zephyr_sdk.sh b/docker/install/ubuntu_install_zephyr_sdk.sh
index 228baf732120a..2c1e926e68da8 100755
--- a/docker/install/ubuntu_install_zephyr_sdk.sh
+++ b/docker/install/ubuntu_install_zephyr_sdk.sh
@@ -43,9 +43,14 @@ INSTALLATION_PATH=$1
 shift
 
 ZEPHYR_SDK_FILE_SHA=8e3572fbca9f9ba18a4436c00d680af34a85e239f7fe66c7988da85571a0d23d
+ZEPHYR_SDK_FILE_NAME=zephyr-sdk-0.15.2_linux-x86_64.tar.gz
 wget https://github.com/zephyrproject-rtos/sdk-ng/releases/download/v0.15.2/zephyr-sdk-0.15.2_linux-x86_64.tar.gz
-echo "$ZEPHYR_SDK_FILE_SHA zephyr-sdk-0.15.2_linux-x86_64.tar.gz" | sha256sum --check
+echo "$ZEPHYR_SDK_FILE_SHA ${ZEPHYR_SDK_FILE_NAME}" | sha256sum --check
 
-tar xvf zephyr-sdk-0.15.2_linux-x86_64.tar.gz
-mv zephyr-sdk-0.15.2 zephyr-sdk
-rm zephyr-sdk-0.15.2_linux-x86_64.tar.gz
+mkdir ${INSTALLATION_PATH}
+tar -xvf ${ZEPHYR_SDK_FILE_NAME} -C "${INSTALLATION_PATH}" --strip-components=1
+rm ${ZEPHYR_SDK_FILE_NAME}
+
+# Setup SDK
+cd ${INSTALLATION_PATH}
+./setup.sh -h