diff --git a/examples/chip-tool/commands/interactive/InteractiveCommands.cpp b/examples/chip-tool/commands/interactive/InteractiveCommands.cpp
index 41fcf731ebc7a3..6dae09ce392206 100644
--- a/examples/chip-tool/commands/interactive/InteractiveCommands.cpp
+++ b/examples/chip-tool/commands/interactive/InteractiveCommands.cpp
@@ -65,6 +65,7 @@ struct InteractiveServerResult
 {
     bool mEnabled       = false;
     bool mIsAsyncReport = false;
+    uint16_t mTimeout   = 0;
     int mStatus         = EXIT_SUCCESS;
     std::vector<std::string> mResults;
     std::vector<InteractiveServerResultLog> mLogs;
@@ -92,18 +93,31 @@ struct InteractiveServerResult
     // protected by a mutex.
     std::mutex mMutex;
 
-    void Setup(bool isAsyncReport)
+    void Setup(bool isAsyncReport, uint16_t timeout)
     {
         auto lock      = ScopedLock(mMutex);
         mEnabled       = true;
         mIsAsyncReport = isAsyncReport;
+        mTimeout       = timeout;
+
+        if (mIsAsyncReport && mTimeout)
+        {
+            chip::DeviceLayer::PlatformMgr().ScheduleWork(StartAsyncTimeout, reinterpret_cast<intptr_t>(this));
+        }
     }
 
     void Reset()
     {
-        auto lock      = ScopedLock(mMutex);
+        auto lock = ScopedLock(mMutex);
+
+        if (mIsAsyncReport && mTimeout)
+        {
+            chip::DeviceLayer::PlatformMgr().ScheduleWork(StopAsyncTimeout, reinterpret_cast<intptr_t>(this));
+        }
+
         mEnabled       = false;
         mIsAsyncReport = false;
+        mTimeout       = 0;
         mStatus        = EXIT_SUCCESS;
         mResults.clear();
         mLogs.clear();
@@ -204,6 +218,24 @@ struct InteractiveServerResult
         content << "}";
         return content.str();
     }
+
+    static void StartAsyncTimeout(intptr_t arg)
+    {
+        auto self    = reinterpret_cast<InteractiveServerResult *>(arg);
+        auto timeout = chip::System::Clock::Seconds16(self->mTimeout);
+        chip::DeviceLayer::SystemLayer().StartTimer(timeout, OnAsyncTimeout, self);
+    }
+
+    static void StopAsyncTimeout(intptr_t arg)
+    {
+        auto self = reinterpret_cast<InteractiveServerResult *>(arg);
+        chip::DeviceLayer::SystemLayer().CancelTimer(OnAsyncTimeout, self);
+    }
+
+    static void OnAsyncTimeout(chip::System::Layer *, void * appState)
+    {
+        RemoteDataModelLogger::LogErrorAsJSON(CHIP_ERROR_TIMEOUT);
+    }
 };
 
 InteractiveServerResult gInteractiveServerResult;
@@ -263,7 +295,19 @@ CHIP_ERROR InteractiveServerCommand::RunCommand()
 bool InteractiveServerCommand::OnWebSocketMessageReceived(char * msg)
 {
     bool isAsyncReport = strlen(msg) == 0;
-    gInteractiveServerResult.Setup(isAsyncReport);
+    uint16_t timeout   = 0;
+    if (!isAsyncReport && strlen(msg) <= 5 /* Only look for numeric values <= 65535 */)
+    {
+        std::stringstream ss;
+        ss << msg;
+        ss >> timeout;
+        if (!ss.fail())
+        {
+            isAsyncReport = true;
+        }
+    }
+
+    gInteractiveServerResult.Setup(isAsyncReport, timeout);
     VerifyOrReturnValue(!isAsyncReport, true);
 
     auto shouldStop = ParseCommand(msg, &gInteractiveServerResult.mStatus);
diff --git a/examples/chip-tool/py_matter_chip_tool_adapter/matter_chip_tool_adapter/encoder.py b/examples/chip-tool/py_matter_chip_tool_adapter/matter_chip_tool_adapter/encoder.py
index 7371fb6b0fa3bb..8340289c0e2852 100644
--- a/examples/chip-tool/py_matter_chip_tool_adapter/matter_chip_tool_adapter/encoder.py
+++ b/examples/chip-tool/py_matter_chip_tool_adapter/matter_chip_tool_adapter/encoder.py
@@ -197,7 +197,7 @@ def encode(self, request):
         command, command_specifier = self.__get_command_name(request)
 
         if command == 'wait-for-report':
-            return ''
+            return str(request.timeout) if request.timeout is not None else ''
 
         arguments = self.__get_arguments(request)
         base64_arguments = base64.b64encode(
@@ -270,6 +270,8 @@ def __get_arguments(self, request):
             arguments, request.max_interval, "max-interval")
         arguments = self.__maybe_add(arguments, request.timed_interaction_timeout_ms,
                                      "timedInteractionTimeoutMs")
+        arguments = self.__maybe_add(
+            arguments, request.timeout, "timeout")
         arguments = self.__maybe_add(
             arguments, request.event_number, "event-min")
         arguments = self.__maybe_add(
diff --git a/scripts/py_matter_yamltests/matter_yamltests/parser.py b/scripts/py_matter_yamltests/matter_yamltests/parser.py
index ed99851b735e34..82b798a85156a4 100644
--- a/scripts/py_matter_yamltests/matter_yamltests/parser.py
+++ b/scripts/py_matter_yamltests/matter_yamltests/parser.py
@@ -201,6 +201,7 @@ def __init__(self, test: dict, config: dict, definitions: SpecDefinitions, pics_
         self.max_interval = _value_or_none(test, 'maxInterval')
         self.timed_interaction_timeout_ms = _value_or_none(
             test, 'timedInteractionTimeoutMs')
+        self.timeout = _value_or_none(test, 'timeout')
         self.data_version = _value_or_none(
             test, 'dataVersion')
         self.busy_wait_ms = _value_or_none(test, 'busyWaitMs')
@@ -661,6 +662,10 @@ def max_interval(self):
     def timed_interaction_timeout_ms(self):
         return self._test.timed_interaction_timeout_ms
 
+    @property
+    def timeout(self):
+        return self._test.timeout
+
     @property
     def data_version(self):
         return self._test.data_version
diff --git a/scripts/py_matter_yamltests/matter_yamltests/yaml_loader.py b/scripts/py_matter_yamltests/matter_yamltests/yaml_loader.py
index ae434e68b08fda..77bb6d78eff190 100644
--- a/scripts/py_matter_yamltests/matter_yamltests/yaml_loader.py
+++ b/scripts/py_matter_yamltests/matter_yamltests/yaml_loader.py
@@ -105,6 +105,7 @@ def __check_test_step(self, config: dict, content):
             'response': (dict, list, str),  # Can be a variable
             'minInterval': int,
             'maxInterval': int,
+            'timeout': int,
             'timedInteractionTimeoutMs': int,
             'dataVersion': (list, int, str),  # Can be a variable
             'busyWaitMs': int,