diff --git a/examples/all-clusters-app/esp32/sdkconfig.defaults b/examples/all-clusters-app/esp32/sdkconfig.defaults
index e12494a01910a7..49dbdc291eeb38 100644
--- a/examples/all-clusters-app/esp32/sdkconfig.defaults
+++ b/examples/all-clusters-app/esp32/sdkconfig.defaults
@@ -48,3 +48,6 @@ CONFIG_ESP_MAIN_TASK_STACK_SIZE=4096
 
 #enable debug shell
 CONFIG_ENABLE_CHIP_SHELL=y
+
+#Disable Hardware SHA - Workaround to issue 8702
+CONFIG_MBEDTLS_HARDWARE_SHA=n
diff --git a/examples/lock-app/esp32/sdkconfig.defaults b/examples/lock-app/esp32/sdkconfig.defaults
index e655288014f86d..db8c9dbad705e7 100644
--- a/examples/lock-app/esp32/sdkconfig.defaults
+++ b/examples/lock-app/esp32/sdkconfig.defaults
@@ -36,3 +36,6 @@ CONFIG_LWIP_IPV6_AUTOCONFIG=y
 # Use a custom partition table
 CONFIG_PARTITION_TABLE_CUSTOM=y
 CONFIG_PARTITION_TABLE_FILENAME="partitions.csv"
+
+#Disable Hardware SHA - Workaround to issue 8702
+CONFIG_MBEDTLS_HARDWARE_SHA=n
diff --git a/examples/temperature-measurement-app/esp32/sdkconfig.defaults b/examples/temperature-measurement-app/esp32/sdkconfig.defaults
index 095c872a5adb87..6337e7d84e8a42 100644
--- a/examples/temperature-measurement-app/esp32/sdkconfig.defaults
+++ b/examples/temperature-measurement-app/esp32/sdkconfig.defaults
@@ -72,3 +72,6 @@ CONFIG_TCP_SYNMAXRTX=6
 # Product id
 CONFIG_DEVICE_VENDOR_ID=0x235A
 CONFIG_DEVICE_PRODUCT_ID=0x4554
+
+#Disable Hardware SHA - Workaround to issue 8702
+CONFIG_MBEDTLS_HARDWARE_SHA=n
diff --git a/examples/temperature-measurement-app/esp32/sdkconfig.optimize.defaults b/examples/temperature-measurement-app/esp32/sdkconfig.optimize.defaults
index db3481aa618f37..c193ee769cc2ed 100644
--- a/examples/temperature-measurement-app/esp32/sdkconfig.optimize.defaults
+++ b/examples/temperature-measurement-app/esp32/sdkconfig.optimize.defaults
@@ -73,3 +73,6 @@ CONFIG_BTDM_CONTROLLER_BLE_MAX_CONN_EFF=1
 CONFIG_NIMBLE_MAX_CONNECTIONS=1
 CONFIG_TCPIP_RECVMBOX_SIZE=16
 CONFIG_TCP_SYNMAXRTX=6
+
+#Disable Hardware SHA - Workaround to issue 8702
+CONFIG_MBEDTLS_HARDWARE_SHA=n
diff --git a/src/test_driver/esp32/sdkconfig.defaults b/src/test_driver/esp32/sdkconfig.defaults
index 78f0bdd4979f41..f7ed6fad085927 100644
--- a/src/test_driver/esp32/sdkconfig.defaults
+++ b/src/test_driver/esp32/sdkconfig.defaults
@@ -31,3 +31,6 @@ CONFIG_ESP_MAIN_TASK_STACK_SIZE=32768
 
 #enable BT
 CONFIG_BT_ENABLED=y
+
+#Disable Hardware SHA - Workaround to issue 8702
+CONFIG_MBEDTLS_HARDWARE_SHA=n