diff --git a/config/nrfconnect/chip-module/Kconfig.defaults b/config/nrfconnect/chip-module/Kconfig.defaults
index f6010168f4b3da..5303d8b2b9940b 100644
--- a/config/nrfconnect/chip-module/Kconfig.defaults
+++ b/config/nrfconnect/chip-module/Kconfig.defaults
@@ -104,9 +104,19 @@ config BT_PERIPHERAL_PREF_MIN_INT
 config BT_PERIPHERAL_PREF_MAX_INT
     default 36
 
+# Increase BT timeout to 5 s to improve connection reliability and avoid fast drop outs.
+config BT_PERIPHERAL_PREF_TIMEOUT
+    default 500
+
 config BT_GAP_AUTO_UPDATE_CONN_PARAMS
     default y
 
+# Decrease connection parameters update time, as some Matter controllers request
+# enabling IP networking faster than BT connection parameters are updated, what may result
+# in commissioning instabilities.
+config BT_CONN_PARAM_UPDATE_TIMEOUT
+    default 1000
+
 config BT_GATT_DYNAMIC_DB
     default y
 
diff --git a/config/nrfconnect/chip-module/Kconfig.hci_rpmsg.defaults b/config/nrfconnect/chip-module/Kconfig.hci_rpmsg.defaults
index 83290b2b492f28..173766a44941c1 100644
--- a/config/nrfconnect/chip-module/Kconfig.hci_rpmsg.defaults
+++ b/config/nrfconnect/chip-module/Kconfig.hci_rpmsg.defaults
@@ -63,6 +63,10 @@ config BT_HCI_RAW_RESERVE
 config BT_BUF_CMD_TX_COUNT
     default 10
 
+# Enable support for Wi-Fi and Bluetooth LE coexistance
+config MPSL_CX
+    default y
+
 config ASSERT
     default y