diff --git a/src/messaging/ReliableMessageProtocolConfig.h b/src/messaging/ReliableMessageProtocolConfig.h
index 44480a44eb..136d9b2a06 100644
--- a/src/messaging/ReliableMessageProtocolConfig.h
+++ b/src/messaging/ReliableMessageProtocolConfig.h
@@ -130,7 +130,10 @@ namespace chip {
 #if CHIP_SYSTEM_CONFIG_USE_LWIP
 
 #if !LWIP_PBUF_FROM_CUSTOM_POOLS && PBUF_POOL_SIZE != 0
-#define CHIP_CONFIG_RMP_RETRANS_TABLE_SIZE std::min(PBUF_POOL_SIZE, CHIP_CONFIG_MAX_EXCHANGE_CONTEXTS)
+// Configure the table size to be less than the number of packet buffers to make sure
+// that not all buffers are held by the retransmission entries, in which case the device
+// is unable to receive an ACK and hence becomes unavailable until a message times out.
+#define CHIP_CONFIG_RMP_RETRANS_TABLE_SIZE std::min(PBUF_POOL_SIZE - 1, CHIP_CONFIG_MAX_EXCHANGE_CONTEXTS)
 #else
 #define CHIP_CONFIG_RMP_RETRANS_TABLE_SIZE CHIP_CONFIG_MAX_EXCHANGE_CONTEXTS
 #endif // !LWIP_PBUF_FROM_CUSTOM_POOLS && PBUF_POOL_SIZE != 0
@@ -138,7 +141,11 @@ namespace chip {
 #else // CHIP_SYSTEM_CONFIG_USE_LWIP
 
 #if CHIP_SYSTEM_CONFIG_PACKETBUFFER_POOL_SIZE != 0
-#define CHIP_CONFIG_RMP_RETRANS_TABLE_SIZE std::min(CHIP_SYSTEM_CONFIG_PACKETBUFFER_POOL_SIZE, CHIP_CONFIG_MAX_EXCHANGE_CONTEXTS)
+// Configure the table size to be less than the number of packet buffers to make sure
+// that not all buffers are held by the retransmission entries, in which case the device
+// is unable to receive an ACK and hence becomes unavailable until a message times out.
+#define CHIP_CONFIG_RMP_RETRANS_TABLE_SIZE                                                                                         \
+    std::min(CHIP_SYSTEM_CONFIG_PACKETBUFFER_POOL_SIZE - 1, CHIP_CONFIG_MAX_EXCHANGE_CONTEXTS)
 #else
 #define CHIP_CONFIG_RMP_RETRANS_TABLE_SIZE CHIP_CONFIG_MAX_EXCHANGE_CONTEXTS
 #endif // CHIP_SYSTEM_CONFIG_PACKETBUFFER_POOL_SIZE != 0
diff --git a/src/platform/nrfconnect/SystemPlatformConfig.h b/src/platform/nrfconnect/SystemPlatformConfig.h
index 549c89245f..de2f59cb7e 100644
--- a/src/platform/nrfconnect/SystemPlatformConfig.h
+++ b/src/platform/nrfconnect/SystemPlatformConfig.h
@@ -51,6 +51,20 @@ struct ChipDeviceEvent;
 #define CHIP_SYSTEM_CONFIG_PACKETBUFFER_POOL_SIZE 15
 #endif
 
+#ifndef CHIP_SYSTEM_CONFIG_PACKETBUFFER_CAPACITY_MAX
+#ifdef CONFIG_WIFI_NRF700X
+// Minimal mDNS uses Matter packet buffers, so as long as minimal mDNS is used
+// in Nordic's Wi-Fi solution, the packet buffers must be a bit bigger than what
+// is required by Matter.
+#define CHIP_SYSTEM_CONFIG_PACKETBUFFER_CAPACITY_MAX CONFIG_NRF_WIFI_IFACE_MTU
+#else
+// Matter specification requires that Matter messages fit in IPV6 MTU of 1280B
+// unless for large messages that can be sent over BTP or TCP. But those will
+// likely require a separate buffer pool or employ chained buffers.
+#define CHIP_SYSTEM_CONFIG_PACKETBUFFER_CAPACITY_MAX 1280
+#endif // CONFIG_WIFI_NRF700X
+#endif // CHIP_SYSTEM_CONFIG_PACKETBUFFER_CAPACITY_MAX
+
 // ========== Platform-specific Configuration Overrides =========
 
 // Disable Zephyr Socket extensions module, as the Zephyr RTOS now implements recvmsg()