diff --git a/samples/bluetooth/direct_test_mode/CMakeLists.txt b/samples/bluetooth/direct_test_mode/CMakeLists.txt
index d3cdf039086e..8d42fd418af6 100644
--- a/samples/bluetooth/direct_test_mode/CMakeLists.txt
+++ b/samples/bluetooth/direct_test_mode/CMakeLists.txt
@@ -5,33 +5,16 @@
 #
 cmake_minimum_required(VERSION 3.20.0)
 
-if(DEFINED SHIELD AND "${BOARD}" STREQUAL "nrf5340dk_nrf5340_cpunet")
-  string(REPLACE " " ";" SHIELD_LIST "${SHIELD}")
-  foreach(sh IN LISTS SHIELD_LIST)
-    if("${sh}" STREQUAL "nrf21540ek")
-      if(CONFIG_DTM_USB)
-        set(remote_shell_DTC_OVERLAY_FILE ${CMAKE_CURRENT_LIST_DIR}/conf/remote_shell/nrf21540ek_usb.overlay)
-      else()
-        set(remote_shell_DTC_OVERLAY_FILE ${CMAKE_CURRENT_LIST_DIR}/conf/remote_shell/nrf21540ek.overlay)
-      endif()
-
-      break()
-    endif()
-  endforeach()
+# Zephyr doesn't support application specific shield overlays.
+# Therefore pass shiled information to the board overlay as a define so that
+# so that the shield overlay is included if required by the board overlay.
+string(REPLACE " " ";" shield_list "${SHIELD}")
+if("nrf21540ek" IN_LIST shield_list)
+  set(remote_shell_DTS_EXTRA_CPPFLAGS "-DNRF21540EK")
 endif()
 
-if(NOT DEFINED remote_shell_DTC_OVERLAY_FILE AND CONFIG_DTM_USB)
-  set(remote_shell_DTC_OVERLAY_FILE ${CMAKE_CURRENT_LIST_DIR}/conf/remote_shell/usb.overlay)
-endif()
-
-if(CONFIG_DTM_USB)
-  set(remote_shell_CONF_FILE ${CMAKE_CURRENT_LIST_DIR}/conf/remote_shell/prj_usb.conf)
-endif()
-
-if("${BOARD}" STREQUAL "nrf5340dk_nrf5340_cpunet")
-  if(NOT "${EXTRA_CONF_FILE}" STREQUAL "overlay-hci-nrf53.conf")
-    set(EXTRA_DTC_OVERLAY_FILE "${CMAKE_CURRENT_LIST_DIR}/conf/remote_shell_nrf53.overlay")
-  endif()
+if(DEFINED FILE_SUFFIX AND NOT DEFINED remote_shell_FILE_SUFFIX)
+  set(remote_shell_FILE_SUFFIX ${FILE_SUFFIX})
 endif()
 
 find_package(Zephyr REQUIRED HINTS $ENV{ZEPHYR_BASE})
diff --git a/samples/bluetooth/direct_test_mode/README.rst b/samples/bluetooth/direct_test_mode/README.rst
index dbafa5631e8f..05686fd231c2 100644
--- a/samples/bluetooth/direct_test_mode/README.rst
+++ b/samples/bluetooth/direct_test_mode/README.rst
@@ -385,13 +385,7 @@ To build the sample with an HCI interface, use the following command:
 
 .. code-block:: console
 
-   west build samples/bluetooth/direct_test_mode -b board_name -- -DEXTRA_CONF_FILE=overlay-hci.conf
-
-On the |nRF5340DKnoref| the sample with HCI interface can also be built with the `remote_hci` image using the following command:
-
-.. code-block:: console
-
-   west build samples/bluetooth/direct_test_mode -b board_name -- -DEXTRA_CONF_FILE=overlay-hci-nrf53.conf
+   west build samples/bluetooth/direct_test_mode -b board_name -- -DFILE_SUFFIX=hci
 
 USB CDC ACM transport variant
 =============================
@@ -401,14 +395,14 @@ Use the following command:
 
 .. code-block:: console
 
-   west build samples/bluetooth/direct_test_mode -b nrf5340dk/nrf5340/cpunet -- -DCONFIG_DTM_USB=y
+   west build samples/bluetooth/direct_test_mode -b nrf5340dk/nrf5340/cpunet -- -DFILE_SUFFIX=usb
 
 You can also build this sample with support for the front-end module.
 Use the following command:
 
 .. code-block:: console
 
-   west build samples/bluetooth/direct_test_mode -b nrf5340dk/nrf5340/cpunet -- -DSHIELD=nrf21540ek -DCONFIG_DTM_USB=y
+   west build samples/bluetooth/direct_test_mode -b nrf5340dk/nrf5340/cpunet -- -DSHIELD=nrf21540ek -DFILE_SUFFIX=usb
 
 .. _dtm_testing:
 
diff --git a/samples/bluetooth/direct_test_mode/boards/nrf5340dk_nrf5340_cpunet.overlay b/samples/bluetooth/direct_test_mode/boards/nrf5340dk_nrf5340_cpunet.overlay
index 373e538c5fd7..1efb596c95d1 100644
--- a/samples/bluetooth/direct_test_mode/boards/nrf5340dk_nrf5340_cpunet.overlay
+++ b/samples/bluetooth/direct_test_mode/boards/nrf5340dk_nrf5340_cpunet.overlay
@@ -4,6 +4,20 @@
  * SPDX-License-Identifier: LicenseRef-Nordic-5-Clause
  */
 
+/ {
+	chosen {
+		ncs,dtm-uart = &uart0;
+	};
+};
+
+&uart0 {
+	status = "okay";
+	compatible = "nordic,nrf-ipc-uart";
+	ipc = <&ipc0>;
+	ept-name = "remote shell";
+	current-speed = <19200>;
+};
+
 &radio {
 	status = "okay";
 	/* This is a number of antennas that are available on antenna matrix
diff --git a/samples/bluetooth/direct_test_mode/boards/nrf5340dk_nrf5340_cpunet_hci.conf b/samples/bluetooth/direct_test_mode/boards/nrf5340dk_nrf5340_cpunet_hci.conf
new file mode 100644
index 000000000000..9b795d16a291
--- /dev/null
+++ b/samples/bluetooth/direct_test_mode/boards/nrf5340dk_nrf5340_cpunet_hci.conf
@@ -0,0 +1,23 @@
+#
+# Copyright (c) 2021 Nordic Semiconductor
+#
+# SPDX-License-Identifier: LicenseRef-Nordic-5-Clause
+#
+
+CONFIG_IPC_SERVICE=y
+CONFIG_IPC_SERVICE_BACKEND_RPMSG=y
+CONFIG_MBOX=y
+
+CONFIG_NRFX_DPPI=y
+
+CONFIG_HEAP_MEM_POOL_SIZE=4096
+
+# Do not build Remote shell APP Core sample for the application core in hci mode
+CONFIG_NCS_SAMPLE_REMOTE_SHELL_CHILD_IMAGE=n
+
+CONFIG_NCS_SAMPLE_DTM_REMOTE_HCI_CHILD_IMAGE=y
+CONFIG_NRF_RPC=y
+CONFIG_NRF_RPC_CBOR=y
+
+CONFIG_DTM_TRANSPORT_HCI=y
+CONFIG_NET_BUF=y
diff --git a/samples/bluetooth/direct_test_mode/boards/nrf5340dk_nrf5340_cpunet_hci.overlay b/samples/bluetooth/direct_test_mode/boards/nrf5340dk_nrf5340_cpunet_hci.overlay
new file mode 100644
index 000000000000..373e538c5fd7
--- /dev/null
+++ b/samples/bluetooth/direct_test_mode/boards/nrf5340dk_nrf5340_cpunet_hci.overlay
@@ -0,0 +1,28 @@
+/*
+ * Copyright (c) 2023 Nordic Semiconductor ASA
+ *
+ * SPDX-License-Identifier: LicenseRef-Nordic-5-Clause
+ */
+
+&radio {
+	status = "okay";
+	/* This is a number of antennas that are available on antenna matrix
+	 * designed by Nordic. For more information see README.rst.
+	 */
+	dfe-antenna-num = <12>;
+	/* This is a setting that enables antenna 12 (in antenna matrix designed
+	 * by Nordic) for PDU. For more information see README.rst.
+	 */
+	dfe-pdu-antenna = <0x0>;
+
+	/* These are GPIO pin numbers that are provided to
+	 * Radio peripheral. The pins will be acquired by Radio to
+	 * drive antenna switching.
+	 * Pin numbers are selected to drive switches on antenna matrix
+	 * desinged by Nordic. For more information see README.rst.
+	 */
+	dfegpio0-gpios = <&gpio0 4 0>;
+	dfegpio1-gpios = <&gpio0 5 0>;
+	dfegpio2-gpios = <&gpio0 6 0>;
+	dfegpio3-gpios = <&gpio0 7 0>;
+};
diff --git a/samples/bluetooth/direct_test_mode/conf/remote_shell/nrf21540ek.overlay b/samples/bluetooth/direct_test_mode/child_image/remote_shell/boards/nrf21540ek.overlay
similarity index 100%
rename from samples/bluetooth/direct_test_mode/conf/remote_shell/nrf21540ek.overlay
rename to samples/bluetooth/direct_test_mode/child_image/remote_shell/boards/nrf21540ek.overlay
diff --git a/samples/bluetooth/direct_test_mode/child_image/remote_shell/boards/nrf5340dk_nrf5340_cpuapp.overlay b/samples/bluetooth/direct_test_mode/child_image/remote_shell/boards/nrf5340dk_nrf5340_cpuapp.overlay
index 3bdcc7c0c416..9dac3c975011 100644
--- a/samples/bluetooth/direct_test_mode/child_image/remote_shell/boards/nrf5340dk_nrf5340_cpuapp.overlay
+++ b/samples/bluetooth/direct_test_mode/child_image/remote_shell/boards/nrf5340dk_nrf5340_cpuapp.overlay
@@ -24,3 +24,7 @@
 		<&gpio0 7 0>;
 	};
 };
+
+#if NRF21540EK
+#include "nrf21540ek.overlay"
+#endif
diff --git a/samples/bluetooth/direct_test_mode/conf/remote_shell/pin_fwd.dts b/samples/bluetooth/direct_test_mode/child_image/remote_shell/boards/pin_fwd.dts
similarity index 100%
rename from samples/bluetooth/direct_test_mode/conf/remote_shell/pin_fwd.dts
rename to samples/bluetooth/direct_test_mode/child_image/remote_shell/boards/pin_fwd.dts
diff --git a/samples/bluetooth/direct_test_mode/conf/remote_shell/prj_usb.conf b/samples/bluetooth/direct_test_mode/child_image/remote_shell/prj_usb.conf
similarity index 100%
rename from samples/bluetooth/direct_test_mode/conf/remote_shell/prj_usb.conf
rename to samples/bluetooth/direct_test_mode/child_image/remote_shell/prj_usb.conf
diff --git a/samples/bluetooth/direct_test_mode/conf/remote_shell/usb.overlay b/samples/bluetooth/direct_test_mode/child_image/remote_shell_usb.overlay
similarity index 100%
rename from samples/bluetooth/direct_test_mode/conf/remote_shell/usb.overlay
rename to samples/bluetooth/direct_test_mode/child_image/remote_shell_usb.overlay
diff --git a/samples/bluetooth/direct_test_mode/conf/remote_shell/usb.dts b/samples/bluetooth/direct_test_mode/child_image/usb.dts
similarity index 100%
rename from samples/bluetooth/direct_test_mode/conf/remote_shell/usb.dts
rename to samples/bluetooth/direct_test_mode/child_image/usb.dts
diff --git a/samples/bluetooth/direct_test_mode/conf/remote_shell/nrf21540ek_usb.overlay b/samples/bluetooth/direct_test_mode/conf/remote_shell/nrf21540ek_usb.overlay
deleted file mode 100644
index 9d5409cf4c46..000000000000
--- a/samples/bluetooth/direct_test_mode/conf/remote_shell/nrf21540ek_usb.overlay
+++ /dev/null
@@ -1,8 +0,0 @@
-/*
- * Copyright (c) 2022 Nordic Semiconductor ASA
- *
- * SPDX-License-Identifier: LicenseRef-Nordic-5-Clause
- */
-
-#include "usb.dts"
-#include "pin_fwd.dts"
diff --git a/samples/bluetooth/direct_test_mode/conf/remote_shell_nrf53.overlay b/samples/bluetooth/direct_test_mode/conf/remote_shell_nrf53.overlay
deleted file mode 100644
index 05eb2d5d9fe4..000000000000
--- a/samples/bluetooth/direct_test_mode/conf/remote_shell_nrf53.overlay
+++ /dev/null
@@ -1,19 +0,0 @@
-/*
- * Copyright (c) 2023 Nordic Semiconductor ASA
- *
- * SPDX-License-Identifier: LicenseRef-Nordic-5-Clause
- */
-
-/ {
-	chosen {
-		ncs,dtm-uart = &uart0;
-	};
-};
-
-&uart0 {
-	status = "okay";
-	compatible = "nordic,nrf-ipc-uart";
-	ipc = <&ipc0>;
-	ept-name = "remote shell";
-	current-speed = <19200>;
-};
diff --git a/samples/bluetooth/direct_test_mode/overlay-hci-nrf53.conf b/samples/bluetooth/direct_test_mode/overlay-hci-nrf53.conf
deleted file mode 100644
index 3dda4d3c8e83..000000000000
--- a/samples/bluetooth/direct_test_mode/overlay-hci-nrf53.conf
+++ /dev/null
@@ -1,15 +0,0 @@
-#
-# Copyright (c) 2023 Nordic Semiconductor
-#
-# SPDX-License-Identifier: LicenseRef-Nordic-5-Clause
-#
-
-CONFIG_NCS_SAMPLE_REMOTE_SHELL_CHILD_IMAGE=n
-CONFIG_IPC_UART=n
-
-CONFIG_NCS_SAMPLE_DTM_REMOTE_HCI_CHILD_IMAGE=y
-CONFIG_NRF_RPC=y
-CONFIG_NRF_RPC_CBOR=y
-
-CONFIG_DTM_TRANSPORT_HCI=y
-CONFIG_NET_BUF=y
diff --git a/samples/bluetooth/direct_test_mode/overlay-hci.conf b/samples/bluetooth/direct_test_mode/overlay-hci.conf
deleted file mode 100644
index 3c07dad787fb..000000000000
--- a/samples/bluetooth/direct_test_mode/overlay-hci.conf
+++ /dev/null
@@ -1,9 +0,0 @@
-#
-# Copyright (c) 2023 Nordic Semiconductor
-#
-# SPDX-License-Identifier: LicenseRef-Nordic-5-Clause
-#
-
-CONFIG_DTM_TRANSPORT_HCI=y
-CONFIG_NET_BUF=y
-CONFIG_UART_ASYNC_API=y
diff --git a/samples/bluetooth/direct_test_mode/prj_hci.conf b/samples/bluetooth/direct_test_mode/prj_hci.conf
new file mode 100644
index 000000000000..3b00c98335d9
--- /dev/null
+++ b/samples/bluetooth/direct_test_mode/prj_hci.conf
@@ -0,0 +1,31 @@
+#
+# Copyright (c) 2020 Nordic Semiconductor
+#
+# SPDX-License-Identifier: LicenseRef-Nordic-5-Clause
+#
+
+# Configure assertions
+CONFIG_ASSERT=y
+CONFIG_ASSERT_NO_COND_INFO=y
+CONFIG_ASSERT_NO_MSG_INFO=y
+
+CONFIG_HW_STACK_PROTECTION=y
+
+CONFIG_CONSOLE=n
+CONFIG_UART_CONSOLE=n
+
+CONFIG_LOG=y
+CONFIG_LOG_PRINTK=y
+CONFIG_USE_SEGGER_RTT=y
+CONFIG_LOG_BACKEND_RTT=y
+
+# Use necessary peripherals
+CONFIG_NRFX_TIMER0=y
+CONFIG_NRFX_TIMER1=y
+CONFIG_NRFX_TIMER2=y
+
+CONFIG_FEM_AL_LIB=y
+
+CONFIG_DTM_TRANSPORT_HCI=y
+CONFIG_NET_BUF=y
+CONFIG_UART_ASYNC_API=y
diff --git a/samples/bluetooth/direct_test_mode/prj_usb.conf b/samples/bluetooth/direct_test_mode/prj_usb.conf
new file mode 100644
index 000000000000..12d257fa3296
--- /dev/null
+++ b/samples/bluetooth/direct_test_mode/prj_usb.conf
@@ -0,0 +1,29 @@
+#
+# Copyright (c) 2020 Nordic Semiconductor
+#
+# SPDX-License-Identifier: LicenseRef-Nordic-5-Clause
+#
+
+# Configure assertions
+CONFIG_ASSERT=y
+CONFIG_ASSERT_NO_COND_INFO=y
+CONFIG_ASSERT_NO_MSG_INFO=y
+
+CONFIG_HW_STACK_PROTECTION=y
+
+CONFIG_CONSOLE=n
+CONFIG_UART_CONSOLE=n
+
+CONFIG_LOG=y
+CONFIG_LOG_PRINTK=y
+CONFIG_USE_SEGGER_RTT=y
+CONFIG_LOG_BACKEND_RTT=y
+
+# Use necessary peripherals
+CONFIG_NRFX_TIMER0=y
+CONFIG_NRFX_TIMER1=y
+CONFIG_NRFX_TIMER2=y
+
+CONFIG_FEM_AL_LIB=y
+
+CONFIG_DTM_USB=y
diff --git a/samples/bluetooth/direct_test_mode/sample.yaml b/samples/bluetooth/direct_test_mode/sample.yaml
index 3cc160662b9f..655e9fb1a8ac 100644
--- a/samples/bluetooth/direct_test_mode/sample.yaml
+++ b/samples/bluetooth/direct_test_mode/sample.yaml
@@ -24,17 +24,14 @@ tests:
     tags: bluetooth ci_build
   sample.bluetooth.direct_test_mode.nrf5340_usb:
     build_only: true
-    extra_configs:
-      - CONFIG_DTM_USB=y
+    extra_args: FILE_SUFFIX=usb
     integration_platforms:
       - nrf5340dk/nrf5340/cpunet
     platform_allow: nrf5340dk/nrf5340/cpunet
     tags: bluetooth ci_build
   sample.bluetooth.direct_test_mode.nrf5340_nrf21540_usb:
     build_only: true
-    extra_args: SHIELD=nrf21540ek
-    extra_configs:
-      - CONFIG_DTM_USB=y
+    extra_args: SHIELD=nrf21540ek FILE_SUFFIX=usb
     integration_platforms:
       - nrf5340dk/nrf5340/cpunet
     platform_allow: nrf5340dk/nrf5340/cpunet