diff --git a/doc/nrf/releases_and_maturity/releases/release-notes-changelog.rst b/doc/nrf/releases_and_maturity/releases/release-notes-changelog.rst
index 74fbf3eb9f59..8b9df4478333 100644
--- a/doc/nrf/releases_and_maturity/releases/release-notes-changelog.rst
+++ b/doc/nrf/releases_and_maturity/releases/release-notes-changelog.rst
@@ -543,6 +543,18 @@ Libraries for networking
 
   * Fixed the warning due to missing ``https`` download protocol.
 
+* :ref:`lib_downloader` library:
+
+  * Updated to support Proxy-URI option and an authentication callback after connecting.
+
+* :ref:`lib_fota_download` library:
+
+  * Updated to use the :ref:`lib_downloader` library for CoAP downloads.
+
+* :ref:`lib_nrf_cloud` library:
+
+  * Updated to use the :ref:`lib_downloader` library for CoAP downloads.
+
 Libraries for NFC
 -----------------
 
diff --git a/include/net/downloader.h b/include/net/downloader.h
index 3a731acf8839..a56a764017a0 100644
--- a/include/net/downloader.h
+++ b/include/net/downloader.h
@@ -185,6 +185,16 @@ struct downloader_host_cfg {
 	 * Set to @c AF_UNSPEC (0) to fallback to @c AF_INET if @c AF_INET6 does not work.
 	 */
 	int family;
+	/**
+	 * Callback to do client authentication.
+	 * This is called after connecting.
+	 */
+	int (*auth_cb)(int sock);
+	/**
+	 * CoAP Proxy-URI option.
+	 * This string is used in case you are requesting a proxied file from a CoAP server.
+	 */
+	const char *proxy_uri;
 };
 
 /**
diff --git a/include/net/fota_download.h b/include/net/fota_download.h
index 6a45cbf18580..fbb24ebcf726 100644
--- a/include/net/fota_download.h
+++ b/include/net/fota_download.h
@@ -63,11 +63,6 @@ enum fota_download_evt_id {
 
 	/** FOTA download abandoned due to a cancellation request. */
 	FOTA_DOWNLOAD_EVT_CANCELLED,
-
-	/** Resume the download at offset.
-	 *  Only generated if @kconfig{CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL} is enabled.
-	 */
-	FOTA_DOWNLOAD_EVT_RESUME_OFFSET,
 };
 
 /**
@@ -101,8 +96,6 @@ struct fota_download_evt {
 		enum fota_download_error_cause cause;
 		/** Download progress %. */
 		int progress;
-		/** Resume at offset @ref FOTA_DOWNLOAD_EVT_RESUME_OFFSET */
-		size_t resume_offset;
 	};
 };
 
@@ -152,6 +145,32 @@ int fota_download(const char *host, const char *file, const int *sec_tag_list,
 		  uint8_t sec_tag_count, uint8_t pdn_id, size_t fragment_size,
 		  const enum dfu_target_image_type expected_type);
 
+/**@brief Download the given file with the specified image type from the given host.
+ *
+ * Identical to fota_download_start_with_image_type(),
+ * but with additional host configuration options.
+ *
+ * @param host Name of host to start downloading from. Can include scheme
+ *             and port number, for example https://google.com:443
+ * @param file Path to the file you wish to download. See fota_download_any()
+ *             for details on expected format.
+ * @param sec_tag Security tag you want to use with COAPS. Pass -1 to disable DTLS.
+ * @param pdn_id Packet Data Network ID to use for the download, or 0 to use the default.
+ * @param fragment_size Fragment size to be used for the download. If 0, no fragmentation is used.
+ * @param expected_type Type of firmware file to be downloaded and installed.
+ * @param host_cfg Additional host configuration options.
+ *
+ * @retval 0	     If download has started successfully.
+ * @retval -EALREADY If download is already ongoing.
+ * @retval -E2BIG    If sec_tag_count is larger than
+ *		     @kconfig{CONFIG_FOTA_DOWNLOAD_SEC_TAG_LIST_SIZE_MAX}
+ *                   Otherwise, a negative value is returned.
+ */
+int fota_download_with_host_cfg(const char *host, const char *file,
+				int sec_tag, uint8_t pdn_id, size_t fragment_size,
+				const enum dfu_target_image_type expected_type,
+				const struct downloader_host_cfg *host_cfg);
+
 
 /**@brief Start downloading the given file of any image type from the given host.
  *
@@ -281,31 +300,6 @@ int fota_download_s0_active_get(bool *const s0_active);
  */
 int fota_download_b1_file_parse(char *s0_s1_files);
 
-/**@brief Start a FOTA download using an external download client.
- *        Requires @kconfig{CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL} to be enabled.
- *
- * @param host		Name of host.
- * @param file		File path of the firmware image.
- * @param expected_type Type of firmware image to be installed.
- * @param image_size	Size of the firmware image.
- *
- * @retval 0 If successful.
- *           Otherwise, a (negative) error code is returned.
- */
-int fota_download_external_start(const char *host, const char *file,
-				 const enum dfu_target_image_type expected_type,
-				 const size_t image_size);
-
-/**@brief Handle a download event from an external download client.
- *        Requires @kconfig{CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL} to be enabled.
- *
- * @param evt Download event.
- *
- * @retval 0 If successful.
- *           Otherwise, a (negative) error code is returned.
- */
-int fota_download_external_evt_handle(struct downloader_evt const *const evt);
-
 #ifdef __cplusplus
 }
 #endif
diff --git a/subsys/net/lib/downloader/Kconfig b/subsys/net/lib/downloader/Kconfig
index a905ec849412..0e91692f95fe 100644
--- a/subsys/net/lib/downloader/Kconfig
+++ b/subsys/net/lib/downloader/Kconfig
@@ -32,7 +32,7 @@ config DOWNLOADER_SHELL
 
 config DOWNLOADER_TRANSPORT_PARAMS_SIZE
 	int "Maximum transport parameter size"
-	default 128
+	default 256
 
 config DOWNLOADER_TRANSPORT_HTTP
 	bool "HTTP transport"
diff --git a/subsys/net/lib/downloader/src/transports/coap.c b/subsys/net/lib/downloader/src/transports/coap.c
index 72e427411c67..39764873ee90 100644
--- a/subsys/net/lib/downloader/src/transports/coap.c
+++ b/subsys/net/lib/downloader/src/transports/coap.c
@@ -25,6 +25,9 @@ LOG_MODULE_DECLARE(downloader, CONFIG_DOWNLOADER_LOG_LEVEL);
 #define FILENAME_SIZE	     CONFIG_DOWNLOADER_MAX_FILENAME_SIZE
 #define COAP_PATH_ELEM_DELIM "/"
 
+#define COAP "coap://"
+#define COAPS "coaps://"
+
 struct transport_params_coap {
 	/** Flag whether config is set */
 	bool cfg_set;
@@ -54,6 +57,10 @@ struct transport_params_coap {
 	bool new_data_req;
 	/** Request retransmission */
 	bool retransmission_req;
+	/* Proxy-URI option value */
+	const char *proxy_uri;
+	/* Client auth callback */
+	int (*auth_cb)(int sock);
 };
 
 BUILD_ASSERT(CONFIG_DOWNLOADER_TRANSPORT_PARAMS_SIZE >= sizeof(struct transport_params_coap));
@@ -280,11 +287,8 @@ static int coap_request_send(struct downloader *dl)
 		return err;
 	}
 
-	err = dl_parse_url_file(dl->file, file, sizeof(file));
-	if (err) {
-		LOG_ERR("Unable to parse url");
-		return err;
-	}
+	LOG_DBG("dl->file: %s", dl->file);
+	strncpy(file, dl->file, sizeof(file) - 1);
 
 	path_elem = strtok_r(file, COAP_PATH_ELEM_DELIM, &path_elem_saveptr);
 	do {
@@ -308,6 +312,15 @@ static int coap_request_send(struct downloader *dl)
 		return err;
 	}
 
+	if (coap->proxy_uri != NULL) {
+		err = coap_packet_append_option(&request, COAP_OPTION_PROXY_URI,
+			coap->proxy_uri, strlen(coap->proxy_uri));
+		if (err) {
+			LOG_ERR("Unable to add Proxy-URI option");
+			return err;
+		}
+	}
+
 	if (!has_pending(dl)) {
 		struct coap_transmission_parameters params = coap_get_transmission_parameters();
 
@@ -342,9 +355,9 @@ static int coap_request_send(struct downloader *dl)
 
 static bool dl_coap_proto_supported(struct downloader *dl, const char *url)
 {
-	if (strncmp(url, "coaps://", 8) == 0) {
+	if (strncmp(url, COAPS, (sizeof(COAPS) - 1)) == 0) {
 		return true;
-	} else if (strncmp(url, "coap://", 7) == 0) {
+	} else if (strncmp(url, COAP, (sizeof(COAP) - 1)) == 0) {
 		return true;
 	}
 
@@ -369,14 +382,14 @@ static int dl_coap_init(struct downloader *dl, struct downloader_host_cfg *dl_ho
 		coap->cfg = tmp_cfg;
 		coap->cfg_set = cfg_set;
 	} else {
-		coap->cfg.block_size = 5;
+		coap->cfg.block_size = COAP_BLOCK_1024;
 		coap->cfg.max_retransmission = 4;
 	}
 
 	coap->sock.proto = IPPROTO_UDP;
 	coap->sock.type = SOCK_DGRAM;
 
-	if (strncmp(url, "coaps://", 8) == 0 ||
+	if (strncmp(url, COAPS, (sizeof(COAPS) - 1)) == 0 ||
 	    (dl_host_cfg->sec_tag_count != 0 && dl_host_cfg->sec_tag_list != NULL)) {
 		coap->sock.proto = IPPROTO_DTLS_1_2;
 		coap->sock.type = SOCK_DGRAM;
@@ -405,6 +418,10 @@ static int dl_coap_init(struct downloader *dl, struct downloader_host_cfg *dl_ho
 		coap->sock.type |= SOCK_NATIVE_TLS;
 	}
 
+	/* Copy proxy-uri and auth-cb to internal struct */
+	coap->proxy_uri = dl_host_cfg->proxy_uri;
+	coap->auth_cb = dl_host_cfg->auth_cb;
+
 	return 0;
 }
 
@@ -448,6 +465,11 @@ static int dl_coap_connect(struct downloader *dl)
 
 	coap->new_data_req = true;
 
+	/* Run auth callback if set */
+	if (coap->auth_cb != NULL) {
+		return coap->auth_cb(coap->sock.fd);
+	}
+
 	return err;
 }
 
diff --git a/subsys/net/lib/downloader/src/transports/http.c b/subsys/net/lib/downloader/src/transports/http.c
index 439422ea1702..ec54915e6687 100644
--- a/subsys/net/lib/downloader/src/transports/http.c
+++ b/subsys/net/lib/downloader/src/transports/http.c
@@ -430,11 +430,11 @@ static int http_parse(struct downloader *dl, size_t len)
 
 static bool dl_http_proto_supported(struct downloader *dl, const char *url)
 {
-	if (strncmp(url, HTTPS, strlen(HTTPS)) == 0) {
+	if (strncmp(url, HTTPS, (sizeof(HTTPS) - 1)) == 0) {
 		return true;
 	}
 
-	if (strncmp(url, HTTP, strlen(HTTP)) == 0) {
+	if (strncmp(url, HTTP, (sizeof(HTTP) - 1)) == 0) {
 		return true;
 	}
 
@@ -458,8 +458,8 @@ static int dl_http_init(struct downloader *dl, struct downloader_host_cfg *dl_ho
 	http->sock.proto = IPPROTO_TCP;
 	http->sock.type = SOCK_STREAM;
 
-	if (strncmp(url, HTTPS, strlen(HTTPS)) == 0 ||
-	    (strncmp(url, HTTP, strlen(HTTP)) != 0 &&
+	if (strncmp(url, HTTPS, (sizeof(HTTPS) - 1)) == 0 ||
+	    (strncmp(url, HTTP, (sizeof(HTTP) - 1)) != 0 &&
 	     (dl_host_cfg->sec_tag_count != 0 && dl_host_cfg->sec_tag_list != NULL))) {
 		http->sock.proto = IPPROTO_TLS_1_2;
 		http->sock.type = SOCK_STREAM;
diff --git a/subsys/net/lib/fota_download/Kconfig b/subsys/net/lib/fota_download/Kconfig
index 5c99846fa9a8..c43daa4c159a 100644
--- a/subsys/net/lib/fota_download/Kconfig
+++ b/subsys/net/lib/fota_download/Kconfig
@@ -66,10 +66,6 @@ config FOTA_DOWNLOAD_SEC_TAG_LIST_SIZE_MAX
 	help
 	  Maximum size of the list of security tags used to store TLS credentials.
 
-config FOTA_DOWNLOAD_EXTERNAL_DL
-	bool "Use external download events to perform FOTA updates"
-	select EXPERIMENTAL
-
 module=FOTA_DOWNLOAD
 module-dep=LOG
 module-str=Firmware Over the Air Download
diff --git a/subsys/net/lib/fota_download/src/fota_download.c b/subsys/net/lib/fota_download/src/fota_download.c
index b206124c424e..3432712a312d 100644
--- a/subsys/net/lib/fota_download/src/fota_download.c
+++ b/subsys/net/lib/fota_download/src/fota_download.c
@@ -25,11 +25,6 @@
 
 LOG_MODULE_REGISTER(fota_download, CONFIG_FOTA_DOWNLOAD_LOG_LEVEL);
 
-#if defined(CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL)
-static size_t ext_file_sz;
-static size_t ext_rcvd_sz;
-#endif
-
 static fota_download_callback_t callback;
 static const char *dl_host;
 static const char *dl_file;
@@ -105,15 +100,6 @@ static void send_progress(int progress)
 #endif
 }
 
-static void send_ext_resume(const size_t offset)
-{
-#if defined(CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL)
-	const struct fota_download_evt evt = { .id = FOTA_DOWNLOAD_EVT_RESUME_OFFSET,
-					       .resume_offset = offset };
-	callback(&evt);
-#endif
-}
-
 static void stopped(void)
 {
 	atomic_clear_bit(&flags, FLAG_DOWNLOADING);
@@ -143,27 +129,16 @@ static void dfu_target_callback_handler(enum dfu_target_evt_id evt)
 
 static size_t file_size_get(size_t *size)
 {
-#if defined(CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL)
-	*size = ext_file_sz;
-	return 0;
-#endif
 	return downloader_file_size_get(&dl, size);
 }
 
 static size_t downloaded_size_get(size_t *size)
 {
-#if defined(CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL)
-	*size = ext_rcvd_sz;
-	return 0;
-#endif
 	return downloader_downloaded_size_get(&dl, size);
 }
 
 static int dl_cancel(void)
 {
-#if defined(CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL)
-	return 0;
-#endif
 	return downloader_cancel(&dl);
 }
 
@@ -264,10 +239,6 @@ static int downloader_callback(const struct downloader_evt *event)
 			}
 		}
 
-#if defined(CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL)
-		ext_rcvd_sz += event->fragment.len;
-#endif
-
 		err = dfu_target_write(event->fragment.buf, event->fragment.len);
 		if (err && err == -EINVAL) {
 			LOG_INF("Image refused");
@@ -321,7 +292,8 @@ static int downloader_callback(const struct downloader_evt *event)
 		/* In case of socket errors we can return 0 to retry/continue,
 		 * or non-zero to stop
 		 */
-		if ((socket_retries_left) && (event->error == -ECONNRESET)) {
+		if ((socket_retries_left)
+		  && ((event->error == -ECONNRESET) || (event->error == -EAGAIN))) {
 			LOG_WRN("Download socket error. %d retries left...",
 				socket_retries_left);
 			socket_retries_left--;
@@ -371,11 +343,6 @@ static int downloader_callback(const struct downloader_evt *event)
 
 static int get_from_offset(const size_t offset)
 {
-	if (IS_ENABLED(CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL)) {
-		send_ext_resume(offset);
-		return 0;
-	}
-
 	int err = downloader_get_with_host_and_file(&dl, &dl_host_cfg, dl_host, dl_file, offset);
 
 	if (err != 0) {
@@ -533,47 +500,21 @@ static void set_host_and_file(char const *const host, char const *const file)
 	dl_file = file;
 }
 
-#if defined(CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL)
-int fota_download_external_evt_handle(struct downloader_evt const *const evt)
-{
-	return downloader_callback(evt);
-}
-
-int fota_download_external_start(const char *host, const char *file,
-				 const enum dfu_target_image_type expected_type,
-				 const size_t image_size)
+int fota_download_with_host_cfg(const char *host, const char *file,
+				int sec_tag, uint8_t pdn_id, size_t fragment_size,
+				const enum dfu_target_image_type expected_type,
+				const struct downloader_host_cfg *host_cfg)
 {
-	if (host == NULL || file == NULL || callback == NULL || image_size == 0) {
-		return -EINVAL;
-	}
-
-	if (atomic_test_and_set_bit(&flags, FLAG_DOWNLOADING)) {
-		return -EALREADY;
-	}
-
-	atomic_clear_bit(&flags, FLAG_STOPPED);
-	atomic_clear_bit(&flags, FLAG_RESUME);
-	set_error_state(FOTA_DOWNLOAD_ERROR_CAUSE_NO_ERROR);
-
-	set_host_and_file(host, file);
-
-	socket_retries_left = CONFIG_FOTA_SOCKET_RETRIES;
-
-	img_type_expected = expected_type;
-	ext_file_sz = image_size;
-	ext_rcvd_sz = 0;
-
-	atomic_set_bit(&flags, FLAG_FIRST_FRAGMENT);
-
-	return 0;
+	dl_host_cfg = *host_cfg;
+	LOG_DBG("Downloading %s/%s", host, file);
+	return fota_download_start_with_image_type(host, file, sec_tag,
+						   pdn_id, fragment_size, expected_type);
 }
-#endif /* CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL */
 
 int fota_download(const char *host, const char *file,
 	const int *sec_tag_list, uint8_t sec_tag_count, uint8_t pdn_id, size_t fragment_size,
 	const enum dfu_target_image_type expected_type)
 {
-	__ASSERT_NO_MSG(!IS_ENABLED(CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL));
 
 	if (host == NULL || file == NULL || callback == NULL) {
 		return -EINVAL;
diff --git a/subsys/net/lib/nrf_cloud/Kconfig.nrf_cloud_coap b/subsys/net/lib/nrf_cloud/Kconfig.nrf_cloud_coap
index e82968c574f6..b2d191926f4a 100644
--- a/subsys/net/lib/nrf_cloud/Kconfig.nrf_cloud_coap
+++ b/subsys/net/lib/nrf_cloud/Kconfig.nrf_cloud_coap
@@ -68,6 +68,7 @@ endif # WIFI
 config NRF_CLOUD_COAP_DOWNLOADS
 	bool "Download files using CoAP instead of HTTP [EXPERIMENTAL]"
 	depends on NRF_CLOUD_COAP
+	select DOWNLOADER_TRANSPORT_COAP
 	select EXPERIMENTAL
 	help
 	  Use nRF Cloud CoAP's proxy download resource to download files for FOTA and P-GPS.
diff --git a/subsys/net/lib/nrf_cloud/Kconfig.nrf_cloud_fota b/subsys/net/lib/nrf_cloud/Kconfig.nrf_cloud_fota
index 7ea7f4f62d10..ca5247e67a44 100644
--- a/subsys/net/lib/nrf_cloud/Kconfig.nrf_cloud_fota
+++ b/subsys/net/lib/nrf_cloud/Kconfig.nrf_cloud_fota
@@ -50,7 +50,6 @@ config NRF_CLOUD_FOTA_POLL
 	bool "FOTA job polling helpers (REST/CoAP)"
 	depends on !NRF_CLOUD_FOTA
 	depends on FOTA_DOWNLOAD
-	select FOTA_DOWNLOAD_EXTERNAL_DL if NRF_CLOUD_COAP_DOWNLOADS
 	help
 	  When enabled, nRF Cloud FOTA job polling helpers will be built.  These
 	  functions make it easy to request, download, and handle modem, boot,
diff --git a/subsys/net/lib/nrf_cloud/coap/include/nrf_cloud_coap_transport.h b/subsys/net/lib/nrf_cloud/coap/include/nrf_cloud_coap_transport.h
index ec46ae2402ef..2e7af845722c 100644
--- a/subsys/net/lib/nrf_cloud/coap/include/nrf_cloud_coap_transport.h
+++ b/subsys/net/lib/nrf_cloud/coap/include/nrf_cloud_coap_transport.h
@@ -97,18 +97,17 @@ int nrf_cloud_coap_transport_pause(struct nrf_cloud_coap_client *const client);
  */
 int nrf_cloud_coap_transport_resume(struct nrf_cloud_coap_client *const client);
 
-/**@brief Get the CoAP options required to perform a proxy download.
+/**@brief Get the URI required to perform a proxy download.
  *
- * @param opt_accept	Option to be populated with COAP_OPTION_ACCEPT details.
- * @param opt_proxy_uri	Option to be populated with COAP_OPTION_PROXY_URI details.
+ * @param uri		Buffer to store the URI.
+ * @param uri_len	Length of the URI buffer.
  * @param host		Download host.
  * @param path		Download file path.
  *
  * @return 0 if successful, otherwise a negative error code.
  */
-int nrf_cloud_coap_transport_proxy_dl_opts_get(struct coap_client_option *const opt_accept,
-					       struct coap_client_option *const opt_proxy_uri,
-					       char const *const host, char const *const path);
+int nrf_cloud_coap_transport_proxy_dl_uri_get(char *const uri, size_t uri_len,
+					      char const *const host, char const *const path);
 
 /**@brief Check if device is connected and authorized to use nRF Cloud CoAP.
  *
diff --git a/subsys/net/lib/nrf_cloud/coap/src/nrf_cloud_coap_transport.c b/subsys/net/lib/nrf_cloud/coap/src/nrf_cloud_coap_transport.c
index 83bf54716fde..74912150df7b 100644
--- a/subsys/net/lib/nrf_cloud/coap/src/nrf_cloud_coap_transport.c
+++ b/subsys/net/lib/nrf_cloud/coap/src/nrf_cloud_coap_transport.c
@@ -928,49 +928,33 @@ int nrf_cloud_coap_transport_resume(struct nrf_cloud_coap_client *const client)
 #define PROXY_URI_DL_HTTPS_LEN		(sizeof(PROXY_URI_DL_HTTPS) - 1)
 #define PROXY_URI_DL_SEP		"/"
 #define PROXY_URI_DL_SEP_LEN		(sizeof(PROXY_URI_DL_SEP) - 1)
-#define PROXY_URI_ADDED_LEN		(PROXY_URI_DL_HTTPS_LEN + PROXY_URI_DL_SEP_LEN)
 
-int nrf_cloud_coap_transport_proxy_dl_opts_get(struct coap_client_option *const opt_accept,
-					       struct coap_client_option *const opt_proxy_uri,
-					       char const *const host, char const *const path)
+int nrf_cloud_coap_transport_proxy_dl_uri_get(char *const uri, size_t uri_len,
+					      char const *const host, char const *const path)
 {
-	__ASSERT_NO_MSG(opt_accept != NULL);
-	__ASSERT_NO_MSG(opt_proxy_uri != NULL);
+	__ASSERT_NO_MSG(uri != NULL);
 	__ASSERT_NO_MSG(host != NULL);
 	__ASSERT_NO_MSG(path != NULL);
 
-	size_t uri_idx = 0;
 	size_t host_len = strlen(host);
 	size_t path_len = strlen(path);
 
-	opt_accept->code = COAP_OPTION_ACCEPT;
-	opt_accept->len = 1;
-	opt_accept->value[0] = COAP_CONTENT_FORMAT_TEXT_PLAIN;
+	const size_t needed_len =
+		PROXY_URI_DL_HTTPS_LEN + host_len + PROXY_URI_DL_SEP_LEN +  path_len;
 
-	opt_proxy_uri->code = COAP_OPTION_PROXY_URI;
-	opt_proxy_uri->len = host_len + path_len + PROXY_URI_ADDED_LEN;
-
-	if (opt_proxy_uri->len > CONFIG_COAP_EXTENDED_OPTIONS_LEN_VALUE) {
+	if (needed_len > uri_len) {
 		LOG_ERR("Host and path for CoAP proxy GET is too large: %u bytes",
-			opt_proxy_uri->len);
-		LOG_INF("Increase CONFIG_COAP_EXTENDED_OPTIONS_LEN_VALUE, current value: %d",
-			CONFIG_COAP_EXTENDED_OPTIONS_LEN_VALUE);
+			needed_len);
 		return -E2BIG;
 	}
 
 	/* We don't want a NULL terminated string, so just copy the data to create the full URI */
-	memcpy(&opt_proxy_uri->value[uri_idx], PROXY_URI_DL_HTTPS, PROXY_URI_DL_HTTPS_LEN);
-	uri_idx += PROXY_URI_DL_HTTPS_LEN;
-
-	memcpy(&opt_proxy_uri->value[uri_idx], host, host_len);
-	uri_idx += host_len;
-
-	memcpy(&opt_proxy_uri->value[uri_idx], PROXY_URI_DL_SEP, PROXY_URI_DL_SEP_LEN);
-	uri_idx += PROXY_URI_DL_SEP_LEN;
-
-	memcpy(&opt_proxy_uri->value[uri_idx], path, path_len);
+	memcpy(uri, PROXY_URI_DL_HTTPS, PROXY_URI_DL_HTTPS_LEN);
+	memcpy(&uri[PROXY_URI_DL_HTTPS_LEN], host, host_len);
+	memcpy(&uri[PROXY_URI_DL_HTTPS_LEN + host_len], PROXY_URI_DL_SEP, PROXY_URI_DL_SEP_LEN);
+	memcpy(&uri[PROXY_URI_DL_HTTPS_LEN + host_len + PROXY_URI_DL_SEP_LEN], path, path_len);
 
-	LOG_DBG("Proxy URI: %.*s", opt_proxy_uri->len, opt_proxy_uri->value);
+	LOG_DBG("Proxy URI: %.*s", needed_len, uri);
 
 	return 0;
 }
diff --git a/subsys/net/lib/nrf_cloud/include/nrf_cloud_download.h b/subsys/net/lib/nrf_cloud/include/nrf_cloud_download.h
index 285f170ad3da..1d3322d891aa 100644
--- a/subsys/net/lib/nrf_cloud/include/nrf_cloud_download.h
+++ b/subsys/net/lib/nrf_cloud/include/nrf_cloud_download.h
@@ -51,13 +51,6 @@ struct nrf_cloud_download_data {
 		/* Downloader data */
 		struct downloader *dl;
 	};
-
-#if defined(CONFIG_NRF_CLOUD_COAP_DOWNLOADS)
-	/* Track the received bytes for CoAP downloads */
-	size_t coap_rcvd_bytes;
-	/* Offset used when resuming a download */
-	size_t resume_offset;
-#endif
 };
 
 /** @brief Start download. Only one download at a time is allowed. FOTA downloads have priority.
@@ -71,9 +64,6 @@ int nrf_cloud_download_start(struct nrf_cloud_download_data *const cloud_dl);
  */
 void nrf_cloud_download_cancel(void);
 
-/** @brief Resume a CoAP download at the provided offset. */
-int nrf_cloud_download_coap_offset_resume(const size_t offset);
-
 /** @brief Reset the active download state. Call when download has ended. */
 void nrf_cloud_download_end(void);
 
diff --git a/subsys/net/lib/nrf_cloud/src/nrf_cloud_download.c b/subsys/net/lib/nrf_cloud/src/nrf_cloud_download.c
index 5a66f106dc91..42a87da402f0 100644
--- a/subsys/net/lib/nrf_cloud/src/nrf_cloud_download.c
+++ b/subsys/net/lib/nrf_cloud/src/nrf_cloud_download.c
@@ -34,239 +34,63 @@ static K_MUTEX_DEFINE(active_dl_mutex);
 static struct nrf_cloud_download_data active_dl = { .type = NRF_CLOUD_DL_TYPE_NONE };
 
 #if defined(CONFIG_NRF_CLOUD_COAP_DOWNLOADS)
-#define ACPT_IDX 0
-#define PRXY_IDX 1
-#define OPT_CNT  2
-/* CoAP option array */
-static struct coap_client_option cc_opts[OPT_CNT] = {0};
 /* CoAP client to be used for file downloads */
 static struct nrf_cloud_coap_client coap_client;
-/* Workqueue item used to resume a downlaod */
-static struct k_work_delayable resume_work;
 
-static void resume_work_fn(struct k_work *unused);
-
-static int coap_dl_init(void)
-{
-	k_work_init_delayable(&resume_work, resume_work_fn);
-	return nrf_cloud_coap_transport_init(&coap_client);
-}
-
-static int coap_dl_connect_and_auth(void)
-{
-	int ret = nrf_cloud_coap_transport_connect(&coap_client);
-
-	if (ret) {
-		LOG_ERR("CoAP connect failed, error; %d", ret);
-		return -EIO;
-	}
-
-	ret = nrf_cloud_coap_transport_authenticate(&coap_client);
-	if (ret) {
-		LOG_ERR("CoAP authentication failed, error; %d", ret);
-		return -EACCES;
-	}
-
-	return 0;
-}
-
-static int fota_dl_evt_send(const struct downloader_evt *evt)
-{
-#if defined(CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL)
-	return fota_download_external_evt_handle(evt);
-#endif
-	return -ENOTSUP;
-}
-
-static int coap_dl_event_send(struct nrf_cloud_download_data const *const dl,
-			      const struct downloader_evt *const evt)
-{
-	/* Send events as if we are the downoad_client */
-	if (dl->type == NRF_CLOUD_DL_TYPE_FOTA) {
-		return fota_dl_evt_send(evt);
-	} else if (dl->type == NRF_CLOUD_DL_TYPE_DL_CLIENT) {
-		return dl->dl->cfg.callback(evt);
-	}
-
-	return -EINVAL;
-}
-
-static int coap_dl_disconnect(void)
-{
-	return nrf_cloud_coap_transport_disconnect(&coap_client);
-}
-
-static void coap_dl_cb(int16_t result_code, size_t offset, const uint8_t *payload, size_t len,
-		       bool last_block, void *user_data)
+int nrf_cloud_download_handle_coap_auth(int socket)
 {
-	int ret;
-	bool send_closed_evt = false;
-	bool send_done_evt = last_block;
-	bool stop_on_err = false;
-	struct nrf_cloud_download_data *dl = (struct nrf_cloud_download_data *)user_data;
-	struct downloader_evt evt = {0};
-
-	LOG_DBG("CoAP result: %d, offset: 0x%X, len: 0x%X, last_block: %d",
-		result_code, offset, len, last_block);
-
-	if (result_code == COAP_RESPONSE_CODE_CONTENT) {
-		evt.id = DOWNLOADER_EVT_FRAGMENT;
-		evt.fragment.buf = payload;
-		evt.fragment.len = len;
-	} else if (result_code == -ECANCELED) {
-		LOG_DBG("CoAP request canceled");
-		/* This is not actually an error, just use the error event to indicate that
-		 * the transfer has been canceled
-		 */
-		evt.id = DOWNLOADER_EVT_ERROR;
-		evt.error = -ECANCELED;
-		(void)coap_dl_event_send(dl, &evt);
-		return;
-	} else if (result_code != COAP_RESPONSE_CODE_OK) {
-		LOG_ERR("Unexpected CoAP result: %d", result_code);
-		LOG_DBG("CoAP response: %.*s", len, payload);
-		evt.id = DOWNLOADER_EVT_ERROR;
-		/* Use -ECONNRESET to trigger retry mechanism used by fota_download and
-		 * the P-GPS download event handler
-		 */
-		evt.error = -ECONNRESET;
-		stop_on_err = true;
-	}
-
-	ret = coap_dl_event_send(dl, &evt);
-
-	if (evt.id == DOWNLOADER_EVT_FRAGMENT) {
-		if (ret == 0) {
-			/* Fragment was successfully processed */
-			dl->coap_rcvd_bytes += len;
-		} else if ((ret == -1) && (dl->type == NRF_CLOUD_DL_TYPE_FOTA)) {
-			/* For FOTA, -1 on a fragment event requires a closed event
-			 * that will generate a request for restart.
-			 */
-			send_closed_evt = true;
-			send_done_evt = false;
-			ret = 0;
-		}
-	} else if ((ret == 0) && (evt.error == -ECONNRESET)) {
-		/* Retry if the event handler returned zero during an error event */
-		dl->resume_offset = dl->coap_rcvd_bytes;
-		k_work_schedule(&resume_work, K_SECONDS(1));
-		return;
-	}
-
-	if (ret || stop_on_err) {
-		send_closed_evt = true;
-		send_done_evt = false;
-		stop_on_err = true;
-	}
-
-	if (send_done_evt) {
-		LOG_INF("Download complete");
-
-		memset(&evt, 0, sizeof(evt));
-		evt.id = DOWNLOADER_EVT_DONE;
-
-		ret = coap_dl_event_send(dl, &evt);
-		if (ret) {
-			/* Send a closed event on error */
-			send_closed_evt = true;
-			stop_on_err = true;
-		}
-
-		ret = coap_dl_disconnect();
-		if (ret && (ret != -ENOTCONN)) {
-			LOG_WRN("Failed to disconnect CoAP transport, error: %d", ret);
-		}
+	int err = 0;
+	struct nrf_cloud_coap_client *client = &coap_client;
 
-		if (dl->type == NRF_CLOUD_DL_TYPE_FOTA) {
-			/* fota_download expects a closed event when the download is done */
-			send_closed_evt = true;
-		}
+	/* Initialize client */
+	err = nrf_cloud_coap_transport_init(client);
+	if (err) {
+		LOG_ERR("Failed to initialize CoAP client, error: %d", err);
+		return err;
 	}
 
-	if (send_closed_evt) {
-		memset(&evt, 0, sizeof(evt));
-		evt.id = DOWNLOADER_EVT_STOPPED;
-		(void)coap_dl_event_send(dl, &evt);
-	}
+	/* We are already connected using the given socket */
+	k_mutex_lock(&client->mutex, K_FOREVER);
+	client->sock = socket;
+	client->cc.fd = socket;
+	k_mutex_unlock(&client->mutex);
 
-	if (stop_on_err) {
-		LOG_ERR("CoAP download error, stopping download");
-		nrf_cloud_download_end();
+	/* Authenticate */
+	err = nrf_cloud_coap_transport_authenticate(client);
+	if (err) {
+		LOG_ERR("Failed to authenticate CoAP client, error: %d", err);
+		return err;
 	}
-}
 
-#define MAX_RETRIES 5
-#define PROXY_RSC_OFFSET_TMPLT		NRF_CLOUD_COAP_PROXY_RSC "?offset=%u"
-#define PROXY_RSC_BUF_SZ		sizeof(PROXY_RSC_OFFSET_TMPLT) + 10
-static int coap_dl_start(struct nrf_cloud_download_data *const dl, const size_t offset)
-{
-	static char rsc_path_offset[PROXY_RSC_BUF_SZ];
-
-	int err;
-	int retry = 0;
-	struct coap_client *cc = &coap_client.cc;
-
-	struct coap_client_request request = {
-		.method = COAP_METHOD_GET,
-		.confirmable = true,
-		.path = NRF_CLOUD_COAP_PROXY_RSC,
-		.fmt = COAP_CONTENT_FORMAT_APP_OCTET_STREAM,
-		.payload = NULL,
-		.len = 0,
-		.cb = coap_dl_cb,
-		.user_data = dl,
-		.options = cc_opts,
-		.num_options = OPT_CNT
-	};
-
-	if (offset > 0) {
-		/* Use the offset parameter in the resource path */
-		err = snprintk(rsc_path_offset, sizeof(rsc_path_offset),
-			       PROXY_RSC_OFFSET_TMPLT, offset);
-		if ((err < 0) || (err >= sizeof(rsc_path_offset))) {
-			LOG_ERR("Could not format CoAP proxy download resource");
-			return -EIO;
-		}
-		request.path = rsc_path_offset;
-	}
+	/* Clean up client */
+	k_mutex_lock(&client->mutex, K_FOREVER);
+	client->sock = -1;
+	client->cc.fd = -1;
+	client->authenticated = false;
+	k_mutex_unlock(&client->mutex);
 
-	while ((err = coap_client_req(cc, cc->fd, NULL, &request, NULL)) == -EAGAIN) {
-		if (retry++ > MAX_RETRIES) {
-			LOG_ERR("Timeout waiting for CoAP client to be available");
-			return -ETIMEDOUT;
-		}
-		LOG_DBG("CoAP client busy");
-		k_sleep(K_MSEC(500));
-	}
-
-	if (err == 0) {
-		LOG_DBG("Sent CoAP download request, offset: %u", offset);
-	} else {
-		LOG_ERR("Error sending CoAP request: %d", err);
-	}
-
-	return err;
+	return 0;
 }
 
 static int coap_dl(struct nrf_cloud_download_data *const dl)
 {
+	static char proxy_uri[CONFIG_FOTA_DOWNLOAD_RESOURCE_LOCATOR_LENGTH];
 #if defined(CONFIG_FOTA_DOWNLOAD) && defined(CONFIG_NRF_CLOUD_FOTA_TYPE_BOOT_SUPPORTED)
-	static char buf[CONFIG_FOTA_DOWNLOAD_RESOURCE_LOCATOR_LENGTH];
+	char buf[CONFIG_FOTA_DOWNLOAD_RESOURCE_LOCATOR_LENGTH];
 #endif
 	const char *file_path = dl->path;
-	int ret = coap_dl_init();
+	int ret = 0;
+	struct downloader_host_cfg host_cfg = {
+		.cid = true,
+		.auth_cb = nrf_cloud_download_handle_coap_auth,
+		.proxy_uri = proxy_uri,
+	};
 
 	if (ret) {
 		LOG_ERR("Failed to initialize CoAP download, error: %d", ret);
 		return ret;
 	}
 
-	ret = coap_dl_connect_and_auth();
-	if (ret) {
-		return ret;
-	}
-
 #if defined(CONFIG_FOTA_DOWNLOAD) && defined(CONFIG_NRF_CLOUD_FOTA_TYPE_BOOT_SUPPORTED)
 	if (dl->type == NRF_CLOUD_DL_TYPE_FOTA) {
 		/* Copy file path to modifiable buffer and check for a bootloader file */
@@ -274,99 +98,23 @@ static int coap_dl(struct nrf_cloud_download_data *const dl)
 		ret = fota_download_b1_file_parse(buf);
 
 		if (ret == 0) {
-			/* A bootload file has been found */
+			/* A bootloader file has been found */
 			file_path = buf;
 		}
 	}
 #endif
-	/* Reset the received count */
-	dl->coap_rcvd_bytes = 0;
-	dl->resume_offset = 0;
-
-	/* Get the options for the proxy download */
-	ret = nrf_cloud_coap_transport_proxy_dl_opts_get(&cc_opts[ACPT_IDX],
-							 &cc_opts[PRXY_IDX],
-							 dl->host, file_path);
+	ret = nrf_cloud_coap_transport_proxy_dl_uri_get(
+		proxy_uri, ARRAY_SIZE(proxy_uri), dl->host, file_path);
 	if (ret) {
-		LOG_ERR("Failed to set CoAP options, error: %d", ret);
+		LOG_ERR("Failed to get CoAP proxy URL, error: %d", ret);
 		return ret;
 	}
 
-	if (dl->type == NRF_CLOUD_DL_TYPE_FOTA) {
-#if defined(CONFIG_FOTA_DOWNLOAD_EXTERNAL_DL)
-		ret = fota_download_external_start(dl->host, file_path, dl->fota.expected_type,
-						  (size_t)dl->fota.img_sz);
-		if (ret) {
-			LOG_ERR("Failed to start FOTA download, error: %d", ret);
-			return ret;
-		}
-#else
-		return -ENOTSUP;
-#endif
-	}
-
-	return coap_dl_start(dl, 0);
-}
-
-int nrf_cloud_download_coap_offset_resume(const size_t offset)
-{
-	int err = 0;
-
-	k_mutex_lock(&active_dl_mutex, K_FOREVER);
-
-	if ((active_dl.type == NRF_CLOUD_DL_TYPE_FOTA) ||
-	    (active_dl.type == NRF_CLOUD_DL_TYPE_DL_CLIENT)) {
-		active_dl.resume_offset = offset;
-		k_work_schedule(&resume_work, K_SECONDS(1));
-	} else if (active_dl.type == NRF_CLOUD_DL_TYPE_NONE) {
-		LOG_ERR("No active download, cannot resume");
-		err = -ENODEV;
-	} else {
-		LOG_ERR("Invalid download type (%d), cannot resume", active_dl.type);
-		err = -EINVAL;
-	}
-
-	k_mutex_unlock(&active_dl_mutex);
-
-	return err;
-}
-
-static void resume_work_fn(struct k_work *unused)
-{
-	int ret;
-
-	if (active_dl.type == NRF_CLOUD_DL_TYPE_NONE) {
-		LOG_ERR("No active download, cannot resume");
-		return;
-	}
-
-	/* Ensure current request is canceled */
-	coap_client_cancel_requests(&coap_client.cc);
-
-	ret = coap_dl_connect_and_auth();
-	if (ret == 0) {
-		LOG_DBG("Resuming download at offset: %u", active_dl.resume_offset);
-		ret = coap_dl_start(&active_dl, active_dl.resume_offset);
-	}
-
-	/* On failure, send the events required to generate the error/done status */
-	if (ret) {
-		struct downloader_evt evt = {0};
-
-		LOG_ERR("Failed to resume CoAP download");
-
-		/* Send a non-recoverable error event (not ECONN) */
-		evt.id = DOWNLOADER_EVT_ERROR;
-		evt.error = -EIO;
-		(void)coap_dl_event_send(&active_dl, &evt);
-
-		/* Send a closed event to ensure the terminal fota_download event is generated */
-		if (active_dl.type == NRF_CLOUD_DL_TYPE_FOTA) {
-			memset(&evt, 0, sizeof(evt));
-			evt.id = DOWNLOADER_EVT_STOPPED;
-			(void)coap_dl_event_send(&active_dl, &evt);
-		}
-	}
+	return fota_download_with_host_cfg("coaps://" CONFIG_NRF_CLOUD_COAP_SERVER_HOSTNAME,
+					   "proxy", dl->dl_host_conf.sec_tag_count ?
+					   dl->dl_host_conf.sec_tag_list[0] : -1,
+					   dl->dl_host_conf.pdn_id, dl->dl_host_conf.range_override,
+					   dl->fota.expected_type, &host_cfg);
 }
 #endif /* NRF_CLOUD_COAP_DOWNLOADS */
 
@@ -428,10 +176,6 @@ static int dl_start(struct nrf_cloud_download_data *const cloud_dl)
 
 static int dl_disconnect(struct nrf_cloud_download_data *const dl)
 {
-#if defined(CONFIG_NRF_CLOUD_COAP_DOWNLOADS)
-	return coap_dl_disconnect();
-#endif /* CONFIG_NRF_CLOUD_COAP_DOWNLOADS */
-
 	return downloader_cancel(dl->dl);
 }
 
@@ -479,10 +223,6 @@ void nrf_cloud_download_cancel(void)
 
 void nrf_cloud_download_end(void)
 {
-#if defined(CONFIG_NRF_CLOUD_COAP_DOWNLOADS)
-	coap_dl_disconnect();
-#endif
-
 	k_mutex_lock(&active_dl_mutex, K_FOREVER);
 	active_dl_reset();
 	k_mutex_unlock(&active_dl_mutex);
diff --git a/subsys/net/lib/nrf_cloud/src/nrf_cloud_fota_poll.c b/subsys/net/lib/nrf_cloud/src/nrf_cloud_fota_poll.c
index 0b893b0a833e..b0173b25721d 100644
--- a/subsys/net/lib/nrf_cloud/src/nrf_cloud_fota_poll.c
+++ b/subsys/net/lib/nrf_cloud/src/nrf_cloud_fota_poll.c
@@ -212,29 +212,6 @@ static void http_fota_dl_handler(const struct fota_download_evt *evt)
 	case FOTA_DOWNLOAD_EVT_PROGRESS:
 		LOG_DBG("FOTA download percent: %d%%", evt->progress);
 		break;
-	case FOTA_DOWNLOAD_EVT_RESUME_OFFSET:
-		LOG_DBG("FOTA download resume at offset: %u", evt->resume_offset);
-		/* Event is only applicable if CoAP downloads are enabled */
-#if defined(CONFIG_NRF_CLOUD_COAP_DOWNLOADS)
-		int err = nrf_cloud_download_coap_offset_resume(evt->resume_offset);
-
-		if (err) {
-			LOG_ERR("Failed to resume download, error: %d", err);
-			nrf_cloud_download_end();
-			fota_status = NRF_CLOUD_FOTA_FAILED;
-			fota_status_details = FOTA_STATUS_DETAILS_DL_ERR;
-
-			if (ctx_ptr->is_nonblocking) {
-				k_work_cancel_delayable(&ctx_ptr->timeout_work);
-				ctx_ptr->status_fn(fota_status, fota_status_details);
-
-				(void)update_job_status(ctx_ptr);
-			} else {
-				k_sem_give(&fota_download_sem);
-			}
-		}
-#endif /* CONFIG_NRF_CLOUD_COAP_DOWNLOADS */
-		break;
 	default:
 		break;
 	}
diff --git a/tests/subsys/net/lib/downloader/CMakeLists.txt b/tests/subsys/net/lib/downloader/CMakeLists.txt
index 45a2aa1f4982..63a742c1ee6f 100644
--- a/tests/subsys/net/lib/downloader/CMakeLists.txt
+++ b/tests/subsys/net/lib/downloader/CMakeLists.txt
@@ -36,7 +36,7 @@ target_compile_options(app
   PRIVATE
   -DCONFIG_DOWNLOADER_MAX_HOSTNAME_SIZE=256
   -DCONFIG_DOWNLOADER_MAX_FILENAME_SIZE=256
-  -DCONFIG_DOWNLOADER_TRANSPORT_PARAMS_SIZE=128
+  -DCONFIG_DOWNLOADER_TRANSPORT_PARAMS_SIZE=256
   -DCONFIG_DOWNLOADER_STACK_SIZE=2048
   -DCONFIG_NET_SOCKETS_POSIX_NAMES=y
   -DCONFIG_NET_IPV6=y
diff --git a/tests/subsys/net/lib/fota_download/CMakeLists.txt b/tests/subsys/net/lib/fota_download/CMakeLists.txt
index e61aa1a1523d..2182f4284821 100644
--- a/tests/subsys/net/lib/fota_download/CMakeLists.txt
+++ b/tests/subsys/net/lib/fota_download/CMakeLists.txt
@@ -34,7 +34,7 @@ target_compile_options(app
   -DCONFIG_DOWNLOADER_STACK_SIZE=500
   -DCONFIG_DOWNLOADER_MAX_FILENAME_SIZE=192
   -DCONFIG_DOWNLOADER_MAX_HOSTNAME_SIZE=128
-  -DCONFIG_DOWNLOADER_TRANSPORT_PARAMS_SIZE=128
+  -DCONFIG_DOWNLOADER_TRANSPORT_PARAMS_SIZE=256
   -DCONFIG_FW_MAGIC_LEN=32
   -DABI_INFO_MAGIC=0xdededede
   -DCONFIG_FW_FIRMWARE_INFO_OFFSET=0x200
diff --git a/tests/subsys/net/lib/lwm2m_client_utils/CMakeLists.txt b/tests/subsys/net/lib/lwm2m_client_utils/CMakeLists.txt
index 57a583422203..793101a555e5 100644
--- a/tests/subsys/net/lib/lwm2m_client_utils/CMakeLists.txt
+++ b/tests/subsys/net/lib/lwm2m_client_utils/CMakeLists.txt
@@ -36,7 +36,7 @@ set(options
   -DCONFIG_DOWNLOADER_STACK_SIZE=4096
   -DCONFIG_DOWNLOADER_MAX_HOSTNAME_SIZE=128
   -DCONFIG_DOWNLOADER_MAX_FILENAME_SIZE=128
-  -DCONFIG_DOWNLOADER_TRANSPORT_PARAMS_SIZE=128
+  -DCONFIG_DOWNLOADER_TRANSPORT_PARAMS_SIZE=256
   -DCONFIG_LWM2M_FIRMWARE_UPDATE_OBJ_SUPPORT
   -DCONFIG_LWM2M_FIRMWARE_UPDATE_PULL_SUPPORT
   -DCONFIG_DFU_TARGET_MCUBOOT
diff --git a/tests/subsys/net/lib/lwm2m_fota_utils/CMakeLists.txt b/tests/subsys/net/lib/lwm2m_fota_utils/CMakeLists.txt
index 470fa1e5ae86..bd9b682a3751 100644
--- a/tests/subsys/net/lib/lwm2m_fota_utils/CMakeLists.txt
+++ b/tests/subsys/net/lib/lwm2m_fota_utils/CMakeLists.txt
@@ -35,7 +35,7 @@ set(options
   -DCONFIG_DOWNLOADER_STACK_SIZE=4096
   -DCONFIG_DOWNLOADER_MAX_HOSTNAME_SIZE=128
   -DCONFIG_DOWNLOADER_MAX_FILENAME_SIZE=128
-  -DCONFIG_DOWNLOADER_TRANSPORT_PARAMS_SIZE=128
+  -DCONFIG_DOWNLOADER_TRANSPORT_PARAMS_SIZE=256
   -DCONFIG_LWM2M_FIRMWARE_UPDATE_OBJ_SUPPORT
   -DCONFIG_LWM2M_FIRMWARE_UPDATE_PULL_SUPPORT
   -DCONFIG_DFU_TARGET_MCUBOOT=y
diff --git a/tests/subsys/net/lib/mcumgr_smp_client/CMakeLists.txt b/tests/subsys/net/lib/mcumgr_smp_client/CMakeLists.txt
index 118183771b2f..125663f7012a 100644
--- a/tests/subsys/net/lib/mcumgr_smp_client/CMakeLists.txt
+++ b/tests/subsys/net/lib/mcumgr_smp_client/CMakeLists.txt
@@ -44,7 +44,7 @@ target_compile_options(app
   -DCONFIG_FOTA_DOWNLOAD_RESOURCE_LOCATOR_LENGTH=512
   -DCONFIG_DOWNLOADER_MAX_HOSTNAME_SIZE=128
   -DCONFIG_DOWNLOADER_MAX_FILENAME_SIZE=128
-  -DCONFIG_DOWNLOADER_TRANSPORT_PARAMS_SIZE=128
+  -DCONFIG_DOWNLOADER_TRANSPORT_PARAMS_SIZE=256
   -DCONFIG_DOWNLOADER_STACK_SIZE=1024
   -DCONFIG_DFU_TARGET_SMP=1
   )