diff --git a/cmake/modules/version.cmake b/cmake/modules/version.cmake
index 72c0424031..16d772e2cd 100644
--- a/cmake/modules/version.cmake
+++ b/cmake/modules/version.cmake
@@ -36,8 +36,12 @@
 # The final load of `version.cmake` will setup correct build version values.
 
 if(NOT DEFINED VERSION_FILE AND NOT DEFINED VERSION_TYPE)
-  set(VERSION_FILE ${ZEPHYR_BASE}/VERSION ${APPLICATION_SOURCE_DIR}/VERSION)
-  set(VERSION_TYPE KERNEL                 APP)
+  set(VERSION_FILE ${ZEPHYR_BASE}/VERSION)
+  set(VERSION_TYPE KERNEL)
+  if(DEFINED APPLICATION_SOURCE_DIR)
+    list(APPEND VERSION_FILE ${APPLICATION_SOURCE_DIR}/VERSION)
+    list(APPEND VERSION_TYPE APP)
+  endif()
 endif()
 
 foreach(type file IN ZIP_LISTS VERSION_TYPE VERSION_FILE)