diff --git a/boards/cypress/cy8cproto_062_4343w/cy8cproto_062_4343w.dts b/boards/cypress/cy8cproto_062_4343w/cy8cproto_062_4343w.dts
index cc793184b1..726b1c9894 100644
--- a/boards/cypress/cy8cproto_062_4343w/cy8cproto_062_4343w.dts
+++ b/boards/cypress/cy8cproto_062_4343w/cy8cproto_062_4343w.dts
@@ -45,16 +45,19 @@ uart5: &scb5 {
 uart2: &scb2 {
 	compatible = "infineon,cat1-uart";
 	status = "okay";
+
 	/* The UART bus speed (current_speed) for zephyr_bt_uart should be the same
 	 * as the default baudrate defined in CYW43xx firmware (default 115200).
 	 */
-
 	current-speed = <115200>;
 
 	/* HCI-UART pins */
 	pinctrl-0 = <&p3_1_scb2_uart_tx &p3_0_scb2_uart_rx &p3_2_scb2_uart_rts &p3_3_scb2_uart_cts>;
 	pinctrl-names = "default";
 
+	/* HW Flow control must be enabled for HCI H4 */
+	hw-flow-control;
+
 	bt-hci {
 		status = "okay";
 		compatible = "infineon,cyw43xxx-bt-hci";
diff --git a/dts/bindings/bluetooth/infineon,cyw43xxx-bt-hci.yaml b/dts/bindings/bluetooth/infineon,cyw43xxx-bt-hci.yaml
index 25213af3ec..4dcc1f4187 100644
--- a/dts/bindings/bluetooth/infineon,cyw43xxx-bt-hci.yaml
+++ b/dts/bindings/bluetooth/infineon,cyw43xxx-bt-hci.yaml
@@ -18,6 +18,9 @@ description: |
                      &p3_2_scb2_uart_rts &p3_3_scb2_uart_cts>;
         pinctrl-names = "default";
 
+        /* HW Flow control must be enabled for HCI H4 */
+        hw-flow-control;
+
         bt-hci {
           status = "okay";
           compatible = "infineon,cyw43xxx-bt-hci";