diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/_mesh_test.sh b/tests/bluetooth/bsim_bt/bsim_test_mesh/_mesh_test.sh
index 8d9b6890f6..3c65a11124 100755
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/_mesh_test.sh
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/_mesh_test.sh
@@ -66,8 +66,15 @@ function RunTest(){
 
     echo "Starting $testid as device #$idx"
     conf=${conf:-prj_conf}
+
+    if [ ${overlay} ]; then
+        exe_name=./bs_${BOARD}_tests_bluetooth_bsim_bt_bsim_test_mesh_${conf}_${overlay}
+    else
+        exe_name=./bs_${BOARD}_tests_bluetooth_bsim_bt_bsim_test_mesh_${conf}
+    fi
+
     Execute \
-      ./bs_${BOARD}_tests_bluetooth_bsim_bt_bsim_test_mesh_${conf} \
+      ${exe_name} \
       -v=${verbosity_level} -s=$s_id -d=$idx -RealEncryption=1 \
       -testid=$testid ${test_options}
     let idx=idx+1
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/overlay_gatt.conf b/tests/bluetooth/bsim_bt/bsim_test_mesh/overlay_gatt.conf
new file mode 100644
index 0000000000..b2c1bba7fb
--- /dev/null
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/overlay_gatt.conf
@@ -0,0 +1,7 @@
+CONFIG_BT_PERIPHERAL=y
+CONFIG_BT_MESH_GATT_PROXY=y
+CONFIG_BT_MESH_PB_GATT=y
+
+CONFIG_BT_MESH_LOW_POWER=n
+CONFIG_BT_MESH_FRIEND=n
+CONFIG_BT_MESH_IV_UPDATE_TEST=n
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/overlay_low_lat.conf b/tests/bluetooth/bsim_bt/bsim_test_mesh/overlay_low_lat.conf
new file mode 100644
index 0000000000..4310590d1e
--- /dev/null
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/overlay_low_lat.conf
@@ -0,0 +1,4 @@
+CONFIG_BT_EXT_ADV=n
+CONFIG_BT_CTLR_ADVANCED_FEATURES=y
+CONFIG_BT_CTLR_LOW_LAT=y
+CONFIG_BT_TICKER_LOW_LAT=y
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/overlay_pst.conf b/tests/bluetooth/bsim_bt/bsim_test_mesh/overlay_pst.conf
new file mode 100644
index 0000000000..56c92eae9b
--- /dev/null
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/overlay_pst.conf
@@ -0,0 +1,17 @@
+CONFIG_SETTINGS=y
+CONFIG_SETTINGS_CUSTOM=y
+CONFIG_BT_SETTINGS=y
+CONFIG_BT_MESH_SETTINGS_LOG_LEVEL_DBG=y
+
+CONFIG_BT_PERIPHERAL=y
+CONFIG_BT_MESH_GATT_PROXY=y
+CONFIG_BT_MESH_PB_GATT=y
+
+CONFIG_BT_MESH_MODEL_GROUP_COUNT=2
+CONFIG_BT_MESH_CDB_NODE_COUNT=3
+CONFIG_BT_MESH_CDB_SUBNET_COUNT=2
+CONFIG_BT_MESH_SUBNET_COUNT=2
+CONFIG_BT_MESH_TX_SEG_RETRANS_COUNT=1
+CONFIG_BT_MESH_SEQ_STORE_RATE=1
+CONFIG_BT_MESH_RPL_STORE_TIMEOUT=1
+CONFIG_BT_MESH_STORE_TIMEOUT=1
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/prj.conf b/tests/bluetooth/bsim_bt/bsim_test_mesh/prj.conf
index 11eeee853c..1697972be9 100644
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/prj.conf
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/prj.conf
@@ -34,6 +34,7 @@ CONFIG_BT_MESH_FRIEND_ENABLED=n
 CONFIG_BT_MESH_FRIEND_LPN_COUNT=5
 CONFIG_BT_MESH_APP_KEY_COUNT=2
 CONFIG_BT_MESH_MODEL_KEY_COUNT=2
+CONFIG_BT_MESH_LABEL_COUNT=2
 CONFIG_BT_MESH_IV_UPDATE_TEST=y
 CONFIG_BT_MESH_PB_ADV=y
 CONFIG_BT_MESH_PROVISIONER=y
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/prj_gatt.conf b/tests/bluetooth/bsim_bt/bsim_test_mesh/prj_gatt.conf
deleted file mode 100644
index b3df1305bd..0000000000
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/prj_gatt.conf
+++ /dev/null
@@ -1,44 +0,0 @@
-CONFIG_LOG_MODE_IMMEDIATE=y
-CONFIG_ASSERT=y
-CONFIG_SYS_CLOCK_TICKS_PER_SEC=32768
-
-# Bluetooth configuration
-CONFIG_BT=y
-CONFIG_BT_DEBUG_LOG=y
-CONFIG_BT_PRIVACY=n
-CONFIG_BT_COMPANY_ID=0x0059
-CONFIG_BT_DEVICE_NAME="Mesh test"
-CONFIG_BT_LL_SW_SPLIT=y
-CONFIG_BT_OBSERVER=y
-CONFIG_BT_BROADCASTER=y
-CONFIG_BT_TINYCRYPT_ECC=y
-CONFIG_BT_PERIPHERAL=y
-
-# Disable unused Bluetooth features
-CONFIG_BT_CTLR_DUP_FILTER_LEN=0
-CONFIG_BT_CTLR_PRIVACY=n
-
-# Bluetooth mesh configuration
-CONFIG_BT_MESH=y
-CONFIG_BT_MESH_RELAY=y
-CONFIG_BT_MESH_ADV_BUF_COUNT=32
-CONFIG_BT_MESH_TX_SEG_MAX=32
-CONFIG_BT_MESH_RX_SEG_MAX=32
-CONFIG_BT_MESH_TX_SEG_MSG_COUNT=10
-CONFIG_BT_MESH_RX_SEG_MSG_COUNT=10
-CONFIG_BT_MESH_CFG_CLI=y
-CONFIG_BT_MESH_MODEL_GROUP_COUNT=3
-CONFIG_BT_MESH_APP_KEY_COUNT=2
-CONFIG_BT_MESH_MODEL_KEY_COUNT=2
-CONFIG_BT_MESH_PB_ADV=y
-CONFIG_BT_MESH_PB_GATT=y
-CONFIG_BT_MESH_GATT_PROXY=y
-CONFIG_BT_MESH_PROVISIONER=y
-CONFIG_BT_MESH_PROV_DEVICE=y
-CONFIG_BT_MESH_CDB=y
-CONFIG_BT_MESH_CDB_NODE_COUNT=4
-CONFIG_BT_MESH_PROV_OOB_PUBLIC_KEY=y
-CONFIG_BT_MESH_MODEL_EXTENSIONS=y
-CONFIG_BT_MESH_SUBNET_COUNT=5
-
-CONFIG_BT_MESH_LOG_LEVEL_DBG=y
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/prj_low_lat.conf b/tests/bluetooth/bsim_bt/bsim_test_mesh/prj_low_lat.conf
deleted file mode 100644
index 91f03a80d2..0000000000
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/prj_low_lat.conf
+++ /dev/null
@@ -1,51 +0,0 @@
-CONFIG_BT=y
-CONFIG_BT_DEBUG_LOG=y
-CONFIG_LOG_MODE_IMMEDIATE=y
-CONFIG_SYS_CLOCK_TICKS_PER_SEC=32768
-
-# Bluetooth configuration
-CONFIG_BT=y
-CONFIG_BT_PRIVACY=n
-CONFIG_BT_COMPANY_ID=0x0059
-CONFIG_BT_DEVICE_NAME="Mesh test"
-CONFIG_BT_LL_SW_SPLIT=y
-CONFIG_BT_OBSERVER=y
-CONFIG_BT_BROADCASTER=y
-CONFIG_BT_TINYCRYPT_ECC=y
-CONFIG_BT_EXT_ADV=n
-
-# Disable unused Bluetooth features
-CONFIG_BT_CTLR_DUP_FILTER_LEN=0
-CONFIG_BT_CTLR_PRIVACY=n
-
-# Controller Low Latency Variant
-CONFIG_BT_CTLR_ADVANCED_FEATURES=y
-CONFIG_BT_CTLR_LOW_LAT=y
-CONFIG_BT_TICKER_LOW_LAT=y
-
-# Bluetooth mesh configuration
-CONFIG_BT_MESH=y
-CONFIG_BT_MESH_RELAY=y
-CONFIG_BT_MESH_ADV_BUF_COUNT=32
-CONFIG_BT_MESH_TX_SEG_MAX=32
-CONFIG_BT_MESH_RX_SEG_MAX=32
-CONFIG_BT_MESH_TX_SEG_MSG_COUNT=10
-CONFIG_BT_MESH_RX_SEG_MSG_COUNT=10
-CONFIG_BT_MESH_CFG_CLI=y
-CONFIG_BT_MESH_MODEL_GROUP_COUNT=3
-CONFIG_BT_MESH_LOW_POWER=y
-CONFIG_BT_MESH_LPN_AUTO=n
-CONFIG_BT_MESH_FRIEND=y
-CONFIG_BT_MESH_FRIEND_ENABLED=n
-CONFIG_BT_MESH_FRIEND_LPN_COUNT=5
-CONFIG_BT_MESH_APP_KEY_COUNT=2
-CONFIG_BT_MESH_MODEL_KEY_COUNT=2
-CONFIG_BT_MESH_IV_UPDATE_TEST=y
-CONFIG_BT_MESH_PB_ADV=y
-CONFIG_BT_MESH_PROVISIONER=y
-CONFIG_BT_MESH_PROV_DEVICE=y
-CONFIG_BT_MESH_CDB=y
-CONFIG_BT_MESH_CDB_NODE_COUNT=3
-CONFIG_BT_MESH_MODEL_EXTENSIONS=y
-
-CONFIG_BT_MESH_LOG_LEVEL_DBG=y
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/prj_pst.conf b/tests/bluetooth/bsim_bt/bsim_test_mesh/prj_pst.conf
deleted file mode 100644
index db58c2141f..0000000000
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/prj_pst.conf
+++ /dev/null
@@ -1,59 +0,0 @@
-CONFIG_SETTINGS=y
-CONFIG_SETTINGS_CUSTOM=y
-CONFIG_BT_MESH_SETTINGS_LOG_LEVEL_DBG=y
-CONFIG_SYS_CLOCK_TICKS_PER_SEC=32768
-
-CONFIG_BT=y
-CONFIG_BT_DEBUG_LOG=y
-CONFIG_LOG_MODE_IMMEDIATE=y
-
-# Bluetooth configuration
-CONFIG_BT=y
-CONFIG_BT_SETTINGS=y
-CONFIG_BT_PRIVACY=n
-CONFIG_BT_COMPANY_ID=0x0059
-CONFIG_BT_DEVICE_NAME="Mesh test"
-CONFIG_BT_LL_SW_SPLIT=y
-CONFIG_BT_OBSERVER=y
-CONFIG_BT_BROADCASTER=y
-CONFIG_BT_PERIPHERAL=y
-CONFIG_BT_TINYCRYPT_ECC=y
-
-# Disable unused Bluetooth features
-CONFIG_BT_CTLR_DUP_FILTER_LEN=0
-CONFIG_BT_CTLR_PRIVACY=n
-
-# Bluetooth mesh configuration
-CONFIG_BT_MESH=y
-CONFIG_BT_MESH_RELAY=y
-CONFIG_BT_MESH_ADV_BUF_COUNT=32
-CONFIG_BT_MESH_TX_SEG_MAX=32
-CONFIG_BT_MESH_RX_SEG_MAX=32
-CONFIG_BT_MESH_TX_SEG_MSG_COUNT=10
-CONFIG_BT_MESH_RX_SEG_MSG_COUNT=10
-CONFIG_BT_MESH_CFG_CLI=y
-CONFIG_BT_MESH_MODEL_GROUP_COUNT=3
-CONFIG_BT_MESH_LOW_POWER=y
-CONFIG_BT_MESH_LPN_AUTO=n
-CONFIG_BT_MESH_FRIEND=y
-CONFIG_BT_MESH_FRIEND_ENABLED=n
-CONFIG_BT_MESH_FRIEND_LPN_COUNT=5
-CONFIG_BT_MESH_APP_KEY_COUNT=2
-CONFIG_BT_MESH_MODEL_KEY_COUNT=2
-CONFIG_BT_MESH_MODEL_GROUP_COUNT=2
-CONFIG_BT_MESH_LABEL_COUNT=2
-CONFIG_BT_MESH_IV_UPDATE_TEST=y
-CONFIG_BT_MESH_PB_ADV=y
-CONFIG_BT_MESH_PROVISIONER=y
-CONFIG_BT_MESH_PROV_DEVICE=y
-CONFIG_BT_MESH_CDB=y
-CONFIG_BT_MESH_CDB_NODE_COUNT=3
-CONFIG_BT_MESH_CDB_SUBNET_COUNT=2
-CONFIG_BT_MESH_SUBNET_COUNT=2
-CONFIG_BT_MESH_GATT_PROXY=y
-CONFIG_BT_MESH_TX_SEG_RETRANS_COUNT=1
-CONFIG_BT_MESH_SEQ_STORE_RATE=1
-CONFIG_BT_MESH_RPL_STORE_TIMEOUT=1
-CONFIG_BT_MESH_STORE_TIMEOUT=1
-
-CONFIG_BT_MESH_LOG_LEVEL_DBG=y
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/advertiser/proxy_mixin.sh b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/advertiser/proxy_mixin.sh
index 880a868a0d..6adb1d904b 100755
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/advertiser/proxy_mixin.sh
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/advertiser/proxy_mixin.sh
@@ -18,5 +18,5 @@ source $(dirname "${BASH_SOURCE[0]}")/../../_mesh_test.sh
 # Submit the advertiser buffer using bt_mesh_adv_send().
 # With the separate scanner, observe that the submitted buffer is transmitted
 # at least 6 times. Then, observe GATT Proxy beacons resuming.
-conf=prj_gatt_conf
+overlay=overlay_gatt_conf
 RunTest mesh_adv_proxy_mixin adv_tx_proxy_mixin adv_rx_proxy_mixin
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/friendship/msg_mesh_low_lat.sh b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/friendship/msg_mesh_low_lat.sh
index 9177b35eb2..992512e1a5 100755
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/friendship/msg_mesh_low_lat.sh
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/friendship/msg_mesh_low_lat.sh
@@ -5,7 +5,7 @@
 source $(dirname "${BASH_SOURCE[0]}")/../../_mesh_test.sh
 
 # Test communication between the LPN and a third mesh device
-conf=prj_low_lat_conf
+overlay=overlay_low_lat_conf
 RunTest mesh_friendship_msg_mesh_low_lat \
 	friendship_lpn_msg_mesh \
 	friendship_other_msg \
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/access.sh b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/access.sh
index 1141228325..7e8d8e9c09 100755
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/access.sh
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/access.sh
@@ -8,25 +8,25 @@ source $(dirname "${BASH_SOURCE[0]}")/../../_mesh_test.sh
 # Tests must be added in pairs and in sequence.
 # First test: saves data; second test: verifies it.
 
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_access_data_check persistence_access_data_save
 
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_access_data_check persistence_access_data_load --\
 	-argstest access-cfg=configured
 
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_access_data_check persistence_access_sub_overwrite --\
 	-argstest access-cfg=configured
 
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_access_data_check persistence_access_data_load --\
 	-argstest access-cfg=new-subs
 
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_access_data_check persistence_access_data_remove --\
 	-argstest access-cfg=new-subs
 
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_access_data_check persistence_access_data_load --\
 	-argstest access-cfg=not-configured
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/cfg.sh b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/cfg.sh
index affd313493..fb4098d8f4 100755
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/cfg.sh
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/cfg.sh
@@ -8,14 +8,14 @@ source $(dirname "${BASH_SOURCE[0]}")/../../_mesh_test.sh
 # Tests must be added in pairs and in sequence.
 # First test: saves data; second test: verifies it.
 
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_cfg_check persistence_cfg_save -- -argstest stack-cfg=0
 
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_cfg_check persistence_cfg_load -- -argstest stack-cfg=0
 
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_cfg_check persistence_cfg_save -- -argstest stack-cfg=1
 
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_cfg_check persistence_cfg_load -- -argstest stack-cfg=1
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/provisioning.sh b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/provisioning.sh
index ff476982d9..42315bd885 100755
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/provisioning.sh
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/provisioning.sh
@@ -9,11 +9,11 @@ source $(dirname "${BASH_SOURCE[0]}")/../../_mesh_test.sh
 # First test: saves data; second test: verifies it.
 
 # SKIP=(persistence_provisioning_data_save)
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_provisioning_data_check persistence_provisioning_data_save
 
 # SKIP=(persistence_provisioning_data_load)
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_provisioning_data_check persistence_provisioning_data_load
 
 
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/reprovisioning.sh b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/reprovisioning.sh
index 44624c5336..ae8b9b83d7 100755
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/reprovisioning.sh
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/persistence/reprovisioning.sh
@@ -9,11 +9,11 @@ source $(dirname "${BASH_SOURCE[0]}")/../../_mesh_test.sh
 # First test: saves data; second test: verifies it.
 
 # Provision, configure and reset a device
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_reprovisioning persistence_reprovisioning_device \
 	persistence_reprovisioning_provisioner -- -argstest clear-settings=1
 
 # Repeat the test
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_persistence_reprovisioning persistence_reprovisioning_device \
 	persistence_reprovisioning_provisioner
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/replay_cache/replay_attack.sh b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/replay_cache/replay_attack.sh
index d87f456ae7..84acd1e56c 100755
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/replay_cache/replay_attack.sh
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/replay_cache/replay_attack.sh
@@ -4,12 +4,12 @@
 
 source $(dirname "${BASH_SOURCE[0]}")/../../_mesh_test.sh
 
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_replay_attack \
 	rpc_tx_immediate_replay_attack \
 	rpc_rx_immediate_replay_attack
 
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_replay_attack \
 	rpc_tx_power_replay_attack \
 	rpc_rx_power_replay_attack
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/replay_cache/rpl_frag.sh b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/replay_cache/rpl_frag.sh
index 480b30405a..c012b6fa7a 100755
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/replay_cache/rpl_frag.sh
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/replay_cache/rpl_frag.sh
@@ -11,9 +11,9 @@ source $(dirname "${BASH_SOURCE[0]}")/../../_mesh_test.sh
 #   The RPL entry odd address should stay unchanged;
 # 4. Complete IVI Update;
 # 5. Repeate steps 2 - 4 to remove RPL entry with odd address from RPL and cause fragmentation;
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_replay_fragmentation rpc_rx_rpl_frag rpc_tx_rpl_frag
 
 # Simulate reboot and test that RPL entries are restored correctly after defragmentation
-conf=prj_pst_conf
+overlay=overlay_pst_conf
 RunTest mesh_replay_fragmentation rpc_rx_reboot_after_defrag
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/transport/loopback_group_low_lat.sh b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/transport/loopback_group_low_lat.sh
index 0ab3237d6d..4017729c0c 100755
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/transport/loopback_group_low_lat.sh
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/transport/loopback_group_low_lat.sh
@@ -4,5 +4,5 @@
 
 source $(dirname "${BASH_SOURCE[0]}")/../../_mesh_test.sh
 
-conf=prj_low_lat_conf
+overlay=overlay_low_lat_conf
 RunTest mesh_transport_loopback_group_low_lat transport_tx_loopback_group transport_rx_group
diff --git a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/transport/unicast_low_lat.sh b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/transport/unicast_low_lat.sh
index f50f4d1f1e..740743e0e6 100755
--- a/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/transport/unicast_low_lat.sh
+++ b/tests/bluetooth/bsim_bt/bsim_test_mesh/tests_scripts/transport/unicast_low_lat.sh
@@ -4,5 +4,5 @@
 
 source $(dirname "${BASH_SOURCE[0]}")/../../_mesh_test.sh
 
-conf=prj_low_lat_conf
+overlay=overlay_low_lat_conf
 RunTest mesh_transport_unicast_low_lat transport_tx_unicast transport_rx_unicast
diff --git a/tests/bluetooth/bsim_bt/compile.sh b/tests/bluetooth/bsim_bt/compile.sh
index 5141441682..9dacaf675f 100755
--- a/tests/bluetooth/bsim_bt/compile.sh
+++ b/tests/bluetooth/bsim_bt/compile.sh
@@ -62,9 +62,9 @@ app=tests/bluetooth/bsim_bt/edtt_ble_test_app/gatt_test_app \
 app=tests/bluetooth/bsim_bt/edtt_ble_test_app/gatt_test_app \
   conf_file=prj_llcp.conf compile &
 app=tests/bluetooth/bsim_bt/bsim_test_mesh compile &
-app=tests/bluetooth/bsim_bt/bsim_test_mesh conf_file=prj_low_lat.conf compile &
-app=tests/bluetooth/bsim_bt/bsim_test_mesh conf_file=prj_pst.conf compile &
-app=tests/bluetooth/bsim_bt/bsim_test_mesh conf_file=prj_gatt.conf compile &
+app=tests/bluetooth/bsim_bt/bsim_test_mesh conf_overlay=overlay_low_lat.conf compile &
+app=tests/bluetooth/bsim_bt/bsim_test_mesh conf_overlay=overlay_pst.conf compile &
+app=tests/bluetooth/bsim_bt/bsim_test_mesh conf_overlay=overlay_gatt.conf compile &
 app=tests/bluetooth/bsim_bt/bsim_test_disable compile &
 
 wait
diff --git a/tests/bluetooth/bsim_bt/compile.source b/tests/bluetooth/bsim_bt/compile.source
index 7570c82195..904ef3baa1 100644
--- a/tests/bluetooth/bsim_bt/compile.source
+++ b/tests/bluetooth/bsim_bt/compile.source
@@ -13,13 +13,22 @@ function compile(){
   local ninja_args="${ninja_args:-""}"
   local cc_flags="${cc_flags:-"-Werror"}"
 
-  local exe_name="${exe_name:-bs_${BOARD}_${app}_${conf_file}}"
+  if [ "${conf_overlay}" ]; then
+    local exe_name="${exe_name:-bs_${BOARD}_${app}_${conf_file}_${conf_overlay}}"
+  else
+    local exe_name="${exe_name:-bs_${BOARD}_${app}_${conf_file}}"
+  fi
+
   local exe_name=${exe_name//\//_}
   local exe_name=${exe_name//./_}
   local exe_name=${BSIM_OUT_PATH}/bin/$exe_name
   local map_file_name=${exe_name}.Tsymbols
 
-  local this_dir=${WORK_DIR}/${app}/${conf_file}
+  if [ "${conf_overlay}" ]; then
+    local this_dir=${WORK_DIR}/${app}/${conf_file}_${conf_overlay}
+  else
+    local this_dir=${WORK_DIR}/${app}/${conf_file}
+  fi
 
   local modules_arg="${ZEPHYR_MODULES:+-DZEPHYR_MODULES=${ZEPHYR_MODULES}}"