diff --git a/cmake/modules/configuration_files.cmake b/cmake/modules/configuration_files.cmake
index 24d5e9feed..06ad074f0c 100644
--- a/cmake/modules/configuration_files.cmake
+++ b/cmake/modules/configuration_files.cmake
@@ -116,5 +116,5 @@ DTC_OVERLAY_FILE=\"dts1.overlay dts2.overlay\"")
 # The DTC_OVERLAY_FILE variable is now set to its final value.
 zephyr_boilerplate_watch(DTC_OVERLAY_FILE)
 
-zephyr_get(EXTRA_CONF_FILE SYSBUILD LOCAL VAR EXTRA_CONF_FILE OVERLAY_CONFIG)
-zephyr_get(EXTRA_DTC_OVERLAY_FILE SYSBUILD LOCAL)
+zephyr_get(EXTRA_CONF_FILE SYSBUILD LOCAL VAR EXTRA_CONF_FILE OVERLAY_CONFIG MERGE REVERSE)
+zephyr_get(EXTRA_DTC_OVERLAY_FILE SYSBUILD LOCAL MERGE REVERSE)
diff --git a/cmake/modules/extensions.cmake b/cmake/modules/extensions.cmake
index bcba1fedf1..fe5fd26d09 100644
--- a/cmake/modules/extensions.cmake
+++ b/cmake/modules/extensions.cmake
@@ -2568,9 +2568,13 @@ function(zephyr_get variable)
     else()
       set(sysbuild_${var})
     endif()
+
+    if(TARGET snippets_scope)
+      get_property(snippets_${var} TARGET snippets_scope PROPERTY ${var})
+    endif()
   endforeach()
 
-  set(scopes "sysbuild;CACHE;ENV;current")
+  set(scopes "sysbuild;CACHE;snippets;ENV;current")
   if(GET_VAR_REVERSE)
     list(REVERSE scopes)
   endif()
diff --git a/cmake/modules/snippets.cmake b/cmake/modules/snippets.cmake
index c3929c86b4..550d236a2f 100644
--- a/cmake/modules/snippets.cmake
+++ b/cmake/modules/snippets.cmake
@@ -93,10 +93,6 @@ function(zephyr_process_snippets)
   endif()
   include(${snippets_generated})
 
-  # Propagate include()d build system settings to the caller.
-  set(DTC_OVERLAY_FILE ${DTC_OVERLAY_FILE} PARENT_SCOPE)
-  set(OVERLAY_CONFIG ${OVERLAY_CONFIG} PARENT_SCOPE)
-
   # Create the 'snippets' target. Each snippet is printed in a
   # separate command because build system files are not fond of
   # newlines.
diff --git a/scripts/snippets.py b/scripts/snippets.py
index 74e7ebbbfc..a79f12584e 100644
--- a/scripts/snippets.py
+++ b/scripts/snippets.py
@@ -133,6 +133,9 @@ set(SNIPPET_NAMES {' '.join(f'"{name}"' for name in snippet_names)})
 # The paths to all the snippet.yml files. One snippet
 # can have multiple snippet.yml files.
 set(SNIPPET_PATHS {snippet_path_list})
+
+# Create variable scope for snippets build variables
+zephyr_create_scope(snippets)
 ''')
 
         for snippet_name in snippet_names:
@@ -168,7 +171,7 @@ if("${{BOARD}}" STREQUAL "{board}")''')
         space = '  ' * indent
         for name, values in appends.items():
             for value in values:
-                self.print(f'{space}list(APPEND {name} {value})')
+                self.print(f'{space}zephyr_set({name} {value} SCOPE snippets APPEND)')
 
     def print(self, *args, **kwargs):
         kwargs['file'] = self.out_file