diff --git a/subsys/net/lib/config/Kconfig b/subsys/net/lib/config/Kconfig
index c74193fec9..c9ebc9ca3e 100644
--- a/subsys/net/lib/config/Kconfig
+++ b/subsys/net/lib/config/Kconfig
@@ -234,6 +234,14 @@ config NET_CONFIG_SNTP_INIT_SERVER
 	  e.g. server information at
 	  https://support.ntp.org/bin/view/Servers/NTPPoolServers
 
+config NET_CONFIG_SNTP_INIT_SERVER_USE_DHCPV4_OPTION
+	bool "SNTP server to use for system clock init is set using DHCPv4 option"
+	default y
+	depends on NET_DHCPV4_OPTION_NTP_SERVER
+	help
+	  If this option is set, then the SNTP server to use for system
+	  clock init can be set using DHCPv4 option.
+
 config NET_CONFIG_SNTP_INIT_TIMEOUT
 	int "SNTP timeout to init system clock (ms)"
 	default 3000
diff --git a/subsys/net/lib/config/init_clock_sntp.c b/subsys/net/lib/config/init_clock_sntp.c
index a6509e1e12..49f1ad8586 100644
--- a/subsys/net/lib/config/init_clock_sntp.c
+++ b/subsys/net/lib/config/init_clock_sntp.c
@@ -11,12 +11,30 @@ LOG_MODULE_DECLARE(net_config, CONFIG_NET_CONFIG_LOG_LEVEL);
 #include <zephyr/net/sntp.h>
 #include <zephyr/posix/time.h>
 
+static int sntp_init_helper(struct sntp_time *tm)
+{
+#ifdef CONFIG_NET_CONFIG_SNTP_INIT_SERVER_USE_DHCPV4_OPTION
+	struct net_if *iface = net_if_get_default();
+
+	if (!net_ipv4_is_addr_unspecified(&iface->config.dhcpv4.ntp_addr)) {
+		struct sockaddr_in sntp_addr = {0};
+
+		sntp_addr.sin_family = AF_INET;
+		sntp_addr.sin_addr.s_addr = iface->config.dhcpv4.ntp_addr.s_addr;
+		return sntp_simple_addr((struct sockaddr *)&sntp_addr, sizeof(sntp_addr),
+					CONFIG_NET_CONFIG_SNTP_INIT_TIMEOUT, tm);
+	}
+	LOG_INF("SNTP address not set by DHCPv4, using Kconfig defaults");
+#endif /* NET_CONFIG_SNTP_INIT_SERVER_USE_DHCPV4_OPTION */
+	return sntp_simple(CONFIG_NET_CONFIG_SNTP_INIT_SERVER,
+			   CONFIG_NET_CONFIG_SNTP_INIT_TIMEOUT, tm);
+}
+
 int net_init_clock_via_sntp(void)
 {
 	struct sntp_time ts;
 	struct timespec tspec;
-	int res = sntp_simple(CONFIG_NET_CONFIG_SNTP_INIT_SERVER,
-			      CONFIG_NET_CONFIG_SNTP_INIT_TIMEOUT, &ts);
+	int res = sntp_init_helper(&ts);
 
 	if (res < 0) {
 		LOG_ERR("Cannot set time using SNTP");