diff --git a/applications/matter_bridge/sysbuild/ipc_radio/boards/nrf54h20dk_nrf54h20_cpurad.conf b/applications/matter_bridge/sysbuild/ipc_radio/boards/nrf54h20dk_nrf54h20_cpurad.conf
new file mode 100644
index 000000000000..a23965d55a41
--- /dev/null
+++ b/applications/matter_bridge/sysbuild/ipc_radio/boards/nrf54h20dk_nrf54h20_cpurad.conf
@@ -0,0 +1,36 @@
+#
+# Copyright (c) 2024 Nordic Semiconductor ASA
+#
+# SPDX-License-Identifier: LicenseRef-Nordic-5-Clause
+#
+
+# Disable serial and UART interface.
+CONFIG_SERIAL=n
+CONFIG_UART_CONSOLE=n
+CONFIG_LOG=n
+
+# RAM usage configuration
+CONFIG_HEAP_MEM_POOL_SIZE=8192
+CONFIG_MAIN_STACK_SIZE=2048
+CONFIG_SYSTEM_WORKQUEUE_STACK_SIZE=2048
+
+# BT configuration
+CONFIG_BT=y
+CONFIG_BT_HCI_RAW=y
+CONFIG_BT_MAX_CONN=1
+CONFIG_BT_CTLR_ASSERT_HANDLER=y
+CONFIG_BT_PERIPHERAL=y
+CONFIG_BT_CENTRAL=n
+CONFIG_BT_BUF_ACL_RX_SIZE=502
+CONFIG_BT_BUF_ACL_TX_SIZE=251
+CONFIG_BT_CTLR_DATA_LENGTH_MAX=251
+CONFIG_BT_CTLR_PHY_2M=n
+
+# ipc_radio
+CONFIG_IPC_RADIO_BT=y
+CONFIG_IPC_RADIO_BT_HCI_IPC=y
+
+# NRF_802154_ENCRYPTION is not enabled by default in the `overlay-802154.conf` file
+# that is pulled in by NETCORE_IPC_RADIO_IEEE802154 in application's Kconfig.sysbuild.
+# For Wi-Fi builds, this option will not get applied anyway.
+CONFIG_NRF_802154_ENCRYPTION=y