diff --git a/modules/hostap/Kconfig b/modules/hostap/Kconfig
index 813a9b91ed6..237ed3ea5e3 100644
--- a/modules/hostap/Kconfig
+++ b/modules/hostap/Kconfig
@@ -183,7 +183,7 @@ config WIFI_NM_WPA_SUPPLICANT_CRYPTO_MBEDTLS_PSA
 
 config WIFI_NM_WPA_SUPPLICANT_CRYPTO_ENTERPRISE
 	bool "Enterprise Crypto support for WiFi"
-	select MBEDTLS_PEM_CERTIFICATE_FORMAT
+	select MBEDTLS_PEM_CERTIFICATE_FORMAT if MBEDTLS_BUILTIN
 	depends on !WIFI_NM_WPA_SUPPLICANT_CRYPTO_NONE
 
 config EAP_TLS