diff --git a/samples/matter/lock/boards/nrf54h20dk_nrf54h20_cpuapp.conf b/samples/matter/lock/boards/nrf54h20dk_nrf54h20_cpuapp.conf
index 629b740133dc..e7f4cc7e81b8 100644
--- a/samples/matter/lock/boards/nrf54h20dk_nrf54h20_cpuapp.conf
+++ b/samples/matter/lock/boards/nrf54h20dk_nrf54h20_cpuapp.conf
@@ -18,6 +18,12 @@ CONFIG_DCACHE=n
 # It will add the application firmware to the cache partition.
 CONFIG_SUIT_DFU_CACHE_EXTRACT_IMAGE=y
 
+# Set the ZMS sector count to match the settings partition size that is 32 kB for this application.
+CONFIG_SETTINGS_ZMS_SECTOR_COUNT=8
+# Workaround required as Zephyr L2 implies usage of NVS backend for settings.
+# It should be removed once the proper fix will be applied in Zephyr.
+CONFIG_NVS=n
+
 # TODO: Enable factory data once it is available
 CONFIG_CHIP_FACTORY_DATA=n
 CONFIG_CHIP_CRYPTO_PSA_MIGRATE_DAC_PRIV_KEY=n
diff --git a/samples/matter/template/boards/nrf54h20dk_nrf54h20_cpuapp.conf b/samples/matter/template/boards/nrf54h20dk_nrf54h20_cpuapp.conf
index f79f1a8844fa..4398f7d851ea 100644
--- a/samples/matter/template/boards/nrf54h20dk_nrf54h20_cpuapp.conf
+++ b/samples/matter/template/boards/nrf54h20dk_nrf54h20_cpuapp.conf
@@ -14,6 +14,12 @@ CONFIG_SSF_PSA_CRYPTO_SERVICE_ENABLED=y
 # Disable Data Cache
 CONFIG_DCACHE=n
 
+# Set the ZMS sector count to match the settings partition size that is 32 kB for this application.
+CONFIG_SETTINGS_ZMS_SECTOR_COUNT=8
+# Workaround required as Zephyr L2 implies usage of NVS backend for settings.
+# It should be removed once the proper fix will be applied in Zephyr.
+CONFIG_NVS=n
+
 # Enable cache processing for application core.
 # It will add the application firmware to the cache partition.
 CONFIG_SUIT_DFU_CACHE_EXTRACT_IMAGE=y
diff --git a/west.yml b/west.yml
index 86e61a891754..977c4810be7a 100644
--- a/west.yml
+++ b/west.yml
@@ -158,7 +158,7 @@ manifest:
     - name: matter
       repo-path: sdk-connectedhomeip
       path: modules/lib/matter
-      revision: 297f762debcfe0d983fcef2dd60cc926e715b17c
+      revision: pull/516/head
       west-commands: scripts/west/west-commands.yml
       submodules:
         - name: nlio