diff --git a/CHANGELOG.md b/CHANGELOG.md
index 234cc85ba..27900222c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,16 @@
 # Changelog for esp_matter component registry
 
+## [1.3.1](https://components.espressif.com/components/espressif/esp_matter/versions/1.3.1)
+
+#### Features
+
+- Work with IDF component management (version >= 2.0) without hash problem
+- External platform path setting: support both absolute path or relative path to top-level CMakeLists
+- More default compile options for the source files
+- Could enable CONFIG_CHIP_OTA_IMAGE_BUILD to generate ota.bin file with IDF component management (version >= 2.0)
+- esp-matter commit: 5a9bc09a640d5cfd4c6b137f7e3b13ce5fa9cca4
+- connectedhomeip commit: 735b69f73e386cb675242371afd0b237a8a78982
+
 ## [1.3.0](https://components.espressif.com/components/espressif/esp_matter/versions/1.3.0)
 
 #### Features
diff --git a/CMakeLists.txt b/CMakeLists.txt
index 761593255..0a9912522 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -1,7 +1,6 @@
 get_filename_component(MATTER_SDK_PATH ${CMAKE_CURRENT_SOURCE_DIR}/connectedhomeip/connectedhomeip/ REALPATH)
 
 get_filename_component(CHIP_ROOT ${CMAKE_CURRENT_LIST_DIR}/connectedhomeip/connectedhomeip/ REALPATH)
-include(${CMAKE_CURRENT_LIST_DIR}/connectedhomeip/connectedhomeip/config/esp32/components/chip/ota-image.cmake)
 
 set(ESP_COMPONENTS_PATH ${CMAKE_CURRENT_SOURCE_DIR}/components)
 
@@ -27,6 +26,7 @@ endfunction()
 set(SRC_DIRS_LIST "${MATTER_SDK_PATH}/src/access"
                   "${MATTER_SDK_PATH}/src/access/examples"
                   "${MATTER_SDK_PATH}/src/app"
+                  "${MATTER_SDK_PATH}/src/app/data-model"
                   "${MATTER_SDK_PATH}/src/app/MessageDef"
                   "${MATTER_SDK_PATH}/src/app/reporting"
                   "${MATTER_SDK_PATH}/src/app/server"
@@ -54,6 +54,7 @@ set(SRC_DIRS_LIST "${MATTER_SDK_PATH}/src/access"
                   "${MATTER_SDK_PATH}/src/protocols"
                   "${MATTER_SDK_PATH}/src/protocols/bdx"
                   "${MATTER_SDK_PATH}/src/protocols/echo"
+                  "${MATTER_SDK_PATH}/src/protocols/interaction_model"
                   "${MATTER_SDK_PATH}/src/protocols/secure_channel"
                   "${MATTER_SDK_PATH}/src/protocols/user_directed_commissioning"
                   "${MATTER_SDK_PATH}/src/setup_payload"
@@ -111,6 +112,7 @@ set(EXCLUDE_SRCS_LIST "${MATTER_SDK_PATH}/src/controller/ExamplePersistentStorag
                       "${MATTER_SDK_PATH}/src/lib/shell/commands/NFC.cpp"
                       "${MATTER_SDK_PATH}/src/platform/DeviceSafeQueue.cpp"
                       "${MATTER_SDK_PATH}/src/platform/SyscallStubs.cpp"
+                      "${MATTER_SDK_PATH}/src/platform/OpenThread/DnssdImpl.cpp"
                       "${MATTER_SDK_PATH}/src/platform/OpenThread/GenericThreadStackManagerImpl_OpenThread_LwIP.cpp"
                       "${MATTER_SDK_PATH}/src/system/SystemLayerImplSelect.cpp"
                       "${MATTER_SDK_PATH}/src/transport/TraceMessage.cpp")
@@ -254,8 +256,7 @@ if((NOT CONFIG_ENABLE_WIFI_STATION) AND (NOT CONFIG_ENABLE_WIFI_AP))
 endif()
 
 if (NOT CONFIG_ENABLE_MATTER_OVER_THREAD)
-    list(APPEND EXCLUDE_SRCS_LIST "${MATTER_SDK_PATH}/src/platform/OpenThread/DnssdImpl.cpp"
-                                  "${MATTER_SDK_PATH}/src/platform/OpenThread/GenericNetworkCommissioningThreadDriver.cpp"
+    list(APPEND EXCLUDE_SRCS_LIST "${MATTER_SDK_PATH}/src/platform/OpenThread/GenericNetworkCommissioningThreadDriver.cpp"
                                   "${MATTER_SDK_PATH}/src/platform/OpenThread/OpenThreadUtils.cpp"
                                   "${MATTER_SDK_PATH}/src/platform/OpenThread/OpenThreadDnssdImpl.cpp")
 endif()
@@ -272,7 +273,7 @@ else()
     set(CHIP_PROJECT_CONFIG "")
 endif()
 
-if (CONFIG_ENABLE_ESP_INSIGHTS_TRACE)
+if (CONFIG_ENABLE_ESP_INSIGHTS_TRACE AND (NOT "${IDF_TARGET}" STREQUAL "esp32h2"))
     list(APPEND SRC_DIRS_LIST "${MATTER_SDK_PATH}/src/tracing/esp32_trace")
     list(APPEND INCLUDE_DIRS_LIST "${MATTER_SDK_PATH}/src/tracing/esp32_trace/include"
                                   "${MATTER_SDK_PATH}/src/tracing/esp32_trace")
@@ -288,8 +289,14 @@ endif()
 
 if (CONFIG_CHIP_ENABLE_EXTERNAL_PLATFORM)
     # check the source file dir if external platform is enable
-    if ((EXISTS ${CONFIG_CHIP_EXTERNAL_PLATFORM_DIR}/external_platform.cmake))
-        include(${CONFIG_CHIP_EXTERNAL_PLATFORM_DIR}/external_platform.cmake)
+    if (IS_ABSOLUTE ${CONFIG_CHIP_EXTERNAL_PLATFORM_DIR})
+        get_filename_component(EXTERNAL_PLATFORM_DIR ${CONFIG_CHIP_EXTERNAL_PLATFORM_DIR} REALPATH)
+    else()
+        get_filename_component(EXTERNAL_PLATFORM_DIR ${CMAKE_SOURCE_DIR}/${CONFIG_CHIP_EXTERNAL_PLATFORM_DIR} REALPATH)
+    endif()
+    message("EXTERNAL_PLATFORM_DIR: ${EXTERNAL_PLATFORM_DIR}")
+    if ((EXISTS ${EXTERNAL_PLATFORM_DIR}/external_platform.cmake))
+        include(${EXTERNAL_PLATFORM_DIR}/external_platform.cmake)
         list(APPEND SRC_DIRS_LIST ${EXPLANT_SRC_DIRS_LIST})
         list(APPEND INCLUDE_DIRS_LIST ${EXPLANT_INCLUDE_DIRS_LIST})
         list(APPEND EXCLUDE_SRCS_LIST ${EXPLANT_EXCLUDE_SRCS_LIST})
@@ -328,17 +335,15 @@ else()
     if ((CONFIG_BT_ENABLED) AND (CONFIG_ENABLE_CHIPOBLE))
         if (CONFIG_BT_NIMBLE_ENABLED)
             list(APPEND SRC_DIRS_LIST "${MATTER_SDK_PATH}/src/platform/ESP32/nimble")
-            list(APPEND EXCLUDE_SRCS_LIST "${MATTER_SDK_PATH}/src/platform/ESP32/bluedroid/BLEManagerImpl.cpp")
-            if(NOT CONFIG_ENABLE_ESP32_BLE_CONTROLLER)
-                list(APPEND EXCLUDE_SRCS_LIST "${MATTER_SDK_PATH}/src/platform/ESP32/bluedroid/ChipDeviceScanner.cpp")
+            if (NOT CONFIG_ENABLE_ESP32_BLE_CONTROLLER)
+                list(APPEND EXCLUDE_SRCS_LIST "${MATTER_SDK_PATH}/src/platform/ESP32/nimble/ChipDeviceScanner.cpp"
+                                                  "${MATTER_SDK_PATH}/src/platform/ESP32/nimble/misc.c"
+                                                  "${MATTER_SDK_PATH}/src/platform/ESP32/nimble/peer.c")
             endif()
         else()
             list(APPEND SRC_DIRS_LIST "${MATTER_SDK_PATH}/src/platform/ESP32/bluedroid")
-            list(APPEND EXCLUDE_SRCS_LIST "${MATTER_SDK_PATH}/src/platform/ESP32/nimble/BLEManagerImpl.cpp")
-            if(NOT CONFIG_ENABLE_ESP32_BLE_CONTROLLER)
-                list(APPEND EXCLUDE_SRCS_LIST "${MATTER_SDK_PATH}/src/platform/ESP32/nimble/ChipDeviceScanner.cpp"
-                                              "${MATTER_SDK_PATH}/src/platform/ESP32/nimble/misc.c"
-                                              "${MATTER_SDK_PATH}/src/platform/ESP32/nimble/peer.c")
+            if (NOT CONFIG_ENABLE_ESP32_BLE_CONTROLLER)
+                list(APPEND EXCLUDE_SRCS_LIST "${MATTER_SDK_PATH}/src/platform/ESP32/bluedroid/ChipDeviceScanner.cpp")
             endif()
         endif()
     endif()
@@ -362,7 +367,8 @@ else()
     endif()
 
     if (NOT CONFIG_ENABLE_ESP32_DEVICE_INFO_PROVIDER)
-        list(APPEND EXCLUDE_SRCS_LIST "${MATTER_SDK_PATH}/src/platform/ESP32/ESP32DeviceInfoProvider.cpp")
+        list(APPEND EXCLUDE_SRCS_LIST "${MATTER_SDK_PATH}/src/platform/ESP32/ESP32DeviceInfoProvider.cpp"
+                                      "${MATTER_SDK_PATH}/src/platform/ESP32/StaticESP32DeviceInfoProvider.cpp")
     endif()
 
     if (NOT CONFIG_SEC_CERT_DAC_PROVIDER)
@@ -394,7 +400,8 @@ idf_component_register(SRC_DIRS          ${SRC_DIRS_LIST}
 
 target_compile_options(${COMPONENT_LIB} PUBLIC
                        "-DCHIP_ADDRESS_RESOLVE_IMPL_INCLUDE_HEADER=<lib/address_resolve/AddressResolve_DefaultImpl.h>"
-                       "-DCHIP_CONFIG_SOFTWARE_VERSION_NUMBER=${chip_config_software_version_number}")
+                       "-DCHIP_CONFIG_SOFTWARE_VERSION_NUMBER=${chip_config_software_version_number}"
+                       "-DNDEBUG")
 
 if (CHIP_PROJECT_CONFIG)
     target_compile_options(${COMPONENT_LIB} PUBLIC
@@ -402,9 +409,25 @@ if (CHIP_PROJECT_CONFIG)
                            "-DSYSTEM_PROJECT_CONFIG_INCLUDE=${CHIP_PROJECT_CONFIG}")
 endif()
 
-idf_build_set_property(COMPILE_OPTIONS "-Wno-error=uninitialized;-Wno-error=maybe-uninitialized;-Wno-format-nonliteral;-Wno-missing-field-initializers;" APPEND)
-idf_build_set_property(COMPILE_OPTIONS "-Wno-error=array-bounds" APPEND)
-idf_build_set_property(COMPILE_OPTIONS "-Wno-write-strings" APPEND)
+# compile options from connectedhomeip/build/config/compiler except -Wconversion, -Wshadow, and -Wno-unknown-warning-option
+target_compile_options(${COMPONENT_LIB} PRIVATE "-g2;-fno-common;-fno-unwind-tables;-fno-asynchronous-unwind-tables")
+target_compile_options(${COMPONENT_LIB} PRIVATE "-Wstack-usage=8192;-Wunreachable-code;-Wvla")
+target_compile_options(${COMPONENT_LIB} PRIVATE "-Wformat;-Wformat-nonliteral;-Wformat-security")
+target_compile_options(${COMPONENT_LIB} PRIVATE "-Wno-deprecated-declarations;-Wno-unused")
+target_compile_options(${COMPONENT_LIB} PRIVATE "-Wno-cast-function-type;-Wno-psabi;-Wno-maybe-uninitialized;-fno-strict-aliasing")
+target_compile_options(${COMPONENT_LIB} PRIVATE $<$<COMPILE_LANGUAGE:CXX>:-Wnon-virtual-dtor>)
+
+# link options from connectedhomeip/build/config/compiler
+target_link_options(${COMPONENT_LIB} PRIVATE -Wl,-O2 -Wl,--gc-sections -Os -Werror -Wl,--fatal-warnings -fdiagnostics-color)
+
+# compile options from esp-matter/components/
+target_compile_options(${COMPONENT_LIB} PRIVATE "-Wno-error=uninitialized;-Wno-error=maybe-uninitialized;-Wno-missing-field-initializers")
+target_compile_options(${COMPONENT_LIB} PRIVATE "-Wno-error=array-bounds;-Wno-write-strings")
+
+# TODO: remove this when building connectedhomeip/src/controller/CHIPDeviceController.cpp with no format error
+if (CONFIG_ENABLE_CHIP_CONTROLLER_BUILD)
+    target_compile_options(${COMPONENT_LIB} PRIVATE "-Wno-error=format")
+endif()
 
 # For Xtensa chips, uint32_t was defined as 'unsigned' before v5.0, and after IDF v5.0 it is defined
 # as 'unsigned long', same as RISC-V. add this compile option to avoid format errors.
@@ -422,9 +445,13 @@ if (CONFIG_USE_MINIMAL_MDNS)
     target_compile_options(${COMPONENT_LIB} PUBLIC "-DCHIP_MINMDNS_DEFAULT_POLICY=1"
                                                    "-DCHIP_MINMDNS_USE_EPHEMERAL_UNICAST_PORT=0"
                                                    "-DCHIP_MINMDNS_HIGH_VERBOSITY=0"
-                                                   "-DCHIP_DNSSD_DEFAULT_MINIMAL=1")
+                                                   "-DCHIP_DNSSD_DEFAULT_MINIMAL=true"
+                                                   "-DCHIP_DNSSD_DEFAULT_NONE=false"
+                                                   "-DCHIP_DNSSD_DEFAULT_PLATFORM=false")
 else()
-    target_compile_options(${COMPONENT_LIB} PUBLIC "-DCHIP_DNSSD_DEFAULT_PLATFORM=1")
+    target_compile_options(${COMPONENT_LIB} PUBLIC "-DCHIP_DNSSD_DEFAULT_PLATFORM=true"
+                                                   "-DCHIP_DNSSD_DEFAULT_NONE=false"
+                                                   "-DCHIP_DNSSD_DEFAULT_MINIMAL=false")
 endif()
 
 if (NOT CMAKE_BUILD_EARLY_EXPANSION)
@@ -455,9 +482,12 @@ target_link_libraries(${COMPONENT_LIB} INTERFACE -Wl,--start-group
                                                 ${chip_libraries}
                                                 -Wl,--end-group)
 
-# TODO: Build OTA image need a python package, leading a file change and distorying the hash of managed_components.
+cmake_policy(GET CMP0007 policy_status)
+# Set new CMP0007 policy to prevent cmake warning
+cmake_policy(SET CMP0007 NEW)
+include(${CMAKE_CURRENT_LIST_DIR}/connectedhomeip/connectedhomeip/config/esp32/components/chip/ota-image.cmake)
 # Build Matter OTA image
-if (false AND CONFIG_CHIP_OTA_IMAGE_BUILD)
+if (CONFIG_CHIP_OTA_IMAGE_BUILD)
     chip_ota_image(chip-ota-image
         INPUT_FILES ${BUILD_DIR}/${CMAKE_PROJECT_NAME}.bin
         OUTPUT_FILE ${BUILD_DIR}/${CMAKE_PROJECT_NAME}-ota.bin
@@ -465,3 +495,4 @@ if (false AND CONFIG_CHIP_OTA_IMAGE_BUILD)
     # Adding dependecy as app target so that this runs after images are ready
     add_dependencies(chip-ota-image app)
 endif()
+cmake_policy(SET CMP0007 ${policy_status})
diff --git a/docs/en/developing.rst b/docs/en/developing.rst
index fd4796a14..d84cab41d 100644
--- a/docs/en/developing.rst
+++ b/docs/en/developing.rst
@@ -204,8 +204,9 @@ An example with esp_matter component is offered:
 
 .. note::
 
-    To use this component, the version of IDF component management should be 1.4.*.
-    Use ``compote version`` to show the version. Use ``pip install 'idf-component-manager~=1.4.0'`` to install.
+    To use this component, the version of IDF component management should be ``1.4.*`` or ``>= 2.0``.
+    Use ``compote version`` to show the version. Use ``pip install 'idf-component-manager~=1.4.0'``
+    or ``pip install 'idf-component-manager~=2.0.0'`` to install.
 
 2.2.3 Building Applications
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~
diff --git a/examples/common/blemesh_platform/platform/ESP32_custom/external_platform.cmake b/examples/common/blemesh_platform/platform/ESP32_custom/external_platform.cmake
index 65300d13a..a1317d24a 100644
--- a/examples/common/blemesh_platform/platform/ESP32_custom/external_platform.cmake
+++ b/examples/common/blemesh_platform/platform/ESP32_custom/external_platform.cmake
@@ -53,8 +53,8 @@ if (NOT CONFIG_ENABLE_ETHERNET_TELEMETRY)
                                           "${CMAKE_CURRENT_LIST_DIR}/NetworkCommissioningDriver_Ethernet.cpp")
 endif()
 
-if (NOT CONFIG_ENABLE_MATTER_OVER_THREAD)
-    list(APPEND EXPLANT_EXCLUDE_SRCS_LIST "${CMAKE_CURRENT_LIST_DIR}/OpenthreadLauncher.c"
+if ((NOT CONFIG_OPENTHREAD_ENABLED) OR (NOT CONFIG_ENABLE_MATTER_OVER_THREAD))
+    list(APPEND EXPLANT_EXCLUDE_SRCS_LIST "${CMAKE_CURRENT_LIST_DIR}/OpenthreadLauncher.cpp"
                                           "${CMAKE_CURRENT_LIST_DIR}/ThreadStackManagerImpl.cpp")
 endif()
 
@@ -78,3 +78,9 @@ endif()
 if (NOT CONFIG_USE_ESP32_ECDSA_PERIPHERAL)
     list(APPEND EXPLANT_EXCLUDE_SRCS_LIST "${CMAKE_CURRENT_LIST_DIR}/ESP32CHIPCryptoPAL.cpp")
 endif()
+
+if (EXISTS ${CMAKE_CURRENT_LIST_DIR}/generate-include-files.cmake)
+    include(${CMAKE_CURRENT_LIST_DIR}/generate-include-files.cmake)
+else()
+    message(FATAL_ERROR "There should be a generate-include-files.cmake file in CONFIG_CHIP_EXTERNAL_PLATFORM_DIR!")
+endif()
diff --git a/examples/common/blemesh_platform/platform/ESP32_custom/generate-include-files.cmake b/examples/common/blemesh_platform/platform/ESP32_custom/generate-include-files.cmake
new file mode 100644
index 000000000..26f6303c0
--- /dev/null
+++ b/examples/common/blemesh_platform/platform/ESP32_custom/generate-include-files.cmake
@@ -0,0 +1,84 @@
+if (CONFIG_CHIP_ENABLE_EXTERNAL_PLATFORM)
+# Generating platform/CHIPDeviceBuildConfig.h
+file(WRITE ${CMAKE_CURRENT_BINARY_DIR}/platform/CHIPDeviceBuildConfig.h
+"#pragma once\n
+#include <sdkconfig.h>\n
+
+#if defined(CONFIG_ENABLE_WIFI_STATION) || defined(CONFIG_ENABLE_WIFI_AP)
+#define CHIP_DEVICE_CONFIG_ENABLE_WPA 1
+#else
+#define CHIP_DEVICE_CONFIG_ENABLE_WPA 0
+#endif
+
+#ifdef CONFIG_ENABLE_MATTER_OVER_THREAD
+#define CHIP_ENABLE_OPENTHREAD 1
+#else
+#define CHIP_ENABLE_OPENTHREAD 0
+#endif
+
+#ifdef CONFIG_OPENTHREAD_FTD
+#define CHIP_DEVICE_CONFIG_THREAD_FTD 1
+#else
+#define CHIP_DEVICE_CONFIG_THREAD_FTD 0
+#endif
+
+#ifdef CONFIG_OPENTHREAD_BORDER_ROUTER
+#define CHIP_DEVICE_CONFIG_THREAD_BORDER_ROUTER 1
+#else
+#define CHIP_DEVICE_CONFIG_THREAD_BORDER_ROUTER 0
+#endif
+
+#define CHIP_DEVICE_CONFIG_USES_OTBR_POSIX_DBUS_STACK 0
+#define CHIP_STACK_LOCK_TRACKING_ENABLED 1
+#define CHIP_STACK_LOCK_TRACKING_ERROR_FATAL 1
+
+#ifdef CONFIG_ENABLE_ROTATING_DEVICE_ID
+#define CHIP_ENABLE_ADDITIONAL_DATA_ADVERTISING 1
+#else
+#define CHIP_ENABLE_ADDITIONAL_DATA_ADVERTISING 0
+#endif
+
+#define CHIP_DEVICE_CONFIG_RUN_AS_ROOT 1
+#define CHIP_DISABLE_PLATFORM_KVS 0
+
+#ifdef CONFIG_ENABLE_OTA_REQUESTOR
+#define CHIP_DEVICE_CONFIG_ENABLE_OTA_REQUESTOR 1
+#else
+#define CHIP_DEVICE_CONFIG_ENABLE_OTA_REQUESTOR 0
+#endif
+
+#ifdef CONFIG_ENABLE_ESP32_FACTORY_DATA_PROVIDER
+#define CHIP_USE_TRANSITIONAL_COMMISSIONABLE_DATA_PROVIDER 0
+#else
+#define CHIP_USE_TRANSITIONAL_COMMISSIONABLE_DATA_PROVIDER 1
+#endif
+
+#define CHIP_USE_TRANSITIONAL_DEVICE_INSTANCE_INFO_PROVIDER 1
+#define CHIP_DEVICE_LAYER_TARGET_ESP32 1
+
+
+#define CHIP_DEVICE_CONFIG_MAX_DISCOVERED_IP_ADDRESSES 5
+#define CHIP_DEVICE_CONFIG_ENABLE_DYNAMIC_MRP_CONFIG 0
+
+#define CHIP_DEVICE_CONFIG_ENABLE_WIFIPAF 0
+
+#if defined(CONFIG_ENABLE_MATTER_OVER_THREAD) && defined(CONFIG_THREAD_NETWORK_COMMISSIONING_DRIVER)
+#define CHIP_DEVICE_CONFIG_THREAD_NETWORK_ENDPOINT_ID CONFIG_THREAD_NETWORK_ENDPOINT_ID
+#endif
+
+// For definitions for external platform
+#define CHIP_DEVICE_LAYER_TARGET ESP32_custom
+#define BLE_PLATFORM_CONFIG_INCLUDE <platform/ESP32_custom/BlePlatformConfig.h>
+#define CHIP_DEVICE_PLATFORM_CONFIG_INCLUDE <platform/ESP32_custom/CHIPDevicePlatformConfig.h>
+#define CHIP_PLATFORM_CONFIG_INCLUDE <platform/ESP32_custom/CHIPPlatformConfig.h>
+#define INET_CONFIG_INCLUDE <platform/ESP32_custom/InetPlatformConfig.h>
+#define SYSTEM_PLATFORM_CONFIG_INCLUDE <platform/ESP32_custom/SystemPlatformConfig.h>
+#define EXTERNAL_CONFIGURATIONMANAGERIMPL_HEADER <platform/ESP32_custom/ConfigurationManagerImpl.h>
+#define EXTERNAL_CHIPDEVICEPLATFORMEVENT_HEADER <platform/ESP32_custom/CHIPDevicePlatformEvent.h>
+#define EXTERNAL_CONNECTIVITYMANAGERIMPL_HEADER <platform/ESP32_custom/ConnectivityManagerImpl.h>
+#define EXTERNAL_BLEMANAGERIMPL_HEADER <platform/ESP32_custom/BLEManagerImpl.h>
+#define EXTERNAL_KEYVALUESTOREMANAGERIMPL_HEADER <platform/ESP32_custom/KeyValueStoreManagerImpl.h>
+#define EXTERNAL_PLATFORMMANAGERIMPL_HEADER <platform/ESP32_custom/PlatformManagerImpl.h>
+#define EXTERNAL_THREADSTACKMANAGERIMPL_HEADER <platform/ESP32_custom/ThreadStackManagerImpl.h>
+")
+endif()
diff --git a/generate-include-files.cmake b/generate-include-files.cmake
index 20dd53f5b..f1712d1c3 100644
--- a/generate-include-files.cmake
+++ b/generate-include-files.cmake
@@ -355,11 +355,11 @@ file(WRITE ${CMAKE_CURRENT_BINARY_DIR}/core/CHIPBuildConfig.h
 #define CHIP_CONFIG_TEST 0
 #endif
 
-#define CHIP_ERROR_LOGGING (CONFIG_LOG_DEFAULT_LEVEL >= 1)
-#define CHIP_PROGRESS_LOGGING (CONFIG_LOG_DEFAULT_LEVEL >= 3)
-#define CHIP_DETAIL_LOGGING (CONFIG_LOG_DEFAULT_LEVEL >= 4)
+#define CHIP_ERROR_LOGGING (CONFIG_CHIP_LOG_DEFAULT_LEVEL >= 1)
+#define CHIP_PROGRESS_LOGGING (CONFIG_CHIP_LOG_DEFAULT_LEVEL >= 3)
+#define CHIP_DETAIL_LOGGING (CONFIG_CHIP_LOG_DEFAULT_LEVEL >= 4)
 #define CHIP_CONFIG_LOG_MESSAGE_MAX_SIZE 256
-#define CHIP_AUTOMATION_LOGGING (CONFIG_LOG_DEFAULT_LEVEL >= 5)
+#define CHIP_AUTOMATION_LOGGING (CONFIG_CHIP_LOG_DEFAULT_LEVEL >= 5)
 #define CHIP_PW_TOKENIZER_LOGGING 0
 #define CHIP_USE_PW_LOGGING 0
 #define CHIP_CONFIG_SHORT_ERROR_STR 1
@@ -432,14 +432,15 @@ file(WRITE ${CMAKE_CURRENT_BINARY_DIR}/lwip/lwip_buildconfig.h
 file(WRITE ${CMAKE_CURRENT_BINARY_DIR}/matter/tracing/build_config.h
 "#pragma once\n
 #include <sdkconfig.h>\n
-#ifdef CONFIG_ENABLE_ESP_INSIGHTS_TRACE
+#if defined(CONFIG_ENABLE_ESP_INSIGHTS_TRACE) && !defined(CONFIG_IDF_TARGET_ESP32H2)
 #define MATTER_TRACING_ENABLED 1
 #else
 #define MATTER_TRACING_ENABLED 0
 #endif
 ")
 
-# Generating platform/CHIPDeviceBuildConfig.h
+if (NOT CONFIG_CHIP_ENABLE_EXTERNAL_PLATFORM)
+# Generating platform/CHIPDeviceBuildConfig.h when external platform is not enabled.
 file(WRITE ${CMAKE_CURRENT_BINARY_DIR}/platform/CHIPDeviceBuildConfig.h
 "#pragma once\n
 #include <sdkconfig.h>\n
@@ -491,13 +492,7 @@ file(WRITE ${CMAKE_CURRENT_BINARY_DIR}/platform/CHIPDeviceBuildConfig.h
 #define CHIP_USE_TRANSITIONAL_DEVICE_INSTANCE_INFO_PROVIDER 1
 #define CHIP_DEVICE_LAYER_TARGET_ESP32 1
 
-#ifdef CONFIG_CHIP_ENABLE_EXTERNAL_PLATFORM
-#define CHIP_DEVICE_PLATFORM_CONFIG_INCLUDE <platform/ESP32_custom/CHIPDevicePlatformConfig.h>
-#define BLE_PLATFORM_CONFIG_INCLUDE <platform/ESP32_custom/BlePlatformConfig.h>
-#define CHIP_PLATFORM_CONFIG_INCLUDE <platform/ESP32_custom/CHIPPlatformConfig.h>
-#define SYSTEM_PLATFORM_CONFIG_INCLUDE <platform/ESP32_custom/SystemPlatformConfig.h>
-#define CHIP_DEVICE_LAYER_TARGET ESP32_custom
-#else
+#ifndef CONFIG_CHIP_ENABLE_EXTERNAL_PLATFORM
 #define CHIP_DEVICE_PLATFORM_CONFIG_INCLUDE <platform/ESP32/CHIPDevicePlatformConfig.h>
 #define CHIP_DEVICE_LAYER_TARGET ESP32
 #endif
@@ -505,6 +500,7 @@ file(WRITE ${CMAKE_CURRENT_BINARY_DIR}/platform/CHIPDeviceBuildConfig.h
 #define CHIP_DEVICE_CONFIG_MAX_DISCOVERED_IP_ADDRESSES 5
 #define CHIP_DEVICE_CONFIG_ENABLE_DYNAMIC_MRP_CONFIG 0
 ")
+endif()
 
 # Generating setup_payload/CHIPAdditionalDataPayloadBuildConfig.h
 file(WRITE ${CMAKE_CURRENT_BINARY_DIR}/setup_payload/CHIPAdditionalDataPayloadBuildConfig.h
@@ -557,6 +553,7 @@ file(WRITE ${CMAKE_CURRENT_BINARY_DIR}/system/SystemBuildConfig.h
 #ifndef CONFIG_CHIP_ENABLE_EXTERNAL_PLATFORM
 #define CHIP_PLATFORM_CONFIG_INCLUDE <platform/ESP32/CHIPPlatformConfig.h>
 #define SYSTEM_PLATFORM_CONFIG_INCLUDE <platform/ESP32/SystemPlatformConfig.h>
+// SYSTEM_PROJECT_CONFIG_INCLUDE and CHIP_PROJECT_CONFIG_INCLUDE are defined in CMakeLists.txt
 #endif
 
 #define CHIP_SYSTEM_LAYER_IMPL_CONFIG_FILE <system/SystemLayerImplFreeRTOS.h>
@@ -735,3 +732,28 @@ file(WRITE ${CMAKE_CURRENT_BINARY_DIR}/CHIPVersion.h
  */
 #define CHIP_VERSION_CODE   CHIP_VERSION_CODE_ENCODE(CHIP_VERSION_MAJOR, CHIP_VERSION_MINOR, CHIP_VERSION_PATCH)
 ")
+
+# Automatically added defines for script
+#define CHIP_CONFIG_SKIP_APP_SPECIFIC_GENERATED_HEADER_INCLUDES 1
+#define CHIP_DEVICE_CONFIG_DYNAMIC_ENDPOINT_COUNT 1
+#define BLE_PROJECT_CONFIG_INCLUDE 1
+#define INET_PROJECT_CONFIG_INCLUDE 1
+#define LWIP_DEBUG 1
+#define CHIP_DEVICE_CONFIG_ENABLE_CHIPOBLE 1
+#define CHIP_DEVICE_CONFIG_ENABLE_NFC 1
+#define CONFIG_CHIP_NFC_COMMISSIONING 1
+#define CHIP_DEVICE_PROJECT_CONFIG_INCLUDE 1
+#define CHIP_DEVICE_CONFIG_FIRWMARE_BUILD_DATE 1
+#define CHIP_DEVICE_CONFIG_ENABLE_WIFI 1
+#define CHIP_DEVICE_LAYER_TARGET_NXP_ZEPHYR 1
+#define CHIP_DEVICE_ENABLE_DATA_MODEL 1
+#define CHIP_DEVICE_LAYER_TARGET_${possible_device_layer_target_define} 1
+#define CHIP_DEVICE_CONFIG_DEVICE_SOFTWARE_VERSION 1
+#define CHIP_DEVICE_CONFIG_DEVICE_SOFTWARE_VERSION_STRING 1
+#define CHIP_DEVICE_CONFIG_DEVICE_VENDOR_ID 1
+#define CHIP_DEVICE_CONFIG_DEVICE_PRODUCT_ID 1
+#define CHIP_DEVICE_LAYER_NONE 1
+#define EXTERNAL_KEYVALUESTOREMANAGERIMPL_HEADER 1
+#define CHIP_PROJECT_CONFIG_INCLUDE 1
+#define SYSTEM_PROJECT_CONFIG_INCLUDE 1
+#define SYSTEM_ENABLE_CLANG_THREAD_SAFETY_ANALYSIS 1
diff --git a/idf_component.yml b/idf_component.yml
index 55d555eca..1cc86476a 100644
--- a/idf_component.yml
+++ b/idf_component.yml
@@ -1,5 +1,5 @@
 ## IDF Component Manager Manifest File
-version: 1.3.0
+version: 1.3.1
 description: Espressif's Matter SDK Component
 url: https://github.com/espressif/esp-matter
 files:
@@ -32,6 +32,7 @@ files:
         - "./connectedhomeip/connectedhomeip/src/ble/*.*"
         - "./connectedhomeip/connectedhomeip/src/controller/*.*"
         - "./connectedhomeip/connectedhomeip/src/controller/python/chip/tlv/tlvlist.py"
+        - "./connectedhomeip/connectedhomeip/src/controller/python/chip/tlv/__init__.py"
         - "./connectedhomeip/connectedhomeip/src/credentials/*.*"
         - "./connectedhomeip/connectedhomeip/src/credentials/attestation_verifier/**/*"
         - "./connectedhomeip/connectedhomeip/src/credentials/examples/**/*"
@@ -84,7 +85,7 @@ dependencies:
             - if: "idf_version >=4.4"
 
     espressif/esp_insights:
-        version: "1.0.1"
+        version: "1.2.2"
         require: public
         # There is an issue with IDF-Component-Manager when ESP Insights is included.
         # Issue: https://github.com/project-chip/connectedhomeip/issues/29125
@@ -94,3 +95,8 @@ dependencies:
 
     espressif/json_parser: "~1.0.0"
     espressif/json_generator: "~1.1.0"
+
+    espressif/esp_rcp_update:
+        version: "~1.2.0"
+        rules:
+            - if: "idf_version >=5.0"