diff --git a/components/esp_hw_support/Kconfig b/components/esp_hw_support/Kconfig
index d10007399d..efaf9a418a 100644
--- a/components/esp_hw_support/Kconfig
+++ b/components/esp_hw_support/Kconfig
@@ -1,5 +1,14 @@
 menu "Hardware Settings"
 
+    config ESP_HW_SUPPORT_FUNC_IN_IRAM
+        bool
+        default n if SPI_FLASH_AUTO_SUSPEND
+        default y
+        select ESP_PERIPH_CTRL_FUNC_IN_IRAM
+        select ESP_REGI2C_CTRL_FUNC_IN_IRAM
+        select RTC_CLK_FUNC_IN_IRAM
+        select RTC_TIME_FUNC_IN_IRAM
+
     menu "Chip revision"
         # Insert chip-specific HW config
         orsource "./port/$IDF_TARGET/Kconfig.hw_support"
@@ -219,12 +228,24 @@ menu "Hardware Settings"
 
     menu "RTC Clock Config"
         orsource "./port/$IDF_TARGET/Kconfig.rtc"
+
+        config RTC_CLK_FUNC_IN_IRAM
+            bool "Place RTC clock module functions into IRAM"
+            default y
+            help
+                Place RTC clock module (all rtc clock functions and const data) into IRAM.
+
+        config RTC_TIME_FUNC_IN_IRAM
+            bool "Place RTC time module functions into IRAM"
+            default y
+            help
+                Place RTC time module (all rtc clock functions) into IRAM.
     endmenu
 
     menu "Peripheral Control"
         config ESP_PERIPH_CTRL_FUNC_IN_IRAM
             bool "Place peripheral control functions into IRAM"
-            default n
+            default y
             help
                 Place peripheral control functions (e.g. periph_module_reset) into IRAM,
                 so that these functions can be IRAM-safe and able to be called in the other IRAM interrupt context.
diff --git a/components/esp_hw_support/linker.lf b/components/esp_hw_support/linker.lf
index 48fb35f098..c5c80bdff1 100644
--- a/components/esp_hw_support/linker.lf
+++ b/components/esp_hw_support/linker.lf
@@ -13,13 +13,14 @@ entries:
     cpu: esp_cpu_compare_and_set (noflash)
     esp_memory_utils (noflash)
     clk_utils (noflash)
-    if PM_SLP_IRAM_OPT = y:
+    esp_clk_tree: esp_clk_tree_enable_src (noflash)
+    if RTC_CLK_FUNC_IN_IRAM = y:
         rtc_clk (noflash)
-        rtc_time (noflash_text)
-        esp_clk_tree: esp_clk_tree_enable_src (noflash)
     if IDF_TARGET_ESP32 = y:
         rtc_clk:rtc_clk_cpu_freq_to_pll_mhz (noflash)
         rtc_clk:rtc_clk_cpu_freq_to_xtal (noflash)
+    if RTC_TIME_FUNC_IN_IRAM = y:
+        rtc_time (noflash_text)
     if SOC_CONFIGURABLE_VDDSDIO_SUPPORTED = y:
         rtc_init:rtc_vddsdio_get_config (noflash)
         rtc_init:rtc_vddsdio_set_config (noflash)
diff --git a/components/esp_hw_support/sleep_modes.c b/components/esp_hw_support/sleep_modes.c
index b7f54b6e1e..f71edb65b5 100644
--- a/components/esp_hw_support/sleep_modes.c
+++ b/components/esp_hw_support/sleep_modes.c
@@ -164,6 +164,10 @@
 #elif CONFIG_IDF_TARGET_ESP32S3
 #define DEFAULT_SLEEP_OUT_OVERHEAD_US       (382)
 #define DEFAULT_HARDWARE_OUT_OVERHEAD_US    (133)
+# if !CONFIG_PM_SLP_IRAM_OPT
+  #undef DEFAULT_SLEEP_OUT_OVERHEAD_US
+  #define DEFAULT_SLEEP_OUT_OVERHEAD_US     (8628)
+# endif
 #elif CONFIG_IDF_TARGET_ESP32C3
 #define DEFAULT_SLEEP_OUT_OVERHEAD_US       (105)
 #define DEFAULT_HARDWARE_OUT_OVERHEAD_US    (37)
@@ -948,6 +952,9 @@ static esp_err_t FORCE_IRAM_ATTR esp_sleep_start_safe(uint32_t sleep_flags, uint
 #if SOC_PM_MMU_TABLE_RETENTION_WHEN_TOP_PD
             esp_sleep_mmu_retention(false);
 #endif
+#if SOC_PM_RETENTION_SW_TRIGGER_REGDMA
+            sleep_retention_do_system_retention(false);
+#endif
 #if CONFIG_IDF_TARGET_ESP32P4 && (CONFIG_ESP_REV_MIN_FULL == 300)
             sleep_flash_p4_rev3_workaround();
             sleep_retention_do_extra_retention(false);
@@ -1160,13 +1167,11 @@ static esp_err_t SLEEP_FN_ATTR esp_sleep_start(uint32_t sleep_flags, uint32_t cl
 
     if (!deep_sleep) {
         if (result == ESP_OK) {
-#if !CONFIG_PM_SLP_IRAM_OPT && !CONFIG_IDF_TARGET_ESP32
+            s_config.ccount_ticks_record = esp_cpu_get_cycle_count();
+#if !CONFIG_PM_SLP_IRAM_OPT && !(CONFIG_IDF_TARGET_ESP32 || CONFIG_IDF_TARGET_ESP32P4)
 #if CONFIG_SPIRAM
-# if CONFIG_IDF_TARGET_ESP32P4
-            cache_ll_writeback_all(CACHE_LL_LEVEL_ALL, CACHE_TYPE_DATA, CACHE_LL_ID_ALL);
-# else
+            // TODO: PM-651
             Cache_WriteBack_All();
-# endif
 #endif
             /* When the IRAM optimization for the sleep flow is disabled, all
              * cache contents are forcibly invalidated before exiting the sleep
@@ -1174,12 +1179,6 @@ static esp_err_t SLEEP_FN_ATTR esp_sleep_start(uint32_t sleep_flags, uint32_t cl
              * flow remains consistent, allowing the use of ccount to
              * dynamically calculate the sleep adjustment time. */
             cache_ll_invalidate_all(CACHE_LL_LEVEL_ALL, CACHE_TYPE_ALL, CACHE_LL_ID_ALL);
-#endif
-            s_config.ccount_ticks_record = esp_cpu_get_cycle_count();
-#if SOC_PM_RETENTION_SW_TRIGGER_REGDMA
-            if (sleep_flags & PMU_SLEEP_PD_TOP) {
-                sleep_retention_do_system_retention(false);
-            }
 #endif
         }
         misc_modules_wake_prepare(sleep_flags);
diff --git a/components/esp_pm/Kconfig b/components/esp_pm/Kconfig
index ca843fff48..6986cccff5 100644
--- a/components/esp_pm/Kconfig
+++ b/components/esp_pm/Kconfig
@@ -1,12 +1,14 @@
 menu "Power Management"
 
     config PM_SLEEP_FUNC_IN_IRAM
-        bool "Place Power Management module functions in IRAM" if IDF_TARGET_ESP32C2
-        default y
+        bool "Place Power Management module functions in IRAM"
+        default n
         select PM_SLP_IRAM_OPT if SOC_LIGHT_SLEEP_SUPPORTED
         select PM_RTOS_IDLE_OPT if FREERTOS_USE_TICKLESS_IDLE
         select ESP_PERIPH_CTRL_FUNC_IN_IRAM
         select ESP_REGI2C_CTRL_FUNC_IN_IRAM
+        select RTC_CLK_FUNC_IN_IRAM
+        select RTC_TIME_FUNC_IN_IRAM
 
 
     config PM_ENABLE
diff --git a/components/esp_system/ld/esp32s3/sections.ld.in b/components/esp_system/ld/esp32s3/sections.ld.in
index c6649ba3a6..f293976428 100644
--- a/components/esp_system/ld/esp32s3/sections.ld.in
+++ b/components/esp_system/ld/esp32s3/sections.ld.in
@@ -205,7 +205,8 @@ SECTIONS
    */
   .dram0.dummy (NOLOAD):
   {
-    . = ORIGIN(dram0_0_seg) + MAX(_iram_end - _diram_i_start, 0);
+    /* MAX() uses unsigned long arithmetic. Add offset to prevent underflow when _iram_end < _diram_i_start */
+    . = ORIGIN(dram0_0_seg) + MAX(_iram_end - _diram_i_start + (_diram_i_start - ORIGIN(iram0_0_seg)), (_diram_i_start - ORIGIN(iram0_0_seg))) - (_diram_i_start - ORIGIN(iram0_0_seg));
   } > dram0_0_seg
 
   .dram0.data :
diff --git a/examples/system/esp_timer/main/esp_timer_example_main.c b/examples/system/esp_timer/main/esp_timer_example_main.c
index 54183cb8a3..30da583018 100644
--- a/examples/system/esp_timer/main/esp_timer_example_main.c
+++ b/examples/system/esp_timer/main/esp_timer_example_main.c
@@ -71,7 +71,6 @@ void app_main(void)
     int64_t t2 = esp_timer_get_time();
     ESP_LOGI(TAG, "Woke up from light sleep, time since boot: %lld us", t2);
 
-    // TODO: PM-232
     assert(((t2 - t1 - 500000) < 1000) && ((t2 - t1 - 500000) > -2000));
 #endif
 
diff --git a/examples/system/esp_timer/sdkconfig.defaults b/examples/system/esp_timer/sdkconfig.defaults
index c4a1e55cf8..dfd208c65a 100644
--- a/examples/system/esp_timer/sdkconfig.defaults
+++ b/examples/system/esp_timer/sdkconfig.defaults
@@ -3,4 +3,7 @@ CONFIG_ESP_TIMER_PROFILING=y
 
 # NEWLIB_NANO_FORMAT is enabled by default on ESP32-C2
 # This example needs 64-bit integer formatting, this is why this option is disabled
-CONFIG_NEWLIB_NANO_FORMAT=n
+CONFIG_LIBC_NEWLIB_NANO_FORMAT=n
+
+# Put sleep related source code in IRAM
+CONFIG_PM_SLP_IRAM_OPT=y
diff --git a/tools/test_apps/configs/sdkconfig.flash_auto_suspend_iram_reduction b/tools/test_apps/configs/sdkconfig.flash_auto_suspend_iram_reduction
index 0e1236fa14..09019098d4 100644
--- a/tools/test_apps/configs/sdkconfig.flash_auto_suspend_iram_reduction
+++ b/tools/test_apps/configs/sdkconfig.flash_auto_suspend_iram_reduction
@@ -72,6 +72,8 @@ CONFIG_ESP_REGI2C_CTRL_FUNC_IN_IRAM=n
 
 # System common
 CONFIG_ESP_PERIPH_CTRL_FUNC_IN_IRAM=n
+CONFIG_RTC_CLK_FUNC_IN_IRAM=n
+CONFIG_RTC_TIME_FUNC_IN_IRAM=n
 
 # Phy related options
 CONFIG_ESP_PHY_IRAM_OPT=n