diff --git a/boards/arc/qemu_arc/qemu_arc_hs.yaml b/boards/arc/qemu_arc/qemu_arc_hs.yaml
index 2ead7ebff93..05b4428710f 100644
--- a/boards/arc/qemu_arc/qemu_arc_hs.yaml
+++ b/boards/arc/qemu_arc/qemu_arc_hs.yaml
@@ -6,6 +6,7 @@ arch: arc
 toolchain:
   - zephyr
   - cross-compile
+  - arcmwdt
 testing:
   default: true
   ignore_tags:
diff --git a/soc/arc/snps_qemu/CMakeLists.txt b/soc/arc/snps_qemu/CMakeLists.txt
index cf3a34062ec..c77f0003c4c 100644
--- a/soc/arc/snps_qemu/CMakeLists.txt
+++ b/soc/arc/snps_qemu/CMakeLists.txt
@@ -1,5 +1,21 @@
 # SPDX-License-Identifier: Apache-2.0
 
-if(CONFIG_ISA_ARCV2)
-  zephyr_compile_options(-mno-sdata)
+if(COMPILER STREQUAL gcc)
+	zephyr_compile_options(-mcpu=${GCC_M_CPU})
+
+	zephyr_compile_options_ifdef(CONFIG_ISA_ARCV2 -mno-sdata)
+
+else()
+
+	zephyr_compile_options_ifdef(CONFIG_SOC_QEMU_ARC_HS -arcv2hs -core2 -Xatomic
+			       -Xunaligned -Xcode_density -Xswap -Xbitscan
+			       -Xmpy_option=qmpyh -Xshift_assist -Xbarrel_shifter
+			       -Xtimer0 -Xtimer1)
+
+	zephyr_ld_option_ifdef(CONFIG_SOC_QEMU_ARC_HS -Hlib=hs38_full)
+
+	if(NOT CONFIG_SOC_QEMU_ARC_HS)
+		message(WARNING "QEMU ARC platforms other than HS are not supported yet with MW toolchain")
+	endif()
+
 endif()