diff --git a/lib/libc/picolibc/Kconfig b/lib/libc/picolibc/Kconfig
index 15d513d5147..be30e6a8f3a 100644
--- a/lib/libc/picolibc/Kconfig
+++ b/lib/libc/picolibc/Kconfig
@@ -3,9 +3,13 @@
 
 if PICOLIBC
 
+choice PICOLIBC_SOURCE
+	prompt "Source of Picolibc"
+	default PICOLIBC_USE_TOOLCHAIN if REQUIRES_FULL_LIBCPP || "$(TOOLCHAIN_HAS_PICOLIBC)" = "y"
+	default PICOLIBC_USE_MODULE
+
 config PICOLIBC_USE_MODULE
-	bool "Picolibc as module" if "$(TOOLCHAIN_HAS_PICOLIBC)" = "y"
-	default y if "$(TOOLCHAIN_HAS_PICOLIBC)" != "y"
+	bool "Picolibc from module"
 	depends on ZEPHYR_PICOLIBC_MODULE
 	depends on !GLIBCXX_LIBCPP
 	help
@@ -15,9 +19,14 @@ config PICOLIBC_USE_MODULE
 
 # force TLS when using toolchain with TLS support
 config PICOLIBC_USE_TOOLCHAIN
-	bool
-	default y if !PICOLIBC_USE_MODULE
+	bool "Picolibc from toolchain"
+	depends on "$(TOOLCHAIN_HAS_PICOLIBC)" = "y"
 	select THREAD_LOCAL_STORAGE if ARCH_HAS_THREAD_LOCAL_STORAGE && TOOLCHAIN_SUPPORTS_THREAD_LOCAL_STORAGE
+	help
+	  Use picolibc included with the toolchain.
+	  This is required when using a full C++ standard library (`REQUIRES_FULL_LIBCPP=y`).
+
+endchoice # PICOLIBC_SOURCE
 
 choice PICOLIBC_IO_LEVEL
 	prompt "Picolibc printf/scanf level"