diff --git a/include/zephyr/net/lwm2m.h b/include/zephyr/net/lwm2m.h
index d69e508c8f36cc..8a2cbf557d0d48 100644
--- a/include/zephyr/net/lwm2m.h
+++ b/include/zephyr/net/lwm2m.h
@@ -245,8 +245,6 @@ struct lwm2m_ctx {
 	char *desthostname;
 	/** Destination hostname length */
 	uint16_t desthostnamelen;
-	/** Flag to indicate if hostname verification is enabled */
-	bool hostname_verify;
 
 	/** Custom load_credentials function.
 	 *  Client can set load_credentials function as a way of overriding
diff --git a/subsys/net/lib/lwm2m/lwm2m_engine.c b/subsys/net/lib/lwm2m/lwm2m_engine.c
index 03d978fb913fa0..833b72217f10c5 100644
--- a/subsys/net/lib/lwm2m/lwm2m_engine.c
+++ b/subsys/net/lib/lwm2m/lwm2m_engine.c
@@ -1070,7 +1070,7 @@ int lwm2m_set_default_sockopt(struct lwm2m_ctx *ctx)
 			}
 		}
 
-		if (ctx->hostname_verify && (ctx->desthostname != NULL)) {
+		if (ctx->desthostname != NULL && lwm2m_security_mode(ctx) == LWM2M_SECURITY_CERT) {
 			/** store character at len position */
 			tmp = ctx->desthostname[ctx->desthostnamelen];
 
diff --git a/subsys/net/lib/lwm2m/lwm2m_message_handling.c b/subsys/net/lib/lwm2m/lwm2m_message_handling.c
index 0b5750107cd3a5..ac765aa0fc6716 100644
--- a/subsys/net/lib/lwm2m/lwm2m_message_handling.c
+++ b/subsys/net/lib/lwm2m/lwm2m_message_handling.c
@@ -3324,7 +3324,6 @@ int lwm2m_parse_peerinfo(char *url, struct lwm2m_ctx *client_ctx, bool is_firmwa
 		/** copy url pointer to be used in socket */
 		client_ctx->desthostname = url + off;
 		client_ctx->desthostnamelen = len;
-		client_ctx->hostname_verify = true;
 #endif
 
 #else
diff --git a/tests/net/lib/lwm2m/lwm2m_engine/src/main.c b/tests/net/lib/lwm2m/lwm2m_engine/src/main.c
index d982f3aecae913..fc1f8dea2de765 100644
--- a/tests/net/lib/lwm2m/lwm2m_engine/src/main.c
+++ b/tests/net/lib/lwm2m/lwm2m_engine/src/main.c
@@ -105,7 +105,6 @@ ZTEST(lwm2m_engine, test_start_stop)
 	ctx.load_credentials = NULL;
 	ctx.desthostname = host_name;
 	ctx.desthostnamelen = strlen(host_name);
-	ctx.hostname_verify = true;
 	ctx.use_dtls = true;
 
 	ret = lwm2m_engine_start(&ctx);
@@ -436,7 +435,6 @@ ZTEST(lwm2m_engine, test_security)
 	ctx.load_credentials = NULL;
 	ctx.desthostname = host_name;
 	ctx.desthostnamelen = strlen(host_name);
-	ctx.hostname_verify = true;
 	ctx.use_dtls = false;
 
 	lwm2m_security_mode_fake.return_val = LWM2M_SECURITY_NOSEC;
@@ -452,9 +450,8 @@ ZTEST(lwm2m_engine, test_security)
 	lwm2m_security_mode_fake.return_val = LWM2M_SECURITY_PSK;
 	zassert_equal(lwm2m_engine_start(&ctx), 0);
 	zassert_equal(z_impl_zsock_setsockopt_fake.arg2_history[0], TLS_SEC_TAG_LIST);
-	zassert_equal(z_impl_zsock_setsockopt_fake.arg2_history[1], TLS_HOSTNAME);
-	zassert_equal(z_impl_zsock_setsockopt_fake.arg2_history[2], TLS_PEER_VERIFY);
-	zassert_equal(z_impl_zsock_setsockopt_fake.arg2_history[3], TLS_CIPHERSUITE_LIST);
+	zassert_equal(z_impl_zsock_setsockopt_fake.arg2_history[1], TLS_PEER_VERIFY);
+	zassert_equal(z_impl_zsock_setsockopt_fake.arg2_history[2], TLS_CIPHERSUITE_LIST);
 	zassert_true(tls_credential_delete_fake.call_count > 3);
 	zassert_true(tls_credential_add_fake.call_count == 2);
 	zassert_equal(tls_credential_add_fake.arg1_history[0], TLS_CREDENTIAL_PSK_ID);
@@ -464,7 +461,7 @@ ZTEST(lwm2m_engine, test_security)
 	RESET_FAKE(z_impl_zsock_setsockopt);
 	RESET_FAKE(tls_credential_add);
 	lwm2m_security_mode_fake.return_val = LWM2M_SECURITY_CERT;
-	ctx.hostname_verify = false;
+	ctx.desthostname = NULL;
 	zassert_equal(lwm2m_engine_start(&ctx), 0);
 	zassert_equal(z_impl_zsock_setsockopt_fake.arg2_history[0], TLS_SEC_TAG_LIST);
 	zassert_equal(z_impl_zsock_setsockopt_fake.arg2_history[1], TLS_PEER_VERIFY);