diff --git a/drivers/timer/mcux_os_timer.c b/drivers/timer/mcux_os_timer.c
index 10a07bcce3a..225d05fd641 100644
--- a/drivers/timer/mcux_os_timer.c
+++ b/drivers/timer/mcux_os_timer.c
@@ -44,7 +44,7 @@ static uint64_t cyc_sys_compensated;
  */
 static const struct device *counter_dev;
 /* Indicates if the counter is running. */
-bool counter_running;
+static bool counter_running;
 #endif
 
 static uint64_t mcux_lpc_ostick_get_compensated_timer_value(void)
@@ -90,12 +90,10 @@ static uint32_t mcux_lpc_ostick_set_counter_timeout(int32_t curr_timeout)
 	uint32_t ret = 0;
 
 	if (counter_dev) {
-		uint32_t timeout;
-		int32_t ticks;
+		uint32_t ticks;
 		struct counter_top_cfg top_cfg = { 0 };
-		timeout = k_ticks_to_us_near32(curr_timeout);
 
-		ticks = counter_us_to_ticks(counter_dev, timeout);
+		ticks = counter_us_to_ticks(counter_dev, curr_timeout);
 		ticks = CLAMP(ticks, 1, counter_get_max_top_value(counter_dev));
 
 		top_cfg.ticks = ticks;
@@ -181,21 +179,33 @@ static uint32_t mcux_lpc_ostick_compensate_system_timer(void)
 
 void sys_clock_set_timeout(int32_t ticks, bool idle)
 {
-	ARG_UNUSED(idle);
-
 	if (!IS_ENABLED(CONFIG_TICKLESS_KERNEL)) {
 		/* Only for tickless kernel system */
 		return;
 	}
 
 #if DT_NODE_HAS_STATUS_OKAY(DT_NODELABEL(standby)) && CONFIG_PM
-	if (idle) {
+	/* We intercept calls from idle with a 0 tick count */
+	if (idle && ticks == 0) {
 		/* OS Timer may not be able to wakeup in certain low power modes.
 		 * For these cases, we start a counter that can wakeup
 		 * from low power modes.
 		 */
 		if (pm_state_next_get(0)->state == PM_STATE_STANDBY) {
-			if (mcux_lpc_ostick_set_counter_timeout(ticks) == 0) {
+			uint64_t timeout;
+
+			/* Check the amount of time left and switch to a counter
+			 * that is active in this power mode.
+			 */
+			timeout = base->MATCH_L;
+			timeout |= (uint64_t)(base->MATCH_H) << 32;
+			timeout = OSTIMER_GrayToDecimal(timeout);
+			timeout -= OSTIMER_GetCurrentTimerValue(base);
+			/* Round up to the next tick boundary */
+			timeout += (CYC_PER_TICK - 1);
+			/* Convert to microseconds and round up to the next value */
+			timeout = (((timeout / CYC_PER_TICK) * CYC_PER_TICK) * CYC_PER_US);
+			if (mcux_lpc_ostick_set_counter_timeout(timeout) == 0) {
 				/* A low power counter has been started. No need to
 				 * go further, simply return
 				 */
@@ -203,6 +213,8 @@ void sys_clock_set_timeout(int32_t ticks, bool idle)
 			}
 		}
 	}
+#else
+	ARG_UNUSED(idle);
 #endif
 
 	ticks = ticks == K_TICKS_FOREVER ? MAX_TICKS : ticks;
diff --git a/soc/nxp/rw/power.c b/soc/nxp/rw/power.c
index a348a61093f..9b4c8fcd705 100644
--- a/soc/nxp/rw/power.c
+++ b/soc/nxp/rw/power.c
@@ -12,6 +12,7 @@
 		    DT_NODE_HAS_STATUS_OKAY(DT_NODELABEL(pin1)))
 #include <zephyr/drivers/gpio/gpio_mcux_lpc.h>
 #endif
+#include <zephyr/drivers/timer/system_timer.h>
 
 #include "fsl_power.h"
 
@@ -197,6 +198,9 @@ __weak void pm_state_set(enum pm_state state, uint8_t substate_id)
 #endif /* CONFIG_MPU */
 
 		POWER_EnableWakeup(DT_IRQN(DT_NODELABEL(rtc)));
+
+		sys_clock_set_timeout(0, true);
+
 		if (POWER_EnterPowerMode(POWER_MODE3, &slp_cfg)) {
 #ifdef CONFIG_MPU
 			/* Restore MPU as is lost after PM3 exit*/