diff --git a/apps/microtvm/zephyr/template_project/CMakeLists.txt.template b/apps/microtvm/zephyr/template_project/CMakeLists.txt.template
index 710cf3550c0d8..7f37efc599c29 100644
--- a/apps/microtvm/zephyr/template_project/CMakeLists.txt.template
+++ b/apps/microtvm/zephyr/template_project/CMakeLists.txt.template
@@ -23,7 +23,7 @@ set(ENV{QEMU_BIN_PATH} "${CMAKE_SOURCE_DIR}/qemu-hack")
 
 set(QEMU_PIPE "\${QEMU_PIPE}")  # QEMU_PIPE is set by the calling TVM instance.
 
-set(ENABLE_CMSIS <ENABLE_CMSIS>)
+<CMAKE_ARGS>
 
 find_package(Zephyr HINTS $ENV{ZEPHYR_BASE})
 project(microtvm_autogenerated_project)
diff --git a/apps/microtvm/zephyr/template_project/microtvm_api_server.py b/apps/microtvm/zephyr/template_project/microtvm_api_server.py
index 7b9538f6ce03c..ca47c6455d470 100644
--- a/apps/microtvm/zephyr/template_project/microtvm_api_server.py
+++ b/apps/microtvm/zephyr/template_project/microtvm_api_server.py
@@ -275,13 +275,13 @@ def _get_nrf_device_args(options):
     ),
     server.ProjectOption(
         "verbose",
-        optional=["build"],
+        optional=["generate_project"],
         type="bool",
         help="Run build with verbose output.",
     ),
     server.ProjectOption(
         "west_cmd",
-        optional=["build"],
+        optional=["generate_project"],
         default=WEST_CMD,
         type="str",
         help=(
@@ -292,14 +292,14 @@ def _get_nrf_device_args(options):
     server.ProjectOption(
         "zephyr_base",
         required=(["generate_project", "open_transport"] if not ZEPHYR_BASE else None),
-        optional=(["generate_project", "open_transport", "build"] if ZEPHYR_BASE else ["build"]),
+        optional=(["generate_project", "open_transport"] if ZEPHYR_BASE else ["build"]),
         default=ZEPHYR_BASE,
         type="str",
         help="Path to the zephyr base directory.",
     ),
     server.ProjectOption(
         "zephyr_board",
-        required=["generate_project", "build", "flash", "open_transport"],
+        required=["generate_project", "flash", "open_transport"],
         choices=list(BOARD_PROPERTIES),
         type="str",
         help="Name of the Zephyr board to build for.",
@@ -419,7 +419,7 @@ def _create_prj_conf(self, project_dir, options):
             f.write("\n")
 
     API_SERVER_CRT_LIBS_TOKEN = "<API_SERVER_CRT_LIBS>"
-    ENABLE_CMSIS_TOKEN = "<ENABLE_CMSIS>"
+    CMAKE_ARGS = "<CMAKE_ARGS>"
 
     CRT_LIBS_BY_PROJECT_TYPE = {
         "host_driven": "microtvm_rpc_server microtvm_rpc_common aot_executor_module aot_executor common",
@@ -457,6 +457,28 @@ def _cmsis_required(self, project_path: Union[str, pathlib.Path]) -> bool:
                     return True
         return False
 
+    def _generate_cmake_args(self, mlf_extracted_path, options) -> str:
+        cmake_args = "\n# cmake args\n"
+        if options.get("verbose"):
+            cmake_args += "set(CMAKE_VERBOSE_MAKEFILE TRUE)\n"
+
+        if options.get("zephyr_base"):
+            cmake_args += f"set(ZEPHYR_BASE {options['zephyr_base']})\n"
+
+        if options.get("west_cmd"):
+            cmake_args += f"set(WEST {options['west_cmd']})\n"
+
+        if self._is_qemu(options):
+            # Some boards support more than one emulator, so ensure QEMU is set.
+            cmake_args += f"set(EMU_PLATFORM qemu)\n"
+
+        cmake_args += f"set(BOARD {options['zephyr_board']})\n"
+
+        enable_cmsis = self._cmsis_required(mlf_extracted_path)
+        cmake_args += f"set(ENABLE_CMSIS {str(enable_cmsis).upper()})\n"
+
+        return cmake_args
+
     def generate_project(self, model_library_format_path, standalone_crt_dir, project_dir, options):
         # Check Zephyr version
         version = self._get_platform_version(get_zephyr_base(options))
@@ -510,9 +532,8 @@ def generate_project(self, model_library_format_path, standalone_crt_dir, projec
                         crt_libs = self.CRT_LIBS_BY_PROJECT_TYPE[options["project_type"]]
                         line = line.replace("<API_SERVER_CRT_LIBS>", crt_libs)
 
-                    if self.ENABLE_CMSIS_TOKEN in line:
-                        enable_cmsis = self._cmsis_required(extract_path)
-                        line = line.replace(self.ENABLE_CMSIS_TOKEN, str(enable_cmsis).upper())
+                    if self.CMAKE_ARGS in line:
+                        line = self._generate_cmake_args(extract_path, options)
 
                     cmake_f.write(line)
 
@@ -542,23 +563,7 @@ def generate_project(self, model_library_format_path, standalone_crt_dir, projec
     def build(self, options):
         BUILD_DIR.mkdir()
 
-        cmake_args = ["cmake", ".."]
-        if options.get("verbose"):
-            cmake_args.append("-DCMAKE_VERBOSE_MAKEFILE:BOOL=TRUE")
-
-        if options.get("zephyr_base"):
-            cmake_args.append(f"-DZEPHYR_BASE:STRING={options['zephyr_base']}")
-
-        if options.get("west_cmd"):
-            cmake_args.append(f"-DWEST={options['west_cmd']}")
-
-        if self._is_qemu(options):
-            # Some boards support more than one emulator, so ensure QEMU is set.
-            cmake_args.append(f"-DEMU_PLATFORM=qemu")
-
-        cmake_args.append(f"-DBOARD:STRING={options['zephyr_board']}")
-
-        check_call(cmake_args, cwd=BUILD_DIR)
+        check_call(["cmake", ".."], cwd=BUILD_DIR)
 
         args = ["make", "-j2"]
         if options.get("verbose"):