diff --git a/apps/microtvm/reference-vm/zephyr/README.md b/apps/microtvm/reference-vm/zephyr/README.md
index 7dd1ca62060a..6218d6d0f9f5 100644
--- a/apps/microtvm/reference-vm/zephyr/README.md
+++ b/apps/microtvm/reference-vm/zephyr/README.md
@@ -21,10 +21,16 @@ This directory contains setup files for Zephyr virtual machine used for testing
 that are supported by [Zephyr Project](https://zephyrproject.org/).
 
 ## VM Information for Developers
-Zephyr VM is published under [tlcpack/microtvm-zephyr](https://app.vagrantup.com/tlcpack/boxes/microtvm-zephyr).
+Zephyr VM is published under [tlcpack](https://app.vagrantup.com/tlcpack).
 Here is a list of different release versions and their tools.
 
-### [v0.0.4](https://app.vagrantup.com/tlcpack/boxes/microtvm-zephyr/versions/0.0.4)
+### [microtvm-zephyr-2.5](https://app.vagrantup.com/tlcpack/boxes/microtvm-zephyr-2.5/versions/0.0.1)
+
+- Zephyr [version 2.5.0]
+- Zephyr SDK [version 0.12.3]
+- nRFjProg [version 10.12.1]
+
+### [microtvm-zephyr-2.4](https://app.vagrantup.com/tlcpack/boxes/microtvm-zephyr/versions/0.0.4)
 
 - Zephyr [version 2.4.0]
 - Zephyr SDK [version 0.11.3]
diff --git a/apps/microtvm/reference-vm/zephyr/base-box/setup.sh b/apps/microtvm/reference-vm/zephyr/base-box/setup.sh
index 6eab652067b3..8f7ed41af337 100644
--- a/apps/microtvm/reference-vm/zephyr/base-box/setup.sh
+++ b/apps/microtvm/reference-vm/zephyr/base-box/setup.sh
@@ -81,10 +81,8 @@ pip3 install --user -U west
 echo 'export PATH=$HOME/.local/bin:"$PATH"' >> ~/.profile
 source ~/.profile
 echo PATH=$PATH
-west init --mr v2.5.0 ~/zephyr
-cd ~/zephyr
-west update
-west zephyr-export
+REPO_ROOT=$(git rev-parse --show-toplevel)
+${REPO_ROOT}/docker/install/ubuntu_init_zephyr_project.sh ~/zephyr v2.5.0
 
 cd ~
 echo "Downloading zephyr SDK..."
diff --git a/docker/Dockerfile.ci_qemu b/docker/Dockerfile.ci_qemu
index 04434b7186b0..a21b44aee435 100644
--- a/docker/Dockerfile.ci_qemu
+++ b/docker/Dockerfile.ci_qemu
@@ -62,6 +62,7 @@ RUN bash /install/ubuntu_install_qemu.sh
 
 # Zephyr SDK deps
 COPY install/ubuntu_install_zephyr.sh /install/ubuntu_install_zephyr.sh
+COPY install/ubuntu_init_zephyr_project.sh /install/ubuntu_init_zephyr_project.sh
 RUN bash /install/ubuntu_install_zephyr.sh
 ENV ZEPHYR_BASE=/opt/zephyrproject/zephyr
 
diff --git a/docker/install/ubuntu_init_zephyr_project.sh b/docker/install/ubuntu_init_zephyr_project.sh
new file mode 100755
index 000000000000..2116a4d981f5
--- /dev/null
+++ b/docker/install/ubuntu_init_zephyr_project.sh
@@ -0,0 +1,25 @@
+#!/bin/bash
+# Licensed to the Apache Software Foundation (ASF) under one
+# or more contributor license agreements.  See the NOTICE file
+# distributed with this work for additional information
+# regarding copyright ownership.  The ASF licenses this file
+# to you under the Apache License, Version 2.0 (the
+# "License"); you may not use this file except in compliance
+# with the License.  You may obtain a copy of the License at
+#
+#   http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing,
+# software distributed under the License is distributed on an
+# "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+# KIND, either express or implied.  See the License for the
+# specific language governing permissions and limitations
+# under the License.
+
+DOWNLOAD_DIR=$1
+ZEPHYR_BRANCH=$2
+
+west init --mr ${ZEPHYR_BRANCH} ${DOWNLOAD_DIR}
+cd ${DOWNLOAD_DIR}
+west update
+west zephyr-export
diff --git a/docker/install/ubuntu_install_zephyr.sh b/docker/install/ubuntu_install_zephyr.sh
index 732f6f69ec3b..a092810eef4d 100644
--- a/docker/install/ubuntu_install_zephyr.sh
+++ b/docker/install/ubuntu_install_zephyr.sh
@@ -55,9 +55,11 @@ pip3 install west
 #EOF
 #chmod a+x /usr/local/bin/west
 
-west init --mr v2.5-branch /opt/zephyrproject
-cd /opt/zephyrproject
-west update
+# Init ZephyrProject
+ZEPHYR_PROJECT_PATH=/opt/zephyrproject
+ZEPHYR_INIT_SCRIPT=$(find -name "ubuntu_init_zephyr_project.sh")
+bash ${ZEPHYR_INIT_SCRIPT} ${ZEPHYR_PROJECT_PATH} v2.5-branch
+cd ${ZEPHYR_PROJECT_PATH}
 
 # This step is required because of the way docker/bash.sh works. It sets the user home directory to
 # /workspace (or the TVM root, anyhow), and this means that zephyr expects a ~/.cache directory to be
@@ -67,8 +69,6 @@ west update
 mkdir zephyr/.cache
 chmod o+rwx zephyr/.cache
 
-west zephyr-export
-
 #/opt/west/bin/pip3 install -r /opt/zephyrproject/zephyr/scripts/requirements.txt
 pip3 install -r /opt/zephyrproject/zephyr/scripts/requirements.txt