diff --git a/apps/microtvm/zephyr/template_project/CMakeLists.txt.template b/apps/microtvm/zephyr/template_project/CMakeLists.txt.template
index 742433e82d0d..b5182bf8ac1f 100644
--- a/apps/microtvm/zephyr/template_project/CMakeLists.txt.template
+++ b/apps/microtvm/zephyr/template_project/CMakeLists.txt.template
@@ -29,7 +29,7 @@ find_package(Zephyr HINTS $ENV{ZEPHYR_BASE})
 project(microtvm_autogenerated_project)
 
 if(${ENABLE_CMSIS})
-  set(CMSIS_PATH $ENV{CMSIS_PATH})
+  set(CMSIS_PATH <CMSIS_PATH>)
 
   file(GLOB_RECURSE cmsis_lib_srcs
     ${CMSIS_PATH}/CMSIS/NN/Source/SoftmaxFunctions/*.c
@@ -40,6 +40,7 @@ if(${ENABLE_CMSIS})
   )
 
   set(cmsis_includes
+    ${CMSIS_PATH}/CMSIS/Core/Include
     ${CMSIS_PATH}/CMSIS/NN/Include
     ${CMSIS_PATH}/CMSIS/DSP/Include
     ${CMSIS_PATH}/CMSIS/DSP/Include/dsp
diff --git a/apps/microtvm/zephyr/template_project/microtvm_api_server.py b/apps/microtvm/zephyr/template_project/microtvm_api_server.py
index c55bd63fa4dd..eb20c3e88448 100644
--- a/apps/microtvm/zephyr/template_project/microtvm_api_server.py
+++ b/apps/microtvm/zephyr/template_project/microtvm_api_server.py
@@ -463,6 +463,7 @@ def _create_prj_conf(self, project_dir, options):
     API_SERVER_CRT_LIBS_TOKEN = "<API_SERVER_CRT_LIBS>"
     CMAKE_ARGS_TOKEN = "<CMAKE_ARGS>"
     QEMU_PIPE_TOKEN = "<QEMU_PIPE>"
+    CMSIS_PATH_TOKEN = "<CMSIS_PATH>"
 
     CRT_LIBS_BY_PROJECT_TYPE = {
         "host_driven": "microtvm_rpc_server microtvm_rpc_common aot_executor_module aot_executor common",
@@ -521,6 +522,8 @@ def _generate_cmake_args(self, mlf_extracted_path, options) -> str:
         cmake_args += f"set(BOARD {options['zephyr_board']})\n"
 
         enable_cmsis = self._cmsis_required(mlf_extracted_path)
+        if enable_cmsis:
+            assert os.environ.get("CMSIS_PATH"), "CMSIS_PATH is not defined."
         cmake_args += f"set(ENABLE_CMSIS {str(enable_cmsis).upper()})\n"
 
         return cmake_args
@@ -587,6 +590,9 @@ def generate_project(self, model_library_format_path, standalone_crt_dir, projec
                         self.qemu_pipe_dir = pathlib.Path(tempfile.mkdtemp())
                         line = line.replace(self.QEMU_PIPE_TOKEN, str(self.qemu_pipe_dir / "fifo"))
 
+                    if self.CMSIS_PATH_TOKEN in line and self._cmsis_required(extract_path):
+                        line = line.replace(self.CMSIS_PATH_TOKEN, str(os.environ["CMSIS_PATH"]))
+
                     cmake_f.write(line)
 
                 if options.get("compile_definitions"):