diff --git a/cmake/toolchain/armclang/Kconfig b/cmake/toolchain/armclang/Kconfig
index c2df1e1024a..72ae8149eee 100644
--- a/cmake/toolchain/armclang/Kconfig
+++ b/cmake/toolchain/armclang/Kconfig
@@ -15,6 +15,7 @@ choice LIBC_IMPLEMENTATION
 
 config ARMCLANG_STD_LIBC
 	bool "ARM Compiler C library"
+	select COMMON_LIBC_TIME if POSIX_CLOCK
 	help
 	  Use the full Arm Compiler runtime libraries.
 	  A reduced Zephyr minimal libc will be used for library functionality
diff --git a/lib/libc/CMakeLists.txt b/lib/libc/CMakeLists.txt
index 3f298b157fc..e640e36c145 100644
--- a/lib/libc/CMakeLists.txt
+++ b/lib/libc/CMakeLists.txt
@@ -5,3 +5,5 @@ add_subdirectory_ifdef(CONFIG_ARMCLANG_STD_LIBC armstdc)
 add_subdirectory_ifdef(CONFIG_MINIMAL_LIBC      minimal)
 add_subdirectory_ifdef(CONFIG_NEWLIB_LIBC       newlib)
 add_subdirectory_ifdef(CONFIG_PICOLIBC          picolibc)
+
+add_subdirectory(common)
diff --git a/lib/libc/Kconfig b/lib/libc/Kconfig
index 11768537fe3..4e55388bf27 100644
--- a/lib/libc/Kconfig
+++ b/lib/libc/Kconfig
@@ -75,6 +75,7 @@ endchoice # LIBC_IMPLEMENTATION
 config HAS_NEWLIB_LIBC_NANO
 	bool
 
+rsource "common/Kconfig"
 rsource "minimal/Kconfig"
 rsource "newlib/Kconfig"
 rsource "picolibc/Kconfig"
diff --git a/lib/libc/common/CMakeLists.txt b/lib/libc/common/CMakeLists.txt
new file mode 100644
index 00000000000..207cef418f6
--- /dev/null
+++ b/lib/libc/common/CMakeLists.txt
@@ -0,0 +1,4 @@
+# SPDX-License-Identifier: Apache-2.0
+
+zephyr_library()
+zephyr_library_sources_ifdef(CONFIG_COMMON_LIBC_TIME source/time/time.c)
diff --git a/lib/libc/common/Kconfig b/lib/libc/common/Kconfig
new file mode 100644
index 00000000000..6e155957f21
--- /dev/null
+++ b/lib/libc/common/Kconfig
@@ -0,0 +1,7 @@
+# Copyright (c) 2023 Intel Corporation
+# SPDX-License-Identifier: Apache-2.0
+
+config COMMON_LIBC_TIME
+	bool
+	help
+	  common implementation of time().
diff --git a/lib/libc/minimal/source/time/time.c b/lib/libc/common/source/time/time.c
similarity index 100%
rename from lib/libc/minimal/source/time/time.c
rename to lib/libc/common/source/time/time.c
diff --git a/lib/libc/minimal/CMakeLists.txt b/lib/libc/minimal/CMakeLists.txt
index a13ecbacd25..65996456fbc 100644
--- a/lib/libc/minimal/CMakeLists.txt
+++ b/lib/libc/minimal/CMakeLists.txt
@@ -33,7 +33,6 @@ zephyr_library_sources(
 
 if(CONFIG_MINIMAL_LIBC_TIME)
   zephyr_library_sources(source/time/gmtime.c)
-  zephyr_library_sources_ifdef(CONFIG_POSIX_CLOCK source/time/time.c)
 endif()
 
 zephyr_library_sources_ifdef(CONFIG_MINIMAL_LIBC_RAND source/stdlib/rand.c)
diff --git a/lib/libc/minimal/Kconfig b/lib/libc/minimal/Kconfig
index 30e0f0385fe..521f17b98fc 100644
--- a/lib/libc/minimal/Kconfig
+++ b/lib/libc/minimal/Kconfig
@@ -66,6 +66,7 @@ config MINIMAL_LIBC_RAND
 
 config MINIMAL_LIBC_TIME
 	bool "Time functions"
+	select COMMON_LIBC_TIME if POSIX_CLOCK
 	default y
 	help
 	  Enable time() and gmtime_r() for the minimal libc.