diff --git a/subsys/net/l2/ieee802154/ieee802154.c b/subsys/net/l2/ieee802154/ieee802154.c
index bf1420b9072..9f34c4701be 100644
--- a/subsys/net/l2/ieee802154/ieee802154.c
+++ b/subsys/net/l2/ieee802154/ieee802154.c
@@ -271,11 +271,10 @@ static inline void swap_and_set_pkt_ll_addr(struct net_linkaddr *addr, bool has_
 		addr->addr = NULL;
 	}
 
-	/* The net stack expects link layer addresses to be in
-	 * big endian format for posix compliance so we must swap it.
-	 * This is ok as the L2 address field comes from the header
-	 * part of the packet buffer which will not be directly accessible
-	 * once the packet reaches the upper layers.
+	/* The net stack expects big endian link layer addresses for POSIX compliance
+	 * so we must swap it. This is ok as the L2 address field points into the L2
+	 * header of the frame buffer which will no longer be accessible once the
+	 * packet reaches upper layers.
 	 */
 	if (addr->len > 0) {
 		sys_mem_swap(addr->addr, addr->len);
@@ -435,9 +434,9 @@ static enum net_verdict ieee802154_recv(struct net_if *iface, struct net_pkt *pk
 		return NET_DROP;
 	}
 
-	/* Setting L2 addresses must be done after packet authentication and internal
-	 * packet handling as it will mangle the package header to comply with upper
-	 * network layers' (POSIX) requirement to represent network addresses in big endian.
+	/* Setting LL addresses for upper layers must be done after L2 packet
+	 * handling as it will mangle the L2 frame header to comply with upper
+	 * layers' (POSIX) requirement to represent network addresses in big endian.
 	 */
 	swap_and_set_pkt_ll_addr(net_pkt_lladdr_src(pkt), !fs->fc.pan_id_comp,
 				 fs->fc.src_addr_mode, mpdu.mhr.src_addr);
diff --git a/subsys/net/l2/ieee802154/ieee802154_frame.c b/subsys/net/l2/ieee802154/ieee802154_frame.c
index 1515bb1d9d0..b2ef53a9957 100644
--- a/subsys/net/l2/ieee802154/ieee802154_frame.c
+++ b/subsys/net/l2/ieee802154/ieee802154_frame.c
@@ -934,8 +934,8 @@ bool ieee802154_decipher_data_frame(struct net_if *iface, struct net_pkt *pkt,
 {
 	struct ieee802154_context *ctx = net_if_l2_data(iface);
 	uint8_t level, authtag_len, ll_hdr_len, payload_len;
-	int8_t ext_addr_le[IEEE802154_EXT_ADDR_LENGTH];
 	struct ieee802154_mhr *mhr = &mpdu->mhr;
+	struct ieee802154_address *src;
 	bool ret = false;
 
 	k_sem_take(&ctx->ctx_lock, K_FOREVER);
@@ -970,14 +970,15 @@ bool ieee802154_decipher_data_frame(struct net_if *iface, struct net_pkt *pkt,
 	 * This will require to look up in nbr cache with short addr
 	 * in order to get the extended address related to it.
 	 */
-	if (net_pkt_lladdr_src(pkt)->len != IEEE802154_EXT_ADDR_LENGTH) {
-		NET_ERR("Decrypting packages with short source addresses is not supported.");
+	if (mhr->fs->fc.src_addr_mode != IEEE802154_ADDR_MODE_EXTENDED) {
+		NET_ERR("Only encrypting packages with extended source addresses is supported.");
 		goto out;
 	}
 
-	sys_memcpy_swap(ext_addr_le, net_pkt_lladdr_src(pkt)->addr, net_pkt_lladdr_src(pkt)->len);
+	src = mhr->fs->fc.pan_id_comp ? &mhr->src_addr->comp.addr : &mhr->src_addr->plain.addr;
+
 	if (!ieee802154_decrypt_auth(&ctx->sec_ctx, net_pkt_data(pkt), ll_hdr_len, payload_len,
-				     authtag_len, ext_addr_le,
+				     authtag_len, src->ext_addr,
 				     sys_le32_to_cpu(mhr->aux_sec->frame_counter))) {
 		NET_ERR("Could not decipher the frame");
 		goto out;