diff --git a/cmake/compiler/gcc/target_xtensa.cmake b/cmake/compiler/gcc/target_xtensa.cmake
index 177830427dbdda2..5321204c2df5e74 100644
--- a/cmake/compiler/gcc/target_xtensa.cmake
+++ b/cmake/compiler/gcc/target_xtensa.cmake
@@ -17,5 +17,4 @@ set(LLEXT_APPEND_FLAGS
   -fPIC
   -nostdlib
   -nodefaultlibs
-  -shared
 )
diff --git a/cmake/modules/extensions.cmake b/cmake/modules/extensions.cmake
index 594d8104a3b544d..8a47db809f6a9ce 100644
--- a/cmake/modules/extensions.cmake
+++ b/cmake/modules/extensions.cmake
@@ -4869,24 +4869,48 @@ function(add_llext_target target_name)
       "$<FILTER:${zephyr_flags},EXCLUDE,${llext_remove_flags_regexp}>"
   )
 
-  # Compile the source file to an object file using current Zephyr settings
-  # but a different set of flags
-  add_library(${target_name}_lib OBJECT ${source_file})
-  target_compile_definitions(${target_name}_lib PRIVATE
+  # Compile the source file using current Zephyr settings but a
+  # different set of flags
+
+  set(link_target ${target_name}_lib)
+  if(CONFIG_ARM)
+
+    # Create an object library to compile the source file
+    add_library(${link_target} OBJECT ${source_file})
+    set(linked_file $<TARGET_OBJECTS:${link_target}>)
+
+  elseif(CONFIG_XTENSA)
+
+    # Ensure shared library support is enabled
+    set_property(GLOBAL PROPERTY TARGET_SUPPORTS_SHARED_LIBS true)
+
+    # Create a shared library
+    add_library(${link_target} SHARED ${source_file})
+    set(linked_file $<TARGET_FILE:${link_target}>)
+
+    # Add the llext flags to the linking step as well
+    # (the linker will ignore the compilation-related ones)
+    target_link_options(${link_target} PRIVATE
+	    ${LLEXT_APPEND_FLAGS}
+    )
+
+  endif()
+
+  target_compile_definitions(${link_target} PRIVATE
     $<TARGET_PROPERTY:zephyr_interface,INTERFACE_COMPILE_DEFINITIONS>
   )
-  target_compile_options(${target_name}_lib PRIVATE
+  target_compile_options(${link_target} PRIVATE
     ${zephyr_filtered_flags}
     ${LLEXT_APPEND_FLAGS}
     ${LLEXT_C_FLAGS}
   )
-  target_include_directories(${target_name}_lib PRIVATE
+  target_include_directories(${link_target} PRIVATE
     $<TARGET_PROPERTY:zephyr_interface,INTERFACE_INCLUDE_DIRECTORIES>
   )
-  target_include_directories(${target_name}_lib SYSTEM PUBLIC
+  target_include_directories(${link_target} SYSTEM PUBLIC
     $<TARGET_PROPERTY:zephyr_interface,INTERFACE_SYSTEM_INCLUDE_DIRECTORIES>
   )
-  add_dependencies(${target_name}_lib
+  add_dependencies(${link_target}
     zephyr_interface
     zephyr_generated_headers
   )
@@ -4897,31 +4921,22 @@ function(add_llext_target target_name)
     # No conversion required, simply copy the object file
     add_custom_command(
       OUTPUT ${output_file}
-      COMMAND ${CMAKE_COMMAND} -E copy $<TARGET_OBJECTS:${target_name}_lib> ${output_file}
-      DEPENDS ${target_name}_lib $<TARGET_OBJECTS:${target_name}_lib>
+      COMMAND ${CMAKE_COMMAND} -E copy ${linked_file} ${output_file}
+      DEPENDS ${link_target} ${linked_file}
     )
 
   elseif(CONFIG_XTENSA)
 
-    # Generate an intermediate file name
-    get_filename_component(output_dir ${output_file} DIRECTORY)
-    get_filename_component(output_name_we ${output_file} NAME_WE)
-    set(pre_output_file ${output_dir}/${output_name_we}.pre.llext)
-
-    # Need to convert the object file to a shared library, then strip some sections
+    # Need to strip the shared library of some sections
     add_custom_command(
       OUTPUT ${output_file}
-      BYPRODUCTS ${pre_output_file}
-      COMMAND ${CMAKE_C_COMPILER} ${LLEXT_APPEND_FLAGS}
-              -o ${pre_output_file}
-              $<TARGET_OBJECTS:${target_name}_lib>
       COMMAND $<TARGET_PROPERTY:bintools,strip_command>
               $<TARGET_PROPERTY:bintools,strip_flag>
               $<TARGET_PROPERTY:bintools,strip_flag_remove_section>.xt.*
-              $<TARGET_PROPERTY:bintools,strip_flag_infile>${pre_output_file}
+              $<TARGET_PROPERTY:bintools,strip_flag_infile>${linked_file}
               $<TARGET_PROPERTY:bintools,strip_flag_outfile>${output_file}
               $<TARGET_PROPERTY:bintools,strip_flag_final>
-      DEPENDS ${target_name}_lib $<TARGET_OBJECTS:${target_name}_lib>
+      DEPENDS ${link_target} ${linked_file}
     )
 
   else()