diff --git a/integrations/docker/images/base/chip-build/version b/integrations/docker/images/base/chip-build/version
index f6225026c68390..9ab6108582b17d 100644
--- a/integrations/docker/images/base/chip-build/version
+++ b/integrations/docker/images/base/chip-build/version
@@ -1 +1 @@
-119 : [vscode/java/android] Install JDK 11 in vscode image (java path already set to it)
+120 : [NXP] Update NXP sdk version
diff --git a/integrations/docker/images/stage-2/chip-build-nxp/Dockerfile b/integrations/docker/images/stage-2/chip-build-nxp/Dockerfile
index 0469407c11f634..9d5f3e79e88f69 100644
--- a/integrations/docker/images/stage-2/chip-build-nxp/Dockerfile
+++ b/integrations/docker/images/stage-2/chip-build-nxp/Dockerfile
@@ -10,14 +10,13 @@ RUN set -x \
 
 WORKDIR /opt/nxp/
 
-ARG NXP_SDK_EXAMPLE_PATH=nxp_matter_support/github_sdk/common_sdk/repo/examples
+ARG NXP_SDK_EXAMPLE_PATH=nxp_matter_support/github_sdk/sdk_next/repo/mcuxsdk/examples
 
 RUN set -x \
-    && git clone --branch matter-sdk-2.16.100-support https://github.com/NXP/nxp_matter_support.git \
+    && git clone --branch release/v1.4.0.1 https://github.com/NXP/nxp_matter_support.git \
     && pip3 install --break-system-packages -U --no-cache-dir west \
     && ./nxp_matter_support/scripts/update_nxp_sdk.py \
     && cd $NXP_SDK_EXAMPLE_PATH \
-    && find . -maxdepth 1 -mindepth 1 -type d ! -name '.*' -a ! -name '*rt1170*' -a ! -name '*rt1060*' -a ! -name '*rw612*' -a ! -name '*k32w*' -a ! -name '*mcxw*' -exec rm -rf {} + `# Remove unused folder to reduce image size` \
     && : # last line
 
 FROM ghcr.io/project-chip/chip-build:${VERSION}