diff --git a/drivers/of/.kunitconfig b/drivers/of/.kunitconfig
index 4c53d2c7a275..7d570cb922a1 100644
--- a/drivers/of/.kunitconfig
+++ b/drivers/of/.kunitconfig
@@ -1,4 +1,5 @@
 CONFIG_KUNIT=y
 CONFIG_OF=y
 CONFIG_OF_KUNIT_TEST=y
+CONFIG_OF_OVERLAY=y
 CONFIG_OF_OVERLAY_KUNIT_TEST=y
diff --git a/drivers/of/Kconfig b/drivers/of/Kconfig
index 0e2d608c3e20..f0b8cc23c46d 100644
--- a/drivers/of/Kconfig
+++ b/drivers/of/Kconfig
@@ -111,7 +111,7 @@ config OF_OVERLAY_KUNIT_TEST
 	tristate "Device Tree overlay KUnit tests" if !KUNIT_ALL_TESTS
 	depends on KUNIT
 	default KUNIT_ALL_TESTS
-	select OF_OVERLAY
+	select DTC
 	help
 	  This option builds KUnit unit tests for the device tree overlay code.
 
diff --git a/drivers/of/overlay_test.c b/drivers/of/overlay_test.c
index 1f76d50fb16a..c787524c5a88 100644
--- a/drivers/of/overlay_test.c
+++ b/drivers/of/overlay_test.c
@@ -65,6 +65,8 @@ static void of_overlay_apply_kunit_cleanup(struct kunit *test)
 	struct device_node *np;
 
 	of_root_kunit_skip(test);
+	if (!IS_ENABLED(CONFIG_OF_OVERLAY))
+		kunit_skip(test, "requires CONFIG_OF_OVERLAY to apply overlay");
 	if (!IS_ENABLED(CONFIG_OF_EARLY_FLATTREE))
 		kunit_skip(test, "requires CONFIG_OF_EARLY_FLATTREE for root node");