diff --git a/modules/mbedtls/psa_init.c b/modules/mbedtls/psa_init.c
index 3a5643137a7..8072fc90bf6 100644
--- a/modules/mbedtls/psa_init.c
+++ b/modules/mbedtls/psa_init.c
@@ -20,4 +20,4 @@ static int _psa_crypto_init(void)
  * like entropy_psa_crypto (which has a higher priority number).
  * This is done without dependency on CONFIG_MBEDTLS_INIT.
  */
-SYS_INIT(_psa_crypto_init, PRE_KERNEL_1, CONFIG_KERNEL_INIT_PRIORITY_DEFAULT);
+SYS_INIT(_psa_crypto_init, APPLICATION, CONFIG_KERNEL_INIT_PRIORITY_DEFAULT);