diff --git a/arch/arc/boot/dts/nsim_700.dts b/arch/arc/boot/dts/nsim_700.dts
index ae9bc21fe11b..f8832a15e174 100644
--- a/arch/arc/boot/dts/nsim_700.dts
+++ b/arch/arc/boot/dts/nsim_700.dts
@@ -52,22 +52,6 @@
 			no-loopback-test = <1>;
 		};
 
-		ethernet@c0fc2000 {
-			compatible = "snps,arc-emac";
-			reg = <0xc0fc2000 0x3c>;
-			interrupts = <6>;
-			mac-address = [ 00 11 22 33 44 55 ];
-			clock-frequency = <80000000>;
-			max-speed = <100>;
-			phy = <&phy0>;
-
-			#address-cells = <1>;
-			#size-cells = <0>;
-			phy0: ethernet-phy@0 {
-				reg = <1>;
-			};
-		};
-
 		arcpct0: pct {
 			compatible = "snps,arc700-pct";
 		};
diff --git a/arch/arc/configs/nsim_700_defconfig b/arch/arc/configs/nsim_700_defconfig
index 5c488140f537..326f6cde7826 100644
--- a/arch/arc/configs/nsim_700_defconfig
+++ b/arch/arc/configs/nsim_700_defconfig
@@ -35,8 +35,8 @@ CONFIG_DEVTMPFS=y
 # CONFIG_PREVENT_FIRMWARE_BUILD is not set
 # CONFIG_BLK_DEV is not set
 CONFIG_NETDEVICES=y
-CONFIG_ARC_EMAC=y
-CONFIG_LXT_PHY=y
+# CONFIG_ETHERNET is not set
+# CONFIG_WLAN is not set
 # CONFIG_INPUT_KEYBOARD is not set
 # CONFIG_INPUT_MOUSE is not set
 # CONFIG_SERIO is not set