diff --git a/components/bt/Kconfig b/components/bt/Kconfig
index 8c9d536579..647c23e9e7 100644
--- a/components/bt/Kconfig
+++ b/components/bt/Kconfig
@@ -1738,12 +1738,37 @@ if BLE_MESH
             option in the Bluetooth Controller section in menuconfig, which is
             "Scan Duplicate By Device Address and Advertising Data".
 
-    config BLE_MESH_ALLOC_FROM_PSRAM_FIRST
-        bool "BLE Mesh will first allocate memory from PSRAM"
-        default n
+    choice BLE_MESH_MEM_ALLOC_MODE
+        prompt "Memory allocation strategy"
+        default BLE_MESH_MEM_ALLOC_MODE_INTERNAL
         help
-            When this option is enabled, BLE Mesh stack will try to allocate memory
-            from PSRAM firstly. This will save the internal RAM if PSRAM exists.
+            Allocation strategy for BLE Mesh stack, essentially provides ability to
+            allocate all required dynamic allocations from,
+
+            - Internal DRAM memory only
+            - External SPIRAM memory only
+            - Either internal or external memory based on default malloc()
+              behavior in ESP-IDF
+
+            Recommended mode here is always internal, since that is most preferred
+            from security perspective. But if application requirement does not allow
+            sufficient free internal memory then alternate mode can be selected.
+
+        config BLE_MESH_MEM_ALLOC_MODE_INTERNAL
+            bool "Internal DRAM"
+
+        config BLE_MESH_ALLOC_FROM_PSRAM_FIRST
+            bool "External SPIRAM"
+            depends on SPIRAM_SUPPORT
+
+        config BLE_MESH_MEM_ALLOC_MODE_DEFAULT
+            bool "Default alloc mode"
+            depends on SPIRAM_SUPPORT
+            help
+                Enable this option to use the default memory allocation strategy when
+                external SPIRAM is enabled. See the SPIRAM options for more details.
+
+    endchoice # BLE_MESH_MEM_ALLOC_MODE
 
     config BLE_MESH_FAST_PROV
         bool "Enable BLE Mesh Fast Provisioning"
diff --git a/components/bt/esp_ble_mesh/mesh_common/include/mesh_common.h b/components/bt/esp_ble_mesh/mesh_common/include/mesh_common.h
index ad968dd0e4..f78a557762 100644
--- a/components/bt/esp_ble_mesh/mesh_common/include/mesh_common.h
+++ b/components/bt/esp_ble_mesh/mesh_common/include/mesh_common.h
@@ -22,6 +22,7 @@
 #include <stddef.h>
 #include <stdlib.h>
 
+#include "esp_attr.h"
 #include "esp_heap_caps.h"
 
 #include "mesh_byteorder.h"
@@ -34,14 +35,11 @@
 extern "C" {
 #endif
 
-#if CONFIG_BLE_MESH_ALLOC_FROM_PSRAM_FIRST
-#define bt_mesh_malloc(size)    heap_caps_malloc_prefer(size, 2, MALLOC_CAP_DEFAULT|MALLOC_CAP_SPIRAM, MALLOC_CAP_DEFAULT|MALLOC_CAP_INTERNAL)
-#define bt_mesh_calloc(size)    heap_caps_calloc_prefer(1, size, 2, MALLOC_CAP_DEFAULT|MALLOC_CAP_SPIRAM, MALLOC_CAP_DEFAULT|MALLOC_CAP_INTERNAL)
-#else
-#define bt_mesh_malloc(size)    malloc((size))
-#define bt_mesh_calloc(size)    calloc(1, (size))
-#endif /* CONFIG_BLE_MESH_ALLOC_FROM_PSRAM_FIRST */
-#define bt_mesh_free(p)         free((p))
+IRAM_ATTR void *bt_mesh_malloc(size_t size);
+
+IRAM_ATTR void *bt_mesh_calloc(size_t size);
+
+IRAM_ATTR void bt_mesh_free(void *ptr);
 
 /**
  * @brief This function allocates memory to store outgoing message.
diff --git a/components/bt/esp_ble_mesh/mesh_common/mesh_common.c b/components/bt/esp_ble_mesh/mesh_common/mesh_common.c
index 8ab86266eb..73a84e4a1d 100644
--- a/components/bt/esp_ble_mesh/mesh_common/mesh_common.c
+++ b/components/bt/esp_ble_mesh/mesh_common/mesh_common.c
@@ -19,6 +19,37 @@
 #include "client_common.h"
 #include "mesh_common.h"
 
+IRAM_ATTR void *bt_mesh_malloc(size_t size)
+{
+#ifdef CONFIG_BLE_MESH_MEM_ALLOC_MODE_INTERNAL
+    return heap_caps_malloc(size, MALLOC_CAP_INTERNAL|MALLOC_CAP_8BIT);
+#elif CONFIG_BLE_MESH_ALLOC_FROM_PSRAM_FIRST
+    return heap_caps_malloc_prefer(size, 2, MALLOC_CAP_SPIRAM|MALLOC_CAP_8BIT, MALLOC_CAP_INTERNAL|MALLOC_CAP_8BIT);
+#elif CONFIG_BLE_MESH_MEM_ALLOC_MODE_IRAM_8BIT
+    return heap_caps_malloc_prefer(size, 2, MALLOC_CAP_INTERNAL|MALLOC_CAP_IRAM_8BIT, MALLOC_CAP_INTERNAL|MALLOC_CAP_8BIT);
+#else
+    return malloc(size);
+#endif
+}
+
+IRAM_ATTR void *bt_mesh_calloc(size_t size)
+{
+#ifdef CONFIG_BLE_MESH_MEM_ALLOC_MODE_INTERNAL
+    return heap_caps_calloc(1, size, MALLOC_CAP_INTERNAL|MALLOC_CAP_8BIT);
+#elif CONFIG_BLE_MESH_ALLOC_FROM_PSRAM_FIRST
+    return heap_caps_calloc_prefer(1, size, 2, MALLOC_CAP_SPIRAM|MALLOC_CAP_8BIT, MALLOC_CAP_INTERNAL|MALLOC_CAP_8BIT);
+#elif CONFIG_BLE_MESH_MEM_ALLOC_MODE_IRAM_8BIT
+    return heap_caps_calloc_prefer(1, size, 2, MALLOC_CAP_INTERNAL|MALLOC_CAP_IRAM_8BIT, MALLOC_CAP_INTERNAL|MALLOC_CAP_8BIT);
+#else
+    return calloc(1, size);
+#endif
+}
+
+IRAM_ATTR void bt_mesh_free(void *ptr)
+{
+    heap_caps_free(ptr);
+}
+
 struct net_buf_simple *bt_mesh_alloc_buf(u16_t size)
 {
     struct net_buf_simple *buf = NULL;