diff --git a/.gitlab-ci.yml b/.gitlab-ci.yml
index 51ea9ad7c..8a249d764 100644
--- a/.gitlab-ci.yml
+++ b/.gitlab-ci.yml
@@ -71,10 +71,6 @@ variables:
   - ./install.sh
   - . ./export.sh
 
-.activate_matter_build_env: &activate_matter_build_env
-  - cd ${CI_PROJECT_DIR}
-  - source ./connectedhomeip/connectedhomeip/scripts/activate.sh
-
 .build_matter_examples: &build_matter_examples
     - export MATTER_EXAMPLES_PATH=$ESP_MATTER_PATH/connectedhomeip/connectedhomeip/examples
     - cd $MATTER_EXAMPLES_PATH/all-clusters-app/esp32
@@ -122,8 +118,6 @@ variables:
     - cp sdkconfig.defaults.backup sdkconfig.defaults
 
 .build_examples_idf_v5_0: &build_examples_idf_v5_0
-    # Need to install esptool 4.4 and pyparsing 3.0.9 in matter build env for IDF v5.0
-    - python3 -m pip install esptool==4.4 pyparsing==3.0.9
     - cd $ESP_MATTER_PATH/examples/zap_light
     - idf.py --preview set-target esp32h2
     - idf.py build
@@ -149,15 +143,14 @@ variables:
     - *add_gitlab_ssh_key
     - *get_build_caches
     - *chip_submodule_update
-    - *setup_matter
     - *setup_idf
-    - *activate_matter_build_env
+    - *setup_matter
     - cd ${ESP_MATTER_PATH}
     - mkdir -p ${REPOS_PATH}
     # update caches only when setup succeed
     - *update_build_caches
   variables:
-    IDF_VERSION: "v4.4.2"
+    IDF_VERSION: "v4.4.3"
     REPOS_PATH: "$CI_PROJECT_DIR/repos"
     IDF_CCACHE_ENABLE: 1
 
diff --git a/README.md b/README.md
index fc5efb54a..13ef0edd9 100644
--- a/README.md
+++ b/README.md
@@ -18,7 +18,7 @@ git clone --recursive https://github.com/espressif/esp-matter.git
 
 ## Supported ESP-IDF and connectedhomeip versions
 
-- This SDK currently works with [tag V1.0.0.1](https://github.com/espressif/connectedhomeip/tree/V1.0.0.1) of connectedhomeip.
+- This SDK currently works with [tag v1.0.0.2](https://github.com/espressif/connectedhomeip/tree/v1.0.0.2) of connectedhomeip.
 - For Wi-Fi devices (ESP32, ESP32-C3, ESP32-S3), ESP-IDF [v4.4.3 release](https://github.com/espressif/esp-idf/releases/tag/v4.4.3) is required.
 - For Thread devices (ESP32-H2) and Zigbee Bridge example, ESP-IDF release/v5.0 branch at [commit 20949d44](https://github.com/espressif/esp-idf/tree/20949d44) should be used.
 
diff --git a/components/esp_matter/esp_matter_cluster.cpp b/components/esp_matter/esp_matter_cluster.cpp
index 810c7bcae..d9c053886 100644
--- a/components/esp_matter/esp_matter_cluster.cpp
+++ b/components/esp_matter/esp_matter_cluster.cpp
@@ -173,10 +173,6 @@ cluster_t *create(endpoint_t *endpoint, uint8_t flags)
 } /* access_control */
 
 namespace basic_information {
-// TODO: Remove this stub function after this PR merged
-// https://github.com/project-chip/connectedhomeip/pull/24162
-void emberAfBasicInformationClusterServerInitCallback(chip::EndpointId endpoint) {}
-
 const function_generic_t function_list[] = {
     (function_generic_t)emberAfBasicInformationClusterServerInitCallback,
 };
diff --git a/connectedhomeip/connectedhomeip b/connectedhomeip/connectedhomeip
index ca086f2f3..4088a77f5 160000
--- a/connectedhomeip/connectedhomeip
+++ b/connectedhomeip/connectedhomeip
@@ -1 +1 @@
-Subproject commit ca086f2f397fc4128f4964afb17433377e01faf4
+Subproject commit 4088a77f557e8571a39338fad51a1d8eb0131d79
diff --git a/export.sh b/export.sh
index 1c2c99e09..d5c4f26d1 100644
--- a/export.sh
+++ b/export.sh
@@ -45,10 +45,10 @@ esp_matter_export_main() {
         fi
         export ESP_MATTER_PATH="${script_dir}"
         echo "Setting ESP_MATTER_PATH to '${ESP_MATTER_PATH}'"
-     fi
+    fi
 
-     # PATH for gn
-     export PATH=${PATH}:${ESP_MATTER_PATH}/connectedhomeip/connectedhomeip/.environment/cipd/packages/pigweed/
+    # PATH for gn
+    export PATH=${PATH}:${ESP_MATTER_PATH}/connectedhomeip/connectedhomeip/.environment/cipd/packages/pigweed/
 
     # PATH for host tools
     export PATH=${PATH}:${ESP_MATTER_PATH}/connectedhomeip/connectedhomeip/out/host
diff --git a/install.sh b/install.sh
index ce747362d..356ce810f 100755
--- a/install.sh
+++ b/install.sh
@@ -21,11 +21,21 @@ echo ""
 echo "Host tools built at: ${MATTER_PATH}/out/host"
 echo ""
 
+echo ""
+echo "Exit Matter environment"
+echo ""
+deactivate
+
 echo ""
 echo "Installing python dependencies for mfg_tool"
 echo ""
 python3 -m pip install -r ${ESP_MATTER_PATH}/tools/mfg_tool/requirements.txt
 
+echo ""
+echo "Installing python dependencies for Matter"
+echo ""
+python3 -m pip install -r ${ESP_MATTER_PATH}/requirements.txt
+
 echo "All done! You can now run:"
 echo ""
 echo "  . ${basedir}/export.sh"
diff --git a/requirements.txt b/requirements.txt
new file mode 100644
index 000000000..766e1c3f1
--- /dev/null
+++ b/requirements.txt
@@ -0,0 +1,5 @@
+# matter idl
+lark==1.1.2
+stringcase==1.2.0
+# jinja2 is removed in IDF v5.0 environment, but it is required for matter building
+jinja2==3.0.1
diff --git a/tools/docker/chip-builds b/tools/docker/chip-builds
index 932fe1671..5effb0777 100644
--- a/tools/docker/chip-builds
+++ b/tools/docker/chip-builds
@@ -7,7 +7,7 @@ ENV CHIP_PATH=/opt/espressif/connectedhomeip
 RUN set -x \
     && git init \
     && git remote add origin https://github.com/project-chip/connectedhomeip.git \
-    && git fetch origin --depth 1 V1.0.0.1 \
+    && git fetch origin --depth 1 v1.0.0.2 \
     && git checkout FETCH_HEAD \
     && : # last line