diff --git a/.gitlab-ci.yml b/.gitlab-ci.yml
index 099c3c3ef..ddd6f8816 100644
--- a/.gitlab-ci.yml
+++ b/.gitlab-ci.yml
@@ -154,13 +154,29 @@ build_image:
   script:
     - cd ${ESP_MATTER_PATH}
     - chip_head_commit=$(git rev-parse HEAD:connectedhomeip/connectedhomeip)
+    - chip_head_in_readme=$(awk -F'[][]' '/commit \[.* of connectedhomeip/{print $2}' README.md)
+
+    # Check both conditions and collect errors
+    - commit_validation_error=0
+    - |
+      if echo "$chip_head_commit" | grep -q "^${chip_head_in_readme}"; then
+          echo "README.md is not in sync with the connectedhomeip submodule"
+      else
+          echo "Please update the README.md file with the latest commit hash of the connectedhomeip submodule"
+          commit_validation_error=1
+      fi
+
     - |
       if echo "${chip_head_commit}" | grep -q "^${CHIP_SHORT_HASH}"; then
           echo "The CHIP_SHORT_HASH variable is set to correct value. Matches with current head commit"
       else
           echo "The CHIP_SHORT_HASH seems to be incorrect or you have updated the submodule but not the CHIP_SHORT_HASH variable above"
-          exit 1
+          commit_validation_error=1
       fi
+
+    # Exit with collected error status
+    - if [ $commit_validation_error -ne 0 ]; then exit 1; fi
+
     - TAG="chip_${CHIP_SHORT_HASH}_idf_${IDF_VERSION}"
     - echo $TAG
     - |