diff --git a/.gitlab-ci.yml b/.gitlab-ci.yml
index 17d7678c0a..885260a04c 100644
--- a/.gitlab-ci.yml
+++ b/.gitlab-ci.yml
@@ -66,7 +66,7 @@ variables:
   ESP_ENV_IMAGE: "$CI_DOCKER_REGISTRY/esp-env-v5.2:1"
   CLANG_STATIC_ANALYSIS_IMAGE: "${CI_DOCKER_REGISTRY}/clang-static-analysis-v5.2:1-1"
   ESP_IDF_DOC_ENV_IMAGE: "$CI_DOCKER_REGISTRY/esp-idf-doc-env-v5.2:1-1"
-  QEMU_IMAGE: "${CI_DOCKER_REGISTRY}/qemu-v5.2:1-20220802"
+  QEMU_IMAGE: "${CI_DOCKER_REGISTRY}/qemu-v5.2:1-20230522"
   TARGET_TEST_ENV_IMAGE: "$CI_DOCKER_REGISTRY/target-test-env-v5.2:1"
 
   SONARQUBE_SCANNER_IMAGE: "${CI_DOCKER_REGISTRY}/sonarqube-scanner:3"
diff --git a/examples/system/efuse/main/Kconfig.projbuild b/examples/system/efuse/main/Kconfig.projbuild
new file mode 100644
index 0000000000..02b7f980e3
--- /dev/null
+++ b/examples/system/efuse/main/Kconfig.projbuild
@@ -0,0 +1,7 @@
+menu "Example Configuration"
+
+    config EXAMPLE_TEST_RUN_USING_QEMU
+        bool "Run example test using Qemu"
+        help
+            Enabling this option emulates the example test under the QEMU environment.
+endmenu
diff --git a/examples/system/efuse/main/efuse_main.c b/examples/system/efuse/main/efuse_main.c
index 53afd94600..2b6238892f 100644
--- a/examples/system/efuse/main/efuse_main.c
+++ b/examples/system/efuse/main/efuse_main.c
@@ -78,7 +78,7 @@ static void read_efuse_fields(device_desc_t *desc)
 }
 
 
-#ifdef CONFIG_EFUSE_VIRTUAL
+#if defined(CONFIG_EFUSE_VIRTUAL) || defined(CONFIG_EXAMPLE_TEST_RUN_USING_QEMU)
 static void write_efuse_fields(device_desc_t *desc, esp_efuse_coding_scheme_t coding_scheme)
 {
 #if CONFIG_IDF_TARGET_ESP32
@@ -104,7 +104,7 @@ static void write_efuse_fields(device_desc_t *desc, esp_efuse_coding_scheme_t co
         ESP_ERROR_CHECK(esp_efuse_batch_write_commit());
     }
 }
-#endif // CONFIG_EFUSE_VIRTUAL
+#endif // defined(CONFIG_EFUSE_VIRTUAL) || defined(CONFIG_EXAMPLE_TEST_RUN_USING_QEMU)
 
 
 static esp_efuse_coding_scheme_t get_coding_scheme(void)
@@ -154,7 +154,10 @@ void app_main(void)
     device_desc_t device_desc = { 0 };
     read_efuse_fields(&device_desc);
 
+#if !CONFIG_EXAMPLE_TEST_RUN_USING_QEMU
     ESP_LOGW(TAG, "This example does not burn any efuse in reality only virtually");
+#endif
+
 
 #if CONFIG_IDF_TARGET_ESP32C2
     if (esp_secure_boot_enabled() || esp_flash_encryption_enabled()) {
@@ -165,8 +168,10 @@ void app_main(void)
     }
 #endif
 
-#ifdef CONFIG_EFUSE_VIRTUAL
+#if defined(CONFIG_EFUSE_VIRTUAL) || defined(CONFIG_EXAMPLE_TEST_RUN_USING_QEMU)
+#if !CONFIG_EXAMPLE_TEST_RUN_USING_QEMU
     ESP_LOGW(TAG, "Write operations in efuse fields are performed virtually");
+#endif
     if (device_desc.device_role == 0) {
         device_desc.module_version = 1;
         device_desc.device_role = 2;
diff --git a/examples/system/efuse/pytest_system_efuse_example.py b/examples/system/efuse/pytest_system_efuse_example.py
index aa3c557d8c..85d854c48e 100644
--- a/examples/system/efuse/pytest_system_efuse_example.py
+++ b/examples/system/efuse/pytest_system_efuse_example.py
@@ -7,6 +7,7 @@ import os
 
 import pytest
 from pytest_embedded import Dut
+from pytest_embedded_qemu.dut import QemuDut
 
 
 @pytest.mark.generic
@@ -845,6 +846,89 @@ def test_examples_efuse_with_virt_sb_v2_and_fe(dut: Dut) -> None:
     dut.expect('example: Done')
 
 
+@pytest.mark.esp32
+@pytest.mark.host_test
+@pytest.mark.qemu
+@pytest.mark.parametrize('config', ['virt_sb_v2_and_fe.esp32.qemu',], indirect=True)
+@pytest.mark.parametrize(
+    'qemu_extra_args',
+    [
+        f'-drive file={os.path.join(os.path.dirname(__file__), "test", "esp32eco3_efuses.bin")},if=none,format=raw,id=efuse '
+        '-global driver=nvram.esp32.efuse,property=drive,value=efuse '
+        '-global driver=timer.esp32.timg,property=wdt_disable,value=true',
+    ],
+    indirect=True,
+)
+def test_examples_efuse_with_virt_sb_v2_and_fe_qemu(dut: QemuDut) -> None:
+    try:
+        dut.expect('secure_boot_v2: Secure boot V2 is not enabled yet and eFuse digest keys are not set')
+        dut.expect('secure_boot_v2: Verifying with RSA-PSS...')
+        dut.expect('secure_boot_v2: Signature verified successfully!')
+
+        dut.expect('secure_boot_v2: enabling secure boot v2...')
+        dut.expect('Verifying image signature...')
+        dut.expect('secure_boot_v2: Secure boot V2 is not enabled yet and eFuse digest keys are not set')
+        dut.expect('secure_boot_v2: Verifying with RSA-PSS...')
+        dut.expect('secure_boot_v2: Signature verified successfully')
+        dut.expect('secure_boot_v2: Secure boot digests absent, generating..')
+        dut.expect('secure_boot_v2: Digests successfully calculated, 1 valid signatures')
+        dut.expect_exact('secure_boot_v2: 1 signature block(s) found appended to the bootloader')
+
+        dut.expect('Writing EFUSE_BLK_KEY1 with purpose 3')
+        dut.expect('secure_boot_v2: Digests successfully calculated, 1 valid signatures')
+        dut.expect_exact('secure_boot_v2: 1 signature block(s) found appended to the app')
+        dut.expect_exact('secure_boot_v2: Application key(0) matches with bootloader key(0)')
+
+        dut.expect('secure_boot_v2: blowing secure boot efuse...')
+        dut.expect('Disable JTAG...')
+        dut.expect('Disable ROM BASIC interpreter fallback...')
+        dut.expect('Disable ROM Download mode...')
+        dut.expect('secure_boot_v2: Secure boot permanently enabled')
+
+        dut.expect('Checking flash encryption...')
+        dut.expect('flash_encrypt: Generating new flash encryption key...')
+        dut.expect('Writing EFUSE_BLK_KEY0 with purpose 2')
+        dut.expect('flash_encrypt: Setting CRYPT_CONFIG efuse to 0xF')
+        dut.expect('flash_encrypt: Not disabling UART bootloader encryption')
+        dut.expect('flash_encrypt: Disable UART bootloader decryption...')
+        dut.expect('flash_encrypt: Disable UART bootloader MMU cache...')
+        dut.expect('flash_encrypt: Disable JTAG...')
+        dut.expect('flash_encrypt: Disable ROM BASIC interpreter fallback...')
+
+        dut.expect('Verifying image signature...')
+        dut.expect('secure_boot_v2: Verifying with RSA-PSS...')
+        dut.expect('secure_boot_v2: Signature verified successfully!')
+        dut.expect('flash_encrypt: bootloader encrypted successfully')
+        dut.expect('flash_encrypt: partition table encrypted and loaded successfully')
+
+        dut.expect('Verifying image signature...')
+        dut.expect('secure_boot_v2: Verifying with RSA-PSS...')
+        dut.expect('secure_boot_v2: Signature verified successfully!')
+        dut.expect('flash_encrypt: Flash encryption completed', timeout=120)
+        dut.expect('Resetting with flash encryption enabled...')
+
+        dut.expect('Verifying image signature...', timeout=180)
+        dut.expect('secure_boot_v2: Verifying with RSA-PSS...')
+        dut.expect('secure_boot_v2: Signature verified successfully!')
+        dut.expect('secure_boot_v2: enabling secure boot v2...')
+        dut.expect('secure_boot_v2: secure boot v2 is already enabled, continuing..')
+        dut.expect_exact('flash_encrypt: flash encryption is enabled (3 plaintext flashes left)')
+        dut.expect_exact('flash_encrypt: Flash encryption mode is DEVELOPMENT (not secure)')
+        dut.expect('main_task: Calling app_main()')
+        dut.expect('Start eFuse example')
+        dut.expect('example: Flash Encryption is NOT in RELEASE mode')
+        dut.expect('example: Secure Boot is in RELEASE mode')
+        dut.expect('example: Done')
+
+    finally:
+        # the above example test burns the efuses, and hence the efuses file which the
+        # qemu uses to emulate the efuses, "test/esp32eco3_efuses.bin", gets modified.
+        # Thus, restore the efuses file values back to the default ESP32-ECO3 efuses values.
+        with open(os.path.join(os.path.dirname(__file__), 'test', 'esp32eco3_efuses.bin'), 'wb') as efuse_file:
+            esp32eco3_efuses = '0' * 26 + '8' + '0' * 17 + '1' + '0' * 203
+            efuse_file.write(bytearray.fromhex(esp32eco3_efuses))
+
+
 @pytest.mark.esp32c3
 @pytest.mark.esp32c2
 @pytest.mark.esp32c6
diff --git a/examples/system/efuse/sdkconfig.ci.virt_sb_v2_and_fe.esp32.qemu b/examples/system/efuse/sdkconfig.ci.virt_sb_v2_and_fe.esp32.qemu
new file mode 100644
index 0000000000..e1dde3dd6f
--- /dev/null
+++ b/examples/system/efuse/sdkconfig.ci.virt_sb_v2_and_fe.esp32.qemu
@@ -0,0 +1,22 @@
+# FLASH_ENCRYPTION & SECURE_BOOT_V2 with target QEMU
+
+CONFIG_IDF_TARGET="esp32"
+
+CONFIG_EFUSE_VIRTUAL=n
+# ESP32 supports SECURE_BOOT_V2 only in ECO3
+CONFIG_ESP32_REV_MIN_3=y
+CONFIG_ESP32_REV_MIN=3
+
+CONFIG_PARTITION_TABLE_OFFSET=0xD000
+CONFIG_PARTITION_TABLE_CUSTOM=y
+CONFIG_PARTITION_TABLE_CUSTOM_FILENAME="test/partitions_efuse_emul.csv"
+
+CONFIG_SECURE_BOOT=y
+CONFIG_SECURE_BOOT_V2_ENABLED=y
+CONFIG_SECURE_BOOT_SIGNING_KEY="test/secure_boot_signing_key.pem"
+CONFIG_SECURE_DISABLE_ROM_DL_MODE=y
+
+CONFIG_SECURE_FLASH_ENC_ENABLED=y
+
+CONFIG_EXAMPLE_TEST_RUN_USING_QEMU=y
+CONFIG_SECURE_BOOT_FLASH_BOOTLOADER_DEFAULT=y
diff --git a/examples/system/efuse/test/esp32eco3_efuses.bin b/examples/system/efuse/test/esp32eco3_efuses.bin
new file mode 100644
index 0000000000..d60c6c019c
Binary files /dev/null and b/examples/system/efuse/test/esp32eco3_efuses.bin differ