diff --git a/lib/libc/minimal/CMakeLists.txt b/lib/libc/minimal/CMakeLists.txt
index 2c7afb115b28..b8f9475ef96c 100644
--- a/lib/libc/minimal/CMakeLists.txt
+++ b/lib/libc/minimal/CMakeLists.txt
@@ -20,3 +20,5 @@ zephyr_library_sources(
   source/stdout/fprintf.c
   source/time/gmtime.c
 )
+
+zephyr_library_sources_ifdef(CONFIG_POSIX_CLOCK source/time/time.c)
diff --git a/lib/libc/minimal/include/time.h b/lib/libc/minimal/include/time.h
index 2de85621d163..946f1a83a532 100644
--- a/lib/libc/minimal/include/time.h
+++ b/lib/libc/minimal/include/time.h
@@ -52,6 +52,8 @@ struct tm *gmtime(const time_t *timep);
 struct tm *gmtime_r(const time_t *_MLIBC_RESTRICT timep,
 		    struct tm *_MLIBC_RESTRICT result);
 
+time_t time(time_t *tloc);
+
 #ifdef __cplusplus
 }
 #endif
diff --git a/lib/libc/minimal/source/time/time.c b/lib/libc/minimal/source/time/time.c
new file mode 100644
index 000000000000..dbb21a3cec2c
--- /dev/null
+++ b/lib/libc/minimal/source/time/time.c
@@ -0,0 +1,28 @@
+/*
+ * Copyright (c) 2021 Golioth, Inc.
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+#include <time.h>
+
+/* clock_gettime() prototype */
+#include <posix/time.h>
+
+time_t time(time_t *tloc)
+{
+	struct timespec ts;
+	int ret;
+
+	ret = clock_gettime(CLOCK_REALTIME, &ts);
+	if (ret < 0) {
+		/* errno is already set by clock_gettime */
+		return (time_t) -1;
+	}
+
+	if (tloc) {
+		*tloc = ts.tv_sec;
+	}
+
+	return ts.tv_sec;
+}
diff --git a/samples/net/civetweb/common/src/libc_extensions.c b/samples/net/civetweb/common/src/libc_extensions.c
index c92c8b111445..5e9e23b4ccf5 100644
--- a/samples/net/civetweb/common/src/libc_extensions.c
+++ b/samples/net/civetweb/common/src/libc_extensions.c
@@ -159,11 +159,6 @@ long long strtoll(const char *str, char **endptr, int base)
 	return (long long)strtol(str, endptr, base);
 }
 
-time_t time(time_t *t)
-{
-	return 0;
-}
-
 /*
  * Most of the wrappers below are copies of the wrappers in net/sockets.h,
  * but they are available only if CONFIG_NET_SOCKETS_POSIX_NAMES is enabled
diff --git a/tests/lib/time/CMakeLists.txt b/tests/lib/time/CMakeLists.txt
new file mode 100644
index 000000000000..0ffcb2b7e821
--- /dev/null
+++ b/tests/lib/time/CMakeLists.txt
@@ -0,0 +1,8 @@
+# SPDX-License-Identifier: Apache-2.0
+
+cmake_minimum_required(VERSION 3.13.1)
+find_package(Zephyr REQUIRED HINTS $ENV{ZEPHYR_BASE})
+project(time)
+
+FILE(GLOB app_sources src/*.c)
+target_sources(app PRIVATE ${app_sources})
diff --git a/tests/lib/time/prj.conf b/tests/lib/time/prj.conf
new file mode 100644
index 000000000000..786d6bc705ed
--- /dev/null
+++ b/tests/lib/time/prj.conf
@@ -0,0 +1,2 @@
+CONFIG_ZTEST=y
+CONFIG_POSIX_CLOCK=y
diff --git a/tests/lib/time/src/main.c b/tests/lib/time/src/main.c
new file mode 100644
index 000000000000..f247e39a0abf
--- /dev/null
+++ b/tests/lib/time/src/main.c
@@ -0,0 +1,70 @@
+/*
+ * Copyright (c) 2021 Golioth, Inc.
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+#include <ztest.h>
+#include <time.h>
+
+static void test_time_passing(void)
+{
+	time_t time_initial_unaligned;
+	time_t time_initial;
+	time_t time_current;
+	int i;
+
+	time_initial_unaligned = time(NULL);
+	zassert_true(time_initial_unaligned >= 0, "Fail to get time");
+
+	/* Wait until time() will return new value, which should be aligned */
+	for (i = 0; i < 100; i++) {
+		k_sleep(K_MSEC(10));
+
+		if (time(NULL) != time_initial_unaligned) {
+			break;
+		}
+	}
+
+	time_initial = time(NULL);
+	zassert_equal(time_initial, time_initial_unaligned + 1,
+		      "Time (%d) should be one second larger than initially (%d)",
+		      time_initial, time_initial_unaligned);
+
+	for (i = 1; i <= 10; i++) {
+		k_sleep(K_SECONDS(1));
+
+		time_current = time(NULL);
+		zassert_equal(time_current, time_initial + i,
+			      "Current time (%d) does not match expected time (%d)",
+			      (int) time_current, (int) (time_initial + i));
+	}
+}
+
+static void test_time_param(void)
+{
+	time_t time_result;
+	time_t time_param;
+	int i;
+
+	time_result = time(&time_param);
+
+	zassert_equal(time_result, time_param,
+		      "time() result does not match param value");
+
+	for (i = 0; i < 10; i++) {
+		k_sleep(K_SECONDS(1));
+
+		zassert_equal(time_result, time_param,
+		      "time() result does not match param value");
+	}
+}
+
+void test_main(void)
+{
+	ztest_test_suite(libc_time,
+			ztest_unit_test(test_time_passing),
+			ztest_unit_test(test_time_param)
+			);
+	ztest_run_test_suite(libc_time);
+}
diff --git a/tests/lib/time/testcase.yaml b/tests/lib/time/testcase.yaml
new file mode 100644
index 000000000000..bb3fd2612560
--- /dev/null
+++ b/tests/lib/time/testcase.yaml
@@ -0,0 +1,6 @@
+tests:
+  libraries.libc.time:
+    tags: libc
+    filter: not CONFIG_ARCH_POSIX or CONFIG_NATIVE_POSIX_SLOWDOWN_TO_REAL_TIME
+    integration_platforms:
+      - mps2_an385