diff --git a/applications/asset_tracker_v2/doc/location_module.rst b/applications/asset_tracker_v2/doc/location_module.rst
index 35d0e273511..c88e715bea2 100644
--- a/applications/asset_tracker_v2/doc/location_module.rst
+++ b/applications/asset_tracker_v2/doc/location_module.rst
@@ -88,6 +88,7 @@ Wi-Fi positioning has the following limitations:
 
    The Wi-Fi configuration uses both flash and SRAM extensively.
    You can configure the number of scan results with the :kconfig:option:`CONFIG_LOCATION_METHOD_WIFI_SCANNING_RESULTS_MAX_CNT` Kconfig option to reduce SRAM consumption.
+   Align the :kconfig:option:`CONFIG_WIFI_MGMT_SCAN_MAX_BSS_CNT` Kconfig option with :kconfig:option:`CONFIG_LOCATION_METHOD_WIFI_SCANNING_RESULTS_MAX_CNT`.
    You can also change the value of the :kconfig:option:`CONFIG_HEAP_MEM_POOL_SIZE` Kconfig option.
 
 Module internals
@@ -100,7 +101,19 @@ All incoming events from other modules are handled in the context of the Applica
 
 The :ref:`lib_location` library handles cellular and Wi-Fi positioning together when the location request method list has them next to each other.
 This means that LTE neighbor cell measurements and Wi-Fi scanning results are combined into the same :c:enum:`LOCATION_EVT_CLOUD_LOCATION_EXT_REQUEST` event.
-The location module responds to the :ref:`lib_location` library with unknown location resolution, because it does not request the location back from cloud service.
+
+The location module sends the cellular and Wi-Fi positioning request forward with :c:enum:`LOCATION_MODULE_EVT_CLOUD_LOCATION_DATA_READY` event,
+and waits for an event from the cloud module on the result of the positioning.
+This result is forwarded to the :ref:`lib_location` library.
+Depending on the cloud integration, positioning result from the cloud service might be requested or not.
+The result must be indicated with one of the following events:
+
+* :c:enum:`CLOUD_EVT_CLOUD_LOCATION_RECEIVED`: Location has been resolved successfully.
+  The :ref:`lib_location` library does not continue to use other positioning methods and the location request completes quickly.
+* :c:enum:`CLOUD_EVT_CLOUD_LOCATION_ERROR`: Location resolution failed.
+  The :ref:`lib_location` library performs a fallback to the next positioning method in the priority list.
+* :c:enum:`CLOUD_EVT_CLOUD_LOCATION_UNKNOWN`: Location resolution result is unknown, that is, cloud integration is not capable of or configured to resolve it.
+  The :ref:`lib_location` library performs a fallback to the next positioning method.
 
 Configuration options
 *********************
diff --git a/applications/asset_tracker_v2/overlay-nrf7002ek-wifi-scan-only.conf b/applications/asset_tracker_v2/overlay-nrf7002ek-wifi-scan-only.conf
index 0307832e43c..beefc264ffd 100644
--- a/applications/asset_tracker_v2/overlay-nrf7002ek-wifi-scan-only.conf
+++ b/applications/asset_tracker_v2/overlay-nrf7002ek-wifi-scan-only.conf
@@ -20,6 +20,8 @@ CONFIG_DK_LIBRARY=n
 # Actual configs for the Wi-Fi
 CONFIG_WIFI=y
 CONFIG_WIFI_NRF700X=y
+# Align this with CONFIG_LOCATION_METHOD_WIFI_SCANNING_RESULTS_MAX_CNT
+CONFIG_WIFI_MGMT_SCAN_MAX_BSS_CNT=30
 
 # Wi-Fi location
 CONFIG_LOCATION_METHOD_WIFI=y
@@ -27,6 +29,7 @@ CONFIG_LOCATION_REQUEST_DEFAULT_METHOD_FIRST_GNSS=y
 CONFIG_LOCATION_REQUEST_DEFAULT_METHOD_SECOND_WIFI=y
 CONFIG_LOCATION_REQUEST_DEFAULT_METHOD_THIRD_CELLULAR=y
 
+# Align this with CONFIG_WIFI_MGMT_SCAN_MAX_BSS_CNT
 CONFIG_LOCATION_METHOD_WIFI_SCANNING_RESULTS_MAX_CNT=30
 CONFIG_LOCATION_WORKQUEUE_STACK_SIZE=8192
 # Needed to handle more scan results
diff --git a/applications/asset_tracker_v2/src/cloud/aws_iot_integration.c b/applications/asset_tracker_v2/src/cloud/aws_iot_integration.c
index 5d44534d26b..b4c2d15906e 100644
--- a/applications/asset_tracker_v2/src/cloud/aws_iot_integration.c
+++ b/applications/asset_tracker_v2/src/cloud/aws_iot_integration.c
@@ -507,6 +507,11 @@ int cloud_wrap_cloud_location_send(char *buf, size_t len, bool ack, uint32_t id)
 	return 0;
 }
 
+bool cloud_wrap_cloud_location_response_wait(void)
+{
+	return false;
+}
+
 int cloud_wrap_agps_request_send(char *buf, size_t len, bool ack, uint32_t id)
 {
 	int err;
diff --git a/applications/asset_tracker_v2/src/cloud/azure_iot_hub_integration.c b/applications/asset_tracker_v2/src/cloud/azure_iot_hub_integration.c
index 16e21c8b547..52821e7513f 100644
--- a/applications/asset_tracker_v2/src/cloud/azure_iot_hub_integration.c
+++ b/applications/asset_tracker_v2/src/cloud/azure_iot_hub_integration.c
@@ -509,6 +509,11 @@ int cloud_wrap_cloud_location_send(char *buf, size_t len, bool ack, uint32_t id)
 	return 0;
 }
 
+bool cloud_wrap_cloud_location_response_wait(void)
+{
+	return false;
+}
+
 int cloud_wrap_agps_request_send(char *buf, size_t len, bool ack, uint32_t id)
 {
 	int err;
diff --git a/applications/asset_tracker_v2/src/cloud/cloud_codec/aws_iot/aws_iot_codec.c b/applications/asset_tracker_v2/src/cloud/cloud_codec/aws_iot/aws_iot_codec.c
index 97c8c454cf3..8fb63c8bd12 100644
--- a/applications/asset_tracker_v2/src/cloud/cloud_codec/aws_iot/aws_iot_codec.c
+++ b/applications/asset_tracker_v2/src/cloud/cloud_codec/aws_iot/aws_iot_codec.c
@@ -75,26 +75,24 @@ int cloud_codec_encode_cloud_location(
 		return -ENOMEM;
 	}
 
-	if (!cloud_location->neighbor_cells_valid) {
-		err = -ENODATA;
-		goto exit;
-	}
-
-	err = json_common_neighbor_cells_data_add(root_obj, &cloud_location->neighbor_cells,
-						  JSON_COMMON_ADD_DATA_TO_OBJECT);
-	if (err) {
-		goto exit;
+	if (cloud_location->neighbor_cells_valid) {
+		err = json_common_neighbor_cells_data_add(root_obj, &cloud_location->neighbor_cells,
+							  JSON_COMMON_ADD_DATA_TO_OBJECT);
+		if (err) {
+			goto exit;
+		}
 	}
 
 #if defined(CONFIG_LOCATION_METHOD_WIFI)
-	err = json_common_wifi_ap_data_add(root_obj, &cloud_location->wifi_access_points,
-					   JSON_COMMON_ADD_DATA_TO_OBJECT);
-	if (err) {
-		goto exit;
+	if (cloud_location->wifi_access_points_valid) {
+		err = json_common_wifi_ap_data_add(root_obj, &cloud_location->wifi_access_points,
+						   JSON_COMMON_ADD_DATA_TO_OBJECT);
+		if (err) {
+			goto exit;
+		}
 	}
 #endif
 
-
 	buffer = cJSON_PrintUnformatted(root_obj);
 	if (buffer == NULL) {
 		LOG_ERR("Failed to allocate memory for JSON string");
@@ -115,6 +113,12 @@ int cloud_codec_encode_cloud_location(
 	return err;
 }
 
+int cloud_codec_decode_cloud_location(const char *input, size_t input_len,
+				      struct location_data *location)
+{
+	return -ENOTSUP;
+}
+
 int cloud_codec_encode_agps_request(struct cloud_codec_data *output,
 				    struct cloud_data_agps_request *agps_request)
 {
diff --git a/applications/asset_tracker_v2/src/cloud/cloud_codec/azure_iot_hub/azure_iot_hub_codec.c b/applications/asset_tracker_v2/src/cloud/cloud_codec/azure_iot_hub/azure_iot_hub_codec.c
index 85e34ca76df..6c657b43779 100644
--- a/applications/asset_tracker_v2/src/cloud/cloud_codec/azure_iot_hub/azure_iot_hub_codec.c
+++ b/applications/asset_tracker_v2/src/cloud/cloud_codec/azure_iot_hub/azure_iot_hub_codec.c
@@ -45,22 +45,21 @@ int cloud_codec_encode_cloud_location(
 		return -ENOMEM;
 	}
 
-	if (!cloud_location->neighbor_cells_valid) {
-		err = -ENODATA;
-		goto exit;
-	}
-
-	err = json_common_neighbor_cells_data_add(root_obj, &cloud_location->neighbor_cells,
-						  JSON_COMMON_ADD_DATA_TO_OBJECT);
-	if (err) {
-		goto exit;
+	if (cloud_location->neighbor_cells_valid) {
+		err = json_common_neighbor_cells_data_add(root_obj, &cloud_location->neighbor_cells,
+							  JSON_COMMON_ADD_DATA_TO_OBJECT);
+		if (err) {
+			goto exit;
+		}
 	}
 
 #if defined(CONFIG_LOCATION_METHOD_WIFI)
-	err = json_common_wifi_ap_data_add(root_obj, &cloud_location->wifi_access_points,
-					   JSON_COMMON_ADD_DATA_TO_OBJECT);
-	if (err) {
-		goto exit;
+	if (cloud_location->wifi_access_points_valid) {
+		err = json_common_wifi_ap_data_add(root_obj, &cloud_location->wifi_access_points,
+						   JSON_COMMON_ADD_DATA_TO_OBJECT);
+		if (err) {
+			goto exit;
+		}
 	}
 #endif
 
@@ -84,6 +83,13 @@ int cloud_codec_encode_cloud_location(
 	return err;
 }
 
+
+int cloud_codec_decode_cloud_location(const char *input, size_t input_len,
+				      struct location_data *location)
+{
+	return -ENOTSUP;
+}
+
 int cloud_codec_encode_agps_request(struct cloud_codec_data *output,
 				    struct cloud_data_agps_request *agps_request)
 {
diff --git a/applications/asset_tracker_v2/src/cloud/cloud_codec/cloud_codec.h b/applications/asset_tracker_v2/src/cloud/cloud_codec/cloud_codec.h
index 523cdfc6576..89d98daf08b 100644
--- a/applications/asset_tracker_v2/src/cloud/cloud_codec/cloud_codec.h
+++ b/applications/asset_tracker_v2/src/cloud/cloud_codec/cloud_codec.h
@@ -15,6 +15,9 @@
 #include <cJSON_os.h>
 #include <zephyr/net/net_ip.h>
 #include <modem/lte_lc.h>
+#if defined(CONFIG_LOCATION)
+#include <modem/location.h>
+#endif
 #include <net/wifi_location_common.h>
 #include <nrf_modem_gnss.h>
 
@@ -319,6 +322,25 @@ int cloud_codec_encode_cloud_location(
 	struct cloud_codec_data *output,
 	struct cloud_data_cloud_location *cloud_location);
 
+/* Foward declaration */
+struct location_data;
+
+/**
+ * @brief Decode received cloud location data.
+ *
+ * @param[in] input String buffer with encoded cloud location data.
+ * @param[in] input_len Length of input.
+ * @param[out] location Storage for the decoded cloud location data.
+ *
+ * @retval 0 on success.
+ * @retval -EFAULT if cloud returned with error to the location request.
+ * @retval -ENOMEM if codec could not allocate memory.
+ * @retval -ENOTSUP if the function is not supported by the backend.
+ * @return 0 on success or negative error value on failure.
+ */
+int cloud_codec_decode_cloud_location(const char *input, size_t input_len,
+				      struct location_data *location);
+
 /**
  * @brief Encode cloud codec A-GPS request.
  *
diff --git a/applications/asset_tracker_v2/src/cloud/cloud_codec/lwm2m/lwm2m_codec.c b/applications/asset_tracker_v2/src/cloud/cloud_codec/lwm2m/lwm2m_codec.c
index 5966eee47a5..41ea5c8b6db 100644
--- a/applications/asset_tracker_v2/src/cloud/cloud_codec/lwm2m/lwm2m_codec.c
+++ b/applications/asset_tracker_v2/src/cloud/cloud_codec/lwm2m/lwm2m_codec.c
@@ -86,7 +86,7 @@ int cloud_codec_init(struct cloud_data_cfg *cfg, cloud_codec_evt_handler_t event
 }
 
 int cloud_codec_encode_cloud_location(struct cloud_codec_data *output,
-				 struct cloud_data_cloud_location *cloud_location)
+				      struct cloud_data_cloud_location *cloud_location)
 {
 	ARG_UNUSED(output);
 
@@ -101,6 +101,12 @@ int cloud_codec_encode_cloud_location(struct cloud_codec_data *output,
 	return 0;
 }
 
+int cloud_codec_decode_cloud_location(const char *input, size_t input_len,
+				      struct location_data *location)
+{
+	return -ENOTSUP;
+}
+
 int cloud_codec_encode_agps_request(struct cloud_codec_data *output,
 				    struct cloud_data_agps_request *agps_request)
 {
diff --git a/applications/asset_tracker_v2/src/cloud/cloud_codec/nrf_cloud/nrf_cloud_codec.c b/applications/asset_tracker_v2/src/cloud/cloud_codec/nrf_cloud/nrf_cloud_codec.c
index b12675fa5db..cb96a81eea7 100644
--- a/applications/asset_tracker_v2/src/cloud/cloud_codec/nrf_cloud/nrf_cloud_codec.c
+++ b/applications/asset_tracker_v2/src/cloud/cloud_codec/nrf_cloud/nrf_cloud_codec.c
@@ -768,6 +768,29 @@ int cloud_codec_encode_cloud_location(
 	return -ENOTSUP;
 }
 
+int cloud_codec_decode_cloud_location(const char *input, size_t input_len,
+				      struct location_data *location)
+{
+	ARG_UNUSED(input_len);
+
+	int err;
+	struct nrf_cloud_location_result result;
+
+	err = nrf_cloud_location_process(input, &result);
+	if (err == 0) {
+#if defined(CONFIG_LOCATION)
+		location->latitude = result.lat;
+		location->longitude = result.lon;
+		location->accuracy = result.unc;
+#endif
+		/* Date and time are not filled because they are not used anyway */
+	} else if (err == 1) {
+		/* Unexpected response from cloud is treated similarly to error from cloud */
+		err = -EFAULT;
+	}
+	return err;
+}
+
 int cloud_codec_encode_agps_request(struct cloud_codec_data *output,
 				    struct cloud_data_agps_request *agps_request)
 {
diff --git a/applications/asset_tracker_v2/src/cloud/cloud_wrapper.h b/applications/asset_tracker_v2/src/cloud/cloud_wrapper.h
index 9aca0a59ec5..f093f22eed2 100644
--- a/applications/asset_tracker_v2/src/cloud/cloud_wrapper.h
+++ b/applications/asset_tracker_v2/src/cloud/cloud_wrapper.h
@@ -57,6 +57,10 @@ enum cloud_wrap_event_type {
 	 *  Payload is of type @ref cloud_wrap_event_data.
 	 */
 	CLOUD_WRAP_EVT_PGPS_DATA_RECEIVED,
+	/** Data received from cloud integration layer.
+	 *  Payload is of type @ref cloud_wrap_event_data.
+	 */
+	CLOUD_WRAP_EVT_CLOUD_LOCATION_RESULT_RECEIVED,
 	/** Reboot request received from cloud. */
 	CLOUD_WRAP_EVT_REBOOT_REQUEST,
 	/** Request to connect to LTE. */
@@ -210,6 +214,14 @@ int cloud_wrap_ui_send(char *buf, size_t len, bool ack, uint32_t id,
  */
 int cloud_wrap_cloud_location_send(char *buf, size_t len, bool ack, uint32_t id);
 
+/**
+ * @brief Indicates whether cloud implementation can and is configured to return the resolved
+ *        location back to the device.
+ *
+ * @return Indicates whether resolved location is sent back to the device.
+ */
+bool cloud_wrap_cloud_location_response_wait(void);
+
 /**
  * @brief Send A-GPS request to cloud.
  *
diff --git a/applications/asset_tracker_v2/src/cloud/nrf_cloud_integration.c b/applications/asset_tracker_v2/src/cloud/nrf_cloud_integration.c
index 064a1ae1cfd..269c4331c20 100644
--- a/applications/asset_tracker_v2/src/cloud/nrf_cloud_integration.c
+++ b/applications/asset_tracker_v2/src/cloud/nrf_cloud_integration.c
@@ -233,7 +233,16 @@ static void nrf_cloud_event_handler(const struct nrf_cloud_evt *evt)
 		notify = true;
 		break;
 	case NRF_CLOUD_EVT_RX_DATA_LOCATION:
-		LOG_DBG("NRF_CLOUD_EVT_RX_DATA_LOCATION");
+		LOG_DBG("NRF_CLOUD_EVT_RX_DATA_LOCATION: %s", (char *)evt->data.ptr);
+
+		/* If GNSS is NOT the first priority, we'll handle the cloud response */
+		if (!IS_ENABLED(CONFIG_LOCATION_REQUEST_DEFAULT_METHOD_FIRST_GNSS)) {
+			cloud_wrap_evt.type = CLOUD_WRAP_EVT_CLOUD_LOCATION_RESULT_RECEIVED;
+			cloud_wrap_evt.data.buf = (char *)evt->data.ptr;
+			cloud_wrap_evt.data.len = evt->data.len;
+
+			notify = true;
+		}
 		break;
 	case NRF_CLOUD_EVT_USER_ASSOCIATION_REQUEST:
 		LOG_WRN("NRF_CLOUD_EVT_USER_ASSOCIATION_REQUEST");
@@ -440,6 +449,16 @@ int cloud_wrap_cloud_location_send(char *buf, size_t len, bool ack, uint32_t id)
 	return 0;
 }
 
+bool cloud_wrap_cloud_location_response_wait(void)
+{
+	/* If GNSS is the first priority, then we can ignore the location response from the cloud */
+	if (IS_ENABLED(CONFIG_LOCATION_REQUEST_DEFAULT_METHOD_FIRST_GNSS)) {
+		return false;
+	} else {
+		return true;
+	}
+}
+
 #if defined(CONFIG_LOCATION_METHOD_WIFI)
 int cloud_wrap_wifi_access_points_send(char *buf, size_t len, bool ack, uint32_t id)
 {
diff --git a/applications/asset_tracker_v2/src/events/cloud_module_event.c b/applications/asset_tracker_v2/src/events/cloud_module_event.c
index 2db589fc7a9..2b19ab03a38 100644
--- a/applications/asset_tracker_v2/src/events/cloud_module_event.c
+++ b/applications/asset_tracker_v2/src/events/cloud_module_event.c
@@ -32,6 +32,12 @@ static char *get_evt_type_str(enum cloud_module_event_type type)
 		return "CLOUD_EVT_REBOOT_REQUEST";
 	case CLOUD_EVT_CONFIG_RECEIVED:
 		return "CLOUD_EVT_CONFIG_RECEIVED";
+	case CLOUD_EVT_CLOUD_LOCATION_RECEIVED:
+		return "CLOUD_EVT_CLOUD_LOCATION_RECEIVED";
+	case CLOUD_EVT_CLOUD_LOCATION_ERROR:
+		return "CLOUD_EVT_CLOUD_LOCATION_ERROR";
+	case CLOUD_EVT_CLOUD_LOCATION_UNKNOWN:
+		return "CLOUD_EVT_CLOUD_LOCATION_UNKNOWN";
 	case CLOUD_EVT_CONFIG_EMPTY:
 		return "CLOUD_EVT_CONFIG_EMPTY";
 	case CLOUD_EVT_DATA_SEND_QOS:
diff --git a/applications/asset_tracker_v2/src/events/cloud_module_event.h b/applications/asset_tracker_v2/src/events/cloud_module_event.h
index 4a79060701f..8845e1b3904 100644
--- a/applications/asset_tracker_v2/src/events/cloud_module_event.h
+++ b/applications/asset_tracker_v2/src/events/cloud_module_event.h
@@ -16,6 +16,9 @@
 #include <app_event_manager.h>
 #include <app_event_manager_profiler_tracer.h>
 #include <qos.h>
+#if defined(CONFIG_LOCATION)
+#include <modem/location.h>
+#endif
 
 #include "cloud/cloud_codec/cloud_codec.h"
 
@@ -67,6 +70,17 @@ enum cloud_module_event_type {
 	 */
 	CLOUD_EVT_CONFIG_RECEIVED,
 
+	/** Cloud location data has been received from cloud.
+	 *  The payload associated with this event is of type @ref location_data.
+	 */
+	CLOUD_EVT_CLOUD_LOCATION_RECEIVED,
+
+	/** Cloud location response has been received but location could not be resolved. */
+	CLOUD_EVT_CLOUD_LOCATION_ERROR,
+
+	/** Cloud location resolution is unknown. */
+	CLOUD_EVT_CLOUD_LOCATION_UNKNOWN,
+
 	/** An empty device configuration has been received from cloud. */
 	CLOUD_EVT_CONFIG_EMPTY,
 
@@ -115,13 +129,17 @@ struct cloud_module_event {
 	enum cloud_module_event_type type;
 
 	union {
-		/** Variable that contains a new configuration received from the cloud service. */
+		/** New configuration received from the cloud service. */
 		struct cloud_data_cfg config;
-		/** Variable that contains data that was attempted to be sent. Could be used
+#if defined(CONFIG_LOCATION)
+		/** Cloud location data received from the cloud service. */
+		struct location_data cloud_location;
+#endif
+		/** Data that was attempted to be sent. Could be used
 		 *  to free allocated data post transmission.
 		 */
 		struct cloud_module_data_ack ack;
-		/** Variable that contains the message that should be sent to cloud. */
+		/** The message that should be sent to cloud. */
 		struct qos_data message;
 		/** Module ID, used when acknowledging shutdown requests. */
 		uint32_t id;
diff --git a/applications/asset_tracker_v2/src/modules/cloud_module.c b/applications/asset_tracker_v2/src/modules/cloud_module.c
index 502d4cbded9..1bd29942a7e 100644
--- a/applications/asset_tracker_v2/src/modules/cloud_module.c
+++ b/applications/asset_tracker_v2/src/modules/cloud_module.c
@@ -324,6 +324,47 @@ static void pgps_data_handle(const uint8_t *buf, const size_t len)
 #endif /* CONFIG_NRF_CLOUD_PGPS */
 }
 
+#if defined(CONFIG_LOCATION)
+void submit_cloud_module_event(
+	enum cloud_module_event_type type,
+	struct location_data *location,
+	int error)
+{
+	struct cloud_module_event *cloud_module_event = new_cloud_module_event();
+
+	__ASSERT(cloud_module_event, "Not enough heap left to allocate event");
+
+	cloud_module_event->type = type;
+	if (type == CLOUD_EVT_CLOUD_LOCATION_RECEIVED) {
+		cloud_module_event->data.cloud_location = *location;
+	} else if (type == CLOUD_EVT_ERROR) {
+		cloud_module_event->data.err = error;
+	}
+
+	APP_EVENT_SUBMIT(cloud_module_event);
+}
+#endif
+
+static void cloud_location_data_handle(uint8_t *buf, const size_t len)
+{
+#if defined(CONFIG_LOCATION)
+	int err;
+	struct location_data location;
+
+	err = cloud_codec_decode_cloud_location(buf, len, &location);
+	if (err == 0) {
+		submit_cloud_module_event(CLOUD_EVT_CLOUD_LOCATION_RECEIVED, &location, 0);
+	} else if (err == -EFAULT) {
+		submit_cloud_module_event(CLOUD_EVT_CLOUD_LOCATION_ERROR, NULL, err);
+	} else if (err == -ENOTSUP) {
+		submit_cloud_module_event(CLOUD_EVT_CLOUD_LOCATION_UNKNOWN, NULL, 0);
+	} else {
+		LOG_ERR("Decoding of cloud location response, error: %d", err);
+		SEND_ERROR(cloud, CLOUD_EVT_ERROR, err);
+	}
+#endif
+}
+
 static void cloud_wrap_event_handler(const struct cloud_wrap_event *const evt)
 {
 	switch (evt->type) {
@@ -354,6 +395,10 @@ static void cloud_wrap_event_handler(const struct cloud_wrap_event *const evt)
 		LOG_DBG("CLOUD_WRAP_EVT_AGPS_DATA_RECEIVED");
 		agps_data_handle(evt->data.buf, evt->data.len);
 		break;
+	case CLOUD_WRAP_EVT_CLOUD_LOCATION_RESULT_RECEIVED:
+		LOG_DBG("CLOUD_WRAP_EVT_CLOUD_LOCATION_RESULT_RECEIVED");
+		cloud_location_data_handle(evt->data.buf, evt->data.len);
+		break;
 	case CLOUD_WRAP_EVT_USER_ASSOCIATION_REQUEST: {
 		LOG_DBG("CLOUD_WRAP_EVT_USER_ASSOCIATION_REQUEST");
 
@@ -818,6 +863,17 @@ static void on_sub_state_cloud_connected(struct cloud_msg_data *msg)
 				CLOUD_LOCATION,
 				QOS_FLAG_RELIABILITY_ACK_REQUIRED,
 				true);
+
+		/* Check if the configured cloud service will return the resolved location back
+		 * to the device. If it does not, indicate that location result is unknown.
+		 */
+		if (!cloud_wrap_cloud_location_response_wait()) {
+			struct cloud_module_event *cloud_module_event = new_cloud_module_event();
+
+			__ASSERT(cloud_module_event, "Not enough heap left to allocate event");
+			cloud_module_event->type = CLOUD_EVT_CLOUD_LOCATION_UNKNOWN;
+			APP_EVENT_SUBMIT(cloud_module_event);
+		}
 	}
 
 	if (IS_EVENT(msg, cloud, CLOUD_EVT_DATA_SEND_QOS)) {
diff --git a/applications/asset_tracker_v2/src/modules/data_module.c b/applications/asset_tracker_v2/src/modules/data_module.c
index eaba80cfeaa..5878ad1ac47 100644
--- a/applications/asset_tracker_v2/src/modules/data_module.c
+++ b/applications/asset_tracker_v2/src/modules/data_module.c
@@ -855,10 +855,15 @@ static void data_send_work_fn(struct k_work *work)
 static void requested_data_status_set(enum app_module_data_type data_type)
 {
 	if (!k_work_delayable_is_pending(&data_send_work)) {
-		/* If the data_send_work is not pending it means that the module has already
-		 * triggered an data encode/send.
-		 */
-		LOG_DBG("Data already encoded and sent, abort.");
+		if (data_type == APP_DATA_LOCATION) {
+			/* We may get location related data when a fallback to next method occurs */
+			data_send_work_fn(NULL);
+		} else {
+			/* If the data_send_work is not pending it means that the module has already
+			 * triggered an data encode/send.
+			 */
+			LOG_DBG("Data already encoded and sent, abort.");
+		}
 		return;
 	}
 
@@ -1411,6 +1416,8 @@ static void on_all_states(struct data_msg_data *msg)
 	}
 
 	if (IS_EVENT(msg, location, LOCATION_MODULE_EVT_CLOUD_LOCATION_DATA_READY)) {
+		cloud_location.neighbor_cells_valid = false;
+		cloud_location.neighbor_cells.queued = false;
 		if (msg->module.location.data.cloud_location.neighbor_cells_valid) {
 			BUILD_ASSERT(sizeof(cloud_location.neighbor_cells.cell_data) ==
 				     sizeof(msg->module.location.data.cloud_location
@@ -1435,6 +1442,9 @@ static void on_all_states(struct data_msg_data *msg)
 			       sizeof(cloud_location.neighbor_cells.neighbor_cells));
 		}
 #if defined(CONFIG_LOCATION_METHOD_WIFI)
+		cloud_location.wifi_access_points_valid = false;
+		cloud_location.wifi_access_points.queued = false;
+
 		if (msg->module.location.data.cloud_location.wifi_access_points_valid) {
 			BUILD_ASSERT(sizeof(cloud_location.wifi_access_points.ap_info) ==
 				     sizeof(msg->module.location.data.cloud_location
diff --git a/applications/asset_tracker_v2/src/modules/location_module.c b/applications/asset_tracker_v2/src/modules/location_module.c
index 4f1c8c56a2a..4f1c9a00724 100644
--- a/applications/asset_tracker_v2/src/modules/location_module.c
+++ b/applications/asset_tracker_v2/src/modules/location_module.c
@@ -21,6 +21,7 @@
 #include "events/data_module_event.h"
 #include "events/util_module_event.h"
 #include "events/modem_module_event.h"
+#include "events/cloud_module_event.h"
 
 #include <zephyr/logging/log.h>
 LOG_MODULE_REGISTER(MODULE, CONFIG_LOCATION_MODULE_LOG_LEVEL);
@@ -43,6 +44,7 @@ struct location_msg_data {
 		struct data_module_event data;
 		struct util_module_event util;
 		struct modem_module_event modem;
+		struct cloud_module_event cloud;
 		struct location_module_event location;
 	} module;
 };
@@ -193,6 +195,15 @@ static bool app_event_handler(const struct app_event_header *aeh)
 
 		message_handler(&msg);
 	}
+
+	if (is_cloud_module_event(aeh)) {
+		struct cloud_module_event *event = cast_cloud_module_event(aeh);
+		struct location_msg_data msg = {
+			.module.cloud = *event
+		};
+
+		message_handler(&msg);
+	}
 	return false;
 }
 
@@ -328,6 +339,7 @@ static void send_cloud_location_update(const struct location_data_cloud *cloud_l
 	struct location_module_event *evt = new_location_module_event();
 	struct location_module_neighbor_cells *evt_ncells =
 		&evt->data.cloud_location.neighbor_cells;
+	evt->data.cloud_location.neighbor_cells_valid = false;
 
 	if (cloud_location_info->cell_data != NULL) {
 		BUILD_ASSERT(sizeof(evt_ncells->cell_data) == sizeof(struct lte_lc_cells_info));
@@ -357,6 +369,7 @@ static void send_cloud_location_update(const struct location_data_cloud *cloud_l
 	}
 
 #if defined(CONFIG_LOCATION_METHOD_WIFI)
+	evt->data.cloud_location.wifi_access_points_valid = false;
 	if (cloud_location_info->wifi_data != NULL) {
 		BUILD_ASSERT(sizeof(evt->data.cloud_location.wifi_access_points.ap_info) >=
 			     sizeof(struct wifi_scan_result) *
@@ -488,7 +501,6 @@ void location_event_handler(const struct location_event_data *event_data)
 	case LOCATION_EVT_CLOUD_LOCATION_EXT_REQUEST:
 		LOG_DBG("Getting cloud location request");
 		send_cloud_location_update(&event_data->cloud_location_request);
-		location_cloud_location_ext_result_set(LOCATION_EXT_RESULT_UNKNOWN, NULL);
 		break;
 #endif
 
@@ -545,6 +557,21 @@ static void on_state_running_location_search(struct location_msg_data *msg)
 		sub_state_set(SUB_STATE_IDLE);
 	}
 
+	if (IS_EVENT(msg, cloud, CLOUD_EVT_CLOUD_LOCATION_RECEIVED)) {
+#if defined(CONFIG_LOCATION)
+		location_cloud_location_ext_result_set(
+			LOCATION_EXT_RESULT_SUCCESS,
+			&msg->module.cloud.data.cloud_location);
+#endif
+	}
+	if (IS_EVENT(msg, cloud, CLOUD_EVT_CLOUD_LOCATION_ERROR)) {
+		location_cloud_location_ext_result_set(LOCATION_EXT_RESULT_ERROR, NULL);
+	}
+
+	if (IS_EVENT(msg, cloud, CLOUD_EVT_CLOUD_LOCATION_UNKNOWN)) {
+		location_cloud_location_ext_result_set(LOCATION_EXT_RESULT_UNKNOWN, NULL);
+	}
+
 	if (IS_EVENT(msg, app, APP_EVT_DATA_GET)) {
 		if (!location_data_requested(msg->module.app.data_list, msg->module.app.count)) {
 			return;
@@ -638,4 +665,5 @@ APP_EVENT_SUBSCRIBE_EARLY(MODULE, app_module_event);
 APP_EVENT_SUBSCRIBE(MODULE, data_module_event);
 APP_EVENT_SUBSCRIBE(MODULE, util_module_event);
 APP_EVENT_SUBSCRIBE(MODULE, modem_module_event);
+APP_EVENT_SUBSCRIBE(MODULE, cloud_module_event);
 APP_EVENT_SUBSCRIBE(MODULE, location_module_event);
diff --git a/applications/asset_tracker_v2/tests/location_module/src/location_module_test.c b/applications/asset_tracker_v2/tests/location_module/src/location_module_test.c
index 89f69cc2a97..38a219bf379 100644
--- a/applications/asset_tracker_v2/tests/location_module/src/location_module_test.c
+++ b/applications/asset_tracker_v2/tests/location_module/src/location_module_test.c
@@ -18,6 +18,7 @@
 #include "location_module_event.h"
 #include "data_module_event.h"
 #include "modem_module_event.h"
+#include "cloud_module_event.h"
 
 extern struct event_listener __event_listener_location_module;
 
@@ -28,9 +29,20 @@ static struct app_module_event app_module_event_memory;
 static struct modem_module_event modem_module_event_memory;
 static struct location_module_event location_module_event_memory;
 static struct data_module_event data_module_event_memory;
+static struct cloud_module_event cloud_module_event_memory;
 
 #define LOCATION_MODULE_EVT_HANDLER(aeh) __event_listener_location_module.notification(aeh)
 
+/* Macro used to submit module events of a specific type to the Location module. */
+#define TEST_SEND_EVENT(_mod, _type, _event)							\
+	__cmock_app_event_manager_alloc_ExpectAnyArgsAndReturn(&_mod##_module_event_memory);	\
+	__cmock_app_event_manager_free_ExpectAnyArgs();						\
+	_event = new_##_mod##_module_event();							\
+	_event->type = _type;									\
+	TEST_ASSERT_FALSE(LOCATION_MODULE_EVT_HANDLER(						\
+		(struct app_event_header *)_event));					\
+	app_event_manager_free(_event)
+
 /* location_event_handler() is implemented in location module and we'll call it directly
  * to fake received location library events.
  */
@@ -68,6 +80,7 @@ struct event_type __event_type_app_module_event;
 struct event_type __event_type_data_module_event;
 struct event_type __event_type_util_module_event;
 struct event_type __event_type_modem_module_event;
+struct event_type __event_type_cloud_module_event;
 
 /* Dummy functions and objects - End.  */
 
@@ -243,39 +256,23 @@ static int module_start_stub(struct module_data *module, int num_calls)
 
 static void setup_location_module_in_init_state(void)
 {
-	/* Send APP_EVT_START. */
-	__cmock_app_event_manager_alloc_ExpectAnyArgsAndReturn(&app_module_event_memory);
-	__cmock_app_event_manager_free_ExpectAnyArgs();
-	struct app_module_event *app_module_event = new_app_module_event();
+	struct app_module_event *app_module_event;
 
 	__cmock_module_start_Stub(&module_start_stub);
-
-	app_module_event->type = APP_EVT_START;
-
 	__cmock_app_event_manager_alloc_ExpectAnyArgsAndReturn(&location_module_event_memory);
-	bool ret = LOCATION_MODULE_EVT_HANDLER((struct app_event_header *)app_module_event);
-
-	app_event_manager_free(app_module_event);
-
-	TEST_ASSERT_EQUAL(0, ret);
+	TEST_SEND_EVENT(app, APP_EVT_START, app_module_event);
 }
 
 static void setup_location_module_in_running_state(void)
 {
+	bool ret;
+	struct modem_module_event *modem_module_event;
+
 	setup_location_module_in_init_state();
 
 	/* Send MODEM_EVT_INITIALIZED. */
 	__cmock_location_init_ExpectAndReturn(&location_event_handler, 0);
-
-	__cmock_app_event_manager_alloc_ExpectAnyArgsAndReturn(&modem_module_event_memory);
-	__cmock_app_event_manager_free_ExpectAnyArgs();
-	struct modem_module_event *modem_module_event = new_modem_module_event();
-
-	modem_module_event->type = MODEM_EVT_INITIALIZED;
-
-	bool ret = LOCATION_MODULE_EVT_HANDLER((struct app_event_header *)modem_module_event);
-
-	app_event_manager_free(modem_module_event);
+	TEST_SEND_EVENT(modem, MODEM_EVT_INITIALIZED, modem_module_event);
 
 	/* Send DATA_EVT_CONFIG_INIT. */
 	__cmock_app_event_manager_alloc_ExpectAnyArgsAndReturn(&data_module_event_memory);
@@ -288,9 +285,7 @@ static void setup_location_module_in_running_state(void)
 	data_module_event->data.cfg.no_data.neighbor_cell = false;
 
 	ret = LOCATION_MODULE_EVT_HANDLER((struct app_event_header *)data_module_event);
-
 	app_event_manager_free(data_module_event);
-
 	TEST_ASSERT_EQUAL(0, ret);
 }
 
@@ -298,6 +293,9 @@ static void setup_location_module_in_running_state(void)
  */
 static void setup_location_module_in_active_state(void)
 {
+	bool ret;
+	struct location_module_event *location_module_event;
+
 	/* Pre-condition. */
 	setup_location_module_in_running_state();
 
@@ -331,11 +329,18 @@ static void setup_location_module_in_active_state(void)
 	app_module_event->count = 1;
 	app_module_event->data_list[0] = APP_DATA_LOCATION;
 
-	__cmock_app_event_manager_alloc_IgnoreAndReturn(&location_module_event_memory);
-	bool ret = LOCATION_MODULE_EVT_HANDLER((struct app_event_header *)app_module_event);
-
+	ret = LOCATION_MODULE_EVT_HANDLER((struct app_event_header *)app_module_event);
 	app_event_manager_free(app_module_event);
+	TEST_ASSERT_EQUAL(0, ret);
+
+	/* Send LOCATION_MODULE_EVT_ACTIVE */
+	__cmock_app_event_manager_alloc_IgnoreAndReturn(&location_module_event_memory);
+	__cmock_app_event_manager_free_ExpectAnyArgs();
+	location_module_event = new_location_module_event();
 
+	location_module_event->type = LOCATION_MODULE_EVT_ACTIVE;
+	ret = LOCATION_MODULE_EVT_HANDLER((struct app_event_header *)location_module_event);
+	app_event_manager_free(location_module_event);
 	TEST_ASSERT_EQUAL(0, ret);
 }
 
@@ -346,6 +351,8 @@ static void setup_location_module_in_active_state(void)
  */
 void test_location_gnss_with_agps(void)
 {
+	struct location_module_event *location_module_event;
+
 	/* Set expected location module events. */
 	expected_location_module_event_count = 4;
 	expected_location_module_events[0].type = LOCATION_MODULE_EVT_ACTIVE;
@@ -400,6 +407,8 @@ void test_location_gnss_with_agps(void)
 		.location.details.gnss.satellites_tracked = 8
 	};
 	location_event_handler(&event_data_gnss_location);
+
+	TEST_SEND_EVENT(location, LOCATION_MODULE_EVT_INACTIVE, location_module_event);
 }
 
 /* Test whether the location module generates an event for neighbor cell measurements
@@ -407,6 +416,9 @@ void test_location_gnss_with_agps(void)
  */
 void test_location_cellular(void)
 {
+	struct cloud_module_event *cloud_module_event;
+	struct location_module_event *location_module_event;
+
 	struct lte_lc_ncell neighbor_cells[2] = {
 		{2300, 0, 8, 60, 29},
 		{2400, 184, 11, 55, 26}
@@ -437,11 +449,6 @@ void test_location_cellular(void)
 	/* Set location module into state where location_request() has been called. */
 	setup_location_module_in_active_state();
 
-	/* Location module indicates that it has handled neighbor cells
-	 * but the location is undefined.
-	 */
-	__cmock_location_cloud_location_ext_result_set_Expect(LOCATION_EXT_RESULT_UNKNOWN, NULL);
-
 	/* Location request is responded with location library events. */
 	struct location_event_data event_data_cellular = {
 		.id = LOCATION_EVT_CLOUD_LOCATION_EXT_REQUEST,
@@ -449,17 +456,29 @@ void test_location_cellular(void)
 	};
 	location_event_handler(&event_data_cellular);
 
+	/* Location module indicates that it has handled neighbor cells
+	 * but the location is undefined.
+	 */
+	__cmock_location_cloud_location_ext_result_set_Expect(LOCATION_EXT_RESULT_UNKNOWN, NULL);
+
+	__cmock_app_event_manager_alloc_ExpectAnyArgsAndReturn(&location_module_event_memory);
+	TEST_SEND_EVENT(cloud, CLOUD_EVT_CLOUD_LOCATION_UNKNOWN, cloud_module_event);
+
 	/* Location library responds with and undefined status. */
 	struct location_event_data event_data_undefined = {
 		.id = LOCATION_EVT_RESULT_UNKNOWN,
 	};
 	location_event_handler(&event_data_undefined);
+
+	TEST_SEND_EVENT(location, LOCATION_MODULE_EVT_INACTIVE, location_module_event);
 }
 
 /* Test timeout for location request.
  */
 void test_location_fail_timeout(void)
 {
+	struct location_module_event *location_module_event;
+
 	/* Set expected location module events. */
 	expected_location_module_event_count = 3;
 	expected_location_module_events[0].type = LOCATION_MODULE_EVT_ACTIVE;
@@ -474,12 +493,16 @@ void test_location_fail_timeout(void)
 		.id = LOCATION_EVT_TIMEOUT,
 	};
 	location_event_handler(&event_data);
+
+	TEST_SEND_EVENT(location, LOCATION_MODULE_EVT_INACTIVE, location_module_event);
 }
 
 /* Test error while processing for location request.
  */
 void test_location_fail_error(void)
 {
+	struct location_module_event *location_module_event;
+
 	/* Set expected location module events. */
 	expected_location_module_event_count = 3;
 	expected_location_module_events[0].type = LOCATION_MODULE_EVT_ACTIVE;
@@ -494,12 +517,16 @@ void test_location_fail_error(void)
 		.id = LOCATION_EVT_ERROR,
 	};
 	location_event_handler(&event_data);
+
+	TEST_SEND_EVENT(location, LOCATION_MODULE_EVT_INACTIVE, location_module_event);
 }
 
 /* Test that an error event is sent when location library initialization fails.
  */
 void test_location_fail_init(void)
 {
+	struct modem_module_event *modem_module_event;
+
 	setup_location_module_in_init_state();
 
 	__cmock__event_submit_Stub(&validate_location_module_evt);
@@ -510,17 +537,7 @@ void test_location_fail_init(void)
 	expected_location_module_events[0].type = LOCATION_MODULE_EVT_ERROR_CODE;
 	expected_location_module_events[0].data.err = -1;
 
-	__cmock_app_event_manager_alloc_ExpectAnyArgsAndReturn(&modem_module_event_memory);
-	__cmock_app_event_manager_free_ExpectAnyArgs();
-	struct modem_module_event *modem_module_event = new_modem_module_event();
-
-	modem_module_event->type = MODEM_EVT_INITIALIZED;
-
-	bool ret = LOCATION_MODULE_EVT_HANDLER((struct app_event_header *)modem_module_event);
-
-	app_event_manager_free(modem_module_event);
-
-	TEST_ASSERT_EQUAL(0, ret);
+	TEST_SEND_EVENT(modem, MODEM_EVT_INITIALIZED, modem_module_event);
 }
 
 int main(void)
diff --git a/doc/nrf/releases_and_maturity/releases/release-notes-changelog.rst b/doc/nrf/releases_and_maturity/releases/release-notes-changelog.rst
index 3b7abeccf74..91e6eda0a3d 100644
--- a/doc/nrf/releases_and_maturity/releases/release-notes-changelog.rst
+++ b/doc/nrf/releases_and_maturity/releases/release-notes-changelog.rst
@@ -180,8 +180,8 @@ nRF9160: Asset Tracker v2
   * Enabled link time optimization to reduce the flash size of the application.
     You can disable this using the Kconfig option :kconfig:option:`CONFIG_ASSET_TRACKER_V2_LTO`.
   * Replaced overlay arguments ``OVERLAY_CONFIG`` and ``DTC_OVERLAY_FILE`` with the new Zephyr overlay arguments ``EXTRA_CONF_FILE`` and ``EXTRA_DTC_OVERLAY_FILE`` so as to avoid overriding of board overlay for the nRF9160 DK v0.14.0.
-
-* Fixed an issue with movement timeout handling in passive mode.
+  * Possibility for the cloud integration to request the location back to the device for Wi-Fi or cellular positioning.
+  * Fixed an issue with movement timeout handling in passive mode.
 
 nRF9160: Serial LTE modem
 -------------------------