diff --git a/Documentation/quickstart/configuring.rst b/Documentation/quickstart/configuring.rst
index af75223b52d..b612dec7090 100644
--- a/Documentation/quickstart/configuring.rst
+++ b/Documentation/quickstart/configuring.rst
@@ -151,3 +151,22 @@ Multiple config fragments can be merged manually using the tools/merge_config.py
 
    $ cd nuttx
    $ ./tools/merge_config.py -o defconfig .config1 .config2
+
+License Setup
+=============
+
+NuttX includes components with various open source licenses. To use these components,
+you must explicitly enable the corresponding license configuration option in the
+:menuselection:`License Setup` menu:
+
+* ``CONFIG_ALLOW_BSD_COMPONENTS`` - BSD licensed components (NFS, SPIFFS, Bluetooth LE, etc.)
+* ``CONFIG_ALLOW_GPL_COMPONENTS`` - GPL/LGPL licensed components
+* ``CONFIG_ALLOW_MIT_COMPONENTS`` - MIT licensed components
+* ``CONFIG_ALLOW_BSDNORDIC_COMPONENTS`` - 5-Clause Nordic licensed components (NRF chips only)
+* ``CONFIG_ALLOW_ECLIPSE_COMPONENTS`` - Eclipse Public License components
+* ``CONFIG_ALLOW_ICS_COMPONENTS`` - ICS licensed components
+* ``CONFIG_ALLOW_CUSTOM_PERMISSIVE_COMPONENTS`` - Custom permissive licensed components
+
+.. warning::
+   Please carefully review the license terms for each enabled component to ensure
+   compliance with your project's licensing requirements.
diff --git a/Kconfig b/Kconfig
index 8fbca17e70b..f87d144c90a 100644
--- a/Kconfig
+++ b/Kconfig
@@ -97,6 +97,22 @@ config ALLOW_ICS_COMPONENTS
 		NOTE: Please check that the license for each enabled
 		component matches your project license.
 
+config ALLOW_CUSTOM_PERMISSIVE_COMPONENTS
+	bool "Use components that have custom permissive licenses"
+	default n
+	---help---
+		When this option is enabled the project will allow the use
+		of components that have custom permissive licenses which
+		are not covered by the standard license options above.
+
+		This includes components with custom permissive licenses
+		that allow free use, modification, and distribution but
+		may have specific attribution or notice requirements.
+
+		NOTE: Please carefully review the license terms for each
+		enabled component to ensure compliance with your project
+		requirements.
+
 endmenu # License Setup
 
 menu "Build Setup"