diff --git a/libs/rtefsutils/include/RteFsUtils.h b/libs/rtefsutils/include/RteFsUtils.h
index ae031ce7b..3d31a01d7 100644
--- a/libs/rtefsutils/include/RteFsUtils.h
+++ b/libs/rtefsutils/include/RteFsUtils.h
@@ -392,6 +392,14 @@ class RteFsUtils
   */
   static const std::string& FileCategoryFromExtension(const std::string& file);
 
+  /**
+   * @brief find file using regular expression (non recursively)
+   * @param search path
+   * @param regular expression
+   * @param path to the file found
+   * @return true if file is found successfully, false otherwise
+  */
+  static bool FindFileWithPattern(const std::string& searchPath, const std::string& pattern, std::string& file);
 };
 
 #endif // RteFsUtils_H
diff --git a/libs/rtefsutils/src/RteFsUtils.cpp b/libs/rtefsutils/src/RteFsUtils.cpp
index 853262d1d..c25127877 100644
--- a/libs/rtefsutils/src/RteFsUtils.cpp
+++ b/libs/rtefsutils/src/RteFsUtils.cpp
@@ -867,4 +867,28 @@ const string& RteFsUtils::FileCategoryFromExtension(const string& file) {
   return OTHER;
 }
 
+bool RteFsUtils::FindFileWithPattern(const std::string& searchDir,
+  const std::string& pattern, std::string& file)
+{
+  try {
+    std::regex fileRegex(pattern);
+
+    // Iterate through the directory (not recursively)
+    for (const auto& entry : fs::directory_iterator(searchDir)) {
+      // Check only regular files
+      if (entry.is_regular_file()) {
+        const std::string fileName = entry.path().filename().string();
+        if (std::regex_match(fileName, fileRegex)) {
+          file = fileName;
+          return true; // Return on match found
+        }
+      }
+    }
+  }
+  catch (const std::exception& e) {
+    std::cout << "error: " << e.what() << std::endl;
+  }
+  return false; // No matching file found
+}
+
 // End of RteFsUtils.cpp
diff --git a/libs/rtefsutils/test/src/RteFsUtilsTest.cpp b/libs/rtefsutils/test/src/RteFsUtilsTest.cpp
index fa021b5aa..7673e7add 100644
--- a/libs/rtefsutils/test/src/RteFsUtilsTest.cpp
+++ b/libs/rtefsutils/test/src/RteFsUtilsTest.cpp
@@ -1202,4 +1202,35 @@ TEST_F(RteFsUtilsTest, GetAbsPathFromLocalUrl) {
   EXPECT_EQ(absoluteFilename, RteFsUtils::GetAbsPathFromLocalUrl(testUrlOmittedHost));
 }
 
+TEST_F(RteFsUtilsTest, FindFileWithPattern) {
+  const string& testdir = dirnameBase + "/FindFileWithPattern";
+  const string& fileName = "manifest_1.2.3.yml";
+  const string& filePath = testdir + "/" + fileName;
+  RteFsUtils::CreateDirectories(testdir);
+  RteFsUtils::CreateTextFile(filePath, "");
+  string discoveredFile;
+  EXPECT_EQ(true, RteFsUtils::FindFileWithPattern(
+    testdir, "manifest_(\\d+\\.\\d+\\.\\d+)(.*).yml", discoveredFile));
+  EXPECT_EQ(fileName, discoveredFile);
+  RteFsUtils::RemoveDir(testdir);
+}
+
+TEST_F(RteFsUtilsTest, FindFileWithPattern_NoMatch) {
+  const string& testdir = dirnameBase + "/FindFileWithPattern";
+  RteFsUtils::CreateDirectories(testdir);
+  string discoveredFile;
+
+  EXPECT_EQ(false, RteFsUtils::FindFileWithPattern(testdir, "manifest_(\\d+\\.\\d+\\.\\d+)(.*).yml", discoveredFile));
+  RteFsUtils::RemoveDir(testdir);
+  EXPECT_TRUE(discoveredFile.empty());
+}
+
+TEST_F(RteFsUtilsTest, FindFileWithPattern_InvalidSearchPath) {
+  const string& testdir = dirnameBase + "/FindFileWithPattern";
+  string discoveredFile;
+
+  EXPECT_EQ(false, RteFsUtils::FindFileWithPattern(testdir, "manifest_(\\d+\\.\\d+\\.\\d+)(.*).yml", discoveredFile));
+  RteFsUtils::RemoveDir(testdir);
+  EXPECT_TRUE(discoveredFile.empty());
+}
 // end of RteFsUtilsTest.cpp
diff --git a/tools/projmgr/include/ProjMgr.h b/tools/projmgr/include/ProjMgr.h
index 427480758..259602b3c 100644
--- a/tools/projmgr/include/ProjMgr.h
+++ b/tools/projmgr/include/ProjMgr.h
@@ -110,6 +110,11 @@ class ProjMgr {
   */
   bool GetCdefaultFile();
 
+  /**
+   * @brief get cmsis-toolbox version from manifest file
+   * @return version as string
+  */
+  std::string GetToolboxVersion(const std::string& manifestFilePath);
 protected:
   ProjMgrParser m_parser;
   ProjMgrExtGenerator m_extGenerator;
diff --git a/tools/projmgr/src/ProjMgr.cpp b/tools/projmgr/src/ProjMgr.cpp
index 756543aba..f27888baf 100644
--- a/tools/projmgr/src/ProjMgr.cpp
+++ b/tools/projmgr/src/ProjMgr.cpp
@@ -1059,7 +1059,12 @@ bool ProjMgr::ValidateCreatedFor(const string& createdFor) {
       });
       if (toolName == "cmsis-toolbox") {
         const string version = string(sm[2]) + '.' + string(sm[3]) + '.' + string(sm[4]);
-        const string currentVersion = string(VERSION_STRING) + ':' + string(VERSION_STRING);
+        string cmsisToolboxDir = ProjMgrKernel::Get()->GetCmsisToolboxDir();
+        string currentVersion = GetToolboxVersion(cmsisToolboxDir);
+        if (currentVersion.empty()) {
+          return true;
+        }
+        currentVersion += (":" + currentVersion);
         if (VersionCmp::RangeCompare(version, currentVersion) <= 0) {
           return true;
         } else {
@@ -1072,3 +1077,20 @@ bool ProjMgr::ValidateCreatedFor(const string& createdFor) {
   }
   return true;
 }
+
+string ProjMgr::GetToolboxVersion(const string& toolboxDir) {
+  // Find file non recursively under given search directory
+  string manifestFilePattern = "manifest_(\\d+\\.\\d+\\.\\d+)(.*).yml";
+  string manifestFile;
+
+  if (!RteFsUtils::FindFileWithPattern(toolboxDir, manifestFilePattern, manifestFile)) {
+    ProjMgrLogger::Get().Warn("manifest file does not exist", "", toolboxDir);
+    return "";
+  }
+
+  // Extract the version from filename and match it against the expected pattern
+  static const regex regEx = regex(manifestFilePattern);
+  smatch matchResult;
+  regex_match(manifestFile, matchResult, regEx);
+  return matchResult[1].str();
+}
diff --git a/tools/projmgr/test/src/ProjMgrTestEnv.cpp b/tools/projmgr/test/src/ProjMgrTestEnv.cpp
index fd5f31727..725b45456 100644
--- a/tools/projmgr/test/src/ProjMgrTestEnv.cpp
+++ b/tools/projmgr/test/src/ProjMgrTestEnv.cpp
@@ -102,6 +102,12 @@ void ProjMgrTestEnv::SetUp() {
     RteFsUtils::RemoveDir(bin_folder);
   }
   RteFsUtils::CreateDirectories(bin_folder);
+  // add dummy manifest file
+  string manifestFile = string(PROJMGRUNITTESTS_BIN_PATH) + "/../manifest_0.0.0.yml";
+  if (RteFsUtils::Exists(manifestFile)) {
+    RteFsUtils::RemoveFile(manifestFile);
+  }
+  RteFsUtils::CreateTextFile(manifestFile, RteUtils::EMPTY_STRING);
 
   // copy local pack
   string srcPackPath, destPackPath;
diff --git a/tools/projmgr/test/src/ProjMgrUnitTests.cpp b/tools/projmgr/test/src/ProjMgrUnitTests.cpp
index 0c2d52e3e..510b4d2d4 100644
--- a/tools/projmgr/test/src/ProjMgrUnitTests.cpp
+++ b/tools/projmgr/test/src/ProjMgrUnitTests.cpp
@@ -6503,3 +6503,25 @@ TEST_F(ProjMgrUnitTests, ReportPacksUnused) {
   EXPECT_EQ(1, cbuild2["build-idx"]["cbuilds"][0]["packs-unused"].size());
   EXPECT_EQ("ARM::RteTestGenerator@0.1.0", cbuild2["build-idx"]["cbuilds"][0]["packs-unused"][0]["pack"].as<string>());
 }
+
+TEST_F(ProjMgrUnitTests, GetToolboxVersion) {
+  const string& testdir = testoutput_folder + "/toolbox_version";
+  string fileName = "manifest_1.test2.3.yml";
+  string filePath = testdir + "/" + fileName;
+  RteFsUtils::CreateDirectories(testdir);
+  RteFsUtils::CreateTextFile(filePath, "");
+
+  StdStreamRedirect streamRedirect;
+  EXPECT_EQ("", GetToolboxVersion(testdir));
+  auto errStr = streamRedirect.GetErrorString();
+  EXPECT_TRUE(errStr.find("manifest file does not exist") != string::npos);
+
+  streamRedirect.ClearStringStreams();
+  fileName = "manifest_1.2.3.yml";
+  filePath = testdir + "/" + fileName;
+  RteFsUtils::CreateDirectories(testdir);
+  RteFsUtils::CreateTextFile(filePath, "");
+  EXPECT_EQ("1.2.3", GetToolboxVersion(testdir));
+
+  RteFsUtils::RemoveDir(testdir);
+}