diff --git a/pytest-embedded-idf/pyproject.toml b/pytest-embedded-idf/pyproject.toml
index 66c303c2..56a2b359 100644
--- a/pytest-embedded-idf/pyproject.toml
+++ b/pytest-embedded-idf/pyproject.toml
@@ -30,6 +30,7 @@ requires-python = ">=3.7"
 
 dependencies = [
     "pytest-embedded~=1.4.2",
+    "esp-idf-panic-decoder",
 ]
 
 [project.optional-dependencies]
diff --git a/pytest-embedded-idf/pytest_embedded_idf/dut.py b/pytest-embedded-idf/pytest_embedded_idf/dut.py
index 31ce5262..404afd80 100644
--- a/pytest-embedded-idf/pytest_embedded_idf/dut.py
+++ b/pytest-embedded-idf/pytest_embedded_idf/dut.py
@@ -1,3 +1,4 @@
+import importlib.util
 import logging
 import os
 import re
@@ -74,16 +75,18 @@ def panic_output_decode_script(self) -> t.Optional[str]:
         Returns:
             Panic output decode script path
         """
-        script_filepath = self._panic_output_decode_script or os.path.join(
-            os.getenv('IDF_PATH', 'IDF_PATH'),
-            'tools',
-            'gdb_panic_server.py',
-        )
-        if not os.path.isfile(script_filepath):
-            raise ValueError(
-                'Panic output decode script not found. Please use --panic-output-decode-script flag '
-                'to provide script or set IDF_PATH (Default: $IDF_PATH/tools/gdb_panic_server.py)'
-            )
+
+        script_filepath = self._panic_output_decode_script
+        if not script_filepath or not os.path.isfile(script_filepath):
+            module = importlib.util.find_spec('esp_idf_panic_decoder.gdb_panic_server')
+            if not module:
+                raise ValueError(
+                    'Panic output decode script not found. '
+                    'Please use the --panic-output-decode-script flag to provide a script '
+                    'or install esp-idf-panic-decoder using the command: `pip install esp-idf-panic-decoder` .'
+                )
+            script_filepath = module.origin
+
         return os.path.realpath(script_filepath)
 
     def _check_panic_decode_trigger(self):  # type: () -> None
diff --git a/pytest-embedded/pytest_embedded/plugin.py b/pytest-embedded/pytest_embedded/plugin.py
index 8b306e3a..a9a795e6 100644
--- a/pytest-embedded/pytest_embedded/plugin.py
+++ b/pytest-embedded/pytest_embedded/plugin.py
@@ -193,7 +193,7 @@ def pytest_addoption(parser):
     idf_group.addoption(
         '--panic-output-decode-script',
         help='Panic output decode script that is used in conjunction with the check-panic-coredump option '
-        'to parse panic output. (Default: $IDF_PATH/tools/gdb_panic_server.py)',
+        'to parse panic output. (Default: use gdb_panic_server.py from package esp_idf_panic_decoder)',
     )
 
     jtag_group = parser.getgroup('embedded-jtag')