diff --git a/src/core/meshcop/dataset.cpp b/src/core/meshcop/dataset.cpp
index f63b41254..6de70073c 100644
--- a/src/core/meshcop/dataset.cpp
+++ b/src/core/meshcop/dataset.cpp
@@ -585,72 +585,6 @@ void Dataset::RemoveTlv(Tlv *aTlv)
     }
 }
 
-Error Dataset::ApplyConfiguration(Instance &aInstance) const
-{
-    Mac::Mac   &mac        = aInstance.Get<Mac::Mac>();
-    KeyManager &keyManager = aInstance.Get<KeyManager>();
-    Error       error      = kErrorNone;
-
-    SuccessOrExit(error = ValidateTlvs());
-
-    for (const Tlv *cur = GetTlvsStart(); cur < GetTlvsEnd(); cur = cur->GetNext())
-    {
-        switch (cur->GetType())
-        {
-        case Tlv::kChannel:
-        {
-            uint8_t channel = static_cast<uint8_t>(cur->ReadValueAs<ChannelTlv>().GetChannel());
-
-            error = mac.SetPanChannel(channel);
-
-            if (error != kErrorNone)
-            {
-                LogWarn("ApplyConfiguration() Failed to set channel to %d (%s)", channel, ErrorToString(error));
-                ExitNow();
-            }
-
-            break;
-        }
-
-        case Tlv::kPanId:
-            mac.SetPanId(cur->ReadValueAs<PanIdTlv>());
-            break;
-
-        case Tlv::kExtendedPanId:
-            aInstance.Get<ExtendedPanIdManager>().SetExtPanId(cur->ReadValueAs<ExtendedPanIdTlv>());
-            break;
-
-        case Tlv::kNetworkName:
-            IgnoreError(aInstance.Get<NetworkNameManager>().SetNetworkName(As<NetworkNameTlv>(cur)->GetNetworkName()));
-            break;
-
-        case Tlv::kNetworkKey:
-            keyManager.SetNetworkKey(cur->ReadValueAs<NetworkKeyTlv>());
-            break;
-
-#if OPENTHREAD_FTD
-        case Tlv::kPskc:
-            keyManager.SetPskc(cur->ReadValueAs<PskcTlv>());
-            break;
-#endif
-
-        case Tlv::kMeshLocalPrefix:
-            aInstance.Get<Mle::MleRouter>().SetMeshLocalPrefix(cur->ReadValueAs<MeshLocalPrefixTlv>());
-            break;
-
-        case Tlv::kSecurityPolicy:
-            keyManager.SetSecurityPolicy(As<SecurityPolicyTlv>(cur)->GetSecurityPolicy());
-            break;
-
-        default:
-            break;
-        }
-    }
-
-exit:
-    return error;
-}
-
 const char *Dataset::TypeToString(Type aType) { return (aType == kActive) ? "Active" : "Pending"; }
 
 #if OPENTHREAD_CONFIG_PLATFORM_KEY_REFERENCES_ENABLE
diff --git a/src/core/meshcop/dataset.hpp b/src/core/meshcop/dataset.hpp
index 4fd007060..515d66709 100644
--- a/src/core/meshcop/dataset.hpp
+++ b/src/core/meshcop/dataset.hpp
@@ -636,17 +636,6 @@ public:
      */
     Error SetFrom(const Message &aMessage, uint16_t aOffset, uint16_t aLength);
 
-    /**
-     * Applies the Active or Pending Dataset to the Thread interface.
-     *
-     * @param[in]  aInstance            A reference to the OpenThread instance.
-     *
-     * @retval kErrorNone   Successfully applied configuration.
-     * @retval kErrorParse  The dataset has at least one TLV with invalid format.
-     *
-     */
-    Error ApplyConfiguration(Instance &aInstance) const;
-
     /**
      * Returns a pointer to the start of Dataset TLVs sequence.
      *
diff --git a/src/core/meshcop/dataset_manager.cpp b/src/core/meshcop/dataset_manager.cpp
index dd7f74eb8..04800bed5 100644
--- a/src/core/meshcop/dataset_manager.cpp
+++ b/src/core/meshcop/dataset_manager.cpp
@@ -98,7 +98,7 @@ Error DatasetManager::Restore(void)
 
     if (IsActiveDataset())
     {
-        IgnoreError(dataset.ApplyConfiguration(GetInstance()));
+        IgnoreError(ApplyConfiguration(dataset));
     }
 
     SignalDatasetChange();
@@ -172,7 +172,71 @@ Error DatasetManager::ApplyConfiguration(void) const
     Dataset dataset;
 
     SuccessOrExit(error = Read(dataset));
-    SuccessOrExit(error = dataset.ApplyConfiguration(GetInstance()));
+    error = ApplyConfiguration(dataset);
+
+exit:
+    return error;
+}
+
+Error DatasetManager::ApplyConfiguration(const Dataset &aDataset) const
+{
+    Error error = kErrorNone;
+
+    SuccessOrExit(error = aDataset.ValidateTlvs());
+
+    for (const Tlv *cur = aDataset.GetTlvsStart(); cur < aDataset.GetTlvsEnd(); cur = cur->GetNext())
+    {
+        switch (cur->GetType())
+        {
+        case Tlv::kChannel:
+        {
+            uint8_t channel = static_cast<uint8_t>(cur->ReadValueAs<ChannelTlv>().GetChannel());
+
+            error = Get<Mac::Mac>().SetPanChannel(channel);
+
+            if (error != kErrorNone)
+            {
+                LogWarn("ApplyConfiguration() Failed to set channel to %d (%s)", channel, ErrorToString(error));
+                ExitNow();
+            }
+
+            break;
+        }
+
+        case Tlv::kPanId:
+            Get<Mac::Mac>().SetPanId(cur->ReadValueAs<PanIdTlv>());
+            break;
+
+        case Tlv::kExtendedPanId:
+            Get<ExtendedPanIdManager>().SetExtPanId(cur->ReadValueAs<ExtendedPanIdTlv>());
+            break;
+
+        case Tlv::kNetworkName:
+            IgnoreError(Get<NetworkNameManager>().SetNetworkName(As<NetworkNameTlv>(cur)->GetNetworkName()));
+            break;
+
+        case Tlv::kNetworkKey:
+            Get<KeyManager>().SetNetworkKey(cur->ReadValueAs<NetworkKeyTlv>());
+            break;
+
+#if OPENTHREAD_FTD
+        case Tlv::kPskc:
+            Get<KeyManager>().SetPskc(cur->ReadValueAs<PskcTlv>());
+            break;
+#endif
+
+        case Tlv::kMeshLocalPrefix:
+            Get<Mle::MleRouter>().SetMeshLocalPrefix(cur->ReadValueAs<MeshLocalPrefixTlv>());
+            break;
+
+        case Tlv::kSecurityPolicy:
+            Get<KeyManager>().SetSecurityPolicy(As<SecurityPolicyTlv>(cur)->GetSecurityPolicy());
+            break;
+
+        default:
+            break;
+        }
+    }
 
 exit:
     return error;
@@ -237,7 +301,7 @@ Error DatasetManager::Save(const Dataset &aDataset, bool aAllowOlderTimestamp)
 
         if (IsActiveDataset())
         {
-            SuccessOrExit(error = aDataset.ApplyConfiguration(GetInstance()));
+            SuccessOrExit(error = ApplyConfiguration(aDataset));
         }
     }
 
diff --git a/src/core/meshcop/dataset_manager.hpp b/src/core/meshcop/dataset_manager.hpp
index effdcb02c..5a683d045 100644
--- a/src/core/meshcop/dataset_manager.hpp
+++ b/src/core/meshcop/dataset_manager.hpp
@@ -300,6 +300,7 @@ private:
     bool  IsActiveDataset(void) const { return (mType == Dataset::kActive); }
     bool  IsPendingDataset(void) const { return (mType == Dataset::kPending); }
     void  Clear(void);
+    Error ApplyConfiguration(const Dataset &aDataset) const;
     void  HandleGet(const Coap::Message &aMessage, const Ip6::MessageInfo &aMessageInfo) const;
     void  HandleTimer(void);
     Error Save(const Dataset &aDataset, bool aAllowOlderTimestamp);