diff --git a/docs/en/api-reference/peripherals/sdm.rst b/docs/en/api-reference/peripherals/sdm.rst
index 190d1dc89e..d712dd5eef 100644
--- a/docs/en/api-reference/peripherals/sdm.rst
+++ b/docs/en/api-reference/peripherals/sdm.rst
@@ -6,6 +6,14 @@ Introduction
 
 {IDF_TARGET_NAME} has a second-order sigma-delta modulator, which can generate independent PDM pulses to multiple channels. Please refer to the TRM to check how many hardware channels are available. [1]_
 
+Delta-sigma modulation converts an analog voltage signal into a pulse frequency, or pulse density, which can be understood as pulse-density modulation (PDM) (refer to [Delta-sigma modulation on Wikipedia](https://en.wikipedia.org/wiki/Delta-sigma_modulation)).
+
+The main differences comparing to the PDM in I2S peripheral and DAC are:
+
+1. SDM has no clock signal, it just like the DAC mode of PDM;
+2. SDM has no DMA, it can only output the analog signal by a timer just like DAC oneshot mode, therefore, its output rate is limited by the timer callback interval;
+3. Base on the former two points, an external active or passive filter is required to restore the analog wave;
+
 Typically, a Sigma-Delta modulated channel can be used in scenarios like:
 
 -  LED dimming
diff --git a/examples/peripherals/sigma_delta/main/CMakeLists.txt b/examples/peripherals/sigma_delta/main/CMakeLists.txt
deleted file mode 100644
index a429e2c395..0000000000
--- a/examples/peripherals/sigma_delta/main/CMakeLists.txt
+++ /dev/null
@@ -1,2 +0,0 @@
-idf_component_register(SRCS "sdm_example_main.c"
-                       INCLUDE_DIRS ".")
diff --git a/examples/peripherals/sigma_delta/CMakeLists.txt b/examples/peripherals/sigma_delta/sdm_dac/CMakeLists.txt
similarity index 89%
rename from examples/peripherals/sigma_delta/CMakeLists.txt
rename to examples/peripherals/sigma_delta/sdm_dac/CMakeLists.txt
index 0f4904e345..633eb379be 100644
--- a/examples/peripherals/sigma_delta/CMakeLists.txt
+++ b/examples/peripherals/sigma_delta/sdm_dac/CMakeLists.txt
@@ -3,4 +3,4 @@
 cmake_minimum_required(VERSION 3.16)
 
 include($ENV{IDF_PATH}/tools/cmake/project.cmake)
-project(gpio_sigma_delta)
+project(sdm_dac_example)
diff --git a/examples/peripherals/sigma_delta/sdm_dac/README.md b/examples/peripherals/sigma_delta/sdm_dac/README.md
new file mode 100644
index 0000000000..42f9cc8e36
--- /dev/null
+++ b/examples/peripherals/sigma_delta/sdm_dac/README.md
@@ -0,0 +1,61 @@
+| Supported Targets | ESP32 | ESP32-C3 | ESP32-C6 | ESP32-S2 | ESP32-S3 |
+| ----------------- | ----- | -------- | -------- | -------- | -------- |
+
+# Sigma Delta Modulation DAC Example
+
+(See the README.md file in the upper level 'examples' directory for more information about examples.)
+
+This example uses the sigma-delta driver to generate modulated output on a GPIO. If you filter the output signal with an active or passive filter, you can get a 1 KHz sine wave.
+
+## How to use example
+
+### Hardware Required
+
+* A development board with any supported Espressif SoC (e.g., ESP32-DevKitC, ESP-WROVER-KIT, etc.)
+* A USB cable for Power supply and programming
+* An active or passive filter. Connect them as below:
+
+```
+┌──────────────────────────────┐
+│             ESP              │     ┌───────────────────┐
+│                              │     │ Active or Passive │    Sine Wave
+│ EXAMPLE_SIGMA_DELTA_GPIO_NUM ├────►│      Filter       ├──────────────
+└──────────────────────────────┘     └───────────────────┘
+```
+
+### Configure the project
+
+The main configurations can be update by the macro that defined at the top of the [example source file](main/sdm_dac_example_main.c), including the output gpio, timer callback interval and the sine wave frequency and amplitude.
+
+### Build and Flash
+
+Build the project and flash it to the board, then run the monitor tool to view the serial output:
+
+Run `idf.py -p PORT flash monitor` to build, flash and monitor the project.
+
+(To exit the serial monitor, type ``Ctrl-]``.)
+
+See the [Getting Started Guide](https://docs.espressif.com/projects/esp-idf/en/latest/get-started/index.html) for full steps to configure and use ESP-IDF to build projects.
+
+## Example Output
+
+Once the upload is complete and the board is reset, the program should start running. This is reported on the monitor as below:
+
+```
+...
+I (299) main_task: Calling app_main()
+I (309) gpio: GPIO[0]| InputEn: 0| OutputEn: 1| OpenDrain: 0| Pullup: 1| Pulldown: 0| Intr:0
+I (309) sdm_dac: Sigma-delta output is attached to GPIO 0
+I (319) sdm_dac: Timer allocated with resolution 10000000 Hz
+I (329) sdm_dac: Timer callback registered, interval 10 us
+I (329) sdm_dac: Timer enabled
+I (339) sdm_dac: Output start
+```
+
+After the output stated, you can monitor the sine wave after the filter by an oscilloscope.
+
+![output_wave](output_wave.jpeg)
+
+## Troubleshooting
+
+For any technical queries, please open an [issue](https://github.com/espressif/esp-idf/issues) on GitHub. We will get back to you soon.
diff --git a/examples/peripherals/sigma_delta/sdm_dac/main/CMakeLists.txt b/examples/peripherals/sigma_delta/sdm_dac/main/CMakeLists.txt
new file mode 100644
index 0000000000..c597f431d5
--- /dev/null
+++ b/examples/peripherals/sigma_delta/sdm_dac/main/CMakeLists.txt
@@ -0,0 +1,2 @@
+idf_component_register(SRCS "sdm_dac_example_main.c"
+                       INCLUDE_DIRS ".")
diff --git a/examples/peripherals/sigma_delta/sdm_dac/main/sdm_dac_example_main.c b/examples/peripherals/sigma_delta/sdm_dac/main/sdm_dac_example_main.c
new file mode 100644
index 0000000000..18eb687e9c
--- /dev/null
+++ b/examples/peripherals/sigma_delta/sdm_dac/main/sdm_dac_example_main.c
@@ -0,0 +1,116 @@
+/*
+ * SPDX-FileCopyrightText: 2022-2023 Espressif Systems (Shanghai) CO LTD
+ *
+ * SPDX-License-Identifier: Unlicense OR CC0-1.0
+ */
+
+#include <math.h>
+#include "freertos/FreeRTOS.h"
+#include "freertos/task.h"
+#include "esp_log.h"
+#include "driver/sdm.h"
+#include "driver/gptimer.h"
+
+#define EXAMPLE_SIGMA_DELTA_GPIO_NUM    (0)                 // Select GPIO_NUM_0 as the sigma-delta output pin
+#define EXAMPLE_OVER_SAMPLE_RATE        (20 * 1000 * 1000)  // 20 MHz over sample rate
+#define EXAMPLE_TIMER_RESOLUTION        (10 * 1000 * 1000)  // 10 MHz timer counting resolution
+#define EXAMPLE_CALLBACK_INTERVAL_US    (10)                // 20 us interval of each timer callback
+#define EXAMPLE_ALARM_COUNT             (EXAMPLE_CALLBACK_INTERVAL_US * (EXAMPLE_TIMER_RESOLUTION / 1000000))
+#define EXAMPLE_SINE_WAVE_FREQ_HZ       (1000)              // 1 KHz wave
+#define EXAMPLE_SINE_WAVE_AMPLITUDE     (127.0f)            // 1 ~ 127
+#define EXAMPLE_SINE_WAVE_POINT_NUM     (1000000 / (EXAMPLE_CALLBACK_INTERVAL_US * EXAMPLE_SINE_WAVE_FREQ_HZ))
+#define CONST_PI                        (3.1416f)           // Constant of PI, used for calculating the sine wave
+
+_Static_assert(EXAMPLE_SINE_WAVE_POINT_NUM > 1, "Sine wave frequency is too high");
+_Static_assert(EXAMPLE_CALLBACK_INTERVAL_US >= 7, "Timer callback interval is too short");
+
+static const char *TAG = "sdm_dac";
+static int8_t sine_wave[EXAMPLE_SINE_WAVE_POINT_NUM];   // Sine wave data buffer
+
+static bool example_timer_callback(gptimer_handle_t timer, const gptimer_alarm_event_data_t *edata, void *user_ctx)
+{
+    static uint32_t cnt = 0;
+    sdm_channel_handle_t sdm_chan = (sdm_channel_handle_t)user_ctx;
+    /* Set the pulse density */
+    sdm_channel_set_duty(sdm_chan, sine_wave[cnt]);
+    /* Loop the sine wave data buffer */
+    cnt++;
+    cnt %= EXAMPLE_SINE_WAVE_POINT_NUM;
+    return false;
+}
+
+static gptimer_handle_t example_init_gptimer(void* args)
+{
+    /* Allocate GPTimer handle */
+    gptimer_handle_t timer_handle;
+    gptimer_config_t timer_cfg = {
+        .clk_src = GPTIMER_CLK_SRC_DEFAULT,
+        .direction = GPTIMER_COUNT_UP,
+        .resolution_hz = EXAMPLE_TIMER_RESOLUTION,
+        .flags.intr_shared = false,
+    };
+    ESP_ERROR_CHECK(gptimer_new_timer(&timer_cfg, &timer_handle));
+    ESP_LOGI(TAG, "Timer allocated with resolution %d Hz", EXAMPLE_TIMER_RESOLUTION);
+
+    /* Set the timer alarm configuration */
+    gptimer_alarm_config_t alarm_cfg = {
+        .alarm_count = EXAMPLE_ALARM_COUNT,
+        .reload_count = 0,
+        .flags.auto_reload_on_alarm = true,
+    };
+    ESP_ERROR_CHECK(gptimer_set_alarm_action(timer_handle, &alarm_cfg));
+
+    /* Register the alarm callback */
+    gptimer_event_callbacks_t cbs = {
+        .on_alarm = example_timer_callback,
+    };
+    ESP_ERROR_CHECK(gptimer_register_event_callbacks(timer_handle, &cbs, args));
+    ESP_LOGI(TAG, "Timer callback registered, interval %d us", EXAMPLE_CALLBACK_INTERVAL_US);
+
+    /* Clear the timer raw count value, make sure it'll count from 0 */
+    ESP_ERROR_CHECK(gptimer_set_raw_count(timer_handle, 0));
+    /* Enable the timer */
+    ESP_ERROR_CHECK(gptimer_enable(timer_handle));
+
+    ESP_LOGI(TAG, "Timer enabled");
+
+    return timer_handle;
+}
+
+static sdm_channel_handle_t example_init_sdm(void)
+{
+    /* Allocate sdm channel handle */
+    sdm_channel_handle_t sdm_chan = NULL;
+    sdm_config_t config = {
+        .clk_src = SDM_CLK_SRC_DEFAULT,
+        .gpio_num = EXAMPLE_SIGMA_DELTA_GPIO_NUM,
+        .sample_rate_hz = EXAMPLE_OVER_SAMPLE_RATE,
+    };
+    ESP_ERROR_CHECK(sdm_new_channel(&config, &sdm_chan));
+    /* Enable the sdm channel */
+    ESP_ERROR_CHECK(sdm_channel_enable(sdm_chan));
+
+    ESP_LOGI(TAG, "Sigma-delta output is attached to GPIO %d", EXAMPLE_SIGMA_DELTA_GPIO_NUM);
+
+    return sdm_chan;
+}
+
+void app_main(void)
+{
+    /* Assign sine wave data */
+    for (int i = 0; i < EXAMPLE_SINE_WAVE_POINT_NUM; i++) {
+        sine_wave[i] = (int8_t)((sin(2 * (float)i * CONST_PI / EXAMPLE_SINE_WAVE_POINT_NUM)) * EXAMPLE_SINE_WAVE_AMPLITUDE);
+    }
+    /* Initialize sigma-delta modulation on the specific GPIO */
+    sdm_channel_handle_t sdm_chan = example_init_sdm();
+    /* Initialize GPTimer and register the timer alarm callback */
+    gptimer_handle_t timer_handle = example_init_gptimer(sdm_chan);
+    /* Start the GPTimer */
+    ESP_LOGI(TAG, "Output start");
+    ESP_ERROR_CHECK(gptimer_start(timer_handle));
+
+    /* Forever loop */
+    while (1) {
+        vTaskDelay(pdMS_TO_TICKS(1000));
+    }
+}
diff --git a/examples/peripherals/sigma_delta/sdm_dac/output_wave.jpeg b/examples/peripherals/sigma_delta/sdm_dac/output_wave.jpeg
new file mode 100644
index 0000000000..e8aabe5630
Binary files /dev/null and b/examples/peripherals/sigma_delta/sdm_dac/output_wave.jpeg differ
diff --git a/examples/peripherals/sigma_delta/sdm_dac/pytest_sdm_dac_example.py b/examples/peripherals/sigma_delta/sdm_dac/pytest_sdm_dac_example.py
new file mode 100644
index 0000000000..6d9335cc93
--- /dev/null
+++ b/examples/peripherals/sigma_delta/sdm_dac/pytest_sdm_dac_example.py
@@ -0,0 +1,19 @@
+# SPDX-FileCopyrightText: 2021-2022 Espressif Systems (Shanghai) CO LTD
+# SPDX-License-Identifier: CC0-1.0
+
+import pytest
+from pytest_embedded import Dut
+
+
+@pytest.mark.esp32
+@pytest.mark.esp32s2
+@pytest.mark.esp32s3
+@pytest.mark.esp32c3
+@pytest.mark.esp32c6
+@pytest.mark.generic
+def test_sdm_dac_example(dut: Dut) -> None:
+    dut.expect(r'sdm_dac: Sigma-delta output is attached to GPIO \w+')
+    dut.expect(r'sdm_dac: Timer allocated with resolution \w+ Hz')
+    dut.expect(r'sdm_dac: Timer callback registered, interval \w+ us')
+    dut.expect_exact('sdm_dac: Timer enabled')
+    dut.expect_exact('sdm_dac: Output start')
diff --git a/examples/peripherals/sigma_delta/sdm_led/CMakeLists.txt b/examples/peripherals/sigma_delta/sdm_led/CMakeLists.txt
new file mode 100644
index 0000000000..c0fe198f89
--- /dev/null
+++ b/examples/peripherals/sigma_delta/sdm_led/CMakeLists.txt
@@ -0,0 +1,6 @@
+# The following lines of boilerplate have to be in your project's CMakeLists
+# in this exact order for cmake to work correctly
+cmake_minimum_required(VERSION 3.16)
+
+include($ENV{IDF_PATH}/tools/cmake/project.cmake)
+project(sdm_led_example)
diff --git a/examples/peripherals/sigma_delta/README.md b/examples/peripherals/sigma_delta/sdm_led/README.md
similarity index 96%
rename from examples/peripherals/sigma_delta/README.md
rename to examples/peripherals/sigma_delta/sdm_led/README.md
index 17da05e942..930d01e062 100644
--- a/examples/peripherals/sigma_delta/README.md
+++ b/examples/peripherals/sigma_delta/sdm_led/README.md
@@ -1,7 +1,7 @@
 | Supported Targets | ESP32 | ESP32-C3 | ESP32-C6 | ESP32-S2 | ESP32-S3 |
 | ----------------- | ----- | -------- | -------- | -------- | -------- |
 
-# Sigma Delta Modulation Example
+# Sigma Delta Modulation LED Example
 
 (See the README.md file in the upper level 'examples' directory for more information about examples.)
 
@@ -22,7 +22,7 @@ EXAMPLE_SIGMA_DELTA_GPIO_NUM +----/\/\/\----+------|>|-----+ GND
 
 ### Configure the project
 
-You can change the GPIO number by [EXAMPLE_SIGMA_DELTA_GPIO_NUM](main/sdm_example_main.c).
+You can change the GPIO number by [EXAMPLE_SIGMA_DELTA_GPIO_NUM](main/sdm_led_example_main.c).
 
 ### Build and Flash
 
diff --git a/examples/peripherals/sigma_delta/sdm_led/main/CMakeLists.txt b/examples/peripherals/sigma_delta/sdm_led/main/CMakeLists.txt
new file mode 100644
index 0000000000..ecad9cff66
--- /dev/null
+++ b/examples/peripherals/sigma_delta/sdm_led/main/CMakeLists.txt
@@ -0,0 +1,2 @@
+idf_component_register(SRCS "sdm_led_example_main.c"
+                       INCLUDE_DIRS ".")
diff --git a/examples/peripherals/sigma_delta/main/sdm_example_main.c b/examples/peripherals/sigma_delta/sdm_led/main/sdm_led_example_main.c
similarity index 93%
rename from examples/peripherals/sigma_delta/main/sdm_example_main.c
rename to examples/peripherals/sigma_delta/sdm_led/main/sdm_led_example_main.c
index 60a6cd5794..0b555b9f38 100644
--- a/examples/peripherals/sigma_delta/main/sdm_example_main.c
+++ b/examples/peripherals/sigma_delta/sdm_led/main/sdm_led_example_main.c
@@ -1,5 +1,5 @@
 /*
- * SPDX-FileCopyrightText: 2022 Espressif Systems (Shanghai) CO LTD
+ * SPDX-FileCopyrightText: 2022-2023 Espressif Systems (Shanghai) CO LTD
  *
  * SPDX-License-Identifier: Unlicense OR CC0-1.0
  */
@@ -16,7 +16,7 @@
 #define EXAMPLE_LED_DIM_DUTY_MAX     90
 #define EXAMPLE_LED_DIM_DUTY_MIN     (EXAMPLE_LED_DIM_DUTY_MAX - EXAMPLE_LED_DIM_PERIOD_MS / EXAMPLE_LED_DIM_DELAY_MS * EXAMPLE_LED_DIM_DUTY_STEP)
 
-static const char *TAG = "example";
+static const char *TAG = "sdm_led";
 
 void app_main(void)
 {
diff --git a/examples/peripherals/sigma_delta/pytest_sdm_example.py b/examples/peripherals/sigma_delta/sdm_led/pytest_sdm_led_example.py
similarity index 55%
rename from examples/peripherals/sigma_delta/pytest_sdm_example.py
rename to examples/peripherals/sigma_delta/sdm_led/pytest_sdm_led_example.py
index 4a233013bc..3d0e30df37 100644
--- a/examples/peripherals/sigma_delta/pytest_sdm_example.py
+++ b/examples/peripherals/sigma_delta/sdm_led/pytest_sdm_led_example.py
@@ -11,7 +11,7 @@ from pytest_embedded import Dut
 @pytest.mark.esp32c3
 @pytest.mark.esp32c6
 @pytest.mark.generic
-def test_sdm_example(dut: Dut) -> None:
-    dut.expect_exact('example: Install sigma delta channel')
-    dut.expect_exact('example: Enable sigma delta channel')
-    dut.expect_exact('example: Change duty cycle continuously')
+def test_sdm_led_example(dut: Dut) -> None:
+    dut.expect_exact('sdm_led: Install sigma delta channel')
+    dut.expect_exact('sdm_led: Enable sigma delta channel')
+    dut.expect_exact('sdm_led: Change duty cycle continuously')