diff --git a/drivers/net/Kconfig b/drivers/net/Kconfig
index 1881cf815b2..eec94fdd506 100644
--- a/drivers/net/Kconfig
+++ b/drivers/net/Kconfig
@@ -41,6 +41,14 @@ config TELNET_DUMPBUFFER
 	default n
 	depends on DEBUG_NET
 
+config TELNET_CHARACTER_MODE
+	bool "Character mode"
+	default n
+	---help---
+		The Telnet daemon works in character mode. In this case, the deamon
+		will echo a character which telnet client sent. By default, it works
+		in line mode.
+
 endif # NETDEV_TELNET
 
 config ARCH_HAVE_NETDEV_STATISTICS
diff --git a/drivers/net/telnet.c b/drivers/net/telnet.c
index 8ec933c9751..9dbded1e1ef 100644
--- a/drivers/net/telnet.c
+++ b/drivers/net/telnet.c
@@ -84,6 +84,9 @@
 #define ISO_nl       0x0a
 #define ISO_cr       0x0d
 
+#define TELNET_SGA   0x03  /* Suppress Go Ahead */
+#define TELNET_ECHO  0x01
+
 #define TELNET_IAC   255
 #define TELNET_WILL  251
 #define TELNET_WONT  252
@@ -251,9 +254,11 @@ static void telnet_getchar(FAR struct telnet_dev_s *priv, uint8_t ch,
 {
   register int index;
 
+#ifndef CONFIG_TELNET_CHARACTER_MODE
   /* Ignore carriage returns */
 
   if (ch != ISO_cr)
+#endif
     {
       /* Add all other characters to the destination buffer */
 
@@ -334,9 +339,32 @@ static ssize_t telnet_receive(FAR struct telnet_dev_s *priv, FAR const char *src
             break;
 
           case STATE_DO:
+#ifdef CONFIG_TELNET_CHARACTER_MODE
+            if (ch == TELNET_SGA)
+              {
+                /* If it received 'Suppress Go Ahead', reply with a WILL */
+
+                telnet_sendopt(priv, TELNET_WILL, ch);
+
+                /* Also, send 'WILL ECHO' */
+
+                telnet_sendopt(priv, TELNET_WILL, TELNET_ECHO);
+              }
+            else if (ch == TELNET_ECHO)
+              {
+                /* If it received 'ECHO', then do nothing */
+              }
+            else
+              {
+                /* Reply with a WONT */
+
+                telnet_sendopt(priv, TELNET_WONT, ch);
+              }
+#else
             /* Reply with a WONT */
 
             telnet_sendopt(priv, TELNET_WONT, ch);
+#endif
             priv->td_state = STATE_NORMAL;
             break;