diff --git a/drivers/modem/Kconfig.gsm b/drivers/modem/Kconfig.gsm
index e4ced9ab8f3..780461d39fa 100644
--- a/drivers/modem/Kconfig.gsm
+++ b/drivers/modem/Kconfig.gsm
@@ -61,4 +61,12 @@ config MODEM_GSM_MANUAL_MCCMNO
 	  the network provider and may need to be changed if auto is not
 	  selected.
 
+config MODEM_GSM_FACTORY_RESET_AT_BOOT
+	bool "Factory reset modem at boot"
+	help
+	  If this is enabled, the modem will be reset to factory default
+	  settings first thing in the initialization sequence. This is
+	  helpful if your modem has a tendency to get stuck due to cached
+	  state.
+
 endif
diff --git a/drivers/modem/gsm_ppp.c b/drivers/modem/gsm_ppp.c
index 371e22aa7a1..cb98a41176a 100644
--- a/drivers/modem/gsm_ppp.c
+++ b/drivers/modem/gsm_ppp.c
@@ -366,6 +366,16 @@ static void gsm_finalize_connection(struct gsm_modem *gsm)
 		}
 	}
 
+	if (IS_ENABLED(CONFIG_MODEM_GSM_FACTORY_RESET_AT_BOOT)) {
+		(void)modem_cmd_send_nolock(&gsm->context.iface,
+					    &gsm->context.cmd_handler,
+					    &response_cmds[0],
+					    ARRAY_SIZE(response_cmds),
+					    "AT&F", &gsm->sem_response,
+					    GSM_CMD_AT_TIMEOUT);
+		k_sleep(K_SECONDS(1));
+	}
+
 	(void)gsm_setup_mccmno(gsm);
 
 	ret = modem_cmd_handler_setup_cmds_nolock(&gsm->context.iface,