diff --git a/apps/serial-shell/serial-shell.c b/apps/serial-shell/serial-shell.c
index e814a223a..d8ba9740b 100644
--- a/apps/serial-shell/serial-shell.c
+++ b/apps/serial-shell/serial-shell.c
@@ -77,6 +77,11 @@ shell_prompt(char *str)
 	 str);
 }
 /*---------------------------------------------------------------------------*/
+void
+shell_exit(void)
+{
+}
+/*---------------------------------------------------------------------------*/
 PROCESS_THREAD(serial_shell_process, ev, data)
 {
   PROCESS_BEGIN();
diff --git a/apps/shell/gui-shell.c b/apps/shell/gui-shell.c
index 2fdd5116a..91c5ab65f 100644
--- a/apps/shell/gui-shell.c
+++ b/apps/shell/gui-shell.c
@@ -102,6 +102,12 @@ shell_prompt(char *str)
 {
 }
 /*-----------------------------------------------------------------------------------*/
+void
+shell_exit(char *str)
+{
+  ctk_window_close(&window);
+}
+/*-----------------------------------------------------------------------------------*/
 PROCESS_THREAD(shell_gui_process, ev, data)
 {
   PROCESS_BEGIN();
diff --git a/apps/shell/shell.c b/apps/shell/shell.c
index 3302fa2d8..423bc240c 100644
--- a/apps/shell/shell.c
+++ b/apps/shell/shell.c
@@ -54,6 +54,14 @@
 #include <string.h>
 #include <stdio.h>
 
+#ifndef SHELL_CONF_PROMPT
+#define SHELL_CONF_PROMPT "Contiki> "
+#endif
+
+#ifndef SHELL_CONF_BANNER
+#define SHELL_CONF_BANNER "Contiki command shell"
+#endif
+
 LIST(commands);
 
 int shell_event_input;
@@ -77,10 +85,13 @@ PROCESS(shell_kill_process, "kill");
 SHELL_COMMAND(kill_command, "kill", "kill <command>: stop a specific command",
 	      &shell_kill_process);
 PROCESS(shell_null_process, "null");
-SHELL_COMMAND(null_command,
-	      "null",
-	      "null: discard input",
+SHELL_COMMAND(null_command, "null", "null: discard input",
 	      &shell_null_process);
+PROCESS(shell_exit_process, "exit");
+SHELL_COMMAND(exit_command, "exit", "exit: exit shell",
+	      &shell_exit_process);
+SHELL_COMMAND(quit_command, "quit", "quit: exit shell",
+	      &shell_exit_process);
 /*---------------------------------------------------------------------------*/
 PROCESS_THREAD(shell_null_process, ev, data)
 {
@@ -168,7 +179,16 @@ PROCESS_THREAD(help_command_process, ev, data)
       c = c->next) {
     shell_output_str(&help_command, c->description, "");
   }
-  
+
+  PROCESS_END();
+}
+/*---------------------------------------------------------------------------*/
+PROCESS_THREAD(shell_exit_process, ev, data)
+{
+  PROCESS_BEGIN();
+
+  shell_exit();
+
   PROCESS_END();
 }
 /*---------------------------------------------------------------------------*/
@@ -418,7 +438,7 @@ PROCESS_THREAD(shell_process, ev, data)
   PROCESS_PAUSE();
   
   while(1) {
-    shell_prompt("Contiki> ");
+    shell_prompt(SHELL_CONF_PROMPT);
     
     PROCESS_WAIT_EVENT_UNTIL(ev == shell_event_input);
     {
@@ -483,6 +503,8 @@ shell_init(void)
   shell_register_command(&killall_command);
   shell_register_command(&kill_command);
   shell_register_command(&null_command);
+  shell_register_command(&exit_command);
+  shell_register_command(&quit_command);
   
   shell_event_input = process_alloc_event();
   
@@ -536,15 +558,21 @@ shell_set_time(unsigned long seconds)
 void
 shell_start(void)
 {
-  shell_output_str(NULL, "Contiki command shell", "");
+  shell_output_str(NULL, SHELL_CONF_BANNER, "");
   shell_output_str(NULL, "Type '?' and return for help", "");
-  shell_prompt("Contiki> ");
+  shell_prompt(SHELL_CONF_PROMPT);
+}
+/*---------------------------------------------------------------------------*/
+void
+shell_stop(void)
+{
+  killall();
 }
 /*---------------------------------------------------------------------------*/
 void
 shell_quit(void)
 {
-  killall();
+  shell_stop();
   process_exit(&shell_process);
   process_exit(&shell_server_process);
 }
diff --git a/apps/shell/shell.h b/apps/shell/shell.h
index fb41c6660..786ae54ad 100644
--- a/apps/shell/shell.h
+++ b/apps/shell/shell.h
@@ -119,11 +119,21 @@ void shell_start(void);
  */
 void shell_input(char *commandline, int commandline_len);
 
+/**
+ * \brief      Stop the shell
+ *
+ *             This function stops all running commands. It typically
+ *             is called by a shell back-end to to indicate that the
+ *             user has quit the shell.
+ *
+ */
+void shell_stop(void);
+
 /**
  * \brief      Quit the shell
  *
- *             This function is called by a shell back-end to indicate
- *             that the user has quit the shell.
+ *             This function is called by a shell back-end to stop the
+ *             shell processes.
  *
  */
 void shell_quit(void);
@@ -171,6 +181,16 @@ void shell_prompt(char *prompt);
 void shell_default_output(const char *data1, int size1,
 			  const char *data2, int size2);
 
+/**
+ * \brief      Request shell exit
+ *
+ *             This function is called by the shell to request exiting
+ *             the current session. The shell back-end will later call
+ *             shell_stop() when the session was successfully exited.
+ *
+ */
+void shell_exit(void);
+
 /**
  * @}
  */
diff --git a/apps/telnetd/telnetd.c b/apps/telnetd/telnetd.c
index 6eb24e17d..091db590f 100644
--- a/apps/telnetd/telnetd.c
+++ b/apps/telnetd/telnetd.c
@@ -110,6 +110,7 @@ buf_append(struct telnetd_buf *buf, const char *data, int len)
   PRINTF("buf_append len %d (%d) '%.*s'\n", len, buf->ptr, len, data);
   copylen = MIN(len, buf->size - buf->ptr);
   memcpy(&buf->bufmem[buf->ptr], data, copylen);
+  petsciiconv_toascii(&buf->bufmem[buf->ptr], copylen);
   buf->ptr += copylen;
 
   return copylen;
@@ -175,6 +176,12 @@ shell_default_output(const char *str1, int len1, const char *str2, int len2)
   buf_append(&buf, "\r\n", 2);
 }
 /*---------------------------------------------------------------------------*/
+void
+shell_exit(void)
+{
+  s.state = STATE_CLOSE;
+}
+/*---------------------------------------------------------------------------*/
 PROCESS_THREAD(telnetd_process, ev, data)
 {
   PROCESS_BEGIN();
@@ -259,6 +266,7 @@ sendopt(u8_t option, u8_t value)
   line[1] = option;
   line[2] = value;
   line[3] = 0;
+  petsciiconv_topetscii(line, 4);
   buf_append(&buf, line, 4);
 }
 /*---------------------------------------------------------------------------*/
@@ -354,6 +362,7 @@ telnetd_appcall(void *ts)
   if(uip_closed() ||
      uip_aborted() ||
      uip_timedout()) {
+    shell_stop();
     closed();
   }
   if(uip_acked()) {