diff --git a/include/console.h b/include/console.h
index 599036bdc77..ce3425be2e4 100644
--- a/include/console.h
+++ b/include/console.h
@@ -23,9 +23,11 @@ struct tty_serial {
 	u16_t rx_get, rx_put;
 	s32_t rx_timeout;
 
+	struct k_sem tx_sem;
 	u8_t *tx_ringbuf;
 	u32_t tx_ringbuf_sz;
 	u16_t tx_get, tx_put;
+	s32_t tx_timeout;
 };
 
 /**
@@ -62,6 +64,20 @@ static inline void tty_set_rx_timeout(struct tty_serial *tty, s32_t timeout)
 	tty->rx_timeout = timeout;
 }
 
+/**
+ * @brief Set transmit timeout for tty device.
+ *
+ * Set timeout for putchar() operation, for a case when output buffer is full.
+ * Default timeout after device initialization is K_FOREVER.
+ *
+ * @param tty tty device structure
+ * @param timeout timeout in milliseconds, or K_FOREVER, or K_NO_WAIT
+ */
+static inline void tty_set_tx_timeout(struct tty_serial *tty, s32_t timeout)
+{
+	tty->tx_timeout = timeout;
+}
+
 /**
  * @brief Input a character from a tty device.
  *
diff --git a/subsys/console/tty.c b/subsys/console/tty.c
index 0d916c7d92c..d4fd5d48b6c 100644
--- a/subsys/console/tty.c
+++ b/subsys/console/tty.c
@@ -42,6 +42,7 @@ static void tty_uart_isr(void *user_data)
 			if (tty->tx_get >= tty->tx_ringbuf_sz) {
 				tty->tx_get = 0;
 			}
+			k_sem_give(&tty->tx_sem);
 		}
 	}
 }
@@ -72,6 +73,12 @@ int tty_putchar(struct tty_serial *tty, u8_t c)
 {
 	unsigned int key;
 	int tx_next;
+	int res;
+
+	res = k_sem_take(&tty->tx_sem, tty->tx_timeout);
+	if (res < 0) {
+		return res;
+	}
 
 	key = irq_lock();
 	tx_next = tty->tx_put + 1;
@@ -123,8 +130,10 @@ void tty_init(struct tty_serial *tty, struct device *uart_dev,
 	tty->tx_ringbuf_sz = txbuf_sz;
 	tty->rx_get = tty->rx_put = tty->tx_get = tty->tx_put = 0;
 	k_sem_init(&tty->rx_sem, 0, UINT_MAX);
+	k_sem_init(&tty->tx_sem, txbuf_sz - 1, UINT_MAX);
 
 	tty->rx_timeout = K_FOREVER;
+	tty->tx_timeout = K_FOREVER;
 
 	uart_irq_callback_user_data_set(uart_dev, tty_uart_isr, tty);
 	uart_irq_rx_enable(uart_dev);