diff --git a/drivers/modem/Kconfig.gsm b/drivers/modem/Kconfig.gsm
index c92155a945c..3bc1d7eb94e 100644
--- a/drivers/modem/Kconfig.gsm
+++ b/drivers/modem/Kconfig.gsm
@@ -81,6 +81,14 @@ config MODEM_GSM_ATTACH_TIMEOUT
 	  using AT+CGATT. This setting dictates how much time in seconds
 	  we give the modem before giving up.
 
+config MODEM_GSM_REGISTER_TIMEOUT
+	int "Timeout for registering to cellular tower"
+	default 300
+	help
+	  Before attachment to packet service, modem is checked if it is
+	  connected to the cellular tower. This setting dictates how much
+	  time in seconds we give the modem before giving up.
+
 config MODEM_GSM_MANUAL_MCCMNO
 	string "MCC/MNO for establishing network connection"
 	help
diff --git a/drivers/modem/gsm_ppp.c b/drivers/modem/gsm_ppp.c
index e613ae79382..d2b102529e3 100644
--- a/drivers/modem/gsm_ppp.c
+++ b/drivers/modem/gsm_ppp.c
@@ -39,6 +39,7 @@ LOG_MODULE_REGISTER(modem_gsm, CONFIG_MODEM_LOG_LEVEL);
 #define GSM_RECV_MAX_BUF                30
 #define GSM_RECV_BUF_SIZE               128
 #define GSM_ATTACH_RETRY_DELAY_MSEC     1000
+#define GSM_REGISTER_DELAY_MSEC         1000
 #define GSM_RETRY_DELAY                 K_SECONDS(1)
 
 #define GSM_RSSI_RETRY_DELAY_MSEC       2000
@@ -51,6 +52,17 @@ LOG_MODULE_REGISTER(modem_gsm, CONFIG_MODEM_LOG_LEVEL);
 	#define GSM_RSSI_MAXVAL         -51
 #endif
 
+/* Modem network registration state */
+enum network_state {
+	GSM_NET_INIT = -1,
+	GSM_NET_NOT_REGISTERED,
+	GSM_NET_HOME_NETWORK,
+	GSM_NET_SEARCHING,
+	GSM_NET_REGISTRATION_DENIED,
+	GSM_NET_UNKNOWN,
+	GSM_NET_ROAMING,
+};
+
 /* During the modem setup, we first create DLCI control channel and then
  * PPP and AT channels. Currently the modem does not create possible GNSS
  * channel.
@@ -91,6 +103,9 @@ static struct gsm_modem {
 	struct k_work_delayable rssi_work_handle;
 	struct gsm_ppp_modem_info minfo;
 
+	enum network_state net_state;
+
+	int register_retries;
 	int rssi_retries;
 	int attach_retries;
 	bool mux_enabled : 1;
@@ -321,6 +336,36 @@ MODEM_CMD_DEFINE(on_cmd_atcmdinfo_iccid)
 }
 #endif /* CONFIG_MODEM_SIM_NUMBERS */
 
+MODEM_CMD_DEFINE(on_cmd_net_reg_sts)
+{
+	gsm.net_state = (enum network_state)atoi(argv[1]);
+
+	switch (gsm.net_state) {
+	case GSM_NET_NOT_REGISTERED:
+		LOG_INF("Network %s.", "not registered");
+		break;
+	case GSM_NET_HOME_NETWORK:
+		LOG_INF("Network %s.", "registered, home network");
+		break;
+	case GSM_NET_SEARCHING:
+		LOG_INF("Searching for network...");
+		break;
+	case GSM_NET_REGISTRATION_DENIED:
+		LOG_INF("Network %s.", "registration denied");
+		break;
+	case GSM_NET_UNKNOWN:
+		LOG_INF("Network %s.", "unknown");
+		break;
+	case GSM_NET_ROAMING:
+		LOG_INF("Network %s.", "registered, roaming");
+		break;
+	default:
+		break;
+	}
+
+	return 0;
+}
+
 #if defined(CONFIG_MODEM_CELL_INFO)
 
 /*
@@ -461,6 +506,9 @@ MODEM_CMD_DEFINE(on_cmd_atcmdinfo_attached)
 static const struct modem_cmd read_cops_cmd =
 	MODEM_CMD_ARGS_MAX("+COPS:", on_cmd_atcmdinfo_cops, 1U, 4U, ",");
 
+static const struct modem_cmd check_net_reg_cmd =
+	MODEM_CMD("+CREG: ", on_cmd_net_reg_sts, 2U, ",");
+
 static const struct modem_cmd check_attached_cmd =
 	MODEM_CMD("+CGATT:", on_cmd_atcmdinfo_attached, 1U, ",");
 
@@ -617,6 +665,11 @@ static void gsm_finalize_connection(struct k_work *work)
 		goto attaching;
 	}
 
+	/* If modem is searching for network, we should skip the setup step */
+	if (gsm->register_retries) {
+		goto registering;
+	}
+
 	if (IS_ENABLED(CONFIG_GSM_MUX)) {
 		ret = modem_cmd_send_nolock(&gsm->context.iface,
 					    &gsm->context.cmd_handler,
@@ -668,6 +721,30 @@ static void gsm_finalize_connection(struct k_work *work)
 		return;
 	}
 
+registering:
+	/* Wait for cell tower registration */
+	ret = modem_cmd_send_nolock(&gsm->context.iface,
+				    &gsm->context.cmd_handler,
+				    &check_net_reg_cmd, 1,
+				    "AT+CREG?",
+				    &gsm->sem_response,
+				    GSM_CMD_SETUP_TIMEOUT);
+	if ((ret < 0) || ((gsm->net_state != GSM_NET_ROAMING) &&
+			 (gsm->net_state != GSM_NET_HOME_NETWORK))) {
+		if (!gsm->register_retries) {
+			gsm->register_retries = CONFIG_MODEM_GSM_REGISTER_TIMEOUT *
+				MSEC_PER_SEC / GSM_REGISTER_DELAY_MSEC;
+		} else {
+			gsm->register_retries--;
+		}
+
+		(void)gsm_work_reschedule(&gsm->gsm_configure_work,
+					  K_MSEC(GSM_REGISTER_DELAY_MSEC));
+		return;
+	}
+
+	gsm->register_retries = 0;
+
 attaching:
 	/* Don't initialize PPP until we're attached to packet service */
 	ret = modem_cmd_send_nolock(&gsm->context.iface,
@@ -1066,6 +1143,7 @@ void gsm_ppp_stop(const struct device *dev)
 	}
 
 	gsm->attached = false;
+	gsm->net_state = GSM_NET_INIT;
 }
 
 void gsm_ppp_register_modem_power_callback(const struct device *dev,
@@ -1165,6 +1243,8 @@ static int gsm_init(const struct device *dev)
 		return r;
 	}
 
+	gsm->net_state = GSM_NET_INIT;
+
 	LOG_DBG("iface->read %p iface->write %p",
 		gsm->context.iface.read, gsm->context.iface.write);