diff --git a/include/shell/shell.h b/include/shell/shell.h
index 7ef1e8686a8..e86cffac6e5 100644
--- a/include/shell/shell.h
+++ b/include/shell/shell.h
@@ -608,6 +608,7 @@ struct shell_flags {
 	uint32_t insert_mode :1; /*!< Controls insert mode for text introduction.*/
 	uint32_t use_colors  :1; /*!< Controls colored syntax.*/
 	uint32_t echo        :1; /*!< Controls shell echo.*/
+	uint32_t obscure     :1; /*!< If echo on, print asterisk instead */
 	uint32_t processing  :1; /*!< Shell is executing process function.*/
 	uint32_t tx_rdy      :1;
 	uint32_t mode_delete :1; /*!< Operation mode of backspace key */
@@ -1034,6 +1035,30 @@ int shell_execute_cmd(const struct shell *shell, const char *cmd);
  */
 int shell_set_root_cmd(const char *cmd);
 
+/**
+ * @brief Allow application to control whether terminal output uses colored
+ * syntax.
+ *
+ * @param[in] shell	Pointer to the shell instance.
+ * @param[in] use_colors	Color mode.
+ *
+ * @retval 0 if set.
+ * @retval -EINVAL if shell is NULL.
+ */
+int shell_use_colors_set(const struct shell *shell, bool use_colors);
+
+/**
+ * @brief Allow application to control whether user input is obscured with
+ * asterisks -- useful for implementing passwords.
+ *
+ * @param[in] shell	Pointer to the shell instance.
+ * @param[in] obscure	Obscure mode.
+ *
+ * @retval 0 if set.
+ * @retval -EINVAL if shell is NULL.
+ */
+int shell_obscure_set(const struct shell *shell, bool obscure);
+
 /**
  * @}
  */
diff --git a/subsys/shell/Kconfig b/subsys/shell/Kconfig
index 5d30fa691ee..950b32f1480 100644
--- a/subsys/shell/Kconfig
+++ b/subsys/shell/Kconfig
@@ -103,6 +103,13 @@ config SHELL_ECHO_STATUS
 	help
 	  If enabled shell prints back every input byte.
 
+config SHELL_START_OBSCURED
+	bool "Display asterisk when echoing"
+	default n
+	help
+	  If enabled, don't echo actual character, but echo * instead.
+	  This is used for login prompts.
+
 config SHELL_VT100_COLORS
 	bool "Enable colors in shell"
 	default y if !SHELL_MINIMAL
diff --git a/subsys/shell/shell.c b/subsys/shell/shell.c
index c063829e3e6..7703856fb4d 100644
--- a/subsys/shell/shell.c
+++ b/subsys/shell/shell.c
@@ -1166,6 +1166,7 @@ static int instance_init(const struct shell *shell, const void *p_config,
 
 	z_flag_tx_rdy_set(shell, true);
 	z_flag_echo_set(shell, IS_ENABLED(CONFIG_SHELL_ECHO_STATUS));
+	z_flag_obscure_set(shell, IS_ENABLED(CONFIG_SHELL_START_OBSCURED));
 	z_flag_mode_delete_set(shell,
 			     IS_ENABLED(CONFIG_SHELL_BACKSPACE_MODE_DELETE));
 	shell->ctx->vt100_ctx.cons.terminal_wid =
@@ -1559,6 +1560,28 @@ int shell_execute_cmd(const struct shell *shell, const char *cmd)
 	return ret_val;
 }
 
+int shell_use_colors_set(const struct shell *shell, bool use_colors)
+{
+	if (shell == NULL) {
+		return -EINVAL;
+	}
+
+	z_flag_use_colors_set(shell, use_colors);
+
+	return 0;
+}
+
+int shell_obscure_set(const struct shell *shell, bool obscure)
+{
+	if (shell == NULL) {
+		return -EINVAL;
+	}
+
+	z_flag_obscure_set(shell, obscure);
+
+	return 0;
+}
+
 static int cmd_help(const struct shell *shell, size_t argc, char **argv)
 {
 	ARG_UNUSED(argc);
diff --git a/subsys/shell/shell_ops.c b/subsys/shell/shell_ops.c
index ec694f8334c..d2a2a4048c8 100644
--- a/subsys/shell/shell_ops.c
+++ b/subsys/shell/shell_ops.c
@@ -223,8 +223,16 @@ static void reprint_from_cursor(const struct shell *shell, uint16_t diff,
 		z_clear_eos(shell);
 	}
 
-	z_shell_fprintf(shell, SHELL_NORMAL, "%s",
-		      &shell->ctx->cmd_buff[shell->ctx->cmd_buff_pos]);
+	if (z_flag_obscure_get(shell)) {
+		int len = strlen(&shell->ctx->cmd_buff[shell->ctx->cmd_buff_pos]);
+
+		while (len--) {
+			z_shell_raw_fprintf(shell->fprintf_ctx, "*");
+		}
+	} else {
+		z_shell_fprintf(shell, SHELL_NORMAL, "%s",
+			      &shell->ctx->cmd_buff[shell->ctx->cmd_buff_pos]);
+	}
 	shell->ctx->cmd_buff_pos = shell->ctx->cmd_buff_len;
 
 	if (full_line_cmd(shell)) {
@@ -265,6 +273,9 @@ static void char_replace(const struct shell *shell, char data)
 	if (!z_flag_echo_get(shell)) {
 		return;
 	}
+	if (z_flag_obscure_get(shell)) {
+		data = '*';
+	}
 
 	z_shell_raw_fprintf(shell->fprintf_ctx, "%c", data);
 	if (z_shell_cursor_in_empty_line(shell)) {
diff --git a/subsys/shell/shell_ops.h b/subsys/shell/shell_ops.h
index d905ae32fa7..8750fc6d8a1 100644
--- a/subsys/shell/shell_ops.h
+++ b/subsys/shell/shell_ops.h
@@ -90,6 +90,16 @@ static inline void z_flag_echo_set(const struct shell *shell, bool val)
 	shell->ctx->internal.flags.echo = val ? 1 : 0;
 }
 
+static inline bool z_flag_obscure_get(const struct shell *shell)
+{
+	return shell->ctx->internal.flags.obscure == 1;
+}
+
+static inline void z_flag_obscure_set(const struct shell *shell, bool val)
+{
+	shell->ctx->internal.flags.obscure = val ? 1 : 0;
+}
+
 static inline bool z_flag_processing_get(const struct shell *shell)
 {
 	return shell->ctx->internal.flags.processing == 1;