diff --git a/UNITTESTS/stubs/AT_CellularDevice_stub.cpp b/UNITTESTS/stubs/AT_CellularDevice_stub.cpp
index 69e8df2f98..f67c86fa3c 100644
--- a/UNITTESTS/stubs/AT_CellularDevice_stub.cpp
+++ b/UNITTESTS/stubs/AT_CellularDevice_stub.cpp
@@ -242,3 +242,7 @@ nsapi_error_t AT_CellularDevice::soft_power_off()
 {
     return NSAPI_ERROR_OK;
 }
+
+void AT_CellularDevice::cellular_callback(nsapi_event_t ev, intptr_t ptr, CellularContext *ctx)
+{
+}
diff --git a/features/cellular/framework/API/CellularDevice.h b/features/cellular/framework/API/CellularDevice.h
index 292c850e37..122750b7cf 100644
--- a/features/cellular/framework/API/CellularDevice.h
+++ b/features/cellular/framework/API/CellularDevice.h
@@ -450,7 +450,7 @@ protected:
      *  This method will broadcast to every interested classes:
      *  CellularContext (might be many) and CellularStateMachine if available.
      */
-    void cellular_callback(nsapi_event_t ev, intptr_t ptr, CellularContext *ctx = NULL);
+    virtual void cellular_callback(nsapi_event_t ev, intptr_t ptr, CellularContext *ctx = NULL);
     void stm_callback(nsapi_event_t ev, intptr_t ptr);
     int _network_ref_count;
     int _sms_ref_count;
diff --git a/features/cellular/framework/AT/AT_CellularDevice.cpp b/features/cellular/framework/AT/AT_CellularDevice.cpp
index 17780e92bf..86676ebafc 100644
--- a/features/cellular/framework/AT/AT_CellularDevice.cpp
+++ b/features/cellular/framework/AT/AT_CellularDevice.cpp
@@ -601,3 +601,19 @@ nsapi_error_t AT_CellularDevice::set_power_save_mode(int periodic_time, int acti
 
     return _at->unlock_return_error();
 }
+
+void AT_CellularDevice::cellular_callback(nsapi_event_t ev, intptr_t ptr, CellularContext *ctx)
+{
+    if (ev >= NSAPI_EVENT_CELLULAR_STATUS_BASE && ev <= NSAPI_EVENT_CELLULAR_STATUS_END) {
+        cellular_connection_status_t cell_ev = (cellular_connection_status_t)ev;
+        if (cell_ev == CellularDeviceTimeout) {
+            cell_callback_data_t *data = (cell_callback_data_t *)ptr;
+            int timeout = *(int *)data->data;
+            if (_default_timeout != timeout) {
+                _default_timeout = timeout;
+                ATHandler::set_at_timeout_list(_default_timeout, true);
+            }
+        }
+    }
+    CellularDevice::cellular_callback(ev, ptr, ctx);
+}
diff --git a/features/cellular/framework/AT/AT_CellularDevice.h b/features/cellular/framework/AT/AT_CellularDevice.h
index 258f835895..9167726802 100644
--- a/features/cellular/framework/AT/AT_CellularDevice.h
+++ b/features/cellular/framework/AT/AT_CellularDevice.h
@@ -141,6 +141,9 @@ public:
     bool _modem_debug_on;
     ATHandler *_at;
 
+protected:
+    virtual void cellular_callback(nsapi_event_t ev, intptr_t ptr, CellularContext *ctx = NULL);
+
 private:
     void urc_nw_deact();
     void urc_pdn_deact();
diff --git a/features/cellular/framework/common/CellularCommon.h b/features/cellular/framework/common/CellularCommon.h
index 502ff27c92..10f20478d6 100644
--- a/features/cellular/framework/common/CellularCommon.h
+++ b/features/cellular/framework/common/CellularCommon.h
@@ -65,6 +65,9 @@ typedef enum cellular_event_status {
     CellularSignalQuality                   = NSAPI_EVENT_CELLULAR_STATUS_BASE + 8, /* cell_callback_data_t.error will contains return value when signal quality was queried. data will hold the pointer to cell_signal_quality struct. See possible values from ../API/CellularNetwork.h*/
     CellularStateRetryEvent                 = NSAPI_EVENT_CELLULAR_STATUS_BASE + 9, /* cell_callback_data_t.error contain an error if any. cell_callback_data_t.status_data contains cellular_event_status and it specifies the operation which is retried.
                                                                                        cellular_event_status.data contains current retrycount */
+    CellularDeviceTimeout                   = NSAPI_EVENT_CELLULAR_STATUS_BASE + 10,/* cell_callback_data_t.error contain an error or NSAPI_ERROR_OK,
+                                                                                       cell_callback_data_t.status_data contains the current cellular_connection_status_t,
+                                                                                       cellular_event_status.data contains new timeout value in milliseconds */
 } cellular_connection_status_t;
 
 #endif // CELLULAR_COMMON_
diff --git a/features/cellular/framework/device/CellularStateMachine.cpp b/features/cellular/framework/device/CellularStateMachine.cpp
index 009eae1903..be4bd35f4a 100644
--- a/features/cellular/framework/device/CellularStateMachine.cpp
+++ b/features/cellular/framework/device/CellularStateMachine.cpp
@@ -305,7 +305,7 @@ void CellularStateMachine::retry_state_or_fail()
 
 void CellularStateMachine::state_init()
 {
-    _cellularDevice.set_timeout(_state_timeout_power_on);
+    change_timeout(_state_timeout_power_on);
     tr_info("Start connecting (timeout %d ms)", _state_timeout_power_on);
     _cb_data.error = _cellularDevice.is_ready();
     _status = _cb_data.error ? 0 : DEVICE_READY;
@@ -322,7 +322,7 @@ void CellularStateMachine::state_init()
 
 void CellularStateMachine::state_power_on()
 {
-    _cellularDevice.set_timeout(_state_timeout_power_on);
+    change_timeout(_state_timeout_power_on);
     tr_info("Modem power ON (timeout %d ms)", _state_timeout_power_on);
     if (power_on()) {
         enter_to_state(STATE_DEVICE_READY);
@@ -354,7 +354,7 @@ bool CellularStateMachine::device_ready()
 
 void CellularStateMachine::state_device_ready()
 {
-    _cellularDevice.set_timeout(_state_timeout_power_on);
+    change_timeout(_state_timeout_power_on);
     if (!(_status & DEVICE_READY)) {
         tr_debug("Device was not ready, calling soft_power_on()");
         _cb_data.error = _cellularDevice.soft_power_on();
@@ -378,7 +378,7 @@ void CellularStateMachine::state_device_ready()
 
 void CellularStateMachine::state_sim_pin()
 {
-    _cellularDevice.set_timeout(_state_timeout_sim_pin);
+    change_timeout(_state_timeout_sim_pin);
     tr_info("Setup SIM (timeout %d ms)", _state_timeout_sim_pin);
     if (open_sim()) {
         bool success = false;
@@ -433,7 +433,7 @@ void CellularStateMachine::state_signal_quality()
 
 void CellularStateMachine::state_registering()
 {
-    _cellularDevice.set_timeout(_state_timeout_network);
+    change_timeout(_state_timeout_network);
     if (is_registered()) {
         if (_cb_data.status_data != CellularNetwork::RegisteredHomeNetwork &&
                 _cb_data.status_data != CellularNetwork::RegisteredRoaming && _status) {
@@ -446,7 +446,7 @@ void CellularStateMachine::state_registering()
         enter_to_state(STATE_ATTACHING_NETWORK);
     } else {
         tr_info("Network registration (timeout %d ms)", _state_timeout_registration);
-        _cellularDevice.set_timeout(_state_timeout_registration);
+        change_timeout(_state_timeout_registration);
         if (!_command_success && !_plmn) { // don't call set_registration twice for manual registration
             _cb_data.error = _network.set_registration(_plmn);
             _command_success = (_cb_data.error == NSAPI_ERROR_OK);
@@ -458,7 +458,7 @@ void CellularStateMachine::state_registering()
 void CellularStateMachine::state_attaching()
 {
     if (_status != ATTACHED_TO_NETWORK) {
-        _cellularDevice.set_timeout(_state_timeout_connect);
+        change_timeout(_state_timeout_connect);
         tr_info("Attaching network (timeout %d ms)", _state_timeout_connect);
         _cb_data.error = _network.set_attach();
     }
@@ -648,6 +648,16 @@ void CellularStateMachine::send_event_cb(cellular_connection_status_t status)
     }
 }
 
+void CellularStateMachine::change_timeout(const int &timeout)
+{
+    _cb_data.status_data = _current_event;
+    _cb_data.data = &timeout;
+    _cb_data.error = NSAPI_ERROR_OK;
+    // event callback is a preferred method to communicate to CellularDevice,
+    // for example calling CellularDevice::set_timeout would call back to this class
+    send_event_cb(CellularDeviceTimeout);
+}
+
 bool CellularStateMachine::check_is_target_reached()
 {
     if (((_target_state == _state || _target_state < _next_state) && _cb_data.error == NSAPI_ERROR_OK && !_is_retry) ||
diff --git a/features/cellular/framework/device/CellularStateMachine.h b/features/cellular/framework/device/CellularStateMachine.h
index ea1a1b16c9..d31bf2167d 100644
--- a/features/cellular/framework/device/CellularStateMachine.h
+++ b/features/cellular/framework/device/CellularStateMachine.h
@@ -157,6 +157,7 @@ private:
     void pre_event(CellularState state);
     bool check_is_target_reached();
     void send_event_cb(cellular_connection_status_t status);
+    void change_timeout(const int &timeout);
 
     CellularDevice &_cellularDevice;
     CellularState _state;