diff --git a/libraries/tests/mbed/hello/main.cpp b/libraries/tests/mbed/hello/main.cpp
index 4b4b91f994..dc83e1c586 100644
--- a/libraries/tests/mbed/hello/main.cpp
+++ b/libraries/tests/mbed/hello/main.cpp
@@ -2,6 +2,6 @@
 
 int main()
 {
-    printf("Hello World\n");
+    printf("Hello World\r\n");
     while(1);
 }
diff --git a/libraries/tests/mbed/stdio/main.cpp b/libraries/tests/mbed/stdio/main.cpp
index f16e4741a8..81552d8715 100644
--- a/libraries/tests/mbed/stdio/main.cpp
+++ b/libraries/tests/mbed/stdio/main.cpp
@@ -7,24 +7,31 @@
  */
 
 int main() {
+    DigitalOut led1(LED1);
+    DigitalOut led2(LED2);
+    
     union {
         int value_int;
     };
 
     notify_start();
 
+    const char* PRINT_PATTERN = "MBED: Your value was: %d\r\n";
+    
     while (true)
     {
         // SCANF PRINTF family
         value_int = 0;
+        led1 = 1;
         scanf("%d", &value_int);
-        printf("Your value was: %d\r\n", value_int);
+        printf(PRINT_PATTERN, value_int);
+        led1 = 0;
 
         // FSCANF, FPRINTF family
         value_int = 0;
+        led2 = 1;
         fscanf(stdin, "%d", &value_int);
-        fprintf(stdout, "Your value was: %d\r\n", value_int);
-
-        //...
+        fprintf(stdout, PRINT_PATTERN, value_int);
+        led2 = 0;
     }
 }
diff --git a/workspace_tools/host_tests/dev_null_auto.py b/workspace_tools/host_tests/dev_null_auto.py
index cbcfdbb38a..630f07a96a 100644
--- a/workspace_tools/host_tests/dev_null_auto.py
+++ b/workspace_tools/host_tests/dev_null_auto.py
@@ -19,29 +19,42 @@ from host_test import DefaultTest
 from sys import stdout
 
 class DevNullTest(DefaultTest):
+
+    def check_readline(self, text):
+        """ Reads line from serial port and checks if text was part of read string
+        """
+        result = False
+        c = self.mbed.serial_readline()
+        if c is None:
+            self.print_result("ioerr_serial")
+            return None
+        if text in c:
+            result = True
+        return result
+
     def run(self):
         result = True
-        str = ''
-        for i in range(3):
-            c = self.mbed.serial_read(128)
-            if c is None:
-                self.print_result("ioerr_serial")
-                return
-            else:
-                str += c
-            # Check for expected and unexpected prints in Mbed output
-            if "re-routing stdout to /null" not in str:
-                result = False
-            if "printf redirected to /null" in str:
-                result = False
-            if "{failure}" in str:
-                result = False
-            if not result:
-                break
-        # Data from serial received correctly
-        print "Received %d bytes:"% len(str)
-        print str
-        stdout.flush()
+
+        # Test should print some text and later stop printing
+        res = self.check_readline("MBED: re-routing stdout to /null")
+        if not res:
+            # We haven't read preamble line
+            result = False
+        else:
+            # Check if there are printed characters
+            str = ''
+            for i in range(3):
+                c = self.mbed.serial_read(32)
+                if c is None:
+                    self.print_result("ioerr_serial")
+                    return
+                else:
+                    str += c
+                if len(str) > 0:
+                    result = False
+                    break
+            print "Received %d bytes: %s"% (len(str), str)
+            stdout.flush()
         if result:
             self.print_result('success')
         else:
diff --git a/workspace_tools/host_tests/hello_auto.py b/workspace_tools/host_tests/hello_auto.py
index 8361eb560d..0d5796267d 100644
--- a/workspace_tools/host_tests/hello_auto.py
+++ b/workspace_tools/host_tests/hello_auto.py
@@ -23,7 +23,7 @@ class HelloTest(DefaultTest):
     HELLO_WORLD = "Hello World"
 
     def run(self):
-        c = self.mbed.serial_read(128)
+        c = self.mbed.serial_readline()
         if c is None:
            self.print_result("ioerr_serial")
            return
@@ -39,7 +39,7 @@ class HelloTest(DefaultTest):
             res = re.search('^[$]+[0-9a-fA-F]+' + self.HELLO_WORLD, c)
             result = res is not None
         else:
-            result = (c.startswith(self.HELLO_WORLD))
+            result = self.HELLO_WORLD in c
 
         if result: # Hello World received
             self.print_result('success')
diff --git a/workspace_tools/host_tests/host_test.py b/workspace_tools/host_tests/host_test.py
index 00641e1f07..3fdcb10881 100644
--- a/workspace_tools/host_tests/host_test.py
+++ b/workspace_tools/host_tests/host_test.py
@@ -24,7 +24,7 @@ except ImportError, e:
 
 import os
 from optparse import OptionParser
-from time import sleep
+from time import sleep, time
 from sys import stdout
 
 # This is a little tricky. We need to add upper directory to path so
@@ -128,6 +128,22 @@ class Mbed:
                 result = None
         return result
 
+    def serial_readline(self, timeout=5):
+        """ Wraps self.mbed.serial object read method to read one line from serial port
+        """
+        result = ''
+        start = time()
+        while (time() - start) < timeout:
+            if self.serial:
+                try:
+                    c = self.serial.read(1)
+                    result += c
+                except:
+                    result = None
+                if c == '\n':
+                    break
+        return result
+
     def serial_write(self, write_buffer):
         """ Wraps self.mbed.serial object write method
         """
diff --git a/workspace_tools/host_tests/rtc_auto.py b/workspace_tools/host_tests/rtc_auto.py
index 91a196eb53..9cdcd829be 100644
--- a/workspace_tools/host_tests/rtc_auto.py
+++ b/workspace_tools/host_tests/rtc_auto.py
@@ -21,20 +21,17 @@ from time import strftime, gmtime
 from sys import stdout
 
 class RTCTest(DefaultTest):
-    PATTERN_RTC_VALUE = "^\[(\d+)\] \[(\d+-\d+-\d+ \d+:\d+:\d+ [AaPpMm]{2})\]\\n"
+    PATTERN_RTC_VALUE = "\[(\d+)\] \[(\d+-\d+-\d+ \d+:\d+:\d+ [AaPpMm]{2})\]"
     re_detect_rtc_value = re.compile(PATTERN_RTC_VALUE)
 
     def run(self):
         test_result = True
-        if self.mbed.serial_timeout(None) is None:
-            self.print_result("ioerr_serial")
-            return
         for i in range(0, 5):
-            c = self.mbed.serial_read(38)   # 38 len("[1256729742] [2009-10-28 11:35:42 AM]\n"
+            c = self.mbed.serial_readline()
             if c is None:
                 self.print_result("ioerr_serial")
                 return
-            stdout.flush()
+
             m = self.re_detect_rtc_value.search(c)
             if m and len(m.groups()):
                 sec = m.groups()[0]
@@ -46,6 +43,7 @@ class RTCTest(DefaultTest):
                 stdout.flush()
             else:
                 print c
+                stdout.fluch()
                 test_result = False
                 break
 
diff --git a/workspace_tools/host_tests/stdio_auto.py b/workspace_tools/host_tests/stdio_auto.py
index 55e026ddea..73f077524b 100644
--- a/workspace_tools/host_tests/stdio_auto.py
+++ b/workspace_tools/host_tests/stdio_auto.py
@@ -28,52 +28,39 @@ class StdioTest(DefaultTest):
     def run(self):
         test_result = True
 
-        # Let's wait for Mbed to print its readiness, usually "{{start}}"
-        if self.mbed.serial_timeout(None) is None:
-            self.print_result("ioerr_serial")
-            return
-
-        c = self.mbed.serial_read(len('{{start}}'))
+        c = self.mbed.serial_readline() # {{start}} preamble
         if c is None:
             self.print_result("ioerr_serial")
             return
         print c
         stdout.flush()
 
-        if self.mbed.serial_timeout(1) is None:
-            self.print_result("ioerr_serial")
-            return
-
-        for i in range(1, 5):
+        for i in range(0, 5):
             random_integer = random.randint(-99999, 99999)
-            print "Generated number: " + str(random_integer)
+            print "HOST: Generated number: " + str(random_integer)
             stdout.flush()
             self.mbed.serial_write(str(random_integer) + "\n")
-            serial_stdio_msg = ""
 
-            ip_msg_timeout = self.mbed.options.timeout
-            start_serial_pool = time();
-            while (time() - start_serial_pool) < ip_msg_timeout:
-                c = self.mbed.serial_read(512)
-                if c is None:
-                    self.print_result("ioerr_serial")
-                    return
-                stdout.write(c)
+            serial_stdio_msg = self.mbed.serial_readline()
+            if c is None:
+                self.print_result("ioerr_serial")
+                return
+            print serial_stdio_msg.strip()
+            stdout.flush()
+
+            # Searching for reply with scanned values
+            m = self.re_detect_int_value.search(serial_stdio_msg)
+            if m and len(m.groups()):
+                int_value = m.groups()[0]
+                int_value_cmp = random_integer == int(int_value)
+                test_result = test_result and int_value_cmp
+                print "Number read %s ... [%s]"% (int_value, "OK" if int_value_cmp else "FAIL")
+                print
                 stdout.flush()
-                serial_stdio_msg += c
-                # Searching for reply with scanned values
-                m = self.re_detect_int_value.search(serial_stdio_msg)
-                if m and len(m.groups()):
-                    duration = time() - start_serial_pool
-                    print "Number: " + str(m.groups()[0])
-                    test_result = test_result and (random_integer == int(m.groups()[0]))
-                    stdout.flush()
-                    break
             else:
-                print "Error: No data from MUT sent"
-                self.print_result('error')
-                exit(-2)
-
+                test_result = False
+                break
+                
         if test_result: # All numbers are the same
             self.print_result('success')
         else:
diff --git a/workspace_tools/tests.py b/workspace_tools/tests.py
index 01e83031df..8a71f4907d 100644
--- a/workspace_tools/tests.py
+++ b/workspace_tools/tests.py
@@ -339,7 +339,7 @@ TESTS = [
         "source_dir": join(TEST_DIR, "mbed", "sleep"),
         "dependencies": [MBED_LIBRARIES, TEST_MBED_LIB],
         "duration": 30,
-        "mcu": ["LPC1768", "LPC11U24", "LPC4088","NRF51822"]
+        "mcu": ["LPC1768", "LPC11U24", "LPC4088", "NRF51822"]
     },
     {
         "id": "MBED_5", "description": "PWM",