diff --git a/features/cellular/easy_cellular/CellularConnectionFSM.cpp b/features/cellular/easy_cellular/CellularConnectionFSM.cpp
index 388fab3cd4..e5f1638b2c 100644
--- a/features/cellular/easy_cellular/CellularConnectionFSM.cpp
+++ b/features/cellular/easy_cellular/CellularConnectionFSM.cpp
@@ -79,6 +79,10 @@ void CellularConnectionFSM::stop()
     if (_cellularDevice) {
         _cellularDevice->close_power();
         _cellularDevice->close_network();
+        _cellularDevice->close_sim();
+        _power = NULL;
+        _network = NULL;
+        _sim = NULL;
     }
     if (_queue_thread) {
         _queue_thread->terminate();
@@ -289,7 +293,7 @@ void CellularConnectionFSM::report_failure(const char* msg)
 
 const char* CellularConnectionFSM::get_state_string(CellularState state)
 {
-    static const char *strings[] = { "Init", "Power", "Device ready", "SIM pin", "Registering network", "Attaching network", "Connecting network", "Connected"};
+    static const char *strings[] = { "Init", "Power", "Device ready", "SIM pin", "Registering network", "Attaching network", "Activating PDP Context", "Connecting network", "Connected"};
     return strings[state];
 }
 
@@ -446,7 +450,7 @@ void CellularConnectionFSM::state_attaching()
     CellularNetwork::AttachStatus attach_status;
     if (get_attach_network(attach_status)) {
         if (attach_status == CellularNetwork::Attached) {
-            enter_to_state(STATE_CONNECTING_NETWORK);
+            enter_to_state(STATE_ACTIVATING_PDP_CONTEXT);
         } else {
             set_attach_network();
             retry_state_or_fail();
@@ -456,6 +460,18 @@ void CellularConnectionFSM::state_attaching()
     }
 }
 
+void CellularConnectionFSM::state_activating_pdp_context()
+{
+    _cellularDevice->set_timeout(TIMEOUT_CONNECT);
+    tr_info("Activate PDP Context (timeout %d ms)", TIMEOUT_CONNECT);
+    if (_network->activate_context() == NSAPI_ERROR_OK) {
+        // when using modems stack connect is synchronous
+        _next_state = STATE_CONNECTING_NETWORK;
+    } else {
+        retry_state_or_fail();
+    }
+}
+
 void CellularConnectionFSM::state_connect_to_network()
 {
     _cellularDevice->set_timeout(TIMEOUT_CONNECT);
@@ -501,6 +517,9 @@ void CellularConnectionFSM::event()
         case STATE_ATTACHING_NETWORK:
             state_attaching();
             break;
+        case STATE_ACTIVATING_PDP_CONTEXT:
+            state_activating_pdp_context();
+            break;
         case STATE_CONNECTING_NETWORK:
             state_connect_to_network();
             break;
diff --git a/features/cellular/easy_cellular/CellularConnectionFSM.h b/features/cellular/easy_cellular/CellularConnectionFSM.h
index 92e62099d3..37bbe98f3b 100644
--- a/features/cellular/easy_cellular/CellularConnectionFSM.h
+++ b/features/cellular/easy_cellular/CellularConnectionFSM.h
@@ -59,6 +59,7 @@ public:
         STATE_SIM_PIN,
         STATE_REGISTERING_NETWORK,
         STATE_ATTACHING_NETWORK,
+        STATE_ACTIVATING_PDP_CONTEXT,
         STATE_CONNECTING_NETWORK,
         STATE_CONNECTED
     };
@@ -120,10 +121,10 @@ public:
     CellularSIM* get_sim();
 
     /** Change cellular connection to the target state
-     *  @param state to continue
+     *  @param state to continue. Default is to connect.
      *  @return see nsapi_error_t, 0 on success
      */
-    nsapi_error_t continue_to_state(CellularState state);
+    nsapi_error_t continue_to_state(CellularState state = STATE_CONNECTED);
 
     /** Set cellular device SIM PIN code
      *  @param sim_pin PIN code
@@ -157,6 +158,7 @@ private:
     void state_sim_pin();
     void state_registering();
     void state_attaching();
+    void state_activating_pdp_context();
     void state_connect_to_network();
     void state_connected();
     void enter_to_state(CellularState state);
diff --git a/features/cellular/framework/AT/AT_CellularNetwork.cpp b/features/cellular/framework/AT/AT_CellularNetwork.cpp
index 59bddab888..b912c3bb57 100644
--- a/features/cellular/framework/AT/AT_CellularNetwork.cpp
+++ b/features/cellular/framework/AT/AT_CellularNetwork.cpp
@@ -259,6 +259,8 @@ nsapi_error_t AT_CellularNetwork::activate_context()
     // If new PDP context was created and failed to activate, delete it
     if (err != NSAPI_ERROR_OK && _new_context_set) {
         delete_current_context();
+    } else if (err == NSAPI_ERROR_OK) {
+        _is_context_active = true;
     }
 
     _at.unlock();