diff --git a/drivers/wifi/esp_at/esp.c b/drivers/wifi/esp_at/esp.c
index 4df808c1480..5722928ac0e 100644
--- a/drivers/wifi/esp_at/esp.c
+++ b/drivers/wifi/esp_at/esp.c
@@ -1177,7 +1177,7 @@ static void esp_init_work(struct k_work *work)
 static int esp_reset(const struct device *dev)
 {
 	struct esp_data *data = dev->data;
-	int ret;
+	int ret = -EAGAIN;
 
 	if (net_if_is_carrier_ok(data->net_iface)) {
 		net_if_carrier_off(data->net_iface);
@@ -1196,9 +1196,14 @@ static int esp_reset(const struct device *dev)
 	k_sleep(K_MSEC(100));
 	gpio_pin_set_dt(&config->reset, 0);
 #else
+#if DT_INST_NODE_HAS_PROP(0, external_reset)
+	/* Wait to see if the interface comes up by itself */
+	ret = k_sem_take(&data->sem_if_ready, K_MSEC(CONFIG_WIFI_ESP_AT_RESET_TIMEOUT));
+#endif
 	int retries = 3;
 
-	while (retries--) {
+	/* Don't need to run this if the interface came up by itself */
+	while ((ret != 0) && retries--) {
 		ret = modem_cmd_send(&data->mctx.iface, &data->mctx.cmd_handler,
 				     NULL, 0, "AT+RST", &data->sem_if_ready,
 				     K_MSEC(CONFIG_WIFI_ESP_AT_RESET_TIMEOUT));
diff --git a/dts/bindings/wifi/espressif,esp-at.yaml b/dts/bindings/wifi/espressif,esp-at.yaml
index 312db8b5727..33f9a492bfe 100644
--- a/dts/bindings/wifi/espressif,esp-at.yaml
+++ b/dts/bindings/wifi/espressif,esp-at.yaml
@@ -14,6 +14,12 @@ properties:
   reset-gpios:
     type: phandle-array
 
+  external-reset:
+    type: boolean
+    description:
+      Modem is reset by an external source. In most situations this will
+      be the microcontroller and the ESP modem on a common reset line.
+
   target-speed:
     type: int
     description: