diff --git a/gns3server/main.py b/gns3server/main.py
index 07b18201..10ed2bf9 100644
--- a/gns3server/main.py
+++ b/gns3server/main.py
@@ -30,6 +30,7 @@ import gns3server.utils.get_resource
 
 import os
 import sys
+import types
 
 # To avoid strange bug later we switch the event loop before any other operation
 if sys.platform.startswith("win"):
@@ -38,6 +39,9 @@ if sys.platform.startswith("win"):
     loop = asyncio.ProactorEventLoop()
     asyncio.set_event_loop(loop)
 
+if sys.platform.startswith("win"):
+    sys.modules['termios'] = types.ModuleType('termios')
+
 
 def daemonize():
     """
diff --git a/gns3server/utils/asyncio/embed_shell.py b/gns3server/utils/asyncio/embed_shell.py
index fac81d3f..6c7d9828 100644
--- a/gns3server/utils/asyncio/embed_shell.py
+++ b/gns3server/utils/asyncio/embed_shell.py
@@ -20,7 +20,18 @@ import sys
 import asyncio
 import inspect
 
-from .telnet_server import AsyncioTelnetServer
+from prompt_toolkit import prompt
+from prompt_toolkit.history import InMemoryHistory
+from prompt_toolkit.contrib.completers import WordCompleter
+from prompt_toolkit.enums import DEFAULT_BUFFER
+from prompt_toolkit.eventloop.base import EventLoop
+from prompt_toolkit.interface import CommandLineInterface
+from prompt_toolkit.layout.screen import Size
+from prompt_toolkit.shortcuts import create_prompt_application, create_asyncio_eventloop
+from prompt_toolkit.terminal.vt100_output import Vt100_Output
+
+from .telnet_server import AsyncioTelnetServer, TelnetConnection
+from .input_stream import InputStream
 
 
 class EmbedShell:
@@ -60,6 +71,14 @@ class EmbedShell:
     def prompt(self, val):
         self._prompt = val
 
+    @property
+    def welcome_message(self):
+        return self._welcome_message
+
+    @welcome_message.setter
+    def welcome_message(self, welcome_message):
+        self._welcome_message = welcome_message
+
     @asyncio.coroutine
     def help(self, *args):
         """
@@ -90,6 +109,11 @@ class EmbedShell:
         found = False
         if cmd[0] == '?':
             cmd[0] = 'help'
+
+        # when there is no command specified just return empty result
+        if not cmd[0].strip():
+            return ""
+
         for (name, meth) in inspect.getmembers(self):
             if name == cmd[0]:
                 cmd.pop(0)
@@ -97,7 +121,7 @@ class EmbedShell:
                 found = True
                 break
         if not found:
-            res = ('Command not found {}'.format(cmd[0]) + (yield from self.help()))
+            res = ('Command not found {}\n'.format(cmd[0]) + (yield from self.help()))
         return res
 
     @asyncio.coroutine
@@ -111,29 +135,140 @@ class EmbedShell:
             res = yield from self._parse_command(result)
             self._writer.feed_data(res.encode())
 
+    def get_commands(self):
+        """
+        Returns commands available to execute
+        :return: list of (name, doc) tuples
+        """
+        commands = []
+        for name, value in inspect.getmembers(self):
+            if not inspect.isgeneratorfunction(value):
+                continue
+            if name.startswith('_') or name == 'run':
+                continue
+            doc = inspect.getdoc(value)
+            commands.append((name, doc))
+        return commands
+
+
+class UnstoppableEventLoop(EventLoop):
+    """
+    Partially fake event loop which cannot be stopped by CommandLineInterface
+    """
+    def __init__(self, loop):
+        self._loop = loop
+
+    def close(self):
+        " Ignore. "
+
+    def stop(self):
+        " Ignore. "
+
+    def run_in_executor(self, *args, **kwargs):
+        return self._loop.run_in_executor(*args, **kwargs)
+
+    def call_from_executor(self, callback, **kwargs):
+        self._loop.call_from_executor(callback, **kwargs)
+
+    def add_reader(self, fd, callback):
+        raise NotImplementedError
+
+    def remove_reader(self, fd):
+        raise NotImplementedError
+
+
+class ShellConnection(TelnetConnection):
+    def __init__(self, reader, writer, shell, loop):
+        super(ShellConnection, self).__init__(reader, writer)
+        self._shell = shell
+        self._loop = loop
+        self._cli = None
+        self._cb = None
+        self._size = Size(rows=40, columns=79)
+        self.encoding = 'utf-8'
+
+
+    @asyncio.coroutine
+    def connected(self):
+        def get_size():
+            return self._size
+
+        self._cli = CommandLineInterface(
+            application=create_prompt_application(self._shell.prompt),
+            eventloop=UnstoppableEventLoop(create_asyncio_eventloop(self._loop)),
+            output=Vt100_Output(self, get_size))
+
+        self._cb = self._cli.create_eventloop_callbacks()
+        self._inputstream = InputStream(self._cb.feed_key)
+        # Taken from prompt_toolkit telnet server
+        # https://github.com/jonathanslenders/python-prompt-toolkit/blob/99fa7fae61c9b4ed9767ead3b4f9b1318cfa875d/prompt_toolkit/contrib/telnet/server.py#L165
+        self._cli._is_running = True
+
+        if self._shell.welcome_message is not None:
+            self.send(self._shell.welcome_message.encode())
+
+        self._cli._redraw()
+
+    @asyncio.coroutine
+    def disconnected(self):
+        pass
+
+    def window_size_changed(self, columns, rows):
+        self._size = Size(rows=rows, columns=columns)
+        self._cb.terminal_size_changed()
+
+    @asyncio.coroutine
+    def feed(self, data):
+        data = data.decode()
+        self._inputstream.feed(data)
+        self._cli._redraw()
+
+        # Prompt toolkit has returned the command
+        if self._cli.is_returning:
+            try:
+                returned_value = self._cli.return_value()
+            except (EOFError, KeyboardInterrupt) as e:
+                # don't close terminal, just keep it alive
+                self.close()
+                return
+
+            command = returned_value.text
+
+            res = yield from self._shell._parse_command(command)
+            self.send(res.encode())
+            self.reset()
+
+    def reset(self):
+        """ Resets terminal screen"""
+        self._cli.reset()
+        self._cli.buffers[DEFAULT_BUFFER].reset()
+        self._cli.renderer.request_absolute_cursor_position()
+        self._cli._redraw()
+
+    def write(self, data):
+        """ Compat with CLI"""
+        self.send(data)
+
+    def flush(self):
+        """ Compat with CLI"""
+        pass
+
 
 def create_telnet_shell(shell, loop=None):
     """
     Run a shell application with a telnet frontend
-
     :param application: An EmbedShell instance
     :param loop: The event loop
     :returns: Telnet server
     """
-    class Stream(asyncio.StreamReader):
 
-        def write(self, data):
-            self.feed_data(data)
-
-        @asyncio.coroutine
-        def drain(self):
-            pass
-    shell.reader = Stream()
-    shell.writer = Stream()
     if loop is None:
         loop = asyncio.get_event_loop()
-    loop.create_task(shell.run())
-    return AsyncioTelnetServer(reader=shell.writer, writer=shell.reader, binary=False, echo=False)
+
+    def factory(reader, writer):
+        return ShellConnection(reader, writer, shell, loop)
+
+    return AsyncioTelnetServer(binary=True, echo=True, naws=True, connection_factory=factory)
 
 
 def create_stdin_shell(shell, loop=None):
@@ -145,9 +280,13 @@ def create_stdin_shell(shell, loop=None):
     :returns: Telnet server
     """
     @asyncio.coroutine
-    def feed_stdin(loop, reader):
+    def feed_stdin(loop, reader, shell):
+        history = InMemoryHistory()
+        completer = WordCompleter([name for name, _ in shell.get_commands()], ignore_case=True)
         while True:
-            line = yield from loop.run_in_executor(None, sys.stdin.readline)
+            line = yield from prompt(
+                ">", patch_stdout=True, return_asyncio_coroutine=True, history=history, completer=completer)
+            line += '\n'
             reader.feed_data(line.encode())
 
     @asyncio.coroutine
@@ -164,7 +303,7 @@ def create_stdin_shell(shell, loop=None):
     if loop is None:
         loop = asyncio.get_event_loop()
 
-    reader_task = loop.create_task(feed_stdin(loop, reader))
+    reader_task = loop.create_task(feed_stdin(loop, reader, shell))
     writer_task = loop.create_task(read_stdout(writer))
     shell_task = loop.create_task(shell.run())
     return asyncio.gather(shell_task, writer_task, reader_task)
@@ -181,20 +320,26 @@ if __name__ == '__main__':
 
             This command accept arguments: hello tutu will display tutu
             """
-            if len(args):
-                return ' '.join(args)
-            else:
-                return 'world\n'
+            @asyncio.coroutine
+            def world():
+                yield from asyncio.sleep(2)
+                if len(args):
+                    return ' '.join(args)
+                else:
+                    return 'world\n'
+
+            return (yield from world())
 
     # Demo using telnet
-    # server = create_telnet_shell(Demo())
-    # coro = asyncio.start_server(server.run, '127.0.0.1', 4444, loop=loop)
-    # s = loop.run_until_complete(coro)
-    # try:
-    #     loop.run_forever()
-    # except KeyboardInterrupt:
-    #     pass
+    shell = Demo(welcome_message="Welcome!\n")
+    server = create_telnet_shell(shell, loop=loop)
+    coro = asyncio.start_server(server.run, '127.0.0.1', 4444, loop=loop)
+    s = loop.run_until_complete(coro)
+    try:
+        loop.run_forever()
+    except KeyboardInterrupt:
+        pass
 
     # Demo using stdin
-    loop.run_until_complete(create_stdin_shell(Demo()))
-    loop.close()
+    # loop.run_until_complete(create_stdin_shell(Demo()))
+    # loop.close()
diff --git a/gns3server/utils/asyncio/input_stream.py b/gns3server/utils/asyncio/input_stream.py
new file mode 100644
index 00000000..c80dc8f6
--- /dev/null
+++ b/gns3server/utils/asyncio/input_stream.py
@@ -0,0 +1,419 @@
+"""
+Parser for VT100 input stream.
+"""
+
+# Copied from prompt_toolkit/terminal/vt100_input.py due to dependency on termios (which is not available on Windows)
+
+from __future__ import unicode_literals
+
+import re
+import six
+
+from six.moves import range
+
+from prompt_toolkit.keys import Keys
+from prompt_toolkit.key_binding.input_processor import KeyPress
+
+__all__ = (
+    'InputStream',
+    'raw_mode',
+    'cooked_mode',
+)
+
+_DEBUG_RENDERER_INPUT = False
+_DEBUG_RENDERER_INPUT_FILENAME = 'prompt-toolkit-render-input.log'
+
+
+# Regex matching any CPR response
+# (Note that we use '\Z' instead of '$', because '$' could include a trailing
+# newline.)
+_cpr_response_re = re.compile('^' + re.escape('\x1b[') + r'\d+;\d+R\Z')
+
+# Mouse events:
+# Typical: "Esc[MaB*"  Urxvt: "Esc[96;14;13M" and for Xterm SGR: "Esc[<64;85;12M"
+_mouse_event_re = re.compile('^' + re.escape('\x1b[') + r'(<?[\d;]+[mM]|M...)\Z')
+
+# Regex matching any valid prefix of a CPR response.
+# (Note that it doesn't contain the last character, the 'R'. The prefix has to
+# be shorter.)
+_cpr_response_prefix_re = re.compile('^' + re.escape('\x1b[') + r'[\d;]*\Z')
+
+_mouse_event_prefix_re = re.compile('^' + re.escape('\x1b[') + r'(<?[\d;]*|M.{0,2})\Z')
+
+
+class _Flush(object):
+    """ Helper object to indicate flush operation to the parser. """
+    pass
+
+
+# Mapping of vt100 escape codes to Keys.
+ANSI_SEQUENCES = {
+    '\x1b': Keys.Escape,
+
+    '\x00': Keys.ControlSpace,  # Control-Space (Also for Ctrl-@)
+    '\x01': Keys.ControlA,  # Control-A (home)
+    '\x02': Keys.ControlB,  # Control-B (emacs cursor left)
+    '\x03': Keys.ControlC,  # Control-C (interrupt)
+    '\x04': Keys.ControlD,  # Control-D (exit)
+    '\x05': Keys.ControlE,  # Contrel-E (end)
+    '\x06': Keys.ControlF,  # Control-F (cursor forward)
+    '\x07': Keys.ControlG,  # Control-G
+    '\x08': Keys.ControlH,  # Control-H (8) (Identical to '\b')
+    '\x09': Keys.ControlI,  # Control-I (9) (Identical to '\t')
+    '\x0a': Keys.ControlJ,  # Control-J (10) (Identical to '\n')
+    '\x0b': Keys.ControlK,  # Control-K (delete until end of line; vertical tab)
+    '\x0c': Keys.ControlL,  # Control-L (clear; form feed)
+    '\x0d': Keys.ControlM,  # Control-M (13) (Identical to '\r')
+    '\x0e': Keys.ControlN,  # Control-N (14) (history forward)
+    '\x0f': Keys.ControlO,  # Control-O (15)
+    '\x10': Keys.ControlP,  # Control-P (16) (history back)
+    '\x11': Keys.ControlQ,  # Control-Q
+    '\x12': Keys.ControlR,  # Control-R (18) (reverse search)
+    '\x13': Keys.ControlS,  # Control-S (19) (forward search)
+    '\x14': Keys.ControlT,  # Control-T
+    '\x15': Keys.ControlU,  # Control-U
+    '\x16': Keys.ControlV,  # Control-V
+    '\x17': Keys.ControlW,  # Control-W
+    '\x18': Keys.ControlX,  # Control-X
+    '\x19': Keys.ControlY,  # Control-Y (25)
+    '\x1a': Keys.ControlZ,  # Control-Z
+
+    '\x1c': Keys.ControlBackslash,  # Both Control-\ and Ctrl-|
+    '\x1d': Keys.ControlSquareClose,  # Control-]
+    '\x1e': Keys.ControlCircumflex,  # Control-^
+    '\x1f': Keys.ControlUnderscore,  # Control-underscore (Also for Ctrl-hypen.)
+    '\x7f': Keys.Backspace,  # (127) Backspace
+    '\x1b[A': Keys.Up,
+    '\x1b[B': Keys.Down,
+    '\x1b[C': Keys.Right,
+    '\x1b[D': Keys.Left,
+    '\x1b[H': Keys.Home,
+    '\x1bOH': Keys.Home,
+    '\x1b[F': Keys.End,
+    '\x1bOF': Keys.End,
+    '\x1b[3~': Keys.Delete,
+    '\x1b[3;2~': Keys.ShiftDelete,  # xterm, gnome-terminal.
+    '\x1b[3;5~': Keys.ControlDelete,  # xterm, gnome-terminal.
+    '\x1b[1~': Keys.Home,  # tmux
+    '\x1b[4~': Keys.End,  # tmux
+    '\x1b[5~': Keys.PageUp,
+    '\x1b[6~': Keys.PageDown,
+    '\x1b[7~': Keys.Home,  # xrvt
+    '\x1b[8~': Keys.End,  # xrvt
+    '\x1b[Z': Keys.BackTab,  # shift + tab
+    '\x1b[2~': Keys.Insert,
+
+    '\x1bOP': Keys.F1,
+    '\x1bOQ': Keys.F2,
+    '\x1bOR': Keys.F3,
+    '\x1bOS': Keys.F4,
+    '\x1b[[A': Keys.F1,  # Linux console.
+    '\x1b[[B': Keys.F2,  # Linux console.
+    '\x1b[[C': Keys.F3,  # Linux console.
+    '\x1b[[D': Keys.F4,  # Linux console.
+    '\x1b[[E': Keys.F5,  # Linux console.
+    '\x1b[11~': Keys.F1,  # rxvt-unicode
+    '\x1b[12~': Keys.F2,  # rxvt-unicode
+    '\x1b[13~': Keys.F3,  # rxvt-unicode
+    '\x1b[14~': Keys.F4,  # rxvt-unicode
+    '\x1b[15~': Keys.F5,
+    '\x1b[17~': Keys.F6,
+    '\x1b[18~': Keys.F7,
+    '\x1b[19~': Keys.F8,
+    '\x1b[20~': Keys.F9,
+    '\x1b[21~': Keys.F10,
+    '\x1b[23~': Keys.F11,
+    '\x1b[24~': Keys.F12,
+    '\x1b[25~': Keys.F13,
+    '\x1b[26~': Keys.F14,
+    '\x1b[28~': Keys.F15,
+    '\x1b[29~': Keys.F16,
+    '\x1b[31~': Keys.F17,
+    '\x1b[32~': Keys.F18,
+    '\x1b[33~': Keys.F19,
+    '\x1b[34~': Keys.F20,
+
+    # Xterm
+    '\x1b[1;2P': Keys.F13,
+    '\x1b[1;2Q': Keys.F14,
+    # '\x1b[1;2R': Keys.F15,  # Conflicts with CPR response.
+    '\x1b[1;2S': Keys.F16,
+    '\x1b[15;2~': Keys.F17,
+    '\x1b[17;2~': Keys.F18,
+    '\x1b[18;2~': Keys.F19,
+    '\x1b[19;2~': Keys.F20,
+    '\x1b[20;2~': Keys.F21,
+    '\x1b[21;2~': Keys.F22,
+    '\x1b[23;2~': Keys.F23,
+    '\x1b[24;2~': Keys.F24,
+
+    '\x1b[1;5A': Keys.ControlUp,     # Cursor Mode
+    '\x1b[1;5B': Keys.ControlDown,   # Cursor Mode
+    '\x1b[1;5C': Keys.ControlRight,  # Cursor Mode
+    '\x1b[1;5D': Keys.ControlLeft,   # Cursor Mode
+
+    '\x1b[1;2A': Keys.ShiftUp,
+    '\x1b[1;2B': Keys.ShiftDown,
+    '\x1b[1;2C': Keys.ShiftRight,
+    '\x1b[1;2D': Keys.ShiftLeft,
+
+    # Tmux sends following keystrokes when control+arrow is pressed, but for
+    # Emacs ansi-term sends the same sequences for normal arrow keys. Consider
+    # it a normal arrow press, because that's more important.
+    '\x1bOA': Keys.Up,
+    '\x1bOB': Keys.Down,
+    '\x1bOC': Keys.Right,
+    '\x1bOD': Keys.Left,
+
+    '\x1b[5A': Keys.ControlUp,
+    '\x1b[5B': Keys.ControlDown,
+    '\x1b[5C': Keys.ControlRight,
+    '\x1b[5D': Keys.ControlLeft,
+
+    '\x1bOc': Keys.ControlRight, # rxvt
+    '\x1bOd': Keys.ControlLeft,  # rxvt
+
+    '\x1b[200~': Keys.BracketedPaste,  # Start of bracketed paste.
+
+    # Meta + arrow keys. Several terminals handle this differently.
+    # The following sequences are for xterm and gnome-terminal.
+    #     (Iterm sends ESC followed by the normal arrow_up/down/left/right
+    #     sequences, and the OSX Terminal sends ESCb and ESCf for "alt
+    #     arrow_left" and "alt arrow_right." We don't handle these
+    #     explicitely, in here, because would could not distinguesh between
+    #     pressing ESC (to go to Vi navigation mode), followed by just the
+    #     'b' or 'f' key. These combinations are handled in
+    #     the input processor.)
+    '\x1b[1;3D': (Keys.Escape, Keys.Left),
+    '\x1b[1;3C': (Keys.Escape, Keys.Right),
+    '\x1b[1;3A': (Keys.Escape, Keys.Up),
+    '\x1b[1;3B': (Keys.Escape, Keys.Down),
+
+    # Sequences generated by numpad 5. Not sure what it means. (It doesn't
+    # appear in 'infocmp'. Just ignore.
+    '\x1b[E': Keys.Ignore,  # Xterm.
+    '\x1b[G': Keys.Ignore,  # Linux console.
+}
+
+
+class _IsPrefixOfLongerMatchCache(dict):
+    """
+    Dictiory that maps input sequences to a boolean indicating whether there is
+    any key that start with this characters.
+    """
+    def __missing__(self, prefix):
+        # (hard coded) If this could be a prefix of a CPR response, return
+        # True.
+        if (_cpr_response_prefix_re.match(prefix) or _mouse_event_prefix_re.match(prefix)):
+            result = True
+        else:
+            # If this could be a prefix of anything else, also return True.
+            result = any(v for k, v in ANSI_SEQUENCES.items() if k.startswith(prefix) and k != prefix)
+
+        self[prefix] = result
+        return result
+
+
+_IS_PREFIX_OF_LONGER_MATCH_CACHE = _IsPrefixOfLongerMatchCache()
+
+
+class InputStream(object):
+    """
+    Parser for VT100 input stream.
+
+    Feed the data through the `feed` method and the correct callbacks of the
+    `input_processor` will be called.
+
+    ::
+
+        def callback(key):
+            pass
+        i = InputStream(callback)
+        i.feed('data\x01...')
+
+    :attr input_processor: :class:`~prompt_toolkit.key_binding.InputProcessor` instance.
+    """
+    # Lookup table of ANSI escape sequences for a VT100 terminal
+    # Hint: in order to know what sequences your terminal writes to stdin, run
+    #       "od -c" and start typing.
+    def __init__(self, feed_key_callback):
+        assert callable(feed_key_callback)
+
+        self.feed_key_callback = feed_key_callback
+        self.reset()
+
+        if _DEBUG_RENDERER_INPUT:
+            self.LOG = open(_DEBUG_RENDERER_INPUT_FILENAME, 'ab')
+
+    def reset(self, request=False):
+        self._in_bracketed_paste = False
+        self._start_parser()
+
+    def _start_parser(self):
+        """
+        Start the parser coroutine.
+        """
+        self._input_parser = self._input_parser_generator()
+        self._input_parser.send(None)
+
+    def _get_match(self, prefix):
+        """
+        Return the key that maps to this prefix.
+        """
+        # (hard coded) If we match a CPR response, return Keys.CPRResponse.
+        # (This one doesn't fit in the ANSI_SEQUENCES, because it contains
+        # integer variables.)
+        if _cpr_response_re.match(prefix):
+            return Keys.CPRResponse
+
+        elif _mouse_event_re.match(prefix):
+            return Keys.Vt100MouseEvent
+
+        # Otherwise, use the mappings.
+        try:
+            return ANSI_SEQUENCES[prefix]
+        except KeyError:
+            return None
+
+    def _input_parser_generator(self):
+        """
+        Coroutine (state machine) for the input parser.
+        """
+        prefix = ''
+        retry = False
+        flush = False
+
+        while True:
+            flush = False
+
+            if retry:
+                retry = False
+            else:
+                # Get next character.
+                c = yield
+
+                if c == _Flush:
+                    flush = True
+                else:
+                    prefix += c
+
+            # If we have some data, check for matches.
+            if prefix:
+                is_prefix_of_longer_match = _IS_PREFIX_OF_LONGER_MATCH_CACHE[prefix]
+                match = self._get_match(prefix)
+
+                # Exact matches found, call handlers..
+                if (flush or not is_prefix_of_longer_match) and match:
+                    self._call_handler(match, prefix)
+                    prefix = ''
+
+                # No exact match found.
+                elif (flush or not is_prefix_of_longer_match) and not match:
+                    found = False
+                    retry = True
+
+                    # Loop over the input, try the longest match first and
+                    # shift.
+                    for i in range(len(prefix), 0, -1):
+                        match= self._get_match(prefix[:i])
+                        if match:
+                            self._call_handler(match, prefix[:i])
+                            prefix = prefix[i:]
+                            found = True
+
+                    if not found:
+                        self._call_handler(prefix[0], prefix[0])
+                        prefix = prefix[1:]
+
+    def _call_handler(self, key, insert_text):
+        """
+        Callback to handler.
+        """
+        if isinstance(key, tuple):
+            for k in key:
+                self._call_handler(k, insert_text)
+        else:
+            if key == Keys.BracketedPaste:
+                self._in_bracketed_paste = True
+                self._paste_buffer = ''
+            else:
+                self.feed_key_callback(KeyPress(key, insert_text))
+
+    def feed(self, data):
+        """
+        Feed the input stream.
+
+        :param data: Input string (unicode).
+        """
+        assert isinstance(data, six.text_type)
+
+        if _DEBUG_RENDERER_INPUT:
+            self.LOG.write(repr(data).encode('utf-8') + b'\n')
+            self.LOG.flush()
+
+        # Handle bracketed paste. (We bypass the parser that matches all other
+        # key presses and keep reading input until we see the end mark.)
+        # This is much faster then parsing character by character.
+        if self._in_bracketed_paste:
+            self._paste_buffer += data
+            end_mark = '\x1b[201~'
+
+            if end_mark in self._paste_buffer:
+                end_index = self._paste_buffer.index(end_mark)
+
+                # Feed content to key bindings.
+                paste_content = self._paste_buffer[:end_index]
+                self.feed_key_callback(KeyPress(Keys.BracketedPaste, paste_content))
+
+                # Quit bracketed paste mode and handle remaining input.
+                self._in_bracketed_paste = False
+                remaining = self._paste_buffer[end_index + len(end_mark):]
+                self._paste_buffer = ''
+
+                self.feed(remaining)
+
+        # Handle normal input character by character.
+        else:
+            for i, c in enumerate(data):
+                if self._in_bracketed_paste:
+                    # Quit loop and process from this position when the parser
+                    # entered bracketed paste.
+                    self.feed(data[i:])
+                    break
+                else:
+                    # Replace \r by \n. (Some clients send \r instead of \n
+                    # when enter is pressed. E.g. telnet and some other
+                    # terminals.)
+
+                    # XXX: We should remove this in a future version. It *is*
+                    #      now possible to recognise the difference.
+                    #      (We remove ICRNL/INLCR/IGNCR below.)
+                    #      However, this breaks IPython and maybe other applications,
+                    #      because they bind ControlJ (\n) for handling the Enter key.
+
+                    #      When this is removed, replace Enter=ControlJ by
+                    #      Enter=ControlM in keys.py.
+                    if c == '\r':
+                        c = '\n'
+                    self._input_parser.send(c)
+
+    def flush(self):
+        """
+        Flush the buffer of the input stream.
+
+        This will allow us to handle the escape key (or maybe meta) sooner.
+        The input received by the escape key is actually the same as the first
+        characters of e.g. Arrow-Up, so without knowing what follows the escape
+        sequence, we don't know whether escape has been pressed, or whether
+        it's something else. This flush function should be called after a
+        timeout, and processes everything that's still in the buffer as-is, so
+        without assuming any characters will folow.
+        """
+        self._input_parser.send(_Flush)
+
+    def feed_and_flush(self, data):
+        """
+        Wrapper around ``feed`` and ``flush``.
+        """
+        self.feed(data)
+        self.flush()
diff --git a/gns3server/utils/asyncio/telnet_server.py b/gns3server/utils/asyncio/telnet_server.py
index e1ffc61f..714a0b1c 100644
--- a/gns3server/utils/asyncio/telnet_server.py
+++ b/gns3server/utils/asyncio/telnet_server.py
@@ -18,6 +18,7 @@
 import re
 import asyncio
 import asyncio.subprocess
+import struct
 
 import logging
 log = logging.getLogger(__name__)
@@ -57,12 +58,73 @@ LINEMO = 34     # Line Mode
 READ_SIZE = 1024
 
 
+class TelnetConnection(object):
+    """Default implementation of telnet connection which may but may not be used."""
+    def __init__(self, reader, writer):
+        self.is_closing = False
+        self._reader = reader
+        self._writer = writer
+
+    @property
+    def reader(self):
+        return self._reader
+
+    @property
+    def writer(self):
+        return self._writer
+
+    @asyncio.coroutine
+    def connected(self):
+        """Method called when client is connected"""
+        pass
+
+    @asyncio.coroutine
+    def disconnected(self):
+        """Method called when client is disconnecting"""
+        pass
+
+    def window_size_changed(self, columns, rows):
+        """Method called when window size changed, only can occur when
+         `naws` flag is enable in server configuration."""
+        pass
+
+    def feed(self, data):
+        """
+        Handles incoming data
+        :return:
+        """
+
+    def send(self, data):
+        """
+        Sending data back to client
+        :return:
+        """
+        data = data.decode().replace("\n", "\r\n")
+        self.writer.write(data.encode())
+
+    def close(self):
+        """
+        Closes current connection
+        :return:
+        """
+        self.is_closing = True
+
+
 class AsyncioTelnetServer:
+    MAX_NEGOTIATION_READ = 10
+
+    def __init__(self, reader=None, writer=None, binary=True, echo=False, naws=False, connection_factory=None):
+        """
+        Initializes telnet server
+        :param naws when True make a window size negotiation
+        :param connection_factory: when set it's possible to inject own implementation of connection
+        """
+        assert connection_factory is None or (connection_factory is not None and reader is None and writer is None), \
+            "Please use either reader and writer either connection_factory, otherwise duplicate data may be produced."
 
-    def __init__(self, reader=None, writer=None, binary=True, echo=False):
         self._reader = reader
         self._writer = writer
-        self._clients = set()
+        self._connections = dict()
         self._lock = asyncio.Lock()
         self._reader_process = None
         self._current_read = None
@@ -72,6 +134,15 @@ class AsyncioTelnetServer:
         # the data is echo on his terminal by telnet otherwise
         # it's our job (or the wrapped app) to send back the data
         self._echo = echo
+        self._naws = naws
+
+        def default_connection_factory(reader, writer):
+            return TelnetConnection(reader, writer)
+
+        if connection_factory is None:
+            connection_factory = default_connection_factory
+
+        self._connection_factory = connection_factory
 
     @staticmethod
     @asyncio.coroutine
@@ -86,7 +157,7 @@ class AsyncioTelnetServer:
         yield from writer.drain()
 
     @asyncio.coroutine
-    def _write_intro(self, writer, binary=False, echo=False):
+    def _write_intro(self, writer, binary=False, echo=False, naws=False):
         # Send initial telnet session opening
         if echo:
             writer.write(bytes([IAC, WILL, ECHO]))
@@ -106,17 +177,23 @@ class AsyncioTelnetServer:
                 IAC, DONT, SGA,
                 IAC, WONT, BINARY,
                 IAC, DONT, BINARY]))
+
+        if naws:
+            writer.write(bytes([
+                IAC, DO, NAWS
+            ]))
         yield from writer.drain()
 
     @asyncio.coroutine
     def run(self, network_reader, network_writer):
         # Keep track of connected clients
-        self._clients.add(network_writer)
+        connection = self._connection_factory(network_reader, network_writer)
+        self._connections[network_writer] = connection
 
         try:
-            yield from self._write_intro(network_writer, echo=self._echo, binary=self._binary)
-
-            yield from self._process(network_reader, network_writer)
+            yield from self._write_intro(network_writer, echo=self._echo, binary=self._binary, naws=self._naws)
+            yield from connection.connected()
+            yield from self._process(network_reader, network_writer, connection)
         except ConnectionResetError:
             with (yield from self._lock):
 
@@ -125,8 +202,15 @@ class AsyncioTelnetServer:
                 if self._reader_process == network_reader:
                     self._reader_process = None
                     # Cancel current read from this reader
-                    self._current_read.cancel()
-            self._clients.remove(network_writer)
+                    if self._current_read is not None:
+                        self._current_read.cancel()
+
+            yield from connection.disconnected()
+            del self._connections[network_writer]
+
+    @asyncio.coroutine
+    def client_connected_hook(self):
+        pass
 
     @asyncio.coroutine
     def _get_reader(self, network_reader):
@@ -136,13 +220,14 @@ class AsyncioTelnetServer:
         with (yield from self._lock):
             if self._reader_process is None:
                 self._reader_process = network_reader
-            if self._reader_process == network_reader:
-                self._current_read = asyncio.async(self._reader.read(READ_SIZE))
-                return self._current_read
+            if self._reader:
+                if self._reader_process == network_reader:
+                    self._current_read = asyncio.async(self._reader.read(READ_SIZE))
+                    return self._current_read
         return None
 
     @asyncio.coroutine
-    def _process(self, network_reader, network_writer):
+    def _process(self, network_reader, network_writer, connection):
         network_read = asyncio.async(network_reader.read(READ_SIZE))
         reader_read = yield from self._get_reader(network_reader)
 
@@ -172,7 +257,8 @@ class AsyncioTelnetServer:
                     network_read = asyncio.async(network_reader.read(READ_SIZE))
 
                     if IAC in data:
-                        data = yield from self._IAC_parser(data, network_reader, network_writer)
+                        data = yield from self._IAC_parser(data, network_reader, network_writer, connection)
+
                     if len(data) == 0:
                         continue
 
@@ -182,18 +268,49 @@ class AsyncioTelnetServer:
                     if self._writer:
                         self._writer.write(data)
                         yield from self._writer.drain()
+
+                    yield from connection.feed(data)
+                    if connection.is_closing:
+                        raise ConnectionResetError()
+
                 elif coro == reader_read:
-                    if self._reader.at_eof():
+                    if self._reader and self._reader.at_eof():
                         raise ConnectionResetError()
 
                     reader_read = yield from self._get_reader(network_reader)
 
                     # Replicate the output on all clients
-                    for writer in self._clients:
-                        writer.write(data)
-                        yield from writer.drain()
+                    for connection in self._connections.values():
+                        connection.writer.write(data)
+                        yield from connection.writer.drain()
 
-    def _IAC_parser(self, buf, network_reader, network_writer):
+    @asyncio.coroutine
+    def _read(self, cmd, buffer, location, reader):
+        """ Reads next op from the buffer or reader"""
+        try:
+            op = buffer[location]
+            cmd.append(op)
+            return op
+        except IndexError:
+            op = yield from reader.read(1)
+            buffer.extend(op)
+            cmd.append(buffer[location])
+            return op
+
+    def _negotiate(self, data, connection):
+        """ Performs negotiation commands"""
+
+        command, payload = data[0], data[1:]
+        if command == NAWS:
+            if len(payload) == 4:
+                columns, rows = struct.unpack(str('!HH'), bytes(payload))
+                connection.window_size_changed(columns, rows)
+            else:
+                log.warning('Wrong number of NAWS bytes')
+        else:
+            log.debug("Not supported negotiation sequence, received {} bytes", len(data))
+
+    def _IAC_parser(self, buf, network_reader, network_writer, connection):
         """
         Processes and removes any Telnet commands from the buffer.
 
@@ -201,6 +318,7 @@ class AsyncioTelnetServer:
         :returns: buffer minus Telnet commands
         """
 
+
         skip_to = 0
         while True:
             # Locate an IAC to process
@@ -218,7 +336,7 @@ class AsyncioTelnetServer:
                 iac_cmd.append(buf[iac_loc + 1])
 
             # Is this just a 2-byte TELNET command?
-            if iac_cmd[1] not in [WILL, WONT, DO, DONT]:
+            if iac_cmd[1] not in [WILL, WONT, DO, DONT, SB]:
                 if iac_cmd[1] == AYT:
                     log.debug("Telnet server received Are-You-There (AYT)")
                     network_writer.write(b'\r\nYour Are-You-There received. I am here.\r\n')
@@ -234,6 +352,17 @@ class AsyncioTelnetServer:
                 else:
                     log.debug("Unhandled telnet command: "
                               "{0:#x} {1:#x}".format(*iac_cmd))
+            elif iac_cmd[1] == SB:  # starts negotiation commands
+                negotiation = []
+                for pos in range(2, self.MAX_NEGOTIATION_READ):
+                    op = yield from self._read(iac_cmd, buf, iac_loc + pos, network_reader)
+                    negotiation.append(op)
+                    if op == SE:
+                        # ends negotiation commands
+                        break
+
+                # SE command is followed by IAC, remove the last two operations from stack
+                self._negotiate(negotiation[0:-2], connection)
 
             # This must be a 3-byte TELNET command
             else:
@@ -260,7 +389,7 @@ class AsyncioTelnetServer:
                     log.debug("Unhandled DONT telnet command: "
                               "{0:#x} {1:#x} {2:#x}".format(*iac_cmd))
                 elif iac_cmd[1] == WILL:
-                    if iac_cmd[2] not in [BINARY]:
+                    if iac_cmd[2] not in [BINARY, NAWS]:
                         log.debug("Unhandled WILL telnet command: "
                                   "{0:#x} {1:#x} {2:#x}".format(*iac_cmd))
                 elif iac_cmd[1] == WONT:
diff --git a/requirements.txt b/requirements.txt
index 66ae7e03..b08e7057 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -7,3 +7,4 @@ raven>=5.23.0
 psutil>=3.0.0
 zipstream>=1.1.4
 typing>=3.5.3.0 # Otherwise yarl fail with python 3.4
+prompt-toolkit