diff --git a/drivers/modem/modem_iface_uart.c b/drivers/modem/modem_iface_uart.c
index 0bed06e56f2..8139ee4d7ae 100644
--- a/drivers/modem/modem_iface_uart.c
+++ b/drivers/modem/modem_iface_uart.c
@@ -74,8 +74,12 @@ static void modem_iface_uart_isr(const struct device *uart_dev,
 							  UINT32_MAX);
 		}
 		if (!partial_size) {
-			LOG_ERR("Rx buffer doesn't have enough space");
-			modem_iface_uart_flush(&ctx->iface);
+			if (data->hw_flow_control) {
+				uart_irq_rx_disable(ctx->iface.dev);
+			} else {
+				LOG_ERR("Rx buffer doesn't have enough space");
+				modem_iface_uart_flush(&ctx->iface);
+			}
 			break;
 		}
 
@@ -114,6 +118,10 @@ static int modem_iface_uart_read(struct modem_iface *iface,
 	data = (struct modem_iface_uart_data *)(iface->iface_data);
 	*bytes_read = ring_buf_get(&data->rx_rb, buf, size);
 
+	if (data->hw_flow_control && *bytes_read == 0) {
+		uart_irq_rx_enable(iface->dev);
+	}
+
 	return 0;
 }
 
diff --git a/drivers/modem/modem_iface_uart.h b/drivers/modem/modem_iface_uart.h
index 98ef8665fbb..63c472c2bdd 100644
--- a/drivers/modem/modem_iface_uart.h
+++ b/drivers/modem/modem_iface_uart.h
@@ -20,6 +20,9 @@ extern "C" {
 #endif
 
 struct modem_iface_uart_data {
+	/* HW flow control */
+	bool hw_flow_control;
+
 	/* ring buffer char buffer */
 	char *rx_rb_buf;
 	size_t rx_rb_buf_len;