diff --git a/include/net/net_pkt.h b/include/net/net_pkt.h
index 209beb7402d..237a3e062b8 100644
--- a/include/net/net_pkt.h
+++ b/include/net/net_pkt.h
@@ -97,10 +97,21 @@ struct net_pkt {
 	struct net_if *orig_iface; /* Original network interface */
 #endif
 
+	/* We do not support combination of TXTIME and TXTIME_STATS as the
+	 * same variable is shared in net_pkt.h
+	 */
+#if defined(CONFIG_NET_PKT_TXTIME) && defined(CONFIG_NET_PKT_TXTIME_STATS)
+#error \
+"Cannot define both CONFIG_NET_PKT_TXTIME and CONFIG_NET_PKT_TXTIME_STATS"
+#endif
+
 #if defined(CONFIG_NET_PKT_TIMESTAMP) || defined(CONFIG_NET_PKT_TXTIME) || \
-					defined(CONFIG_NET_PKT_RXTIME_STATS)
+				defined(CONFIG_NET_PKT_RXTIME_STATS) || \
+				defined(CONFIG_NET_PKT_TXTIME_STATS)
 	union {
-#if defined(CONFIG_NET_PKT_TIMESTAMP) || defined(CONFIG_NET_PKT_RXTIME_STATS)
+#if defined(CONFIG_NET_PKT_TIMESTAMP) || \
+				defined(CONFIG_NET_PKT_RXTIME_STATS) ||	\
+				defined(CONFIG_NET_PKT_TXTIME_STATS)
 		/** Timestamp if available. */
 		struct net_ptp_time timestamp;
 #endif /* CONFIG_NET_PKT_TIMESTAMP */
diff --git a/include/net/net_stats.h b/include/net/net_stats.h
index 97c23264302..5ab60c03a55 100644
--- a/include/net/net_stats.h
+++ b/include/net/net_stats.h
@@ -203,11 +203,11 @@ struct net_stats_ipv6_mld {
 };
 
 /**
- * @brief Network packet transfer times
+ * @brief Network packet transfer times for calculating average TX time
  */
 struct net_stats_tx_time {
-	u64_t time_sum;
-	net_stats_t time_count;
+	u64_t sum;
+	net_stats_t count;
 };
 
 /**
@@ -223,10 +223,10 @@ struct net_stats_rx_time {
  */
 struct net_stats_tc {
 	struct {
+		struct net_stats_tx_time tx_time;
 		net_stats_t pkts;
 		net_stats_t bytes;
 		u8_t priority;
-		struct net_stats_tx_time tx_time;
 	} sent[NET_TC_TX_COUNT];
 
 	struct {
@@ -293,7 +293,13 @@ struct net_stats {
 	struct net_stats_tc tc;
 #endif
 
-#if defined(CONFIG_NET_CONTEXT_TIMESTAMP)
+#if defined(CONFIG_NET_CONTEXT_TIMESTAMP) && \
+	defined(CONFIG_NET_PKT_TXTIME_STATS)
+#error \
+"Cannot define both CONFIG_NET_CONTEXT_TIMESTAMP and CONFIG_NET_PKT_TXTIME_STATS"
+#endif
+#if defined(CONFIG_NET_CONTEXT_TIMESTAMP) || \
+					defined(CONFIG_NET_PKT_TXTIME_STATS)
 	/** Network packet TX time statistics */
 	struct net_stats_tx_time tx_time;
 #endif
diff --git a/subsys/net/ip/Kconfig b/subsys/net/ip/Kconfig
index 30891d9e5ac..7ebc95ecebf 100644
--- a/subsys/net/ip/Kconfig
+++ b/subsys/net/ip/Kconfig
@@ -661,6 +661,23 @@ config NET_PKT_RXTIME_STATS
 	  in net-shell.
 	  The RX statistics are only calculated for UDP and TCP packets.
 
+config NET_PKT_TXTIME_STATS
+	bool "Enable network packet TX time statistics"
+	select NET_PKT_TIMESTAMP
+	select NET_STATISTICS
+	depends on (NET_UDP || NET_TCP) && !NET_PKT_TXTIME
+	help
+	  Enable network packet TX time statistics support. This is used to
+	  calculate how long on average it takes for a packet to travel from
+	  application to just before it is sent to network. The TX timing
+	  information can then be seen in network interface statistics in
+	  net-shell.
+	  The RX calculation is done only for UDP or TCP packets, but for TX
+	  we do not know the protocol so the TX packet timing is done for all
+	  network protocol packets.
+	  Note that CONFIG_NET_PKT_TXTIME cannot be set at the same time
+	  because net_pkt shares the time variable for statistics and TX time.
+
 config NET_PROMISCUOUS_MODE
 	bool "Enable promiscuous mode support [EXPERIMENTAL]"
 	select NET_MGMT
diff --git a/subsys/net/ip/net_if.c b/subsys/net/ip/net_if.c
index fbea02e0e95..abbf3b886d1 100644
--- a/subsys/net/ip/net_if.c
+++ b/subsys/net/ip/net_if.c
@@ -150,14 +150,12 @@ static bool net_if_tx(struct net_if *iface, struct net_pkt *pkt)
 	struct net_context *context;
 	int status;
 
-#if defined(CONFIG_NET_CONTEXT_TIMESTAMP)
-	/* Timestamp of the current network packet sent */
+	/* Timestamp of the current network packet sent if enabled */
 	struct net_ptp_time start_timestamp;
 	u32_t curr_time = 0;
 
-	/* We collect send statistics for each socket priority */
+	/* We collect send statistics for each socket priority if enabled */
 	u8_t pkt_priority;
-#endif
 
 	if (!pkt) {
 		return false;
@@ -175,8 +173,7 @@ static bool net_if_tx(struct net_if *iface, struct net_pkt *pkt)
 			net_pkt_set_queued(pkt, false);
 		}
 
-#if defined(CONFIG_NET_CONTEXT_TIMESTAMP)
-		if (context) {
+		if (IS_ENABLED(CONFIG_NET_CONTEXT_TIMESTAMP) && context) {
 			if (net_context_get_timestamp(context, pkt,
 						      &start_timestamp) < 0) {
 				start_timestamp.nanosecond = 0;
@@ -184,17 +181,28 @@ static bool net_if_tx(struct net_if *iface, struct net_pkt *pkt)
 				pkt_priority = net_pkt_priority(pkt);
 			}
 		}
-#endif
+
+		if (IS_ENABLED(CONFIG_NET_PKT_TXTIME_STATS)) {
+			memcpy(&start_timestamp, net_pkt_timestamp(pkt),
+			       sizeof(start_timestamp));
+			pkt_priority = net_pkt_priority(pkt);
+		}
 
 		status = net_if_l2(iface)->send(iface, pkt);
 
-#if defined(CONFIG_NET_CONTEXT_TIMESTAMP)
-		if (status >= 0 && context) {
+		if (IS_ENABLED(CONFIG_NET_CONTEXT_TIMESTAMP) && status >= 0 &&
+		    context) {
 			if (start_timestamp.nanosecond > 0) {
 				curr_time = k_cycle_get_32();
 			}
 		}
-#endif
+
+		if (IS_ENABLED(CONFIG_NET_PKT_TXTIME_STATS) && status >= 0) {
+			net_stats_update_tc_tx_time(iface,
+						    pkt_priority,
+						    start_timestamp.nanosecond,
+						    k_cycle_get_32());
+		}
 
 	} else {
 		/* Drop packet if interface is not up */
@@ -214,9 +222,8 @@ static bool net_if_tx(struct net_if *iface, struct net_pkt *pkt)
 
 		net_context_send_cb(context, status);
 
-#if defined(CONFIG_NET_CONTEXT_TIMESTAMP)
-		if (status >= 0 && start_timestamp.nanosecond &&
-		    curr_time > 0) {
+		if (IS_ENABLED(CONFIG_NET_CONTEXT_TIMESTAMP) && status >= 0 &&
+		    start_timestamp.nanosecond && curr_time > 0) {
 			/* So we know now how long the network packet was in
 			 * transit from when it was allocated to when we
 			 * got information that it was sent successfully.
@@ -226,7 +233,6 @@ static bool net_if_tx(struct net_if *iface, struct net_pkt *pkt)
 						    start_timestamp.nanosecond,
 						    curr_time);
 		}
-#endif
 	}
 
 	if (dst->addr) {
diff --git a/subsys/net/ip/net_pkt.c b/subsys/net/ip/net_pkt.c
index e3e24278eb1..32f752dd6c3 100644
--- a/subsys/net/ip/net_pkt.c
+++ b/subsys/net/ip/net_pkt.c
@@ -1193,13 +1193,14 @@ static struct net_pkt *pkt_alloc(struct k_mem_slab *slab, s32_t timeout)
 		net_pkt_set_priority(pkt, CONFIG_NET_RX_DEFAULT_PRIORITY);
 	}
 
-	if (IS_ENABLED(CONFIG_NET_PKT_RXTIME_STATS)) {
+	if (IS_ENABLED(CONFIG_NET_PKT_RXTIME_STATS) ||
+	    IS_ENABLED(CONFIG_NET_PKT_TXTIME_STATS)) {
 		struct net_ptp_time tp = {
 			/* Use the nanosecond field to temporarily
 			 * store the cycle count as it is a 32-bit
 			 * variable. The net_pkt timestamp field is used
 			 * to calculate how long it takes the packet to travel
-			 * from network device driver to the application.
+			 * between network device driver and application.
 			 */
 			.nanosecond = k_cycle_get_32(),
 		};
diff --git a/subsys/net/ip/net_private.h b/subsys/net/ip/net_private.h
index 8d7909905f3..a3a73753743 100644
--- a/subsys/net/ip/net_private.h
+++ b/subsys/net/ip/net_private.h
@@ -88,6 +88,17 @@ char *net_sprint_addr(sa_family_t af, const void *addr);
 int net_context_get_timestamp(struct net_context *context,
 			      struct net_pkt *pkt,
 			      struct net_ptp_time *timestamp);
+#else
+static inline int net_context_get_timestamp(struct net_context *context,
+					    struct net_pkt *pkt,
+					    struct net_ptp_time *timestamp)
+{
+	ARG_UNUSED(context);
+	ARG_UNUSED(pkt);
+	ARG_UNUSED(timestamp);
+
+	return -ENOTSUP;
+}
 #endif
 
 #if defined(CONFIG_COAP)
diff --git a/subsys/net/ip/net_stats.h b/subsys/net/ip/net_stats.h
index 35a74a9f958..1f6b0173d5a 100644
--- a/subsys/net/ip/net_stats.h
+++ b/subsys/net/ip/net_stats.h
@@ -318,27 +318,21 @@ static inline void net_stats_update_ipv6_mld_drop(struct net_if *iface)
 #define net_stats_update_ipv6_mld_drop(iface)
 #endif /* CONFIG_NET_STATISTICS_MLD */
 
-#if defined(CONFIG_NET_CONTEXT_TIMESTAMP) && defined(CONFIG_NET_STATISTICS)
+#if (defined(CONFIG_NET_CONTEXT_TIMESTAMP) || \
+	defined(CONFIG_NET_PKT_TXTIME_STATS)) && defined(CONFIG_NET_STATISTICS)
 static inline void net_stats_update_tx_time(struct net_if *iface,
 					    u32_t start_time,
 					    u32_t end_time)
 {
-	u32_t diff = abs(end_time - start_time);
+	u32_t diff = end_time - start_time;
 
-	UPDATE_STAT(iface, stats.tx_time.time_sum +=
-		    SYS_CLOCK_HW_CYCLES_TO_NS64(diff) / 1000);
-	UPDATE_STAT(iface, stats.tx_time.time_count += 1);
+	UPDATE_STAT(iface, stats.tx_time.sum +=
+		    SYS_CLOCK_HW_CYCLES_TO_NS64(diff) / NSEC_PER_USEC);
+	UPDATE_STAT(iface, stats.tx_time.count += 1);
 }
 #else
-static inline void net_stats_update_tx_time(struct net_if *iface,
-					    u32_t start_time,
-					    u32_t end_time)
-{
-	ARG_UNUSED(iface);
-	ARG_UNUSED(start_time);
-	ARG_UNUSED(end_time);
-}
-#endif /* CONFIG_NET_CONTEXT_TIMESTAMP && STATISTICS */
+#define net_stats_update_tx_time(iface, start_time, end_time)
+#endif /* (TIMESTAMP || NET_PKT_TXTIME_STATS) && NET_STATISTICS */
 
 #if defined(CONFIG_NET_PKT_RXTIME_STATS) && defined(CONFIG_NET_STATISTICS)
 static inline void net_stats_update_rx_time(struct net_if *iface,
@@ -353,7 +347,7 @@ static inline void net_stats_update_rx_time(struct net_if *iface,
 }
 #else
 #define net_stats_update_rx_time(iface, start_time, end_time)
-#endif /* CONFIG_NET_CONTEXT_TIMESTAMP && STATISTICS */
+#endif /* NET_CONTEXT_TIMESTAMP && STATISTICS */
 
 #if (NET_TC_COUNT > 1) && defined(CONFIG_NET_STATISTICS) \
 	&& defined(CONFIG_NET_NATIVE)
@@ -374,33 +368,25 @@ static inline void net_stats_update_tc_sent_priority(struct net_if *iface,
 	UPDATE_STAT(iface, stats.tc.sent[tc].priority = priority);
 }
 
-#if defined(CONFIG_NET_CONTEXT_TIMESTAMP) && defined(CONFIG_NET_STATISTICS) \
-	&& defined(CONFIG_NET_NATIVE)
+#if (defined(CONFIG_NET_CONTEXT_TIMESTAMP) || \
+	defined(CONFIG_NET_PKT_TXTIME_STATS)) && \
+	defined(CONFIG_NET_STATISTICS) && defined(CONFIG_NET_NATIVE)
 static inline void net_stats_update_tc_tx_time(struct net_if *iface,
 					       u8_t tc,
 					       u32_t start_time,
 					       u32_t end_time)
 {
-	u32_t diff = abs(end_time - start_time);
+	u32_t diff = end_time - start_time;
 
-	UPDATE_STAT(iface, stats.tc.sent[tc].tx_time.time_sum +=
-		    SYS_CLOCK_HW_CYCLES_TO_NS64(diff) / 1000);
-	UPDATE_STAT(iface, stats.tc.sent[tc].tx_time.time_count += 1);
+	UPDATE_STAT(iface, stats.tc.sent[tc].tx_time.sum +=
+		    SYS_CLOCK_HW_CYCLES_TO_NS64(diff) / NSEC_PER_USEC);
+	UPDATE_STAT(iface, stats.tc.sent[tc].tx_time.count += 1);
 
 	net_stats_update_tx_time(iface, start_time, end_time);
 }
 #else
-static inline void net_stats_update_tc_tx_time(struct net_if *iface,
-					       u8_t tc,
-					       u32_t start_time,
-					       u32_t end_time)
-{
-	ARG_UNUSED(iface);
-	ARG_UNUSED(tc);
-	ARG_UNUSED(start_time);
-	ARG_UNUSED(end_time);
-}
-#endif /* CONFIG_NET_CONTEXT_TIMESTAMP && CONFIG_NET_STATISTICS */
+#define net_stats_update_tc_tx_time(iface, tc, start_time, end_time)
+#endif /* (NET_CONTEXT_TIMESTAMP || NET_PKT_TXTIME_STATS) && NET_STATISTICS */
 
 #if defined(CONFIG_NET_PKT_RXTIME_STATS) && defined(CONFIG_NET_STATISTICS) \
 	&& defined(CONFIG_NET_NATIVE)
@@ -445,8 +431,9 @@ static inline void net_stats_update_tc_recv_priority(struct net_if *iface,
 #define net_stats_update_tc_recv_bytes(iface, tc, bytes)
 #define net_stats_update_tc_recv_priority(iface, tc, priority)
 
-#if defined(CONFIG_NET_CONTEXT_TIMESTAMP) && defined(CONFIG_NET_STATISTICS) \
-	&& defined(CONFIG_NET_NATIVE)
+#if (defined(CONFIG_NET_CONTEXT_TIMESTAMP) || \
+	defined(CONFIG_NET_PKT_TXTIME_STATS)) && \
+	defined(CONFIG_NET_STATISTICS) && defined(CONFIG_NET_NATIVE)
 static inline void net_stats_update_tc_tx_time(struct net_if *iface,
 					       u8_t pkt_priority,
 					       u32_t start_time,
@@ -457,17 +444,8 @@ static inline void net_stats_update_tc_tx_time(struct net_if *iface,
 	net_stats_update_tx_time(iface, start_time, end_time);
 }
 #else
-static inline void net_stats_update_tc_tx_time(struct net_if *iface,
-					       u8_t pkt_priority,
-					       u32_t start_time,
-					       u32_t end_time)
-{
-	ARG_UNUSED(iface);
-	ARG_UNUSED(pkt_priority);
-	ARG_UNUSED(start_time);
-	ARG_UNUSED(end_time);
-}
-#endif /* CONFIG_NET_CONTEXT_TIMESTAMP && CONFIG_NET_STATISTICS */
+#define net_stats_update_tc_tx_time(iface, priority, start_time, end_time)
+#endif /* (NET_CONTEXT_TIMESTAMP || NET_PKT_TXTIME_STATS) && NET_STATISTICS */
 
 #if defined(CONFIG_NET_PKT_RXTIME_STATS) && defined(CONFIG_NET_STATISTICS) \
 	&& defined(CONFIG_NET_NATIVE)