diff --git a/docs/en/migration-guides/tools.rst b/docs/en/migration-guides/tools.rst
index 880ac373b4..70ffceeab0 100644
--- a/docs/en/migration-guides/tools.rst
+++ b/docs/en/migration-guides/tools.rst
@@ -4,4 +4,4 @@ Migrate Tools to ESP-IDF 5.0
 IDF Monitor
 -----------
 
-IDF Monitor follows the custom console baud-rate (:ref:`CONFIG_ESP_CONSOLE_UART_BAUDRATE`) by default instead of 115200. Setting a custom baud rate is not supported from menuconfig anymore. A custom baud-rate can be specified from command line with the ``idf.py monitor -B <baud>`` command or through setting environment variables. Run ``idf.py monitor --help`` for more information.
+IDF Monitor follows the custom console baud-rate (:ref:`CONFIG_ESP_CONSOLE_UART_BAUDRATE`) by default instead of 115200. Setting a custom baud rate is not supported from menuconfig anymore. A custom baud-rate can be specified from command line with the ``idf.py monitor -b <baud>`` command or through setting environment variables. Please note that the baud-rate argument has been renamed from ``-B`` to ``-b`` in order to be consistent with the global baud-rate ``idf.py -b <baud>``. Run ``idf.py monitor --help`` for more information.
diff --git a/tools/idf_py_actions/serial_ext.py b/tools/idf_py_actions/serial_ext.py
index 9d14761e65..21298598f4 100644
--- a/tools/idf_py_actions/serial_ext.py
+++ b/tools/idf_py_actions/serial_ext.py
@@ -97,10 +97,18 @@ def action_extensions(base_actions, project_path):
             esp_port = args.port or _get_default_serial_port(args)
             monitor_args += ['-p', esp_port]
 
-            if not monitor_baud:
-                monitor_baud = os.getenv('IDF_MONITOR_BAUD') or os.getenv('MONITORBAUD') or project_desc['monitor_baud']
+            baud = monitor_baud or os.getenv('IDF_MONITOR_BAUD') or os.getenv('MONITORBAUD')
 
-            monitor_args += ['-b', monitor_baud]
+            if baud is None:
+                # Baud hasn't been changed locally (by local baud argument nor by environment variables)
+                #
+                # Use the global baud rate if it has been changed by the command line.
+                # Use project_desc['monitor_baud'] as the last option.
+
+                global_baud_defined = ctx._parameter_source['baud'] == click.core.ParameterSource.COMMANDLINE
+                baud = args.baud if global_baud_defined else project_desc['monitor_baud']
+
+            monitor_args += ['-b', baud]
 
         monitor_args += ['--toolchain-prefix', project_desc['monitor_toolprefix']]
 
@@ -166,7 +174,7 @@ def action_extensions(base_actions, project_path):
 
     baud_rate = {
         'names': ['-b', '--baud'],
-        'help': 'Baud rate for flashing.',
+        'help': 'Baud rate for flashing. It can imply monitor baud rate as well if it hasn\'t been defined locally.',
         'scope': 'global',
         'envvar': 'ESPBAUD',
         'default': 460800,
@@ -225,12 +233,12 @@ def action_extensions(base_actions, project_path):
                         'default':
                         None,
                     }, {
-                        'names': ['--monitor-baud', '-B'],
+                        'names': ['--monitor-baud', '-b'],
                         'type':
                         click.INT,
                         'help': ('Baud rate for monitor. '
                                  'If this option is not provided IDF_MONITOR_BAUD and MONITORBAUD '
-                                 'environment variables and project_description.json in build directory '
+                                 'environment variables, global baud rate and project_description.json in build directory '
                                  "(generated by CMake from project's sdkconfig) "
                                  'will be checked for default value.'),
                     }, {