diff --git a/components/esp_modem/examples/modem_console/main/my_module_dce.hpp b/components/esp_modem/examples/modem_console/main/my_module_dce.hpp
index 43205bfb2..fe9fb4450 100644
--- a/components/esp_modem/examples/modem_console/main/my_module_dce.hpp
+++ b/components/esp_modem/examples/modem_console/main/my_module_dce.hpp
@@ -1,5 +1,5 @@
 /*
- * SPDX-FileCopyrightText: 2022-2023 Espressif Systems (Shanghai) CO LTD
+ * SPDX-FileCopyrightText: 2022-2024 Espressif Systems (Shanghai) CO LTD
  *
  * SPDX-License-Identifier: Unlicense OR CC0-1.0
  */
@@ -17,26 +17,20 @@
 #include "cxx_include/esp_modem_dce_module.hpp"
 
 /**
- * @brief Definition of a custom modem which inherits from the GenericModule, uses all its methods
- * and could override any of them. Here, for demonstration purposes only, we redefine just `get_module_name()`
+ * @brief Definition of a custom DCE uses GenericModule and all its methods
+ * but could override command processing. Here, for demonstration purposes only,
+ * we "inject" URC handler to the actual command processing.
+ * This is possible since we inherit from `CommandableIf` and redefine `command()` method.
+ * Then we're able to use declare all common methods from the command library
+ * to be processed using "our" `command()` method (with custom URC handler).
  */
-class MyShinyModem: public esp_modem::GenericModule {
-    using GenericModule::GenericModule;
-public:
-    esp_modem::command_result get_module_name(std::string &name) override
-    {
-        name = "Custom Shiny Module";
-        return esp_modem::command_result::OK;
-    }
-};
-
 namespace Shiny {
 
 using namespace esp_modem;
 
-class DCE : public esp_modem::DCE_T<MyShinyModem>, public CommandableIf {
+class DCE : public esp_modem::DCE_T<GenericModule>, public CommandableIf {
 public:
-    using DCE_T<MyShinyModem>::DCE_T;
+    using DCE_T<GenericModule>::DCE_T;
 
     command_result
     command(const std::string &cmd, got_line_cb got_line, uint32_t time_ms) override
@@ -97,7 +91,7 @@ public:
                                        std::shared_ptr<esp_modem::DTE> dte,
                                        esp_netif_t *netif)
     {
-        return build_generic_DCE<MyShinyModem, DCE, std::unique_ptr<DCE>>(config, std::move(dte), netif);
+        return build_generic_DCE<GenericModule, DCE, std::unique_ptr<DCE>>(config, std::move(dte), netif);
     }
 
 };
diff --git a/components/esp_modem/include/cxx_include/esp_modem_command_library.hpp b/components/esp_modem/include/cxx_include/esp_modem_command_library.hpp
index 9b732fe50..d0e133eeb 100644
--- a/components/esp_modem/include/cxx_include/esp_modem_command_library.hpp
+++ b/components/esp_modem/include/cxx_include/esp_modem_command_library.hpp
@@ -54,7 +54,7 @@ command_result power_down_sim76xx(CommandableIf *t);
 command_result power_down_sim70xx(CommandableIf *t);
 command_result set_network_bands_sim76xx(CommandableIf *t, const std::string &mode, const int *bands, int size);
 command_result power_down_sim8xx(CommandableIf *t);
-command_result set_data_mode_sim8xx(CommandableIf *t);
+command_result set_data_mode_alt(CommandableIf *t);
 command_result set_pdp_context(CommandableIf *t, PdpContext &pdp, uint32_t timeout_ms);
 
 /**
diff --git a/components/esp_modem/include/cxx_include/esp_modem_dce_module.hpp b/components/esp_modem/include/cxx_include/esp_modem_dce_module.hpp
index cc08c537d..6ae36e63e 100644
--- a/components/esp_modem/include/cxx_include/esp_modem_dce_module.hpp
+++ b/components/esp_modem/include/cxx_include/esp_modem_dce_module.hpp
@@ -144,6 +144,8 @@ class SIM7070: public GenericModule {
     using GenericModule::GenericModule;
 public:
     command_result power_down() override;
+    command_result set_data_mode() override;
+
 };
 
 /**
@@ -162,7 +164,6 @@ class SIM800: public GenericModule {
     using GenericModule::GenericModule;
 public:
     command_result power_down() override;
-    command_result set_data_mode() override;
 };
 
 /**
diff --git a/components/esp_modem/include/generate/esp_modem_command_declare.inc b/components/esp_modem/include/generate/esp_modem_command_declare.inc
index 70f3a83be..909d71603 100644
--- a/components/esp_modem/include/generate/esp_modem_command_declare.inc
+++ b/components/esp_modem/include/generate/esp_modem_command_declare.inc
@@ -44,6 +44,18 @@ ESP_MODEM_DECLARE_DCE_COMMAND(store_profile, command_result, 0) \
  */\
 ESP_MODEM_DECLARE_DCE_COMMAND(set_pin, command_result, 1, STRING_IN(p1, pin)) \
     \
+/**
+ * @brief Execute the supplied AT command in raw mode (doesn't append '\r' to command, returns everything)
+ * @param[in] cmd String command that's send to DTE
+ * @param[out] out Raw output from DTE
+ * @param[in] pass Pattern in response for the API to return OK
+ * @param[in] fail Pattern in response for the API to return FAIL
+ * @param[in] cmd String command that's send to DTE
+ * @param[in] timeout AT command timeout in milliseconds
+ * @return OK, FAIL or TIMEOUT
+ */\
+ESP_MODEM_DECLARE_DCE_COMMAND(at_raw, command_result, 5, STRING_IN(p1, cmd), STRING_OUT(p2, out), STRING_IN(p3, pass), STRING_IN(p4, fail), INT_IN(p5, timeout)) \
+    \
 /**
  * @brief Execute the supplied AT command
  * @param[in] cmd AT command
diff --git a/components/esp_modem/src/esp_modem_c_api.cpp b/components/esp_modem/src/esp_modem_c_api.cpp
index 7178bda1a..6c32cf8c6 100644
--- a/components/esp_modem/src/esp_modem_c_api.cpp
+++ b/components/esp_modem/src/esp_modem_c_api.cpp
@@ -1,5 +1,5 @@
 /*
- * SPDX-FileCopyrightText: 2021-2023 Espressif Systems (Shanghai) CO LTD
+ * SPDX-FileCopyrightText: 2021-2024 Espressif Systems (Shanghai) CO LTD
  *
  * SPDX-License-Identifier: Apache-2.0
  */
@@ -17,7 +17,7 @@
 #include "esp_private/c_api_wrapper.hpp"
 
 #ifndef ESP_MODEM_C_API_STR_MAX
-#define ESP_MODEM_C_API_STR_MAX 64
+#define ESP_MODEM_C_API_STR_MAX 128
 #endif
 
 #ifndef HAVE_STRLCPY
@@ -206,6 +206,20 @@ extern "C" esp_err_t esp_modem_get_imsi(esp_modem_dce_t *dce_wrap, char *p_imsi)
     return ret;
 }
 
+extern "C" esp_err_t esp_modem_at_raw(esp_modem_dce_t *dce_wrap, const char *cmd, char *p_out, const char *pass, const char *fail, int timeout)
+{
+    if (dce_wrap == nullptr || dce_wrap->dce == nullptr) {
+        return ESP_ERR_INVALID_ARG;
+    }
+    std::string out;
+    auto ret = command_response_to_esp_err(dce_wrap->dce->at_raw(cmd, out, pass, fail, timeout));
+    if ((p_out != NULL) && (!out.empty())) {
+        strlcpy(p_out, out.c_str(), ESP_MODEM_C_API_STR_MAX);
+    }
+    return ret;
+}
+
+
 extern "C" esp_err_t esp_modem_set_flow_control(esp_modem_dce_t *dce_wrap, int dce_flow, int dte_flow)
 {
     if (dce_wrap == nullptr || dce_wrap->dce == nullptr) {
diff --git a/components/esp_modem/src/esp_modem_command_library.cpp b/components/esp_modem/src/esp_modem_command_library.cpp
index 976869e51..46e005db0 100644
--- a/components/esp_modem/src/esp_modem_command_library.cpp
+++ b/components/esp_modem/src/esp_modem_command_library.cpp
@@ -1,5 +1,5 @@
 /*
- * SPDX-FileCopyrightText: 2021-2023 Espressif Systems (Shanghai) CO LTD
+ * SPDX-FileCopyrightText: 2021-2024 Espressif Systems (Shanghai) CO LTD
  *
  * SPDX-License-Identifier: Apache-2.0
  */
@@ -277,13 +277,13 @@ command_result set_pdp_context(CommandableIf *t, PdpContext &pdp)
 command_result set_data_mode(CommandableIf *t)
 {
     ESP_LOGV(TAG, "%s", __func__ );
-    return generic_command(t, "ATD*99##\r", "CONNECT", "ERROR", 5000);
+    return generic_command(t, "ATD*99#\r", "CONNECT", "ERROR", 5000);
 }
 
-command_result set_data_mode_sim8xx(CommandableIf *t)
+command_result set_data_mode_alt(CommandableIf *t)
 {
     ESP_LOGV(TAG, "%s", __func__ );
-    return generic_command(t, "ATD*99#\r", "CONNECT", "ERROR", 5000);
+    return generic_command(t, "ATD*99##\r", "CONNECT", "ERROR", 5000);
 }
 
 command_result resume_data_mode(CommandableIf *t)
@@ -394,6 +394,22 @@ command_result at(CommandableIf *t, const std::string &cmd, std::string &out, in
     return generic_get_string(t, at_command, out, timeout);
 }
 
+command_result at_raw(CommandableIf *t, const std::string &cmd, std::string &out, const std::string &pass, const std::string &fail, int timeout = 500)
+{
+    ESP_LOGV(TAG, "%s", __func__ );
+    return t->command(cmd, [&](uint8_t *data, size_t len) {
+        out.assign(reinterpret_cast<char *>(data), len);
+
+        if (out.find(pass) != std::string::npos) {
+            return command_result::OK;
+        } else if (out.find(fail) != std::string::npos) {
+            return command_result::FAIL;
+        }
+
+        return command_result::TIMEOUT;
+    }, timeout);
+}
+
 command_result get_signal_quality(CommandableIf *t, int &rssi, int &ber)
 {
     ESP_LOGV(TAG, "%s", __func__ );
diff --git a/components/esp_modem/src/esp_modem_modules.cpp b/components/esp_modem/src/esp_modem_modules.cpp
index a3c6801e3..563403494 100644
--- a/components/esp_modem/src/esp_modem_modules.cpp
+++ b/components/esp_modem/src/esp_modem_modules.cpp
@@ -1,5 +1,5 @@
 /*
- * SPDX-FileCopyrightText: 2021-2023 Espressif Systems (Shanghai) CO LTD
+ * SPDX-FileCopyrightText: 2021-2024 Espressif Systems (Shanghai) CO LTD
  *
  * SPDX-License-Identifier: Apache-2.0
  */
@@ -67,6 +67,11 @@ command_result SIM7070::power_down()
     return dce_commands::power_down_sim70xx(dte.get());
 }
 
+command_result SIM7070::set_data_mode()
+{
+    return dce_commands::set_data_mode_alt(dte.get());
+}
+
 command_result SIM7000::power_down()
 {
     return dce_commands::power_down_sim70xx(dte.get());
@@ -77,11 +82,6 @@ command_result SIM800::power_down()
     return dce_commands::power_down_sim8xx(dte.get());
 }
 
-command_result SIM800::set_data_mode()
-{
-    return dce_commands::set_data_mode_sim8xx(dte.get());
-}
-
 command_result BG96::set_pdp_context(esp_modem::PdpContext &pdp)
 {
     return dce_commands::set_pdp_context(dte.get(), pdp, 300);
diff --git a/components/esp_modem/test/host_test/main/LoopbackTerm.cpp b/components/esp_modem/test/host_test/main/LoopbackTerm.cpp
index e230fea2c..935c634fa 100644
--- a/components/esp_modem/test/host_test/main/LoopbackTerm.cpp
+++ b/components/esp_modem/test/host_test/main/LoopbackTerm.cpp
@@ -1,5 +1,5 @@
 /*
- * SPDX-FileCopyrightText: 2022-2023 Espressif Systems (Shanghai) CO LTD
+ * SPDX-FileCopyrightText: 2022-2024 Espressif Systems (Shanghai) CO LTD
  *
  * SPDX-License-Identifier: Unlicense OR CC0-1.0
  */
@@ -36,7 +36,7 @@ int LoopbackTerm::write(uint8_t *data, size_t len)
         } else if (command == "ATO\r") {
             response = "ERROR\r\n";
         } else if (command.find("ATD") != std::string::npos) {
-            response = "CONNECT\r\n";
+            response = "CONNECT\n";
         } else if (command.find("AT+CSQ\r") != std::string::npos) {
             response = "+CSQ: 123,456\n\r\nOK\r\n";
         } else if (command.find("AT+CGMM\r") != std::string::npos) {
@@ -74,6 +74,9 @@ int LoopbackTerm::write(uint8_t *data, size_t len)
     }
     if (len > 2 && data[0] == 0xf9) { // Simple CMUX responder
         // turn the request into a reply -> implements CMUX loopback
+        // Note: This simple CMUX responder only updates CMUX headers and replaces payload.
+        // It means that all responses (that we test) must be shorter or equal to the requests
+        // For example ATD (dial command): sizeof("ATD*99#") >= sizeof("CONNECT");
         if (data[2] == 0x3f || data[2] == 0x53) {  // SABM command
             data[2] = 0x73;
         } else if (data[2] == 0xef) { // Generic request
diff --git a/docs/esp_modem/en/advanced_api.rst b/docs/esp_modem/en/advanced_api.rst
index a487398b3..4df349f8f 100644
--- a/docs/esp_modem/en/advanced_api.rst
+++ b/docs/esp_modem/en/advanced_api.rst
@@ -26,15 +26,17 @@ Create custom module
 
 Creating a custom module is necessary if the application needs to use a specific device that is not supported
 and their commands differ from any of the supported devices. In this case it is recommended to define a new class
-representing this specific device and derive from the :cpp:class:`esp_modem::GenericModule`. In order to instantiate
-the appropriate DCE of this module, application could use :ref:`the DCE factory<dce_factory>`, and build the DCE with
-the specific module, using :cpp:func:`esp_modem::dce_factory::Factory::build`.
+representing this specific device and derive from the :cpp:class:`esp_modem::GenericModule` (or any other available
+module, that's close to your custom device). Then you can create the DCE using :ref:`the DCE factory<dce_factory>`
+public method :cpp:func:`esp_modem::dce_factory::Factory::create_unique_dce_from`.
 
-Please refer to the implementation of the existing modules.
-
-Please note that the ``modem_console`` example defines a trivial custom modem DCE which overrides one command,
+Please note that the ``pppos_client`` example defines a trivial custom DCE which overrides one command, and adds a new command
 for demonstration purposes only.
 
+It is also possible to create a specific DCE class that would conform to the generic ``DCE`` API and use all generic commands,
+work with commands differently. This might be useful to add some custom preprocessing of commands or replies.
+Please check the ``modem_console`` example with ``CONFIG_EXAMPLE_MODEM_DEVICE_SHINY=y`` configuration which demonstrates
+overriding default ``command()`` method to implement URC processing in user space.
 
 Create new communication interface
 ----------------------------------