diff --git a/components/esp_netif/CMakeLists.txt b/components/esp_netif/CMakeLists.txt
index 77a10dad8428..7c6f04e41b61 100644
--- a/components/esp_netif/CMakeLists.txt
+++ b/components/esp_netif/CMakeLists.txt
@@ -24,7 +24,7 @@ if(${target} STREQUAL "linux")
 endif()
 
 if(CONFIG_PPP_SUPPORT)
-    list(APPEND srcs_lwip lwip/esp_netif_lwip_ppp.c)
+    list(APPEND srcs_lwip lwip/esp_netif_lwip_ppp.c lwip/netif/ppp.c)
 endif()
 
 
diff --git a/components/esp_netif/include/esp_netif_ppp.h b/components/esp_netif/include/esp_netif_ppp.h
index 159388e80ea2..c9856c6206fc 100644
--- a/components/esp_netif/include/esp_netif_ppp.h
+++ b/components/esp_netif/include/esp_netif_ppp.h
@@ -1,16 +1,8 @@
-// Copyright 2019 Espressif Systems (Shanghai) PTE LTD
-//
-// Licensed under the Apache License, Version 2.0 (the "License");
-// you may not use this file except in compliance with the License.
-// You may obtain a copy of the License at
-
-//     http://www.apache.org/licenses/LICENSE-2.0
-//
-// Unless required by applicable law or agreed to in writing, software
-// distributed under the License is distributed on an "AS IS" BASIS,
-// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-// See the License for the specific language governing permissions and
-// limitations under the License.
+/*
+ * SPDX-FileCopyrightText: 2019-2023 Espressif Systems (Shanghai) CO LTD
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ */
 //
 
 #ifndef _ESP_NETIF_PPP_H_
@@ -29,6 +21,13 @@ ESP_EVENT_DECLARE_BASE(NETIF_PPP_STATUS);
 typedef struct esp_netif_ppp_config {
     bool ppp_phase_event_enabled;  /**< Enables events coming from PPP PHASE change */
     bool ppp_error_event_enabled;  /**< Enables events from main PPP state machine producing errors */
+#ifdef CONFIG_LWIP_ENABLE_LCP_ECHO
+    bool ppp_lcp_echo_disabled;     /**< Allows to temporarily disable LCP keepalive (runtime, if enabled compile time)
+                                     *   When LCP echo is enabled in menuconfig, this option can be used to override the setting,
+                                     *   if we have to relax LCP keepalive criteria during runtime operation, for example before OTA update.
+                                     *   The current session must be closed, settings will be applied upon connecting.
+                                     *   */
+#endif // CONFIG_LWIP_ENABLE_LCP_ECHO
 } esp_netif_ppp_config_t;
 
 /** @brief event id offset for PHASE related events
diff --git a/components/esp_netif/lwip/esp_netif_lwip_ppp.c b/components/esp_netif/lwip/esp_netif_lwip_ppp.c
index 4bf697bc2782..5233dd31a52e 100644
--- a/components/esp_netif/lwip/esp_netif_lwip_ppp.c
+++ b/components/esp_netif/lwip/esp_netif_lwip_ppp.c
@@ -1,5 +1,5 @@
 /*
- * SPDX-FileCopyrightText: 2019-2022 Espressif Systems (Shanghai) CO LTD
+ * SPDX-FileCopyrightText: 2019-2023 Espressif Systems (Shanghai) CO LTD
  *
  * SPDX-License-Identifier: Apache-2.0
  */
@@ -17,6 +17,7 @@
 #include "esp_netif_lwip_internal.h"
 #include <string.h>
 #include "lwip/ip6_addr.h"
+#include "netif/pppif.h"
 
 ESP_EVENT_DEFINE_BASE(NETIF_PPP_STATUS);
 
@@ -31,6 +32,9 @@ typedef struct lwip_peer2peer_ctx {
     // PPP specific fields follow
     bool ppp_phase_event_enabled;
     bool ppp_error_event_enabled;
+#ifdef CONFIG_LWIP_ENABLE_LCP_ECHO
+    bool ppp_lcp_echo_disabled;
+#endif
     ppp_pcb *ppp;
 } lwip_peer2peer_ctx_t;
 
@@ -257,6 +261,16 @@ esp_err_t esp_netif_start_ppp(esp_netif_t *esp_netif)
     lwip_peer2peer_ctx_t *ppp_ctx = (lwip_peer2peer_ctx_t *)netif_related;
     assert(ppp_ctx->base.netif_type == PPP_LWIP_NETIF);
 
+#ifdef CONFIG_LWIP_ENABLE_LCP_ECHO
+    if (ppp_ctx->ppp_lcp_echo_disabled) {
+        ppp_ctx->ppp->settings.lcp_echo_interval = 0;
+        ppp_ctx->ppp->settings.lcp_echo_fails = 0;
+    } else {
+        ppp_ctx->ppp->settings.lcp_echo_interval = LCP_ECHOINTERVAL;
+        ppp_ctx->ppp->settings.lcp_echo_fails = LCP_MAXECHOFAILS;
+    }
+#endif
+
     ESP_LOGD(TAG, "%s: Starting PPP connection: %p", __func__, ppp_ctx->ppp);
     esp_err_t err = pppapi_connect(ppp_ctx->ppp, 0);
     if (err != ESP_OK) {
@@ -272,7 +286,7 @@ esp_err_t esp_netif_start_ppp(esp_netif_t *esp_netif)
 esp_netif_recv_ret_t esp_netif_lwip_ppp_input(void *ppp_ctx, void *buffer, size_t len, void *eb)
 {
     struct lwip_peer2peer_ctx * obj = ppp_ctx;
-    err_t ret = pppos_input_tcpip(obj->ppp, buffer, len);
+    err_t ret = pppos_input_tcpip_as_ram_pbuf(obj->ppp, buffer, len);
     if (ret != ERR_OK) {
         ESP_LOGE(TAG, "pppos_input_tcpip failed with %d", ret);
         return ESP_NETIF_OPTIONAL_RETURN_CODE(ESP_FAIL);
@@ -311,6 +325,9 @@ esp_err_t esp_netif_ppp_set_params(esp_netif_t *netif, const esp_netif_ppp_confi
     struct lwip_peer2peer_ctx *obj =  (struct lwip_peer2peer_ctx *)netif->related_data;
     obj->ppp_phase_event_enabled = config->ppp_phase_event_enabled;
     obj->ppp_error_event_enabled = config->ppp_error_event_enabled;
+#ifdef CONFIG_LWIP_ENABLE_LCP_ECHO
+    obj->ppp_lcp_echo_disabled = config->ppp_lcp_echo_disabled;
+#endif
     return ESP_OK;
 }
 
@@ -323,5 +340,8 @@ esp_err_t esp_netif_ppp_get_params(esp_netif_t *netif, esp_netif_ppp_config_t *c
     struct lwip_peer2peer_ctx *obj =  (struct lwip_peer2peer_ctx *)netif->related_data;
     config->ppp_phase_event_enabled = obj->ppp_phase_event_enabled;
     config->ppp_error_event_enabled = obj->ppp_error_event_enabled;
+#ifdef CONFIG_LWIP_ENABLE_LCP_ECHO
+    config->ppp_lcp_echo_disabled = obj->ppp_lcp_echo_disabled;
+#endif
     return ESP_OK;
 }
diff --git a/components/esp_netif/lwip/netif/ppp.c b/components/esp_netif/lwip/netif/ppp.c
new file mode 100644
index 000000000000..f28627520c74
--- /dev/null
+++ b/components/esp_netif/lwip/netif/ppp.c
@@ -0,0 +1,28 @@
+/*
+ * SPDX-FileCopyrightText: 2001-2004 Swedish Institute of Computer Science
+ *
+ * SPDX-License-Identifier: BSD-3-Clause
+ *
+ * SPDX-FileContributor: 2023 Espressif Systems (Shanghai) CO LTD
+ */
+#include "pppif.h"
+#include "lwip/tcpip.h"
+
+/*
+ * Similar to pppos_input_tcpip() from lwip's ppp netif, but instead
+ * of PBUF_POOL, we use PBUF_RAM type of the pbuf we pass to the stack
+ */
+err_t pppos_input_tcpip_as_ram_pbuf(ppp_pcb *ppp, u8_t *s, int l)
+{
+    struct pbuf *p = pbuf_alloc(PBUF_RAW, l, PBUF_RAM);
+    if (!p) {
+        return ERR_MEM;
+    }
+    pbuf_take(p, s, l);
+
+    err_t err = tcpip_inpkt(p, ppp_netif(ppp), pppos_input_sys);
+    if (err != ERR_OK) {
+        pbuf_free(p);
+    }
+    return err;
+}
diff --git a/components/esp_netif/lwip/netif/pppif.h b/components/esp_netif/lwip/netif/pppif.h
new file mode 100644
index 000000000000..968911655936
--- /dev/null
+++ b/components/esp_netif/lwip/netif/pppif.h
@@ -0,0 +1,22 @@
+/*
+ * SPDX-FileCopyrightText: 2001-2004 Swedish Institute of Computer Science
+ *
+ * SPDX-License-Identifier: BSD-3-Clause
+ *
+ * SPDX-FileContributor: 2023 Espressif Systems (Shanghai) CO LTD
+ */
+#include "lwip/pbuf.h"
+#include "netif/ppp/pppos.h"
+
+/** Pass received raw characters to PPPoS to be decoded through lwIP TCPIP thread.
+ *
+ * This function uses allocated packet buffers of exact size for input to TCP/IP stack
+ * to consume less memory in download mode, compared to the pppos_input_tcpip() from lwIP.
+ * (original implementation uses `PBUF_POOL`, which on ESP port uses standard malloc
+ * to allocate a fixed size pbuf)
+ *
+ * @param ppp PPP descriptor index, returned by pppos_create()
+ * @param s received data
+ * @param l length of received data
+ */
+ err_t pppos_input_tcpip_as_ram_pbuf(ppp_pcb *ppp, u8_t *s, int l);
diff --git a/tools/ci/check_copyright_ignore.txt b/tools/ci/check_copyright_ignore.txt
index 9405c40e159d..0c64d0b84121 100644
--- a/tools/ci/check_copyright_ignore.txt
+++ b/tools/ci/check_copyright_ignore.txt
@@ -422,7 +422,6 @@ components/esp_hid/src/esp_hid_common.c
 components/esp_local_ctrl/src/esp_local_ctrl_handler.c
 components/esp_local_ctrl/src/esp_local_ctrl_priv.h
 components/esp_local_ctrl/src/esp_local_ctrl_transport_ble.c
-components/esp_netif/include/esp_netif_ppp.h
 components/esp_phy/test/test_phy_rtc.c
 components/esp_pm/include/esp_private/pm_trace.h
 components/esp_rom/esp32/ld/esp32.rom.api.ld