diff --git a/components/esp32/Kconfig b/components/esp32/Kconfig
index 36c6f7af8..0ad32756e 100644
--- a/components/esp32/Kconfig
+++ b/components/esp32/Kconfig
@@ -1,5 +1,25 @@
 menu "ESP32-specific config"
 
+choice ESP32_DEFAULT_CPU_FREQ_MHZ
+    prompt "CPU frequency"
+    default ESP32_DEFAULT_CPU_FREQ_240
+    help
+        CPU frequency to be set on application startup.
+
+config ESP32_DEFAULT_CPU_FREQ_80
+    bool "80 MHz"
+config ESP32_DEFAULT_CPU_FREQ_160
+    bool "160 MHz"
+config ESP32_DEFAULT_CPU_FREQ_240
+    bool "240 MHz"
+endchoice
+
+config ESP32_DEFAULT_CPU_FREQ_MHZ
+    int
+    default 80 if ESP32_DEFAULT_CPU_FREQ_80
+    default 160 if ESP32_DEFAULT_CPU_FREQ_160
+    default 240 if ESP32_DEFAULT_CPU_FREQ_240
+
 config WIFI_ENABLED
     bool "Enable low-level WiFi stack"
     default "y"
diff --git a/components/esp32/cpu_freq.c b/components/esp32/cpu_freq.c
new file mode 100644
index 000000000..c4bca44f0
--- /dev/null
+++ b/components/esp32/cpu_freq.c
@@ -0,0 +1,68 @@
+// Copyright 2015-2016 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.
+
+#include <stdint.h>
+#include "rom/ets_sys.h"
+#include "sdkconfig.h"
+
+typedef enum{
+    XTAL_40M = 40,
+    XTAL_26M = 26,
+    XTAL_24M = 24,
+    XTAL_AUTO = 0
+} xtal_freq_t;
+
+typedef enum{
+    CPU_80M = 1,
+    CPU_160M = 2,
+    CPU_240M = 3,
+} cpu_freq_t;
+
+extern void phy_get_romfunc_addr();
+
+// TODO: these functions need to be moved from librtc to ESP-IDF
+extern void rtc_init_lite();
+extern void rtc_set_cpu_freq(xtal_freq_t xtal_freq, cpu_freq_t cpu_freq);
+
+/*
+ * This function is not exposed as an API at this point,
+ * because FreeRTOS doesn't yet support dynamic changing of
+ * CPU frequency. Also we need to implement hooks for
+ * components which want to be notified of CPU frequency
+ * changes.
+ */
+void esp_set_cpu_freq()
+{
+    uint32_t freq_mhz = CONFIG_ESP32_DEFAULT_CPU_FREQ_MHZ;
+    phy_get_romfunc_addr();
+    rtc_init_lite();
+    cpu_freq_t freq = CPU_80M;
+    switch(freq_mhz) {
+        case 240:
+            freq = CPU_240M;
+            break;
+        case 160:
+            freq = CPU_160M;
+            break;
+        default:
+            freq_mhz = 80;
+            /* no break */
+        case 80:
+            freq = CPU_80M;
+            break;
+    }
+    rtc_set_cpu_freq(XTAL_AUTO, freq);
+    ets_update_cpu_frequency(freq_mhz);
+}
+
diff --git a/components/esp32/cpu_start.c b/components/esp32/cpu_start.c
index cb31fbd46..85f4ace51 100644
--- a/components/esp32/cpu_start.c
+++ b/components/esp32/cpu_start.c
@@ -141,6 +141,8 @@ static void do_global_ctors(void)
 
 void user_start_cpu0(void)
 {
+    esp_set_cpu_freq();     // set CPU frequency configured in menuconfig
+    uart_div_modify(0, (APB_CLK_FREQ << 4) / 115200);
     ets_setup_syscalls();
     do_global_ctors();
     esp_ipc_init();
diff --git a/components/esp32/include/soc/cpu.h b/components/esp32/include/soc/cpu.h
index b45f742ce..9943a2783 100644
--- a/components/esp32/include/soc/cpu.h
+++ b/components/esp32/include/soc/cpu.h
@@ -68,4 +68,14 @@ static inline void cpu_configure_region_protection()
 }
 
 
+
+/*
+ * @brief Set CPU frequency to the value defined in menuconfig
+ *
+ * Called from cpu_start.c, not intended to be called from other places.
+ * This is a temporary function which will be replaced once dynamic
+ * CPU frequency changing is implemented.
+ */
+void esp_set_cpu_freq();
+
 #endif
diff --git a/components/esp32/lib b/components/esp32/lib
index 1303c92c1..3372298fe 160000
--- a/components/esp32/lib
+++ b/components/esp32/lib
@@ -1 +1 @@
-Subproject commit 1303c92c1056b7f59b95360b58e70a21cb4a93e1
+Subproject commit 3372298fe2ff517858bdc8c64f76540b9ac7d7d5
diff --git a/components/freertos/include/freertos/FreeRTOSConfig.h b/components/freertos/include/freertos/FreeRTOSConfig.h
index 663f015ac..089d799dd 100644
--- a/components/freertos/include/freertos/FreeRTOSConfig.h
+++ b/components/freertos/include/freertos/FreeRTOSConfig.h
@@ -100,7 +100,7 @@
 #define configTHREAD_LOCAL_STORAGE_DELETE_CALLBACKS 1
 
 /* TODO: config freq by menuconfig */
-#define XT_CLOCK_FREQ 80000000
+#define XT_CLOCK_FREQ (CONFIG_ESP32_DEFAULT_CPU_FREQ_MHZ * 1000000)
 
 /* Required for configuration-dependent settings */
 #include "xtensa_config.h"