diff --git a/include/openbsc/gsm_data.h b/include/openbsc/gsm_data.h
index 02823c969..51cf6dcd4 100644
--- a/include/openbsc/gsm_data.h
+++ b/include/openbsc/gsm_data.h
@@ -511,6 +511,7 @@ struct gsm_sms {
 	} smpp;
 
 	unsigned long validity_minutes;
+	bool is_report;
 	uint8_t reply_path_req;
 	uint8_t status_rep_req;
 	uint8_t ud_hdr_ind;
diff --git a/src/libmsc/gsm_04_11.c b/src/libmsc/gsm_04_11.c
index cd2388343..b4fa3dff6 100644
--- a/src/libmsc/gsm_04_11.c
+++ b/src/libmsc/gsm_04_11.c
@@ -594,6 +594,57 @@ static int gsm411_rx_rp_data(struct msgb *msg, struct gsm_trans *trans,
 				rpud_len, rp_ud);
 }
 
+static struct gsm_sms *sms_report_alloc(struct gsm_sms *sms)
+{
+	struct gsm_sms *sms_report;
+	int len;
+
+	sms_report = sms_alloc();
+	OSMO_ASSERT(sms_report);
+
+	sms_report->msg_ref = sms->msg_ref;
+	sms_report->protocol_id = sms->protocol_id;
+	sms_report->data_coding_scheme = GSM338_DCS_1111_8BIT_DATA;
+
+	/* Invert address to send status report back to origin. */
+	sms_report->src = sms->dst;
+	sms_report->dst = sms->src;
+
+	/* As specified by Appendix B. Delivery Receipt Format.
+	 * TODO: Many fields in this string are just set with dummy values,
+	 * 	 revisit this.
+	 */
+	len = snprintf((char *)sms_report->user_data,
+		       sizeof(sms_report->user_data),
+		       "id:%.08llu sub:000 dlvrd:000 submit date:YYMMDDhhmm done date:YYMMDDhhmm stat:DELIVRD err:000 text:%.20s",
+		       sms->id, sms->user_data);
+	sms_report->user_data_len = len;
+	LOGP(DLSMS, LOGL_NOTICE, "%s\n", sms_report->user_data);
+
+	/* This represents a sms report. */
+	sms_report->is_report = true;
+
+	return sms_report;
+}
+
+static void sms_status_report(struct gsm_sms *gsms,
+			      struct gsm_subscriber_connection *conn)
+{
+	struct gsm_sms *sms_report;
+	int rc;
+
+	sms_report = sms_report_alloc(gsms);
+
+	rc = sms_route_mt_sms(conn, sms_report);
+	if (rc < 0) {
+		LOGP(DLSMS, LOGL_ERROR,
+		     "Failed to send status report! err=%d\n", rc);
+	}
+	LOGP(DLSMS, LOGL_NOTICE, "Status report has been sent\n");
+
+	sms_free(sms_report);
+}
+
 /* Receive a 04.11 RP-ACK message (response to RP-DATA from us) */
 static int gsm411_rx_rp_ack(struct msgb *msg, struct gsm_trans *trans,
 			    struct gsm411_rp_hdr *rph)
@@ -615,6 +666,9 @@ static int gsm411_rx_rp_ack(struct msgb *msg, struct gsm_trans *trans,
 
 	send_signal(S_SMS_DELIVERED, trans, sms, 0);
 
+	if (sms->status_rep_req)
+		sms_status_report(sms, trans->conn);
+
 	sms_free(sms);
 	trans->sms.sms = NULL;
 
diff --git a/src/libmsc/smpp_openbsc.c b/src/libmsc/smpp_openbsc.c
index 5de13687a..03482be33 100644
--- a/src/libmsc/smpp_openbsc.c
+++ b/src/libmsc/smpp_openbsc.c
@@ -201,6 +201,10 @@ static int submit_to_sms(struct gsm_sms **psms, struct gsm_network *net,
 		sms->user_data_len = sms_msg_len;
 	}
 
+	t = find_tlv(submit->tlv, TLVID_user_message_reference);
+	if (t)
+		sms->msg_ref = ntohs(t->value.val16);
+
 	*psms = sms;
 	return ESME_ROK;
 }
@@ -518,6 +522,9 @@ void smpp_cmd_ack(struct osmo_smpp_cmd *cmd)
 	struct gsm_subscriber_connection *conn;
 	struct gsm_trans *trans;
 
+	if (cmd->is_report)
+		goto out;
+
 	conn = connection_for_subscr(cmd->vsub);
 	if (!conn) {
 		LOGP(DSMPP, LOGL_ERROR, "No connection to subscriber anymore\n");
@@ -542,6 +549,9 @@ void smpp_cmd_err(struct osmo_smpp_cmd *cmd, uint32_t status)
 	struct gsm_trans *trans;
 	int gsm411_cause;
 
+	if (cmd->is_report)
+		goto out;
+
 	conn = connection_for_subscr(cmd->vsub);
 	if (!conn) {
 		LOGP(DSMPP, LOGL_ERROR, "No connection to subscriber anymore\n");
@@ -579,6 +589,7 @@ static int smpp_cmd_enqueue(struct osmo_esme *esme,
 		return -1;
 
 	cmd->sequence_nr	= sequence_number;
+	cmd->is_report		= sms->is_report;
 	cmd->gsm411_msg_ref	= sms->gsm411.msg_ref;
 	cmd->gsm411_trans_id	= sms->gsm411.transaction_id;
 	cmd->vsub		= vlr_subscr_get(vsub);
@@ -643,7 +654,12 @@ static int deliver_to_esme(struct osmo_esme *esme, struct gsm_sms *sms,
 	memcpy(deliver.destination_addr, sms->dst.addr,
 		sizeof(deliver.destination_addr));
 
-	deliver.esm_class	= 1;	/* datagram mode */
+	/* Short message contains a delivery receipt? Sect. 5.2.12. */
+	if (sms->is_report)
+		deliver.esm_class = 0x04;
+	else
+		deliver.esm_class = 1;	/* datagram mode */
+
 	if (sms->ud_hdr_ind)
 		deliver.esm_class |= 0x40;
 	if (sms->reply_path_req)
@@ -692,6 +708,9 @@ static int deliver_to_esme(struct osmo_esme *esme, struct gsm_sms *sms,
 		append_osmo_tlvs(&deliver.tlv, conn->lchan);
 #endif
 
+	append_tlv_u16(&deliver.tlv, TLVID_user_message_reference,
+		       sms->msg_ref);
+
 	ret = smpp_tx_deliver(esme, &deliver);
 	if (ret < 0)
 		return ret;
diff --git a/src/libmsc/smpp_smsc.h b/src/libmsc/smpp_smsc.h
index 0f1d35cc1..755e68577 100644
--- a/src/libmsc/smpp_smsc.h
+++ b/src/libmsc/smpp_smsc.h
@@ -92,6 +92,7 @@ struct osmo_smpp_cmd {
 	uint32_t		sequence_nr;
 	uint32_t		gsm411_msg_ref;
 	uint8_t			gsm411_trans_id;
+	bool			is_report;
 	struct osmo_timer_list	response_timer;
 };