diff --git a/hw/char/terminal3270.c b/hw/char/terminal3270.c
index bef3812c18..55eed5622a 100644
--- a/hw/char/terminal3270.c
+++ b/hw/char/terminal3270.c
@@ -12,16 +12,114 @@
  */
 
 #include "qemu/osdep.h"
+#include "qapi/error.h"
+#include "sysemu/char.h"
 #include "hw/s390x/3270-ccw.h"
 
+/* Enough spaces for different window sizes. */
+#define INPUT_BUFFER_SIZE  1000
+/*
+ * 1 for header, 1024*2 for datastream, 2 for tail
+ * Reserve enough spaces for telnet IAC escape.
+ */
+#define OUTPUT_BUFFER_SIZE 2051
+
 typedef struct Terminal3270 {
     EmulatedCcw3270Device cdev;
+    CharBackend chr;
+    uint8_t inv[INPUT_BUFFER_SIZE];
+    uint8_t outv[OUTPUT_BUFFER_SIZE];
+    int in_len;
+    int out_len;
+    bool handshake_done;
 } Terminal3270;
 
 #define TYPE_TERMINAL_3270 "x-terminal3270"
+#define TERMINAL_3270(obj) \
+        OBJECT_CHECK(Terminal3270, (obj), TYPE_TERMINAL_3270)
+
+static int terminal_can_read(void *opaque)
+{
+    Terminal3270 *t = opaque;
+
+    return INPUT_BUFFER_SIZE - t->in_len;
+}
+
+/*
+ * Protocol handshake done,
+ * signal guest by an unsolicited DE irq.
+ */
+static void TN3270_handshake_done(Terminal3270 *t)
+{
+    CcwDevice *ccw_dev = CCW_DEVICE(t);
+    SubchDev *sch = ccw_dev->sch;
+
+    t->handshake_done = true;
+    sch->curr_status.scsw.dstat = SCSW_DSTAT_DEVICE_END;
+    css_conditional_io_interrupt(sch);
+}
+
+/*
+ * Receive inbound data from socket.
+ * For data given to guest, drop the data boundary IAC, IAC_EOR.
+ * TODO:
+ * Using "Reset" key on x3270 may result multiple commands in one packet.
+ * This usually happens when the user meets a poor traffic of the network.
+ * As of now, for such case, we simply terminate the connection,
+ * and we should come back here later with a better solution.
+ */
+static void terminal_read(void *opaque, const uint8_t *buf, int size)
+{
+    Terminal3270 *t = opaque;
+    CcwDevice *ccw_dev = CCW_DEVICE(t);
+    SubchDev *sch = ccw_dev->sch;
+    int end;
+
+    assert(size <= (INPUT_BUFFER_SIZE - t->in_len));
+
+    memcpy(&t->inv[t->in_len], buf, size);
+    t->in_len += size;
+    if (t->in_len < 2) {
+        return;
+    }
+
+    if (!t->handshake_done) {
+        /*
+         * Receiving Terminal Type is the last step of handshake.
+         * The data format: IAC SB Terminal-Type IS <terminal type> IAC SE
+         * The code for Terminal-Type is 0x18, for IS is 0.
+         * Simply check the data format and mark handshake_done.
+         */
+        if (t->in_len > 6 && t->inv[2] == 0x18 && t->inv[3] == 0x0 &&
+            t->inv[t->in_len - 2] == IAC && t->inv[t->in_len - 1] == IAC_SE) {
+            TN3270_handshake_done(t);
+            t->in_len = 0;
+        }
+        return;
+    }
+
+    for (end = 0; end < t->in_len - 1; end++) {
+        if (t->inv[end] == IAC && t->inv[end + 1] == IAC_EOR) {
+            break;
+        }
+    }
+    if (end == t->in_len - 2) {
+        /* Data is valid for consuming. */
+        t->in_len -= 2;
+        sch->curr_status.scsw.dstat = SCSW_DSTAT_ATTENTION;
+        css_conditional_io_interrupt(sch);
+    } else if (end < t->in_len - 2) {
+        /* "Reset" key is used. */
+        qemu_chr_fe_disconnect(&t->chr);
+    } else {
+        /* Gathering data. */
+        return;
+    }
+}
 
 static void terminal_init(EmulatedCcw3270Device *dev, Error **errp)
 {
+    Terminal3270 *t = TERMINAL_3270(dev);
     static bool terminal_available;
 
     if (terminal_available) {
@@ -29,13 +127,95 @@ static void terminal_init(EmulatedCcw3270Device *dev, Error **errp)
         return;
     }
     terminal_available = true;
+    qemu_chr_fe_set_handlers(&t->chr, terminal_can_read,
+                             terminal_read, NULL, t, NULL, true);
+}
+
+static int read_payload_3270(EmulatedCcw3270Device *dev, uint32_t cda,
+                             uint16_t count)
+{
+    Terminal3270 *t = TERMINAL_3270(dev);
+    int len;
+
+    len = MIN(count, t->in_len);
+    cpu_physical_memory_write(cda, t->inv, len);
+    t->in_len -= len;
+
+    return len;
+}
+
+/* TN3270 uses binary transmission, which needs escape IAC to IAC IAC */
+static int insert_IAC_escape_char(uint8_t *outv, int out_len)
+{
+    int IAC_num = 0, new_out_len, i, j;
+
+    for (i = 0; i < out_len; i++) {
+        if (outv[i] == IAC) {
+            IAC_num++;
+        }
+    }
+    if (IAC_num == 0) {
+        return out_len;
+    }
+    new_out_len = out_len + IAC_num;
+    for (i = out_len - 1, j = new_out_len - 1; j > i && i >= 0; i--, j--) {
+        outv[j] = outv[i];
+        if (outv[i] == IAC) {
+            outv[--j] = IAC;
+        }
+    }
+    return new_out_len;
 }
 
+/*
+ * Write 3270 outbound to socket.
+ * Return the count of 3270 data field if succeeded, zero if failed.
+ */
+static int write_payload_3270(EmulatedCcw3270Device *dev, uint8_t cmd,
+                              uint32_t cda, uint16_t count)
+{
+    Terminal3270 *t = TERMINAL_3270(dev);
+    int retval = 0;
+
+    assert(count <= (OUTPUT_BUFFER_SIZE - 3) / 2);
+
+    if (!t->handshake_done) {
+        /*
+         * Before having finished 3270 negotiation,
+         * sending outbound data is prohibited.
+         */
+        return 0;
+    }
+    if (!qemu_chr_fe_get_driver(&t->chr)) {
+        /* We just say we consumed all data if there's no backend. */
+        return count;
+    }
+    t->outv[0] = cmd;
+    cpu_physical_memory_read(cda, &t->outv[1], count);
+    t->out_len = count + 1;
+
+    t->out_len = insert_IAC_escape_char(t->outv, t->out_len);
+    t->outv[t->out_len++] = IAC;
+    t->outv[t->out_len++] = IAC_EOR;
+
+    retval = qemu_chr_fe_write_all(&t->chr, t->outv, t->out_len);
+    return (retval <= 0) ? 0 : (retval - 3);
+}
+
+static Property terminal_properties[] = {
+    DEFINE_PROP_CHR("chardev", Terminal3270, chr),
+    DEFINE_PROP_END_OF_LIST(),
+};
+
 static void terminal_class_init(ObjectClass *klass, void *data)
 {
+    DeviceClass *dc = DEVICE_CLASS(klass);
     EmulatedCcw3270Class *ck = EMULATED_CCW_3270_CLASS(klass);
 
+    dc->props = terminal_properties;
     ck->init = terminal_init;
+    ck->read_payload_3270 = read_payload_3270;
+    ck->write_payload_3270 = write_payload_3270;
 }
 
 static const TypeInfo ccw_terminal_info = {
diff --git a/hw/s390x/3270-ccw.c b/hw/s390x/3270-ccw.c
index 47b9e89bb7..a7a5b412e4 100644
--- a/hw/s390x/3270-ccw.c
+++ b/hw/s390x/3270-ccw.c
@@ -17,6 +17,80 @@
 #include "hw/s390x/css-bridge.h"
 #include "hw/s390x/3270-ccw.h"
 
+/* Handle READ ccw commands from guest */
+static int handle_payload_3270_read(EmulatedCcw3270Device *dev, CCW1 *ccw)
+{
+    EmulatedCcw3270Class *ck = EMULATED_CCW_3270_GET_CLASS(dev);
+    CcwDevice *ccw_dev = CCW_DEVICE(dev);
+    int len;
+
+    if (!ccw->cda) {
+        return -EFAULT;
+    }
+
+    len = ck->read_payload_3270(dev, ccw->cda, ccw->count);
+    ccw_dev->sch->curr_status.scsw.count = ccw->count - len;
+
+    return 0;
+}
+
+/* Handle WRITE ccw commands to write data to client */
+static int handle_payload_3270_write(EmulatedCcw3270Device *dev, CCW1 *ccw)
+{
+    EmulatedCcw3270Class *ck = EMULATED_CCW_3270_GET_CLASS(dev);
+    CcwDevice *ccw_dev = CCW_DEVICE(dev);
+    int len;
+
+    if (!ccw->cda) {
+        return -EFAULT;
+    }
+
+    len = ck->write_payload_3270(dev, ccw->cmd_code, ccw->cda, ccw->count);
+
+    if (len <= 0) {
+        return -EIO;
+    }
+
+    ccw_dev->sch->curr_status.scsw.count = ccw->count - len;
+    return 0;
+}
+
+static int emulated_ccw_3270_cb(SubchDev *sch, CCW1 ccw)
+{
+    int rc = 0;
+    EmulatedCcw3270Device *dev = sch->driver_data;
+
+    switch (ccw.cmd_code) {
+    case TC_WRITESF:
+    case TC_WRITE:
+    case TC_EWRITE:
+    case TC_EWRITEA:
+        rc = handle_payload_3270_write(dev, &ccw);
+        break;
+    case TC_RDBUF:
+    case TC_READMOD:
+        rc = handle_payload_3270_read(dev, &ccw);
+        break;
+    default:
+        rc = -ENOSYS;
+        break;
+    }
+
+    if (rc == -EIO) {
+        /* I/O error, specific devices generate specific conditions */
+        SCSW *s = &sch->curr_status.scsw;
+
+        sch->curr_status.scsw.dstat = SCSW_DSTAT_UNIT_CHECK;
+        sch->sense_data[0] = 0x40;    /* intervention-req */
+        s->ctrl &= ~SCSW_ACTL_START_PEND;
+        s->ctrl &= ~SCSW_CTRL_MASK_STCTL;
+        s->ctrl |= SCSW_STCTL_PRIMARY | SCSW_STCTL_SECONDARY |
+                   SCSW_STCTL_ALERT | SCSW_STCTL_STATUS_PEND;
+    }
+
+    return rc;
+}
+
 static void emulated_ccw_3270_realize(DeviceState *ds, Error **errp)
 {
     uint16_t chpid;
@@ -48,6 +122,7 @@ static void emulated_ccw_3270_realize(DeviceState *ds, Error **errp)
     sch->id.cu_type = EMULATED_CCW_3270_CU_TYPE;
     css_sch_build_virtual_schib(sch, (uint8_t)chpid,
                                 EMULATED_CCW_3270_CHPID_TYPE);
+    sch->ccw_cb = emulated_ccw_3270_cb;
 
     ck->init(dev, &err);
     if (err) {
diff --git a/hw/s390x/css.c b/hw/s390x/css.c
index d94498a97b..15c4f4b249 100644
--- a/hw/s390x/css.c
+++ b/hw/s390x/css.c
@@ -576,6 +576,9 @@ static void sch_handle_start_func(SubchDev *sch, ORB *orb)
             s->dstat = SCSW_DSTAT_CHANNEL_END | SCSW_DSTAT_DEVICE_END;
             s->cpa = sch->channel_prog + 8;
             break;
+        case -EIO:
+            /* I/O errors, status depends on specific devices */
+            break;
         case -ENOSYS:
             /* unsupported command, generate unit check (command reject) */
             s->ctrl &= ~SCSW_ACTL_START_PEND;
diff --git a/include/hw/s390x/3270-ccw.h b/include/hw/s390x/3270-ccw.h
index 45ea515e9f..46bee2533c 100644
--- a/include/hw/s390x/3270-ccw.h
+++ b/include/hw/s390x/3270-ccw.h
@@ -21,6 +21,15 @@
 #define EMULATED_CCW_3270_CHPID_TYPE 0x1a
 
 #define TYPE_EMULATED_CCW_3270 "emulated-ccw-3270"
+
+/* Local Channel Commands */
+#define TC_WRITE   0x01         /* Write */
+#define TC_RDBUF   0x02         /* Read buffer */
+#define TC_EWRITE  0x05         /* Erase write */
+#define TC_READMOD 0x06         /* Read modified */
+#define TC_EWRITEA 0x0d         /* Erase write alternate */
+#define TC_WRITESF 0x11         /* Write structured field */
+
 #define EMULATED_CCW_3270(obj) \
      OBJECT_CHECK(EmulatedCcw3270Device, (obj), TYPE_EMULATED_CCW_3270)
 #define EMULATED_CCW_3270_CLASS(klass) \
