diff --git a/hostapd/config_file.c b/hostapd/config_file.c
index 8f7fcd8b7..1861b5203 100644
--- a/hostapd/config_file.c
+++ b/hostapd/config_file.c
@@ -2555,7 +2555,7 @@ static int hostapd_config_fill(struct hostapd_config *conf,
 	} else if (os_strcmp(buf, "eap_teap_auth") == 0) {
 		int val = atoi(pos);
 
-		if (val < 0 || val > 1) {
+		if (val < 0 || val > 2) {
 			wpa_printf(MSG_ERROR,
 				   "Line %d: Invalid eap_teap_auth value",
 				   line);
diff --git a/hostapd/hostapd.conf b/hostapd/hostapd.conf
index 2b0f762e5..060738c34 100644
--- a/hostapd/hostapd.conf
+++ b/hostapd/hostapd.conf
@@ -1229,6 +1229,8 @@ eap_server=0
 # EAP-TEAP authentication type
 # 0 = inner EAP (default)
 # 1 = Basic-Password-Auth
+# 2 = Do not require Phase 2 authentication if client can be authenticated
+#     during Phase 1
 #eap_teap_auth=0
 
 # EAP-TEAP authentication behavior when using PAC
diff --git a/src/eap_server/eap_server_teap.c b/src/eap_server/eap_server_teap.c
index d7b1b0995..691b44a8d 100644
--- a/src/eap_server/eap_server_teap.c
+++ b/src/eap_server/eap_server_teap.c
@@ -64,7 +64,7 @@ struct eap_teap_data {
 	struct wpabuf *pending_phase2_resp;
 	struct wpabuf *server_outer_tlvs;
 	struct wpabuf *peer_outer_tlvs;
-	u8 *identity; /* from PAC-Opaque */
+	u8 *identity; /* from PAC-Opaque or client certificate */
 	size_t identity_len;
 	int eap_seq;
 	int tnc_started;
@@ -365,7 +365,9 @@ static void * eap_teap_init(struct eap_sm *sm)
 	data->teap_version = EAP_TEAP_VERSION;
 	data->state = START;
 
-	if (eap_server_tls_ssl_init(sm, &data->ssl, 0, EAP_TYPE_TEAP)) {
+	if (eap_server_tls_ssl_init(sm, &data->ssl,
+				    sm->cfg->eap_teap_auth == 2 ? 2 : 0,
+				    EAP_TYPE_TEAP)) {
 		wpa_printf(MSG_INFO, "EAP-TEAP: Failed to initialize SSL.");
 		eap_teap_reset(sm, data);
 		return NULL;
@@ -502,6 +504,19 @@ static int eap_teap_phase1_done(struct eap_sm *sm, struct eap_teap_data *data)
 
 	wpa_printf(MSG_DEBUG, "EAP-TEAP: Phase 1 done, starting Phase 2");
 
+	if (!data->identity && sm->cfg->eap_teap_auth == 2) {
+		const char *subject;
+
+		subject = tls_connection_get_peer_subject(data->ssl.conn);
+		if (subject) {
+			wpa_printf(MSG_DEBUG,
+				   "EAP-TEAP: Peer subject from Phase 1 client certificate: '%s'",
+				   subject);
+			data->identity = (u8 *) os_strdup(subject);
+			data->identity_len = os_strlen(subject);
+		}
+	}
+
 	data->tls_cs = tls_connection_get_cipher_suite(data->ssl.conn);
 	wpa_printf(MSG_DEBUG, "EAP-TEAP: TLS cipher suite 0x%04x",
 		   data->tls_cs);
@@ -1775,9 +1790,10 @@ static int eap_teap_process_phase2_start(struct eap_sm *sm,
 			next_vendor = EAP_VENDOR_IETF;
 			next_type = EAP_TYPE_NONE;
 			eap_teap_state(data, PHASE2_METHOD);
-		} else if (sm->cfg->eap_teap_pac_no_inner) {
+		} else if (sm->cfg->eap_teap_pac_no_inner ||
+			sm->cfg->eap_teap_auth == 2) {
 			wpa_printf(MSG_DEBUG,
-				   "EAP-TEAP: Used PAC and identity already known - skip inner auth");
+				   "EAP-TEAP: Used PAC or client certificate and identity already known - skip inner auth");
 			data->skipped_inner_auth = 1;
 			/* FIX: Need to derive CMK here. However, how is that
 			 * supposed to be done? RFC 7170 does not tell that for