diff --git a/nshlib/nsh_parse.c b/nshlib/nsh_parse.c
index 75c7876a1..800daf08c 100644
--- a/nshlib/nsh_parse.c
+++ b/nshlib/nsh_parse.c
@@ -59,11 +59,29 @@
 #  define HAVE_MEMLIST 1
 #endif
 
+/* If CONFIG_NSH_ALIAS is enabled, the alias strings might need dynamic
+ * memory, in case the alias has arguments and is set like:
+ *
+ * $ alias ls='ls -l'
+ *
+ * In this case the command verb and the arguments need to be separated, much
+ * like the argument separation is done with environment variable expansion.
+ *
+ * This needs a new working buffer in order to keep the original alias string
+ * intact.
+ */
+
+#ifdef CONFIG_NSH_ALIAS
+#  define ALIAS_ALLOCS           2
+#else
+#  define ALIAS_ALLOCS           0
+#endif
+
 #if defined(HAVE_MEMLIST) && !defined(CONFIG_NSH_MAXALLOCS)
 #  ifdef CONFIG_NSH_ARGCAT
-#    define CONFIG_NSH_MAXALLOCS (2*CONFIG_NSH_MAXARGUMENTS)
+#    define CONFIG_NSH_MAXALLOCS ((2*CONFIG_NSH_MAXARGUMENTS) + ALIAS_ALLOCS)
 #  else
-#    define CONFIG_NSH_MAXALLOCS CONFIG_NSH_MAXARGUMENTS
+#    define CONFIG_NSH_MAXALLOCS (CONFIG_NSH_MAXARGUMENTS + ALIAS_ALLOCS)
 #  endif
 #endif
 
@@ -173,7 +191,7 @@ static FAR char *nsh_cmdparm(FAR struct nsh_vtbl_s *vtbl, FAR char *cmdline,
                FAR char **allocation);
 #endif
 
-#ifdef CONFIG_NSH_ARGCAT
+#if defined(CONFIG_NSH_ARGCAT) || defined(CONFIG_NSH_ALIAS)
 static FAR char *nsh_strcat(FAR struct nsh_vtbl_s *vtbl, FAR char *s1,
                FAR const char *s2);
 #endif
@@ -186,7 +204,9 @@ static FAR char *nsh_strchr(FAR const char *str, int ch);
 
 #ifdef CONFIG_NSH_ALIAS
 static FAR char *nsh_aliasexpand(FAR struct nsh_vtbl_s *vtbl,
-               FAR char *cmdline, FAR NSH_ALIASLIST_TYPE *alist);
+               FAR char *cmdline, FAR char **saveptr,
+               FAR NSH_MEMLIST_TYPE *memlist,
+               FAR NSH_ALIASLIST_TYPE *alist);
 #endif
 
 #ifdef NSH_HAVE_VARS
@@ -1057,7 +1077,7 @@ static FAR char *nsh_cmdparm(FAR struct nsh_vtbl_s *vtbl, FAR char *cmdline,
  * Name: nsh_strcat
  ****************************************************************************/
 
-#ifdef CONFIG_NSH_ARGCAT
+#if defined(CONFIG_NSH_ARGCAT) || defined(CONFIG_NSH_ALIAS)
 static FAR char *nsh_strcat(FAR struct nsh_vtbl_s *vtbl, FAR char *s1,
                             FAR const char *s2)
 {
@@ -1131,7 +1151,9 @@ static FAR char *nsh_strchr(FAR const char *str, int ch)
 
 #ifdef CONFIG_NSH_ALIAS
 static FAR char *nsh_aliasexpand(FAR struct nsh_vtbl_s *vtbl,
-               FAR char *cmdline, FAR NSH_ALIASLIST_TYPE *alist)
+               FAR char *cmdline, FAR char **saveptr,
+               FAR NSH_MEMLIST_TYPE *memlist,
+               FAR NSH_ALIASLIST_TYPE *alist)
 {
   FAR struct nsh_alias_s *alias;
 
@@ -1140,10 +1162,45 @@ static FAR char *nsh_aliasexpand(FAR struct nsh_vtbl_s *vtbl,
   alias = nsh_aliasfind(vtbl, cmdline);
   if (alias)
     {
-      /* Yes, expand and mark it as already expanded */
+      FAR char *ptr;
+      size_t len;
 
+      /* Yes, expand the alias and mark it as already expanded */
+
+      cmdline = alias->value;
       NSH_ALIASLIST_ADD(alist, alias);
-      return alias->value;
+
+      /* Check if alias expands to more words on the command line */
+
+      len = strcspn(cmdline, g_token_separator);
+      ptr = cmdline + len;
+
+      if (*ptr != '\0')
+        {
+          /* It does, make a copy so the alias string is not modified */
+
+          if ((ptr = strdup(alias->value)) != NULL)
+            {
+              /* Set the new command line (expanded alias) */
+
+              cmdline = ptr;
+
+              /* Then concatenate the old command line with the new */
+
+              ptr = nsh_strcat(vtbl, ptr, " ");
+              ptr = nsh_strcat(vtbl, ptr, *saveptr);
+              NSH_MEMLIST_ADD(memlist, ptr);
+
+              /* NULL terminate the new command */
+
+              ptr     = cmdline + len;
+              *ptr++  = '\0';
+
+              /* Mark where we left off in the new command line string */
+
+              *saveptr = ptr;
+            }
+        }
     }
 
   return cmdline;
@@ -1811,7 +1868,7 @@ static FAR char *nsh_argument(FAR struct nsh_vtbl_s *vtbl,
 
       if (alist && !quoted)
         {
-          pbegin = nsh_aliasexpand(vtbl, pbegin, alist);
+          pbegin = nsh_aliasexpand(vtbl, pbegin, saveptr, memlist, alist);
         }
 #endif