diff --git a/include/openthread/instance.h b/include/openthread/instance.h
index d450a0218..782a0b353 100644
--- a/include/openthread/instance.h
+++ b/include/openthread/instance.h
@@ -53,7 +53,7 @@ extern "C" {
  * @note This number versions both OpenThread platform and user APIs.
  *
  */
-#define OPENTHREAD_API_VERSION (363)
+#define OPENTHREAD_API_VERSION (364)
 
 /**
  * @addtogroup api-instance
diff --git a/include/openthread/ping_sender.h b/include/openthread/ping_sender.h
index 174cccc25..28b5f9a6c 100644
--- a/include/openthread/ping_sender.h
+++ b/include/openthread/ping_sender.h
@@ -120,6 +120,7 @@ typedef struct otPingSenderConfig
                                   ///< Zero to use default.
     uint8_t mHopLimit;            ///< Hop limit (used if `mAllowZeroHopLimit` is false). Zero for default.
     bool    mAllowZeroHopLimit;   ///< Indicates whether hop limit is zero.
+    bool    mMulticastLoop;       ///< Allow looping back pings to multicast address that device is subscribed to.
 } otPingSenderConfig;
 
 /**
diff --git a/src/cli/README.md b/src/cli/README.md
index f10d25100..e13f03204 100644
--- a/src/cli/README.md
+++ b/src/cli/README.md
@@ -89,7 +89,7 @@ Done
 - [parent](#parent)
 - [parentpriority](#parentpriority)
 - [partitionid](#partitionid)
-- [ping](#ping-async--i-source-ipaddr-size-count-interval-hoplimit-timeout)
+- [ping](#ping-async--i-source--m-ipaddr-size-count-interval-hoplimit-timeout)
 - [platform](#platform)
 - [pollperiod](#pollperiod-pollperiod)
 - [preferrouterid](#preferrouterid-routerid)
@@ -2728,12 +2728,13 @@ Set the preferred Thread Leader Partition ID.
 Done
 ```
 
-### ping \[async\] \[-I source\] \<ipaddr\> \[size\] \[count\] \[interval\] \[hoplimit\] \[timeout\]
+### ping \[async\] \[-I source\] \[-m] \<ipaddr\> \[size\] \[count\] \[interval\] \[hoplimit\] \[timeout\]
 
 Send an ICMPv6 Echo Request.
 
 - async: Use the non-blocking mode. New commands are allowed before the ping process terminates.
 - source: The source IPv6 address of the echo request.
+- -m: multicast loop, which allows looping back pings to multicast addresses that the device itself is subscribed to.
 - size: The number of data bytes to be sent.
 - count: The number of ICMPv6 Echo Requests to be sent.
 - interval: The interval between two consecutive ICMPv6 Echo Requests in seconds. The value may have fractional form, for example `0.5`.
diff --git a/src/cli/cli.cpp b/src/cli/cli.cpp
index a2be21902..381d92bf2 100644
--- a/src/cli/cli.cpp
+++ b/src/cli/cli.cpp
@@ -6019,7 +6019,7 @@ void Interpreter::HandlePingStatistics(const otPingSenderStatistics *aStatistics
  * 1 packets transmitted, 1 packets received. Packet loss = 0.0%. Round-trip min/avg/max = 0/0.0/0 ms.
  * Done
  * @endcode
- * @cparam ping [@ca{async}] [@ca{-I source}] @ca{ipaddrc} [@ca{size}] [@ca{count}] <!--
+ * @cparam ping [@ca{async}] [@ca{-I source}] [@ca{-m}] @ca{ipaddrc} [@ca{size}] [@ca{count}] <!--
  * -->          [@ca{interval}] [@ca{hoplimit}] [@ca{timeout}]
  * @par
  * Send an ICMPv6 Echo Request.
@@ -6027,6 +6027,9 @@ void Interpreter::HandlePingStatistics(const otPingSenderStatistics *aStatistics
  * The address can be an IPv4 address, which will be synthesized to an IPv6 address using the preferred NAT64 prefix
  * from the network data.
  * @par
+ * The optional `-m` flag sets the multicast loop flag, which allows looping back pings to multicast addresses that the
+ * device itself is subscribed to.
+ * @par
  * Note: The command will return InvalidState when the preferred NAT64 prefix is unavailable.
  * @sa otPingSenderPing
  */
@@ -6085,6 +6088,12 @@ template <> otError Interpreter::Process<Cmd("ping")>(Arg aArgs[])
         aArgs += 2;
     }
 
+    if (aArgs[0] == "-m")
+    {
+        config.mMulticastLoop = true;
+        aArgs++;
+    }
+
     SuccessOrExit(error = ParseToIp6Address(GetInstancePtr(), aArgs[0], config.mDestination, nat64SynthesizedAddress));
     if (nat64SynthesizedAddress)
     {
diff --git a/src/core/utils/ping_sender.cpp b/src/core/utils/ping_sender.cpp
index d1565ef78..9949f2a0e 100644
--- a/src/core/utils/ping_sender.cpp
+++ b/src/core/utils/ping_sender.cpp
@@ -134,6 +134,7 @@ void PingSender::SendPing(void)
     messageInfo.SetPeerAddr(mConfig.GetDestination());
     messageInfo.mHopLimit          = mConfig.mHopLimit;
     messageInfo.mAllowZeroHopLimit = mConfig.mAllowZeroHopLimit;
+    messageInfo.mMulticastLoop     = mConfig.mMulticastLoop;
 
     message = Get<Ip6::Icmp>().NewMessage();
     VerifyOrExit(message != nullptr);
diff --git a/tests/toranj/cli/test-008-multicast-traffic.py b/tests/toranj/cli/test-008-multicast-traffic.py
index 7623a9c5a..d83bd1f06 100755
--- a/tests/toranj/cli/test-008-multicast-traffic.py
+++ b/tests/toranj/cli/test-008-multicast-traffic.py
@@ -53,8 +53,17 @@ import time
 # - r1  =>> mesh-local all-thread (two hops). Expected response from [r2, r3, fed].
 # - r1  =>> mesh-local all-thread (three hops). Expected response from [r2, r3, r4, fed].
 # - r1  =>> mesh-local all-thread (four hops). Expected response from [r2, r3, r4, fed, sed].
-# - r1  =>> specific address (on r2 and sed). Expected to receive on [r2, sed].
 #
+# - r1  =>> realm-local scope mcast addr (on r2 and sed). Expected to receive on [r2, sed].
+# - r2  =>> realm-local scope mcast addr (on r2 and sed) without `multicast-loop`. Expected to receive from [sed].
+# - r2  =>> realm-local scope mcast addr (on r2 and sed) with `multicast-loop`. Expected to receive from [r2, sed].
+# - sed =>> realm-local scope mcast addr (on r2 and sed) without `multicast-loop`. Expected to receive from [r2].
+# - sed =>> realm-local scope mcast addr (on r2 and sed) with `multicast-loop`. Expected to receive from [r2, sed].
+#
+# - r3  =>> site-local mcast addr (on r1, r2, sed). Expected to receive from [r1, r2, sed].
+# - r1  =>> site-local mcast addr (on r1, r2, sed) with `multicast-loop`. Expected to receive from [r1, r2, sed].
+# - r1  =>> site-local mcast addr (on r1, r2, sed) without `multicast-loop`. Expected to receive from [r2, sed].
+# - sed =>> site-local mcast addr (on r1, r2, sed). Expected to receive from [r1, r2].
 
 test_name = __file__[:-3] if __file__.endswith('.py') else __file__
 print('-' * 120)
@@ -223,7 +232,7 @@ for node in [r2, r3, r4, fed, sed]:
     verify(any(ml_addr in line for line in outputs))
 
 # - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
-# Subscribe to a specific multicast address on r2 and sed
+# Subscribe to a realm-local scope multicast address on r2 and sed
 
 mcast_addr = 'ff03:0:0:0:0:0:0:114'
 r2.add_ip_maddr(mcast_addr)
@@ -234,12 +243,93 @@ verify(any(mcast_addr in maddr for maddr in maddrs))
 maddrs = sed.get_ip_maddrs()
 verify(any(mcast_addr in maddr for maddr in maddrs))
 
+# r1  =>> realm-local scope mcast addr (on r2 and sed). Expected to receive on [r2, sed].
+
 outputs = r1.cli('ping', mcast_addr)
 verify(len(outputs) == 3)
 for node in [r2, sed]:
     ml_addr = node.get_mleid_ip_addr()
     verify(any(ml_addr in line for line in outputs))
 
+# r2  =>> realm-local scope mcast addr (on r2 and sed) without `multicast-loop`. Expected to receive from [sed].
+
+outputs = r2.cli('ping', mcast_addr)
+verify(len(outputs) == 2)
+for node in [sed]:
+    ml_addr = node.get_mleid_ip_addr()
+    verify(any(ml_addr in line for line in outputs))
+
+# r2  =>> realm-local scope mcast addr (on r2 and sed) with `multicast-loop`. Expected to receive from [r2, sed].
+
+outputs = r2.cli('ping', '-m', mcast_addr)
+verify(len(outputs) == 3)
+for node in [r2, sed]:
+    ml_addr = node.get_mleid_ip_addr()
+    verify(any(ml_addr in line for line in outputs))
+
+# sed  =>> realm-local scope mcast addr (on r2 and sed) without `multicast-loop`. Expected to receive from [r2].
+
+outputs = sed.cli('ping', mcast_addr)
+verify(len(outputs) == 2)
+for node in [r2]:
+    ml_addr = node.get_mleid_ip_addr()
+    verify(any(ml_addr in line for line in outputs))
+
+# sed  =>> realm-local scope mcast addr (on r2 and sed) with `multicast-loop`. Expected to receive from [r2, sed].
+
+outputs = sed.cli('ping', '-m', mcast_addr)
+verify(len(outputs) == 3)
+for node in [r2, sed]:
+    ml_addr = node.get_mleid_ip_addr()
+    verify(any(ml_addr in line for line in outputs))
+
+# - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
+# Subscribe to a larger than realm-local scope (site-local) multicast address on r1, r2, and sed
+
+mcast_addr = 'ff05:0:0:0:0:0:0:abcd'
+r1.add_ip_maddr(mcast_addr)
+r2.add_ip_maddr(mcast_addr)
+sed.add_ip_maddr(mcast_addr)
+time.sleep(1)
+maddrs = r1.get_ip_maddrs()
+verify(any(mcast_addr in maddr for maddr in maddrs))
+maddrs = r2.get_ip_maddrs()
+verify(any(mcast_addr in maddr for maddr in maddrs))
+maddrs = sed.get_ip_maddrs()
+verify(any(mcast_addr in maddr for maddr in maddrs))
+
+# r3  =>> site-local mcast addr (on r1, r2, sed) with `multicast-loop`. Expected to receive from [r1, r2, sed].
+
+outputs = r3.cli('ping', '-m', mcast_addr)
+verify(len(outputs) == 4)
+for node in [r1, r2, sed]:
+    ml_addr = node.get_mleid_ip_addr()
+    verify(any(ml_addr in line for line in outputs))
+
+# r1  =>> site-local mcast addr (on r1, r2, sed) with `multicast-loop`. Expected to receive from [r1, r2, sed].
+
+outputs = r1.cli('ping', '-m', mcast_addr)
+verify(len(outputs) == 4)
+for node in [r1, r2, sed]:
+    ml_addr = node.get_mleid_ip_addr()
+    verify(any(ml_addr in line for line in outputs))
+
+# r1  =>> site-local mcast addr (on r1, r2, sed) without `multicast-loop`. Expected to receive from [r2, sed].
+
+outputs = r1.cli('ping', mcast_addr)
+verify(len(outputs) == 3)
+for node in [r2, sed]:
+    ml_addr = node.get_mleid_ip_addr()
+    verify(any(ml_addr in line for line in outputs))
+
+# sed  =>> site-local mcast addr (on r1, r2, sed) without `multicast-loop`. Expected to receive from [r1, r2].
+
+outputs = sed.cli('ping', mcast_addr)
+verify(len(outputs) >= 3)
+for node in [r1, r2]:
+    ml_addr = node.get_mleid_ip_addr()
+    verify(any(ml_addr in line for line in outputs))
+
 # -----------------------------------------------------------------------------------------------------------------------
 # Test finished