diff --git a/README.rst b/README.rst
index cb03c26d..9fa104c6 100644
--- a/README.rst
+++ b/README.rst
@@ -25,5 +25,7 @@ To do
   to manage transactions
 - switch setup/teardown functions in app to use some sort of context
   manager?
-- interactive shell mode
 - add options to csv formatter to control output (delimiter, etc.)
+- option to spit out bash completion data
+- move command execution into a separate class to be used by App and
+  InteractiveApp?
diff --git a/cliff/app.py b/cliff/app.py
index 344d3da0..bd42477a 100644
--- a/cliff/app.py
+++ b/cliff/app.py
@@ -8,6 +8,7 @@ import os
 import sys
 
 from .help import HelpAction, HelpCommand
+from .interactive import InteractiveApp
 
 LOG = logging.getLogger(__name__)
 
@@ -39,6 +40,7 @@ class App(object):
         self.stdout = stdout or sys.stdout
         self.stderr = stderr or sys.stderr
         self.parser = self.build_option_parser(description, version)
+        self.interactive_mode = False
 
     def build_option_parser(self, description, version):
         """Return an argparse option parser for this application.
@@ -77,7 +79,7 @@ class App(object):
             help="show this help message and exit",
             )
         parser.add_argument(
-            '--debug', 
+            '--debug',
             default=False,
             action='store_true',
             help='show tracebacks on errors',
@@ -112,6 +114,28 @@ class App(object):
         root_logger.addHandler(console)
         return
 
+    def run(self, argv):
+        """Equivalent to the main program for the application.
+        """
+        self.options, remainder = self.parser.parse_known_args(argv)
+        self.configure_logging()
+        self.initialize_app()
+        result = 1
+        if not remainder:
+            result = self.interact()
+        else:
+            result = self.run_subcommand(remainder)
+        return result
+
+    # FIXME(dhellmann): Consider moving these command handling methods
+    # to a separate class.
+    def initialize_app(self):
+        """Hook for subclasses to take global initialization action
+        after the arguments are parsed but before a command is run.
+        Invoked only once, even in interactive mode.
+        """
+        return
+
     def prepare_to_run_command(self, cmd):
         """Perform any preliminary work needed to run a command.
         """
@@ -122,20 +146,22 @@ class App(object):
         """
         return
 
-    def run(self, argv):
-        """Equivalent to the main program for the application.
-        """
-        if not argv:
-            argv = ['-h']
-        self.options, remainder = self.parser.parse_known_args(argv)
-        self.configure_logging()
-        cmd_factory, cmd_name, sub_argv = self.command_manager.find_command(remainder)
+    def interact(self):
+        self.interactive_mode = True
+        interpreter = InteractiveApp(self, self.command_manager, self.stdin, self.stdout)
+        interpreter.prompt = '(%s) ' % self.NAME
+        interpreter.cmdloop()
+        return 0
+
+    def run_subcommand(self, argv):
+        cmd_factory, cmd_name, sub_argv = self.command_manager.find_command(argv)
         cmd = cmd_factory(self, self.options)
         err = None
         result = 1
         try:
             self.prepare_to_run_command(cmd)
-            cmd_parser = cmd.get_parser(' '.join([self.NAME, cmd_name]))
+            full_name = cmd_name if self.interactive_mode else ' '.join([self.NAME, cmd_name])
+            cmd_parser = cmd.get_parser(full_name)
             parsed_args = cmd_parser.parse_args(sub_argv)
             result = cmd.run(parsed_args)
         except Exception as err:
diff --git a/cliff/help.py b/cliff/help.py
index 905f968b..391d8cc1 100644
--- a/cliff/help.py
+++ b/cliff/help.py
@@ -38,9 +38,13 @@ class HelpCommand(Command):
 
     def run(self, parsed_args):
         if parsed_args.cmd:
-            cmd_factory, name, search_args = self.app.command_manager.find_command(parsed_args.cmd)
+            cmd_factory, cmd_name, search_args = self.app.command_manager.find_command(parsed_args.cmd)
             cmd = cmd_factory(self.app, search_args)
-            cmd_parser = cmd.get_parser(' '.join([self.app.NAME, name]))
+            full_name = (cmd_name
+                         if self.app.interactive_mode
+                         else ' '.join([self.app.NAME, cmd_name])
+                         )
+            cmd_parser = cmd.get_parser(full_name)
         else:
             cmd_parser = self.get_parser(' '.join([self.app.NAME, 'help']))
         cmd_parser.parse_args(['--help'])
diff --git a/cliff/interactive.py b/cliff/interactive.py
new file mode 100644
index 00000000..33aefc6d
--- /dev/null
+++ b/cliff/interactive.py
@@ -0,0 +1,81 @@
+"""Application base class.
+"""
+
+import itertools
+import logging
+import logging.handlers
+import shlex
+
+import cmd2
+
+LOG = logging.getLogger(__name__)
+
+
+class InteractiveApp(cmd2.Cmd):
+
+    use_rawinput = True
+    doc_header = "Shell commands (type help <topic>):"
+    app_cmd_header = "Application commands (type help <topic>):"
+
+    def __init__(self, parent_app, command_manager, stdin, stdout):
+        self.parent_app = parent_app
+        self.command_manager = command_manager
+        cmd2.Cmd.__init__(self, 'tab', stdin=stdin, stdout=stdout)
+
+    def default(self, line):
+        # Tie in the the default command processor to
+        # dispatch commands known to the command manager.
+        # We send the message through our parent app,
+        # since it already has the logic for executing
+        # the subcommand.
+        line_parts = shlex.split(line)
+        self.parent_app.run_subcommand(line_parts)
+
+    def completedefault(self, text, line, begidx, endidx):
+        """Tab-completion for commands known to the command manager.
+
+        Does not handle options on the commands.
+        """
+        if not text:
+            completions = sorted(n for n, v in self.command_manager)
+        else:
+            completions = sorted(n for n, v in self.command_manager
+                                 if n.startswith(text)
+                                 )
+        return completions
+
+    def help_help(self):
+        # Use the command manager to get instructions for "help"
+        self.default('help help')
+
+    def do_help(self, arg):
+        if arg:
+            # Check if the arg is a builtin command or something
+            # coming from the command manager
+            arg_parts = shlex.split(arg)
+            method_name = '_'.join(
+                itertools.chain(['do'],
+                                itertools.takewhile(lambda x: not x.startswith('-'),
+                                                    arg_parts)
+                                )
+                )
+            # Have the command manager version of the help
+            # command produce the help text since cmd and
+            # cmd2 do not provide help for "help"
+            if hasattr(self, method_name):
+                return cmd2.Cmd.do_help(self, arg)
+            # Dispatch to the underlying help command,
+            # which knows how to provide help for extension
+            # commands.
+            self.default('help ' + arg)
+        else:
+            cmd2.Cmd.do_help(self, arg)
+            cmd_names = [n for n, v in self.command_manager]
+            self.print_topics(self.app_cmd_header, cmd_names, 15, 80)
+        return
+
+    def get_names(self):
+        return [n
+                for n in cmd2.Cmd.get_names(self)
+                if not n.startswith('do__')
+                ]
diff --git a/demoapp/cliffdemo/main.py b/demoapp/cliffdemo/main.py
index 90592277..c535419a 100644
--- a/demoapp/cliffdemo/main.py
+++ b/demoapp/cliffdemo/main.py
@@ -16,6 +16,9 @@ class DemoApp(App):
             command_manager=CommandManager('cliff.demo'),
             )
 
+    def initialize_app(self):
+        self.log.debug('initialize_app')
+
     def prepare_to_run_command(self, cmd):
         self.log.debug('prepare_to_run_command %s', cmd.__class__.__name__)