diff --git a/compiler/src/dotty/tools/repl/ParseResult.scala b/compiler/src/dotty/tools/repl/ParseResult.scala
index bc0305c17944..5d414ecf9b34 100644
--- a/compiler/src/dotty/tools/repl/ParseResult.scala
+++ b/compiler/src/dotty/tools/repl/ParseResult.scala
@@ -88,7 +88,8 @@ object Settings {
 /** Reset the session to the initial state from when the repl program was
  *  started
  */
-case object Reset extends Command {
+case class Reset(arg: String) extends Command
+object Reset {
   val command: String = ":reset"
 }
 
@@ -110,7 +111,7 @@ case object Help extends Command {
       |:type <expression>       evaluate the type of the given expression
       |:doc <expression>        print the documentation for the given expression
       |:imports                 show import history
-      |:reset                   reset the repl to its initial state, forgetting all session entries
+      |:reset [options]         reset the repl to its initial state, forgetting all session entries
       |:settings <options>      update compiler options, if possible
     """.stripMargin
 }
@@ -130,7 +131,7 @@ object ParseResult {
     Quit.command -> (_ => Quit),
     Quit.alias -> (_ => Quit),
     Help.command -> (_  => Help),
-    Reset.command -> (_  => Reset),
+    Reset.command -> (arg  => Reset(arg)),
     Imports.command -> (_  => Imports),
     Load.command -> (arg => Load(arg)),
     TypeOf.command -> (arg => TypeOf(arg)),
diff --git a/compiler/src/dotty/tools/repl/ReplDriver.scala b/compiler/src/dotty/tools/repl/ReplDriver.scala
index 2687a2e70579..eda69b7c1ed7 100644
--- a/compiler/src/dotty/tools/repl/ReplDriver.scala
+++ b/compiler/src/dotty/tools/repl/ReplDriver.scala
@@ -70,11 +70,11 @@ class ReplDriver(settings: Array[String],
   override def sourcesRequired: Boolean = false
 
   /** Create a fresh and initialized context with IDE mode enabled */
-  private def initialCtx = {
+  private def initialCtx(settings: List[String]) = {
     val rootCtx = initCtx.fresh.addMode(Mode.ReadPositions | Mode.Interactive)
     rootCtx.setSetting(rootCtx.settings.YcookComments, true)
     rootCtx.setSetting(rootCtx.settings.YreadComments, true)
-    setupRootCtx(settings, rootCtx)
+    setupRootCtx(this.settings ++ settings, rootCtx)
   }
 
   private def setupRootCtx(settings: Array[String], rootCtx: Context) = {
@@ -99,8 +99,8 @@ class ReplDriver(settings: Array[String],
    *  such, when the user enters `:reset` this method should be called to reset
    *  everything properly
    */
-  protected def resetToInitial(): Unit = {
-    rootCtx = initialCtx
+  protected def resetToInitial(settings: List[String] = Nil): Unit = {
+    rootCtx = initialCtx(settings)
     if (rootCtx.settings.outputDir.isDefault(using rootCtx))
       rootCtx = rootCtx.fresh
         .setSetting(rootCtx.settings.outputDir, new VirtualDirectory("<REPL compilation output>"))
@@ -378,8 +378,8 @@ class ReplDriver(settings: Array[String],
       out.println(Help.text)
       state
 
-    case Reset =>
-      resetToInitial()
+    case Reset(arg) =>
+      resetToInitial(tokenize(arg))
       initialState
 
     case Imports =>
diff --git a/compiler/test-resources/repl/reset-command b/compiler/test-resources/repl/reset-command
new file mode 100644
index 000000000000..e47b3c45f696
--- /dev/null
+++ b/compiler/test-resources/repl/reset-command
@@ -0,0 +1,28 @@
+scala> def f(thread: Thread) = thread.stop()
+there were 1 deprecation warning(s); re-run with -deprecation for details
+def f(thread: Thread): Unit
+
+scala>:reset -deprecation
+
+scala> def f(thread: Thread) = thread.stop()
+1 warning found
+-- Deprecation Warning: --------------------------------------------------------
+1 | def f(thread: Thread) = thread.stop()
+  |                         ^^^^^^^^^^^
+  |method stop in class Thread is deprecated since : see corresponding Javadoc for more information.
+def f(thread: Thread): Unit
+
+scala> def resetNoArgsStillWorks = 1
+def resetNoArgsStillWorks: Int
+
+scala>:reset
+
+scala> resetNoArgsStillWorks
+-- [E006] Not Found Error: -----------------------------------------------------
+1 | resetNoArgsStillWorks
+  | ^^^^^^^^^^^^^^^^^^^^^
+  | Not found: resetNoArgsStillWorks
+longer explanation available when compiling with `-explain`
+1 error found
+
+scala>:settings "-Dfoo=bar baz"