diff --git a/ports/nrf/common-hal/rotaryio/IncrementalEncoder.c b/ports/nrf/common-hal/rotaryio/IncrementalEncoder.c
index ef5e9ee5ae..85030135bf 100644
--- a/ports/nrf/common-hal/rotaryio/IncrementalEncoder.c
+++ b/ports/nrf/common-hal/rotaryio/IncrementalEncoder.c
@@ -25,6 +25,7 @@
  */
 
 #include "common-hal/rotaryio/IncrementalEncoder.h"
+#include "shared-module/rotaryio/IncrementalEncoder.h"
 #include "nrfx_gpiote.h"
 
 #include "py/runtime.h"
@@ -44,25 +45,7 @@ static void _intr_handler(nrfx_gpiote_pin_t pin, nrf_gpiote_polarity_t action) {
     uint8_t new_state = nrf_gpio_pin_read(self->pin_a);
     new_state = (new_state << 1) + (new_state ^ nrf_gpio_pin_read(self->pin_b));
 
-    uint8_t change = (new_state - self->state) & 0x03;
-    if (change == 1) {
-        self->quarter++;
-    } else if (change == 3) {
-        self->quarter--;
-    }
-    // ignore other state transitions
-
-    self->state = new_state;
-
-    // logic from the atmel-samd port: provides some damping and scales movement
-    // down by 4:1.
-    if (self->quarter >= 4) {
-        self->position++;
-        self->quarter = 0;
-    } else if (self->quarter <= -4) {
-        self->position--;
-        self->quarter = 0;
-    }
+    shared_module_softencoder_state_update(self, new_state);
 }
 
 void common_hal_rotaryio_incrementalencoder_construct(rotaryio_incrementalencoder_obj_t *self,
@@ -110,12 +93,3 @@ void common_hal_rotaryio_incrementalencoder_deinit(rotaryio_incrementalencoder_o
     self->pin_a = NO_PIN;
     self->pin_b = NO_PIN;
 }
-
-mp_int_t common_hal_rotaryio_incrementalencoder_get_position(rotaryio_incrementalencoder_obj_t *self) {
-    return self->position;
-}
-
-void common_hal_rotaryio_incrementalencoder_set_position(rotaryio_incrementalencoder_obj_t *self,
-    mp_int_t new_position) {
-    self->position = new_position;
-}
diff --git a/ports/nrf/common-hal/rotaryio/IncrementalEncoder.h b/ports/nrf/common-hal/rotaryio/IncrementalEncoder.h
index 1d0fe41839..1f1d1a7640 100644
--- a/ports/nrf/common-hal/rotaryio/IncrementalEncoder.h
+++ b/ports/nrf/common-hal/rotaryio/IncrementalEncoder.h
@@ -35,8 +35,8 @@ typedef struct {
     mp_obj_base_t base;
     uint8_t pin_a;
     uint8_t pin_b;
-    uint8_t state;
-    int8_t quarter;
+    int8_t quarter_count : 4;
+    uint8_t state : 4;
     mp_int_t position;
 } rotaryio_incrementalencoder_obj_t;
 
diff --git a/ports/nrf/mpconfigport.mk b/ports/nrf/mpconfigport.mk
index 83924ff795..544be70be4 100644
--- a/ports/nrf/mpconfigport.mk
+++ b/ports/nrf/mpconfigport.mk
@@ -40,6 +40,7 @@ CIRCUITPY_RTC ?= 1
 CIRCUITPY_FREQUENCYIO = 0
 
 CIRCUITPY_RGBMATRIX ?= 1
+CIRCUITPY_ROTARYIO_SOFTENCODER = 1
 CIRCUITPY_FRAMEBUFFERIO ?= 1
 
 CIRCUITPY_COUNTIO = 0