diff --git a/README.md b/README.md
index fe2c6fa82..827eee289 100644
--- a/README.md
+++ b/README.md
@@ -58,6 +58,7 @@ _If you are interested in contributing to kaniko, see [DEVELOPMENT.md](DEVELOPME
     - [--cache-ttl duration](#--cache-ttl-duration)
     - [--cleanup](#--cleanup)
     - [--context-sub-path](#--context-sub-path)
+    - [--compressed-caching](#--compressed-caching)
     - [--customPlatform](#--customPlatform)
     - [--digest-file](#--digest-file)
     - [--dockerfile](#--dockerfile)
@@ -613,6 +614,11 @@ Cache timeout in hours. Defaults to two weeks.
 
 Set this flag to clean the filesystem at the end of the build.
 
+#### --compressed-caching
+
+Set this to false in order to prevent tar compression for cached layers. This will increase the runtime of the build, but decrease the memory usage especially for large builds.
+Try to use `--compressed-caching=false` if your build fails with an out of memory error. Defaults to true.
+
 #### --context-sub-path
 
 Set a sub path within the given `--context`.
diff --git a/cmd/executor/cmd/root.go b/cmd/executor/cmd/root.go
index 0ff3dd50f..90ae82b4e 100644
--- a/cmd/executor/cmd/root.go
+++ b/cmd/executor/cmd/root.go
@@ -202,6 +202,7 @@ func addKanikoOptionsFlags() {
 	RootCmd.PersistentFlags().StringVarP(&opts.ImageNameTagDigestFile, "image-name-tag-with-digest-file", "", "", "Specify a file to save the image name w/ image tag w/ digest of the built image to.")
 	RootCmd.PersistentFlags().StringVarP(&opts.OCILayoutPath, "oci-layout-path", "", "", "Path to save the OCI image layout of the built image.")
 	RootCmd.PersistentFlags().BoolVarP(&opts.Cache, "cache", "", false, "Use cache when building image")
+	RootCmd.PersistentFlags().BoolVarP(&opts.CompressedCaching, "compressed-caching", "", true, "Compress the cached layers. Decreases build time, but increases memory usage.")
 	RootCmd.PersistentFlags().BoolVarP(&opts.Cleanup, "cleanup", "", false, "Clean the filesystem at the end")
 	RootCmd.PersistentFlags().DurationVarP(&opts.CacheTTL, "cache-ttl", "", time.Hour*336, "Cache timeout in hours. Defaults to two weeks.")
 	RootCmd.PersistentFlags().VarP(&opts.InsecureRegistries, "insecure-registry", "", "Insecure registry using plain HTTP to push and pull. Set it repeatedly for multiple registries.")
diff --git a/pkg/config/options.go b/pkg/config/options.go
index 1af8a8fca..3482ead0e 100644
--- a/pkg/config/options.go
+++ b/pkg/config/options.go
@@ -70,6 +70,7 @@ type KanikoOptions struct {
 	NoPush                 bool
 	Cache                  bool
 	Cleanup                bool
+	CompressedCaching      bool
 	IgnoreVarRun           bool
 	SkipUnusedStages       bool
 	RunV2                  bool
diff --git a/pkg/executor/build.go b/pkg/executor/build.go
index a37a7fc0e..1f2b3aee1 100644
--- a/pkg/executor/build.go
+++ b/pkg/executor/build.go
@@ -477,7 +477,12 @@ func (s *stageBuilder) saveSnapshotToLayer(tarPath string) (v1.Layer, error) {
 		return nil, nil
 	}
 
-	layer, err := tarball.LayerFromFile(tarPath, tarball.WithCompressedCaching)
+	var layer v1.Layer
+	if s.opts.CompressedCaching == true {
+		layer, err = tarball.LayerFromFile(tarPath, tarball.WithCompressedCaching)
+	} else {
+		layer, err = tarball.LayerFromFile(tarPath)
+	}
 	if err != nil {
 		return nil, err
 	}
diff --git a/pkg/executor/build_test.go b/pkg/executor/build_test.go
index e2ee3ee83..4f59f1b42 100644
--- a/pkg/executor/build_test.go
+++ b/pkg/executor/build_test.go
@@ -784,6 +784,42 @@ func Test_stageBuilder_build(t *testing.T) {
 				rootDir:           dir,
 			}
 		}(),
+		func() testcase {
+			dir, files := tempDirAndFile(t)
+			file := files[0]
+			filePath := filepath.Join(dir, file)
+			ch := NewCompositeCache("", "meow")
+
+			ch.AddPath(filePath, util.FileContext{})
+			hash, err := ch.Hash()
+			if err != nil {
+				t.Errorf("couldn't create hash %v", err)
+			}
+			command := MockDockerCommand{
+				command:      "meow",
+				contextFiles: []string{filePath},
+				cacheCommand: MockCachedDockerCommand{
+					contextFiles: []string{filePath},
+				},
+			}
+
+			destDir, err := ioutil.TempDir("", "baz")
+			if err != nil {
+				t.Errorf("could not create temp dir %v", err)
+			}
+			return testcase{
+				description: "fake command cache enabled with tar compression disabled and key in cache",
+				opts:        &config.KanikoOptions{Cache: true, CompressedCaching: false},
+				config:      &v1.ConfigFile{Config: v1.Config{WorkingDir: destDir}},
+				layerCache: &fakeLayerCache{
+					retrieve: true,
+				},
+				expectedCacheKeys: []string{hash},
+				pushedCacheKeys:   []string{},
+				commands:          []commands.DockerCommand{command},
+				rootDir:           dir,
+			}
+		}(),
 		{
 			description: "fake command cache disabled and key not in cache",
 			opts:        &config.KanikoOptions{Cache: false},
diff --git a/pkg/executor/push.go b/pkg/executor/push.go
index d84a850bf..a989db920 100644
--- a/pkg/executor/push.go
+++ b/pkg/executor/push.go
@@ -327,7 +327,13 @@ func writeImageOutputs(image v1.Image, destRefs []name.Tag) error {
 // pushLayerToCache pushes layer (tagged with cacheKey) to opts.Cache
 // if opts.Cache doesn't exist, infer the cache from the given destination
 func pushLayerToCache(opts *config.KanikoOptions, cacheKey string, tarPath string, createdBy string) error {
-	layer, err := tarball.LayerFromFile(tarPath, tarball.WithCompressedCaching)
+	var layer v1.Layer
+	var err error
+	if opts.CompressedCaching == true {
+		layer, err = tarball.LayerFromFile(tarPath, tarball.WithCompressedCaching)
+	} else {
+		layer, err = tarball.LayerFromFile(tarPath)
+	}
 	if err != nil {
 		return err
 	}