diff --git a/deployment/serverless-image-handler.template b/deployment/serverless-image-handler.template
index 3e655f49e..948d2b40b 100644
--- a/deployment/serverless-image-handler.template
+++ b/deployment/serverless-image-handler.template
@@ -1,13 +1,19 @@
 { 
     "AWSTemplateFormatVersion": "2010-09-09", 
     "Description": "(SO0023) - Serverless Image Handler: This template deploys and configures a serverless architecture that is optimized for dynamic image manipulation and delivery at low latency and cost. Leverages SharpJS for image processing. Template version 4.", 
-    "Parameters": { 
+    "Parameters": {
+        "AutoWebP" : {
+            "Description" : "Would you like to enable automatic WebP based on accept headers? Select 'Yes' if so.",
+            "Default" : "No",
+            "Type" : "String",
+            "AllowedValues" : [ "Yes", "No" ]
+        },
         "CorsEnabled" : { 
             "Description" : "Would you like to enable Cross-Origin Resource Sharing (CORS) for the image handler API? Select 'Yes' if so.", 
             "Default" : "No", 
             "Type" : "String", 
             "AllowedValues" : [ "Yes", "No" ] 
-        }, 
+        },
         "CorsOrigin" : { 
             "Description" : "If you selected 'Yes' above, please specify an origin value here. A wildcard (*) value will support any origin. We recommend specifying an origin (i.e. https://example.domain) to restrict cross-site access to your API.", 
             "Default" : "*", 
@@ -224,7 +230,10 @@
                 "MemorySize": 1024,
                 "Timeout": 30,
                 "Environment" : { 
-                    "Variables" : { 
+                    "Variables" : {
+                        "AUTO_WEBP" : {
+                            "Ref" : "AutoWebP"
+                        },
                         "CORS_ENABLED" : {  
                             "Ref" : "CorsEnabled"  
                         }, 
@@ -675,4 +684,4 @@
             "Value" : { "Ref" : "LogRetentionPeriod" } 
         } 
     } 
-} 
\ No newline at end of file
+} 
diff --git a/source/image-handler/image-request.js b/source/image-handler/image-request.js
index 75b7da7e7..c3e0f116e 100644
--- a/source/image-handler/image-request.js
+++ b/source/image-handler/image-request.js
@@ -26,7 +26,11 @@ class ImageRequest {
             this.bucket = this.parseImageBucket(event, this.requestType);
             this.key = this.parseImageKey(event, this.requestType);
             this.edits = this.parseImageEdits(event, this.requestType);
-            this.originalImage = await this.getOriginalImage(this.bucket, this.key)
+            this.originalImage = await this.getOriginalImage(this.bucket, this.key);
+            const outputFormat = this.getOutputFormat(event);
+            if(outputFormat) {
+                this.outputFormat = outputFormat;
+            }
             return Promise.resolve(this);
         } catch (err) {
             return Promise.reject(err);
@@ -232,7 +236,19 @@ class ImageRequest {
             return buckets;
         }
     }
+
+    /**
+    * Return the output format depending on the accepts headers
+    * @param {Object} event - The request body.
+    */
+    getOutputFormat(event) {
+        const autoWebP = process.env.AUTO_WEBP;
+        if (autoWebP && event.headers.Accept && event.headers.Accept.includes("image/webp")) {
+            return "webp";
+        }
+        return null;
+    }
 }
 
 // Exports
-module.exports = ImageRequest;
\ No newline at end of file
+module.exports = ImageRequest;
diff --git a/source/image-handler/test/test-image-request.js b/source/image-handler/test/test-image-request.js
index 122da5552..bd081eed3 100644
--- a/source/image-handler/test/test-image-request.js
+++ b/source/image-handler/test/test-image-request.js
@@ -644,4 +644,79 @@ describe('getAllowedSourceBuckets()', function() {
             });
         });
     });
-})
\ No newline at end of file
+});
+
+// ----------------------------------------------------------------------------
+// getOutputFormat()
+// ----------------------------------------------------------------------------
+describe('getOutputFormat()', function () {
+    describe('001/AcceptsHeaderIncludesWebP', function () {
+        it(`Should pass if it returns "webp" for an accepts header which includes webp`, function () {
+            // Arrange
+            process.env = {
+                AUTO_WEBP: true
+            };
+            const event = {
+                headers: {
+                    Accept: "text/html,application/xhtml+xml,application/xml;q=0.9,image/webp,image/apng,*/*;q=0.8,application/signed-exchange;v=b3"
+                }
+            };
+            // Act
+            const imageRequest = new ImageRequest();
+            var result = imageRequest.getOutputFormat(event);
+            // Assert
+            assert.deepEqual(result, "webp");
+        });
+    });
+    describe('002/AcceptsHeaderDoesNotIncludeWebP', function () {
+        it(`Should pass if it returns null for an accepts header which does not include webp`, function () {
+            // Arrange
+            process.env = {
+                AUTO_WEBP: true
+            };
+            const event = {
+                headers: {
+                    Accept: "text/html,application/xhtml+xml,application/xml;q=0.9,image/apng,*/*;q=0.8,application/signed-exchange;v=b3"
+                }
+            };
+            // Act
+            const imageRequest = new ImageRequest();
+            var result = imageRequest.getOutputFormat(event);
+            // Assert
+            assert.deepEqual(result, null);
+        });
+    });
+    describe('003/AutoWebPDisabled', function () {
+        it(`Should pass if it returns null when AUTO_WEBP is disabled with accepts header including webp`, function () {
+            // Arrange
+            process.env = {
+                AUTO_WEBP: false
+            };
+            const event = {
+                headers: {
+                    Accept: "text/html,application/xhtml+xml,application/xml;q=0.9,image/webp,image/apng,*/*;q=0.8,application/signed-exchange;v=b3"
+                }
+            };
+            // Act
+            const imageRequest = new ImageRequest();
+            var result = imageRequest.getOutputFormat(event);
+            // Assert
+            assert.deepEqual(result, null);
+        });
+    });
+    describe('004/AutoWebPUnset', function () {
+        it(`Should pass if it returns null when AUTO_WEBP is not set with accepts header including webp`, function () {
+            // Arrange
+            const event = {
+                headers: {
+                    Accept: "text/html,application/xhtml+xml,application/xml;q=0.9,image/webp,image/apng,*/*;q=0.8,application/signed-exchange;v=b3"
+                }
+            };
+            // Act
+            const imageRequest = new ImageRequest();
+            var result = imageRequest.getOutputFormat(event);
+            // Assert
+            assert.deepEqual(result, null);
+        });
+    });
+});