diff --git a/dgraph/cmd/alpha/run.go b/dgraph/cmd/alpha/run.go
index ed7281b6c73..1a8673e6b3e 100644
--- a/dgraph/cmd/alpha/run.go
+++ b/dgraph/cmd/alpha/run.go
@@ -35,6 +35,7 @@ import (
 	"syscall"
 	"time"
 
+	"github.com/dgraph-io/badger/v3"
 	"github.com/dgraph-io/dgraph/ee"
 	"github.com/dgraph-io/dgraph/ee/audit"
 
@@ -128,16 +129,13 @@ they form a Raft group and provide synchronous replication.
 	grpc.EnableTracing = false
 
 	flag.String("badger", worker.BadgerDefaults, z.NewSuperFlagHelp(worker.BadgerDefaults).
-		Head("Badger options").
+		Head("Badger options (Refer to badger documentation for all possible options)").
 		Flag("compression",
 			`[none, zstd:level, snappy] Specifies the compression algorithm and
 			compression level (if applicable) for the postings directory."none" would disable
 			compression, while "zstd:1" would set zstd compression at level 1.`).
-		Flag("goroutines",
+		Flag("numgoroutines",
 			"The number of goroutines to use in badger.Stream.").
-		Flag("max-retries",
-			"Commits to disk will give up after these number of retries to prevent locking the "+
-				"worker in a failed state. Use -1 to retry infinitely.").
 		String())
 
 	// Cache flags.
@@ -212,6 +210,9 @@ they form a Raft group and provide synchronous replication.
 		Flag("query-timeout",
 			"Maximum time after which a query execution will fail. If set to"+
 				" 0, the timeout is infinite.").
+		Flag("max-retries",
+			"Commits to disk will give up after these number of retries to prevent locking the "+
+				"worker in a failed state. Use -1 to retry infinitely.").
 		Flag("txn-abort-after", "Abort any pending transactions older than this duration."+
 			" The liveness of a transaction is determined by its last mutation.").
 		String())
@@ -633,22 +634,19 @@ func run() {
 	pstoreBlockCacheSize := (cachePercent[1] * (totalCache << 20)) / 100
 	pstoreIndexCacheSize := (cachePercent[2] * (totalCache << 20)) / 100
 
-	badger := z.NewSuperFlag(Alpha.Conf.GetString("badger")).MergeAndCheckDefault(
-		worker.BadgerDefaults)
-	ctype, clevel := x.ParseCompression(badger.GetString("compression"))
+	cacheOpts := fmt.Sprintf("blockcachesize=%d; indexcachesize=%d; ",
+		pstoreBlockCacheSize, pstoreIndexCacheSize)
+	bopts := badger.DefaultOptions("").FromSuperFlag(worker.BadgerDefaults + cacheOpts).
+		FromSuperFlag(Alpha.Conf.GetString("badger"))
 
 	security := z.NewSuperFlag(Alpha.Conf.GetString("security")).MergeAndCheckDefault(
 		worker.SecurityDefaults)
 	conf := audit.GetAuditConf(Alpha.Conf.GetString("audit"))
 	opts := worker.Options{
-		PostingDir:                 Alpha.Conf.GetString("postings"),
-		WALDir:                     Alpha.Conf.GetString("wal"),
-		PostingDirCompression:      ctype,
-		PostingDirCompressionLevel: clevel,
-		CacheMb:                    totalCache,
-		CachePercentage:            cachePercentage,
-		PBlockCacheSize:            pstoreBlockCacheSize,
-		PIndexCacheSize:            pstoreIndexCacheSize,
+		PostingDir:      Alpha.Conf.GetString("postings"),
+		WALDir:          Alpha.Conf.GetString("wal"),
+		CacheMb:         totalCache,
+		CachePercentage: cachePercentage,
 
 		MutationsMode:  worker.AllowMutations,
 		AuthToken:      security.GetString("token"),
@@ -712,8 +710,7 @@ func run() {
 		TLSServerConfig:     tlsServerConf,
 		HmacSecret:          opts.HmacSecret,
 		Audit:               opts.Audit != nil,
-		Badger:              badger,
-		MaxRetries:          badger.GetInt64("max-retries"),
+		Badger:              bopts,
 	}
 	x.WorkerConfig.Parse(Alpha.Conf)
 
@@ -734,6 +731,7 @@ func run() {
 	x.Config.BlockClusterWideDrop = x.Config.Limit.GetBool("disallow-drop")
 	x.Config.LimitNormalizeNode = int(x.Config.Limit.GetInt64("normalize-node"))
 	x.Config.QueryTimeout = x.Config.Limit.GetDuration("query-timeout")
+	x.Config.MaxRetries = x.Config.Limit.GetInt64("max-retries")
 
 	x.Config.GraphQL = z.NewSuperFlag(Alpha.Conf.GetString("graphql")).MergeAndCheckDefault(
 		worker.GraphQLDefaults)
diff --git a/dgraph/cmd/bulk/loader.go b/dgraph/cmd/bulk/loader.go
index 55fe98b62c1..8d2b15fec33 100644
--- a/dgraph/cmd/bulk/loader.go
+++ b/dgraph/cmd/bulk/loader.go
@@ -36,7 +36,6 @@ import (
 	"google.golang.org/grpc/credentials"
 
 	"github.com/dgraph-io/badger/v3"
-	bo "github.com/dgraph-io/badger/v3/options"
 	"github.com/dgraph-io/badger/v3/y"
 
 	"github.com/dgraph-io/dgraph/chunker"
@@ -85,12 +84,8 @@ type options struct {
 	// ........... Badger options ..........
 	// EncryptionKey is the key used for encryption. Enterprise only feature.
 	EncryptionKey x.SensitiveByteSlice
-	// BadgerCompression is the compression algorithm to use while writing to badger.
-	BadgerCompression bo.CompressionType
-	// BadgerCompressionlevel is the compression level to use while writing to badger.
-	BadgerCompressionLevel int
-	BlockCacheSize         int64
-	IndexCacheSize         int64
+	// Badger options.
+	Badger badger.Options
 }
 
 type state struct {
@@ -236,8 +231,8 @@ func (ld *loader) mapStage() {
 	}
 	ld.xids = xidmap.New(xidmap.XidMapOptions{
 		UidAssigner: ld.zero,
-		DB:   db,
-		Dir:  filepath.Join(ld.opt.TmpDir, bufferDir),
+		DB:          db,
+		Dir:         filepath.Join(ld.opt.TmpDir, bufferDir),
 	})
 
 	fs := filestore.NewFileStore(ld.opt.DataFiles)
diff --git a/dgraph/cmd/bulk/reduce.go b/dgraph/cmd/bulk/reduce.go
index 9cc5d81ae88..8e34220edf2 100644
--- a/dgraph/cmd/bulk/reduce.go
+++ b/dgraph/cmd/bulk/reduce.go
@@ -130,18 +130,17 @@ func (r *reducer) createBadgerInternal(dir string, compression bool) *badger.DB
 		key = nil
 	}
 
-	opt := badger.DefaultOptions(dir).
+	opt := r.state.opt.Badger.
+		WithDir(dir).WithValueDir(dir).
 		WithSyncWrites(false).
-		WithEncryptionKey(key).
-		WithBlockCacheSize(r.opt.BlockCacheSize).
-		WithIndexCacheSize(r.opt.IndexCacheSize)
+		WithEncryptionKey(key)
 
 	opt.Compression = bo.None
 	opt.ZSTDCompressionLevel = 0
 	// Overwrite badger options based on the options provided by the user.
 	if compression {
-		opt.Compression = r.state.opt.BadgerCompression
-		opt.ZSTDCompressionLevel = r.state.opt.BadgerCompressionLevel
+		opt.Compression = r.state.opt.Badger.Compression
+		opt.ZSTDCompressionLevel = r.state.opt.Badger.ZSTDCompressionLevel
 	}
 
 	db, err := badger.OpenManaged(opt)
diff --git a/dgraph/cmd/bulk/run.go b/dgraph/cmd/bulk/run.go
index 22d76e95dbe..1a77d3ae24c 100644
--- a/dgraph/cmd/bulk/run.go
+++ b/dgraph/cmd/bulk/run.go
@@ -30,6 +30,7 @@ import (
 	"strconv"
 	"strings"
 
+	"github.com/dgraph-io/badger/v3"
 	"github.com/dgraph-io/dgraph/ee"
 	"github.com/dgraph-io/dgraph/filestore"
 	"github.com/dgraph-io/dgraph/protos/pb"
@@ -47,8 +48,7 @@ var Bulk x.SubCommand
 
 var defaultOutDir = "./out"
 
-const BulkBadgerDefaults = "compression=snappy; goroutines=8;" +
-	" cache-mb=64; cache-percentage=70,30;"
+const BulkBadgerDefaults = "compression=snappy; numgoroutines=8;"
 
 func init() {
 	Bulk.Cmd = &cobra.Command{
@@ -122,18 +122,13 @@ func init() {
 		"Namespace onto which to load the data. If not set, will preserve the namespace.")
 
 	flag.String("badger", BulkBadgerDefaults, z.NewSuperFlagHelp(BulkBadgerDefaults).
-		Head("Badger options").
+		Head("Badger options (Refer to badger documentation for all possible options)").
 		Flag("compression",
 			"Specifies the compression algorithm and compression level (if applicable) for the "+
 				`postings directory. "none" would disable compression, while "zstd:1" would set `+
 				"zstd compression at level 1.").
-		Flag("goroutines",
+		Flag("numgoroutines",
 			"The number of goroutines to use in badger.Stream.").
-		Flag("cache-mb",
-			"Total size of cache (in MB) per shard in the reducer.").
-		Flag("cache-percentage",
-			"Cache percentages summing up to 100 for various caches. (FORMAT: BlockCacheSize,"+
-				"IndexCacheSize)").
 		String())
 
 	x.RegisterClientTLSFlags(flag)
@@ -142,9 +137,12 @@ func init() {
 }
 
 func run() {
-	badger := z.NewSuperFlag(Bulk.Conf.GetString("badger")).MergeAndCheckDefault(
-		BulkBadgerDefaults)
-	ctype, clevel := x.ParseCompression(badger.GetString("compression"))
+	cacheSize := 64 << 20 // These are the default values. User can overwrite them using --badger.
+	cacheDefaults := fmt.Sprintf("indexcachesize=%d; blockcachesize=%d; ",
+		(70*cacheSize)/100, (30*cacheSize)/100)
+
+	bopts := badger.DefaultOptions("").FromSuperFlag(BulkBadgerDefaults + cacheDefaults).
+		FromSuperFlag(Bulk.Conf.GetString("badger"))
 	opt := options{
 		DataFiles:        Bulk.Conf.GetString("files"),
 		DataFormat:       Bulk.Conf.GetString("format"),
@@ -172,10 +170,7 @@ func run() {
 		NewUids:          Bulk.Conf.GetBool("new_uids"),
 		ClientDir:        Bulk.Conf.GetString("xidmap"),
 		Namespace:        Bulk.Conf.GetUint64("force-namespace"),
-
-		// Badger options
-		BadgerCompression:      ctype,
-		BadgerCompressionLevel: clevel,
+		Badger:           bopts,
 	}
 
 	x.PrintVersion()
@@ -183,14 +178,6 @@ func run() {
 		os.Exit(0)
 	}
 
-	totalCache := int64(badger.GetUint64("cache-mb"))
-	x.AssertTruef(totalCache >= 0, "ERROR: Cache size must be non-negative")
-	cachePercent, err := x.GetCachePercentages(badger.GetString("cache-percentage"), 2)
-	x.Check(err)
-	totalCache <<= 20 // Convert to MB.
-	opt.BlockCacheSize = (cachePercent[0] * totalCache) / 100
-	opt.IndexCacheSize = (cachePercent[1] * totalCache) / 100
-
 	_, opt.EncryptionKey = ee.GetKeys(Bulk.Conf)
 	if len(opt.EncryptionKey) == 0 {
 		if opt.Encrypted || opt.EncryptedOut {
diff --git a/go.mod b/go.mod
index fe1253e6a9a..ed342f969b7 100644
--- a/go.mod
+++ b/go.mod
@@ -14,7 +14,7 @@ require (
 	github.com/Shopify/sarama v1.27.2
 	github.com/blevesearch/bleve v1.0.13
 	github.com/codahale/hdrhistogram v0.0.0-20161010025455-3a0bb77429bd
-	github.com/dgraph-io/badger/v3 v3.0.0-20210309075542-2245c18dfd1f
+	github.com/dgraph-io/badger/v3 v3.0.0-20210405181011-d918b9904b2a
 	github.com/dgraph-io/dgo/v200 v200.0.0-20210401091508-95bfd74de60e
 	github.com/dgraph-io/gqlgen v0.13.2
 	github.com/dgraph-io/gqlparser/v2 v2.2.0
diff --git a/go.sum b/go.sum
index c786c2a422a..fa8e18a4a31 100644
--- a/go.sum
+++ b/go.sum
@@ -117,8 +117,8 @@ github.com/davecgh/go-spew v1.1.1 h1:vj9j/u1bqnvCEfJOwUhtlOARqs3+rkHYY13jYWTU97c
 github.com/davecgh/go-spew v1.1.1/go.mod h1:J7Y8YcW2NihsgmVo/mv3lAwl/skON4iLHjSsI+c5H38=
 github.com/dgraph-io/badger v1.6.0 h1:DshxFxZWXUcO0xX476VJC07Xsr6ZCBVRHKZ93Oh7Evo=
 github.com/dgraph-io/badger v1.6.0/go.mod h1:zwt7syl517jmP8s94KqSxTlM6IMsdhYy6psNgSztDR4=
-github.com/dgraph-io/badger/v3 v3.0.0-20210309075542-2245c18dfd1f h1:dZpGNLp9YUpq4h2DRcWAjW5dWj47SM3W3NK71z6FRa0=
-github.com/dgraph-io/badger/v3 v3.0.0-20210309075542-2245c18dfd1f/go.mod h1:GHMCYxuDWyzbHkh4k3yyg4PM61tJPFfEGSMbE3Vd5QE=
+github.com/dgraph-io/badger/v3 v3.0.0-20210405181011-d918b9904b2a h1:KUJzMbhVSuSDkXXkV0yI1Uj/hGNOGTUEc0dbusDixas=
+github.com/dgraph-io/badger/v3 v3.0.0-20210405181011-d918b9904b2a/go.mod h1:GHMCYxuDWyzbHkh4k3yyg4PM61tJPFfEGSMbE3Vd5QE=
 github.com/dgraph-io/dgo/v200 v200.0.0-20210401091508-95bfd74de60e h1:kdH2yqGYUl5xJARdI5kN1fjhVUV2sLC+vL1CVXhcAfo=
 github.com/dgraph-io/dgo/v200 v200.0.0-20210401091508-95bfd74de60e/go.mod h1:zCfS4R3E/UC/PhETXJYq/Blia0eCH1EQqKrWDvvimxE=
 github.com/dgraph-io/gqlgen v0.13.2 h1:TNhndk+eHKj5qE7BenKKSYdSIdOGhLqxR1rCiMso9KM=
diff --git a/worker/backup_processor.go b/worker/backup_processor.go
index c0e6f53cc80..c3283e8244e 100644
--- a/worker/backup_processor.go
+++ b/worker/backup_processor.go
@@ -62,7 +62,7 @@ func NewBackupProcessor(db *badger.DB, req *pb.BackupRequest) *BackupProcessor {
 	bp := &BackupProcessor{
 		DB:      db,
 		Request: req,
-		threads: make([]*threadLocal, x.WorkerConfig.Badger.GetUint64("goroutines")),
+		threads: make([]*threadLocal, x.WorkerConfig.Badger.NumGoroutines),
 	}
 	if req.SinceTs > 0 && db != nil {
 		bp.txn = db.NewTransactionAt(req.ReadTs, false)
diff --git a/worker/config.go b/worker/config.go
index 0daae39e376..050fc8b156a 100644
--- a/worker/config.go
+++ b/worker/config.go
@@ -20,7 +20,6 @@ import (
 	"path/filepath"
 	"time"
 
-	bo "github.com/dgraph-io/badger/v3/options"
 	"github.com/dgraph-io/dgraph/x"
 )
 
@@ -37,12 +36,6 @@ const (
 type Options struct {
 	// PostingDir is the path to the directory storing the postings..
 	PostingDir string
-	// PostingDirCompression is the compression algorithem used to compression Postings directory.
-	PostingDirCompression bo.CompressionType
-	// PostingDirCompressionLevel is the ZSTD compression level used by Postings directory. A
-	// higher value means more CPU intensive compression and better compression
-	// ratio.
-	PostingDirCompressionLevel int
 	// WALDir is the path to the directory storing the write-ahead log.
 	WALDir string
 	// MutationsMode is the mode used to handle mutation requests.
@@ -50,11 +43,6 @@ type Options struct {
 	// AuthToken is the token to be passed for Alter HTTP requests.
 	AuthToken string
 
-	// PBlockCacheSize is the size of block cache for pstore
-	PBlockCacheSize int64
-	// PIndexCacheSize is the size of index cache for pstore
-	PIndexCacheSize int64
-
 	// HmacSecret stores the secret used to sign JSON Web Tokens (JWT).
 	HmacSecret x.SensitiveByteSlice
 	// AccessJwtTtl is the TTL for the access JWT.
diff --git a/worker/draft.go b/worker/draft.go
index e1aedae1711..859c9c5cbfe 100644
--- a/worker/draft.go
+++ b/worker/draft.go
@@ -776,7 +776,7 @@ func (n *node) commitOrAbort(pkey uint64, delta *pb.OracleDelta) error {
 			return
 		}
 		txn.Update()
-		err := x.RetryUntilSuccess(int(x.WorkerConfig.MaxRetries),
+		err := x.RetryUntilSuccess(int(x.Config.MaxRetries),
 			10*time.Millisecond, func() error {
 				err := txn.CommitToDisk(writer, commit)
 				if err == badger.ErrBannedKey {
diff --git a/worker/server_state.go b/worker/server_state.go
index eeef349c49d..18fd1aba82c 100644
--- a/worker/server_state.go
+++ b/worker/server_state.go
@@ -40,7 +40,7 @@ const (
 	//       breaks.
 	AclDefaults    = `access-ttl=6h; refresh-ttl=30d; secret-file=;`
 	AuditDefaults  = `compress=false; days=10; size=100; dir=; output=; encrypt-file=;`
-	BadgerDefaults = `compression=snappy; goroutines=8; max-retries=-1;`
+	BadgerDefaults = `compression=snappy; numgoroutines=8;`
 	RaftDefaults   = `learner=false; snapshot-after-entries=10000; ` +
 		`snapshot-after-duration=30m; pending-proposals=256; idx=; group=;`
 	SecurityDefaults  = `token=; whitelist=;`
@@ -48,7 +48,8 @@ const (
 	CDCDefaults       = `file=; kafka=; sasl_user=; sasl_password=; ca_cert=; client_cert=; ` +
 		`client_key=;`
 	LimitDefaults = `mutations=allow; query-edge=1000000; normalize-node=10000; ` +
-		`mutations-nquad=1000000; disallow-drop=false; query-timeout=0ms; txn-abort-after=5m;`
+		`mutations-nquad=1000000; disallow-drop=false; query-timeout=0ms; txn-abort-after=5m; ` +
+		` max-retries=-1;`
 	ZeroLimitsDefaults = `uid-lease=0; refill-interval=30s; disable-admin-http=false;`
 	GraphQLDefaults    = `introspection=true; debug=false; extensions=true; poll-interval=1s; ` +
 		`lambda-url=;`
@@ -98,10 +99,6 @@ func setBadgerOptions(opt badger.Options) badger.Options {
 	// saved by disabling it.
 	opt.DetectConflicts = false
 
-	glog.Infof("Setting Posting Dir Compression Level: %d", Config.PostingDirCompressionLevel)
-	opt.Compression = Config.PostingDirCompression
-	opt.ZSTDCompressionLevel = Config.PostingDirCompressionLevel
-
 	// Settings for the data directory.
 	return opt
 }
@@ -131,11 +128,9 @@ func (s *ServerState) initStorage() {
 		// All the writes to posting store should be synchronous. We use batched writers
 		// for posting lists, so the cost of sync writes is amortized.
 		x.Check(os.MkdirAll(Config.PostingDir, 0700))
-		opt := badger.DefaultOptions(Config.PostingDir).
+		opt := x.WorkerConfig.Badger.
+			WithDir(Config.PostingDir).WithValueDir(Config.PostingDir).
 			WithNumVersionsToKeep(math.MaxInt32).
-			WithNumGoroutines(int(x.WorkerConfig.Badger.GetUint64("goroutines"))).
-			WithBlockCacheSize(Config.PBlockCacheSize).
-			WithIndexCacheSize(Config.PIndexCacheSize).
 			WithNamespaceOffset(x.NamespaceOffset)
 		opt = setBadgerOptions(opt)
 
diff --git a/x/config.go b/x/config.go
index 2632c2b0fd7..1c032b65f93 100644
--- a/x/config.go
+++ b/x/config.go
@@ -21,6 +21,7 @@ import (
 	"net"
 	"time"
 
+	"github.com/dgraph-io/badger/v3"
 	"github.com/dgraph-io/ristretto/z"
 	"github.com/spf13/viper"
 )
@@ -43,6 +44,7 @@ type Options struct {
 	BlockClusterWideDrop bool
 	LimitNormalizeNode   int
 	QueryTimeout         time.Duration
+	MaxRetries           int64
 
 	// GraphQL options:
 	//
@@ -96,8 +98,8 @@ type WorkerOptions struct {
 	TLSServerConfig *tls.Config
 	// Raft stores options related to Raft.
 	Raft *z.SuperFlag
-	// Badger stores options related to Badger.
-	Badger *z.SuperFlag
+	// Badger stores the badger options.
+	Badger badger.Options
 	// WhiteListedIPRanges is a list of IP ranges from which requests will be allowed.
 	WhiteListedIPRanges []IPRange
 	// StrictMutations will cause mutations to unknown predicates to fail if set to true.
@@ -108,9 +110,6 @@ type WorkerOptions struct {
 	HmacSecret SensitiveByteSlice
 	// AbortOlderThan tells Dgraph to discard transactions that are older than this duration.
 	AbortOlderThan time.Duration
-	// MaxRetries indicates the number of retries Dgraph do to prevent locking the worker in a
-	// failed state.
-	MaxRetries int64
 	// ProposedGroupId will be used if there's a file in the p directory called group_id with the
 	// proposed group ID for this server.
 	ProposedGroupId uint32