diff --git a/Model/Config.php b/Model/Config.php
index 3443c024..803766c6 100644
--- a/Model/Config.php
+++ b/Model/Config.php
@@ -174,6 +174,9 @@ class Config extends \Magento\PageCache\Model\Config
     const XML_FASTLY_IMAGE_OPTIMIZATIONS
         = 'system/full_page_cache/fastly/fastly_image_optimization_configuration/image_optimizations';
 
+    const XML_FASTLY_FORCE_LOSSY
+        = 'system/full_page_cache/fastly/fastly_image_optimization_configuration/image_optimization_force_lossy';
+
     /**
      * XML path to image optimizations pixel ratio flag
      */
@@ -493,6 +496,11 @@ public function isImageOptimizationPixelRatioEnabled()
         return $this->_scopeConfig->isSetFlag(self::XML_FASTLY_IMAGE_OPTIMIZATIONS_PIXEL_RATIO);
     }
 
+    public function isForceLossyEnabled()
+    {
+        return $this->_scopeConfig->getValue(self::XML_FASTLY_FORCE_LOSSY);
+    }
+
     /**
      * Return image optimization pixel ratios
      *
diff --git a/Model/Product/Image.php b/Model/Product/Image.php
index 48f7ea6f..e5a3473d 100644
--- a/Model/Product/Image.php
+++ b/Model/Product/Image.php
@@ -37,6 +37,26 @@ class Image extends ImageModel
      */
     private $isFastlyEnabled = null;
 
+    /**
+     * @var null
+     */
+    private $isForceLossyEnabled = null;
+
+    /**
+     * @var null
+     */
+    private $lossyParam = null;
+
+    /**
+     * @var null
+     */
+    private $lossyUrl = null;
+
+    /**
+     * @var null
+     */
+    private $fastlyUrl = null;
+
     /**
      * On/Off switch based on config value
      *
@@ -61,6 +81,28 @@ private function isFastlyImageOptimizationEnabled()
         return $this->isFastlyEnabled;
     }
 
+    /**
+     * @return bool|null
+     */
+    public function isForceLossyEnabled()
+    {
+        if ($this->isForceLossyEnabled !== null) {
+            return $this->isForceLossyEnabled;
+        }
+
+        $this->isForceLossyEnabled = true;
+
+        if ($this->_scopeConfig->isSetFlag(Config::XML_FASTLY_FORCE_LOSSY) == false) {
+            $this->isForceLossyEnabled = false;
+        }
+
+        if ($this->_scopeConfig->getValue(PageCacheConfig::XML_PAGECACHE_TYPE) !== Config::FASTLY) {
+            $this->isForceLossyEnabled = false;
+        }
+
+        return $this->isForceLossyEnabled;
+    }
+
     /**
      * Wrapper for original rotate()
      *
@@ -208,21 +250,63 @@ public function saveFile()
      */
     public function getUrl()
     {
-        if ($this->isFastlyImageOptimizationEnabled() == false) {
+        // returns original url if IO and force lossy are disabled
+        if ($this->isFastlyImageOptimizationEnabled() == false && $this->isForceLossyEnabled() == false) {
             return parent::getUrl();
         }
+        // retrieves force lossy url or param if force lossy is enabled
+        if ($this->isForceLossyEnabled() != false) {
+            $this->getForceLossyUrl();
+        }
+        // retrieves Fastly url if force lossy url is not set
+        if (!$this->lossyUrl) {
+            $this->getFastlyUrl();
+        }
+        // returns url with set parameters
+        if ($this->lossyParam) {
+            return $this->fastlyUrl . $this->lossyParam;
+        } elseif ($this->lossyUrl) {
+            return $this->lossyUrl;
+        } else {
+            return $this->fastlyUrl;
+        }
+    }
 
-        return $this->getFastlyUrl();
+    /**
+     * Creates a force lossy url param or url + param depending if IO is disabled or enabled
+     */
+    public function getForceLossyUrl()
+    {
+        $baseFile = $this->getBaseFile();
+        $extension = pathinfo($baseFile, PATHINFO_EXTENSION); // @codingStandardsIgnoreLine
+        $url = $this->getBaseFileUrl($baseFile);
+        if ($extension == 'png' || $extension == 'bmp') {
+            if ($this->isFastlyImageOptimizationEnabled() == false) {
+                $this->lossyUrl = $url . '?format=jpeg';
+            } else {
+                $this->lossyParam = '&format=jpeg';
+            }
+        }
     }
 
     /**
-     * Builds URL used for fastly service
-     *
-     * @return string
+     * Creates a url with fastly parameters
      */
     public function getFastlyUrl()
     {
         $baseFile = $this->getBaseFile();
+        $url = $this->getBaseFileUrl($baseFile);
+
+        $this->fastlyParameters['quality'] = $this->_quality;
+        $this->fastlyParameters['bg-color'] = implode(',', $this->_backgroundColor);
+        if ($this->_keepAspectRatio == true) {
+            $this->fastlyParameters['fit'] = 'bounds';
+        }
+        $this->fastlyUrl = $url . '?' . $this->compileFastlyParameters();
+    }
+
+    public function getBaseFileUrl($baseFile)
+    {
         if ($baseFile === null) {
             $url = $this->_assetRepo->getUrl(
                 "Magento_Catalog::images/product/placeholder/{$this->getDestinationSubdir()}.jpg"
@@ -234,15 +318,6 @@ public function getFastlyUrl()
             $url .= $baseFile;
         }
 
-        // Add some default parameters
-        $this->fastlyParameters['quality'] = $this->_quality;
-        $this->fastlyParameters['bg-color'] = implode(',', $this->_backgroundColor);
-        if ($this->_keepAspectRatio == true) {
-            $this->fastlyParameters['fit'] = 'bounds';
-        }
-
-        $url .= '?' . $this->compileFastlyParameters();
-
         return $url;
     }
 
diff --git a/etc/adminhtml/system.xml b/etc/adminhtml/system.xml
index ae95847b..e7272b14 100644
--- a/etc/adminhtml/system.xml
+++ b/etc/adminhtml/system.xml
@@ -213,6 +213,11 @@
                             </comment>
                             <frontend_model>Fastly\Cdn\Block\System\Config\Form\Field\IoConfigOptionsBtn</frontend_model>
                         </field>
+                        <field id="image_optimization_force_lossy" translate="label comment" type="select" sortOrder="93" showInDefault="1" showInWebsite="1" showInStore="1">
+                            <label>Enable Force Lossy conversion</label>
+                            <comment>Enables using lossy conversion when original image is lossless.</comment>
+                            <source_model>Magento\Config\Model\Config\Source\Yesno</source_model>
+                        </field>
                         <field id="image_optimizations" translate="label comment" type="select" sortOrder="95" showInDefault="1" showInWebsite="1" showInStore="1">
                             <label>Enable deep image optimization</label>
                             <comment><![CDATA[Turns off Magento built-in image resizing and manipulation and offloads it onto Fastly IO.]]></comment>