diff --git a/CHANGELOG.md b/CHANGELOG.md
index 899a6ac27..65d6a5d16 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -53,6 +53,7 @@
   - Changed the logic of how default value of FailoverClusterGroupName is
     set since that was preventing the resource to be able to be debugged
     ([issue #448](https://github.com/PowerShell/SqlServerDsc/issues/448)).
+  - Added RSInstallMode parameter ([issue #1163](https://github.com/PowerShell/SqlServerDsc/issues/1163)).
 - Changes to SqlWindowsFirewall
   - Where a version upgrade has changed paths for a database engine, the
     existing firewall rule for that instance will be updated rather than
diff --git a/DSCResources/MSFT_SqlSetup/MSFT_SqlSetup.psm1 b/DSCResources/MSFT_SqlSetup/MSFT_SqlSetup.psm1
index 052ab622b..25b453ac0 100644
--- a/DSCResources/MSFT_SqlSetup/MSFT_SqlSetup.psm1
+++ b/DSCResources/MSFT_SqlSetup/MSFT_SqlSetup.psm1
@@ -673,6 +673,9 @@ function Get-TargetResource
     .PARAMETER RSSvcAccount
         Service account for Reporting Services service.
 
+    .PARAMETER RSInstallMode
+        Install mode for Reporting Services.
+
     .PARAMETER ASSvcAccount
        Service account for Analysis Services service.
 
@@ -894,6 +897,11 @@ function Set-TargetResource
         [System.Management.Automation.PSCredential]
         $RSSvcAccount,
 
+        [Parameter()]
+        [ValidateSet('SharePointFilesOnlyMode', 'DefaultNativeMode', 'FilesOnlyMode')]
+        [System.String]
+        $RSInstallMode,
+
         [Parameter()]
         [System.Management.Automation.PSCredential]
         $ASSvcAccount,
@@ -1450,6 +1458,10 @@ function Set-TargetResource
         {
             $setupArguments += @{ RsSvcStartupType = $RsSvcStartupType}
         }
+        if ($PSBoundParameters.ContainsKey('RSInstallMode'))
+        {
+            $setupArguments += @{ RSINSTALLMODE = $RSInstallMode}
+        }
     }
 
     if ($Features.Contains('AS'))
@@ -1785,6 +1797,9 @@ function Set-TargetResource
     .PARAMETER RSSvcAccount
         Service account for Reporting Services service.
 
+    .PARAMETER RSInstallMode
+        Install mode for Reporting Services.
+
     .PARAMETER ASSvcAccount
        Service account for Analysis Services service.
 
@@ -1997,6 +2012,11 @@ function Test-TargetResource
         [System.Management.Automation.PSCredential]
         $RSSvcAccount,
 
+        [Parameter()]
+        [ValidateSet('SharePointFilesOnlyMode', 'DefaultNativeMode', 'FilesOnlyMode')]
+        [System.String]
+        $RSInstallMode,
+
         [Parameter()]
         [System.Management.Automation.PSCredential]
         $ASSvcAccount,
diff --git a/DSCResources/MSFT_SqlSetup/MSFT_SqlSetup.schema.mof b/DSCResources/MSFT_SqlSetup/MSFT_SqlSetup.schema.mof
index 4d38d35bc..fab7abd1e 100644
--- a/DSCResources/MSFT_SqlSetup/MSFT_SqlSetup.schema.mof
+++ b/DSCResources/MSFT_SqlSetup/MSFT_SqlSetup.schema.mof
@@ -35,6 +35,7 @@ class MSFT_SqlSetup : OMI_BaseResource
     [Read, Description("Output username for the Full Text service.")] String FTSvcAccountUsername;
     [Write, EmbeddedInstance("MSFT_Credential"), Description("Service account for Reporting Services service.")] String RSSvcAccount;
     [Read, Description("Output username for the Reporting Services service.")] String RSSvcAccountUsername;
+    [Write, Description("Specifies the install mode for SQL Server Report service."), ValueMap{"SharePointFilesOnlyMode", "DefaultNativeMode", "FilesOnlyMode"}, Values{"SharePointFilesOnlyMode", "DefaultNativeMode", "FilesOnlyMode"}] String RSInstallMode;
     [Write, EmbeddedInstance("MSFT_Credential"), Description("Service account for Analysis Services service.")] String ASSvcAccount;
     [Read, Description("Output username for the Analysis Services service.")] String ASSvcAccountUsername;
     [Write, Description("Collation for Analysis Services.")] String ASCollation;
diff --git a/README.md b/README.md
index c6de72f84..3fedb632b 100644
--- a/README.md
+++ b/README.md
@@ -1893,6 +1893,8 @@ need a '*SVCPASSWORD' argument in the setup arguments.
   service.
 * **`[PSCredential]` RSSvcAccount** _(Write)_: Service account for Reporting Services
   service.
+* **`[String]` RSInstallMode** _(Write)_: Reporting Services install mode.
+  { SharePointFilesOnlyMode | DefaultNativeMode | FilesOnlyMode }
 * **`[PSCredential]` ASSvcAccount** _(Write)_: Service account for Analysis Services
   service.
 * **`[String]` ASCollation** _(Write)_: Collation for Analysis Services.