diff --git a/atmos.yaml b/atmos.yaml
index 6a1eb0b88..daf33b02d 100644
--- a/atmos.yaml
+++ b/atmos.yaml
@@ -68,7 +68,7 @@ stacks:
   name_pattern: "{tenant}-{environment}-{stage}"
 
 workflows:
-  # Can also be set using 'ATMOS_WORKFLOWS_BASE_PATH' ENV var, or '--workflows-dir' command-line arguments
+  # Can also be set using 'ATMOS_WORKFLOWS_BASE_PATH' ENV var, or '--workflows-dir' command-line argument
   # Supports both absolute and relative paths
   base_path: "stacks/workflows"
 
@@ -301,12 +301,12 @@ integrations:
 schemas:
   # https://json-schema.org
   jsonschema:
-    # Can also be set using 'ATMOS_SCHEMAS_JSONSCHEMA_BASE_PATH' ENV var, or '--schemas-jsonschema-dir' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_JSONSCHEMA_BASE_PATH' ENV var, or '--schemas-jsonschema-dir' command-line argument
     # Supports both absolute and relative paths
     base_path: "stacks/schemas/jsonschema"
   # https://www.openpolicyagent.org
   opa:
-    # Can also be set using 'ATMOS_SCHEMAS_OPA_BASE_PATH' ENV var, or '--schemas-opa-dir' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_OPA_BASE_PATH' ENV var, or '--schemas-opa-dir' command-line argument
     # Supports both absolute and relative paths
     base_path: "stacks/schemas/opa"
   # JSON Schema to validate Atmos manifests
@@ -318,7 +318,7 @@ schemas:
   # https://www.schemastore.org/json
   # https://github.com/SchemaStore/schemastore
   atmos:
-    # Can also be set using 'ATMOS_SCHEMAS_ATMOS_MANIFEST' ENV var, or '--schemas-atmos-manifest' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_ATMOS_MANIFEST' ENV var, or '--schemas-atmos-manifest' command-line argument
     # Supports both absolute and relative paths (relative to the `base_path` setting in `atmos.yaml`)
     manifest: "stacks/schemas/atmos/atmos-manifest/1.0/atmos-manifest.json"
 
@@ -338,3 +338,16 @@ templates:
       timeout: 5
       # https://docs.gomplate.ca/datasources
       datasources: {}
+
+settings:
+  # `list_merge_strategy` specifies how lists are merged in Atmos stack manifests.
+  # Can also be set using 'ATMOS_SETTINGS_LIST_MERGE_STRATEGY' environment variable, or '--settings-list-merge-strategy' command-line argument
+  # The following strategies are supported:
+  # `replace`: Most recent list imported wins (the default behavior).
+  # `append`:  The sequence of lists is appended in the same order as imports.
+  # `merge`:   The items in the destination list are deep-merged with the items in the source list.
+  #            The items in the source list take precedence.
+  #            The items are processed starting from the first up to the length of the source list (the remaining items are not processed).
+  #            If the source and destination lists have the same length, all items in the destination lists are
+  #            deep-merged with all items in the source list.
+  list_merge_strategy: replace
diff --git a/examples/demo-stacks/atmos.yaml b/examples/demo-stacks/atmos.yaml
index 171ee6407..555d07515 100644
--- a/examples/demo-stacks/atmos.yaml
+++ b/examples/demo-stacks/atmos.yaml
@@ -17,5 +17,5 @@ stacks:
   name_pattern: "{stage}"
 
 logs:
-  file: "/dev/stdout"
+  file: "/dev/stderr"
   level: Info
diff --git a/examples/quick-start/Dockerfile b/examples/quick-start/Dockerfile
index e2908efdc..9ebd41ef4 100644
--- a/examples/quick-start/Dockerfile
+++ b/examples/quick-start/Dockerfile
@@ -6,7 +6,7 @@ ARG GEODESIC_OS=debian
 # https://atmos.tools/
 # https://github.com/cloudposse/atmos
 # https://github.com/cloudposse/atmos/releases
-ARG ATMOS_VERSION=1.75.0
+ARG ATMOS_VERSION=1.76.0
 
 # Terraform: https://github.com/hashicorp/terraform/releases
 ARG TF_VERSION=1.8.4
diff --git a/examples/quick-start/atmos.yaml b/examples/quick-start/atmos.yaml
index c686bcf95..b5d527c0c 100644
--- a/examples/quick-start/atmos.yaml
+++ b/examples/quick-start/atmos.yaml
@@ -68,7 +68,7 @@ stacks:
   name_pattern: "{tenant}-{environment}-{stage}"
 
 workflows:
-  # Can also be set using 'ATMOS_WORKFLOWS_BASE_PATH' ENV var, or '--workflows-dir' command-line arguments
+  # Can also be set using 'ATMOS_WORKFLOWS_BASE_PATH' ENV var, or '--workflows-dir' command-line argument
   # Supports both absolute and relative paths
   base_path: "stacks/workflows"
 
@@ -234,12 +234,12 @@ commands:
 schemas:
   # https://json-schema.org
   jsonschema:
-    # Can also be set using 'ATMOS_SCHEMAS_JSONSCHEMA_BASE_PATH' ENV var, or '--schemas-jsonschema-dir' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_JSONSCHEMA_BASE_PATH' ENV var, or '--schemas-jsonschema-dir' command-line argument
     # Supports both absolute and relative paths
     base_path: "stacks/schemas/jsonschema"
   # https://www.openpolicyagent.org
   opa:
-    # Can also be set using 'ATMOS_SCHEMAS_OPA_BASE_PATH' ENV var, or '--schemas-opa-dir' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_OPA_BASE_PATH' ENV var, or '--schemas-opa-dir' command-line argument
     # Supports both absolute and relative paths
     base_path: "stacks/schemas/opa"
   # JSON Schema to validate Atmos manifests
@@ -251,7 +251,7 @@ schemas:
   # https://www.schemastore.org/json
   # https://github.com/SchemaStore/schemastore
   atmos:
-    # Can also be set using 'ATMOS_SCHEMAS_ATMOS_MANIFEST' ENV var, or '--schemas-atmos-manifest' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_ATMOS_MANIFEST' ENV var, or '--schemas-atmos-manifest' command-line argument
     # Supports both absolute and relative paths (relative to the `base_path` setting in `atmos.yaml`)
     manifest: "stacks/schemas/atmos/atmos-manifest/1.0/atmos-manifest.json"
 
@@ -270,3 +270,16 @@ templates:
       enabled: true
       # https://docs.gomplate.ca/datasources
       datasources: {}
+
+settings:
+  # `list_merge_strategy` specifies how lists are merged in Atmos stack manifests.
+  # Can also be set using 'ATMOS_SETTINGS_LIST_MERGE_STRATEGY' environment variable, or '--settings-list-merge-strategy' command-line argument
+  # The following strategies are supported:
+  # `replace`: Most recent list imported wins (the default behavior).
+  # `append`:  The sequence of lists is appended in the same order as imports.
+  # `merge`:   The items in the destination list are deep-merged with the items in the source list.
+  #            The items in the source list take precedence.
+  #            The items are processed starting from the first up to the length of the source list (the remaining items are not processed).
+  #            If the source and destination lists have the same length, all items in the destination lists are
+  #            deep-merged with all items in the source list.
+  list_merge_strategy: replace
diff --git a/examples/quick-start/rootfs/usr/local/etc/atmos/atmos.yaml b/examples/quick-start/rootfs/usr/local/etc/atmos/atmos.yaml
index 712f77cd2..4a46b977a 100644
--- a/examples/quick-start/rootfs/usr/local/etc/atmos/atmos.yaml
+++ b/examples/quick-start/rootfs/usr/local/etc/atmos/atmos.yaml
@@ -68,7 +68,7 @@ stacks:
   name_pattern: "{tenant}-{environment}-{stage}"
 
 workflows:
-  # Can also be set using 'ATMOS_WORKFLOWS_BASE_PATH' ENV var, or '--workflows-dir' command-line arguments
+  # Can also be set using 'ATMOS_WORKFLOWS_BASE_PATH' ENV var, or '--workflows-dir' command-line argument
   # Supports both absolute and relative paths
   base_path: "stacks/workflows"
 
@@ -235,12 +235,12 @@ commands:
 schemas:
   # https://json-schema.org
   jsonschema:
-    # Can also be set using 'ATMOS_SCHEMAS_JSONSCHEMA_BASE_PATH' ENV var, or '--schemas-jsonschema-dir' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_JSONSCHEMA_BASE_PATH' ENV var, or '--schemas-jsonschema-dir' command-line argument
     # Supports both absolute and relative paths
     base_path: "stacks/schemas/jsonschema"
   # https://www.openpolicyagent.org
   opa:
-    # Can also be set using 'ATMOS_SCHEMAS_OPA_BASE_PATH' ENV var, or '--schemas-opa-dir' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_OPA_BASE_PATH' ENV var, or '--schemas-opa-dir' command-line argument
     # Supports both absolute and relative paths
     base_path: "stacks/schemas/opa"
   # JSON Schema to validate Atmos manifests
@@ -252,7 +252,7 @@ schemas:
   # https://www.schemastore.org/json
   # https://github.com/SchemaStore/schemastore
   atmos:
-    # Can also be set using 'ATMOS_SCHEMAS_ATMOS_MANIFEST' ENV var, or '--schemas-atmos-manifest' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_ATMOS_MANIFEST' ENV var, or '--schemas-atmos-manifest' command-line argument
     # Supports both absolute and relative paths (relative to the `base_path` setting in `atmos.yaml`)
     manifest: "stacks/schemas/atmos/atmos-manifest/1.0/atmos-manifest.json"
 
@@ -270,3 +270,16 @@ templates:
       enabled: true
       # https://docs.gomplate.ca/datasources
       datasources: {}
+
+settings:
+  # `list_merge_strategy` specifies how lists are merged in Atmos stack manifests.
+  # Can also be set using 'ATMOS_SETTINGS_LIST_MERGE_STRATEGY' environment variable, or '--settings-list-merge-strategy' command-line argument
+  # The following strategies are supported:
+  # `replace`: Most recent list imported wins (the default behavior).
+  # `append`:  The sequence of lists is appended in the same order as imports.
+  # `merge`:   The items in the destination list are deep-merged with the items in the source list.
+  #            The items in the source list take precedence.
+  #            The items are processed starting from the first up to the length of the source list (the remaining items are not processed).
+  #            If the source and destination lists have the same length, all items in the destination lists are
+  #            deep-merged with all items in the source list.
+  list_merge_strategy: replace
diff --git a/examples/tests/atmos.yaml b/examples/tests/atmos.yaml
index c9348eb85..4335d6a3b 100644
--- a/examples/tests/atmos.yaml
+++ b/examples/tests/atmos.yaml
@@ -75,7 +75,7 @@ stacks:
   name_template: "{{.vars.tenant}}-{{.vars.environment}}-{{.vars.stage}}"
 
 workflows:
-  # Can also be set using 'ATMOS_WORKFLOWS_BASE_PATH' ENV var, or '--workflows-dir' command-line arguments
+  # Can also be set using 'ATMOS_WORKFLOWS_BASE_PATH' ENV var, or '--workflows-dir' command-line argument
   # Supports both absolute and relative paths
   base_path: "stacks/workflows"
 
@@ -328,12 +328,12 @@ integrations:
 schemas:
   # https://json-schema.org
   jsonschema:
-    # Can also be set using 'ATMOS_SCHEMAS_JSONSCHEMA_BASE_PATH' ENV var, or '--schemas-jsonschema-dir' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_JSONSCHEMA_BASE_PATH' ENV var, or '--schemas-jsonschema-dir' command-line argument
     # Supports both absolute and relative paths
     base_path: "stacks/schemas/jsonschema"
   # https://www.openpolicyagent.org
   opa:
-    # Can also be set using 'ATMOS_SCHEMAS_OPA_BASE_PATH' ENV var, or '--schemas-opa-dir' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_OPA_BASE_PATH' ENV var, or '--schemas-opa-dir' command-line argument
     # Supports both absolute and relative paths
     base_path: "stacks/schemas/opa"
   # JSON Schema to validate Atmos manifests
@@ -345,7 +345,7 @@ schemas:
   # https://www.schemastore.org/json
   # https://github.com/SchemaStore/schemastore
   atmos:
-    # Can also be set using 'ATMOS_SCHEMAS_ATMOS_MANIFEST' ENV var, or '--schemas-atmos-manifest' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_ATMOS_MANIFEST' ENV var, or '--schemas-atmos-manifest' command-line argument
     # Supports both absolute and relative paths (relative to the `base_path` setting in `atmos.yaml`)
     manifest: "../quick-start/stacks/schemas/atmos/atmos-manifest/1.0/atmos-manifest.json"
 
@@ -378,3 +378,16 @@ templates:
       timeout: 5
       # https://docs.gomplate.ca/datasources
       datasources: {}
+
+settings:
+  # `list_merge_strategy` specifies how lists are merged in Atmos stack manifests.
+  # Can also be set using 'ATMOS_SETTINGS_LIST_MERGE_STRATEGY' environment variable, or '--settings-list-merge-strategy' command-line argument
+  # The following strategies are supported:
+  # `replace`: Most recent list imported wins (the default behavior).
+  # `append`:  The sequence of lists is appended in the same order as imports.
+  # `merge`:   The items in the destination list are deep-merged with the items in the source list.
+  #            The items in the source list take precedence.
+  #            The items are processed starting from the first up to the length of the source list (the remaining items are not processed).
+  #            If the source and destination lists have the same length, all items in the destination lists are
+  #            deep-merged with all items in the source list.
+  list_merge_strategy: replace
diff --git a/examples/tests/rootfs/usr/local/etc/atmos/atmos.yaml b/examples/tests/rootfs/usr/local/etc/atmos/atmos.yaml
index 47dea4e14..99429c306 100644
--- a/examples/tests/rootfs/usr/local/etc/atmos/atmos.yaml
+++ b/examples/tests/rootfs/usr/local/etc/atmos/atmos.yaml
@@ -70,7 +70,7 @@ stacks:
   name_template: "{{.vars.tenant}}-{{.vars.environment}}-{{.vars.stage}}"
 
 workflows:
-  # Can also be set using 'ATMOS_WORKFLOWS_BASE_PATH' ENV var, or '--workflows-dir' command-line arguments
+  # Can also be set using 'ATMOS_WORKFLOWS_BASE_PATH' ENV var, or '--workflows-dir' command-line argument
   # Supports both absolute and relative paths
   base_path: "stacks/workflows"
 
@@ -576,12 +576,12 @@ integrations:
 schemas:
   # https://json-schema.org
   jsonschema:
-    # Can also be set using 'ATMOS_SCHEMAS_JSONSCHEMA_BASE_PATH' ENV var, or '--schemas-jsonschema-dir' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_JSONSCHEMA_BASE_PATH' ENV var, or '--schemas-jsonschema-dir' command-line argument
     # Supports both absolute and relative paths
     base_path: "stacks/schemas/jsonschema"
   # https://www.openpolicyagent.org
   opa:
-    # Can also be set using 'ATMOS_SCHEMAS_OPA_BASE_PATH' ENV var, or '--schemas-opa-dir' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_OPA_BASE_PATH' ENV var, or '--schemas-opa-dir' command-line argument
     # Supports both absolute and relative paths
     base_path: "stacks/schemas/opa"
   # JSON Schema to validate Atmos manifests
@@ -593,7 +593,7 @@ schemas:
   # https://www.schemastore.org/json
   # https://github.com/SchemaStore/schemastore
   atmos:
-    # Can also be set using 'ATMOS_SCHEMAS_ATMOS_MANIFEST' ENV var, or '--schemas-atmos-manifest' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_ATMOS_MANIFEST' ENV var, or '--schemas-atmos-manifest' command-line argument
     # Supports both absolute and relative paths (relative to the `base_path` setting in `atmos.yaml`)
     manifest: "stacks/schemas/atmos/atmos-manifest/1.0/atmos-manifest.json"
 
@@ -625,3 +625,16 @@ templates:
       timeout: 5
       # https://docs.gomplate.ca/datasources
       datasources: {}
+
+settings:
+  # `list_merge_strategy` specifies how lists are merged in Atmos stack manifests.
+  # Can also be set using 'ATMOS_SETTINGS_LIST_MERGE_STRATEGY' environment variable, or '--settings-list-merge-strategy' command-line argument
+  # The following strategies are supported:
+  # `replace`: Most recent list imported wins (the default behavior).
+  # `append`:  The sequence of lists is appended in the same order as imports.
+  # `merge`:   The items in the destination list are deep-merged with the items in the source list.
+  #            The items in the source list take precedence.
+  #            The items are processed starting from the first up to the length of the source list (the remaining items are not processed).
+  #            If the source and destination lists have the same length, all items in the destination lists are
+  #            deep-merged with all items in the source list.
+  list_merge_strategy: replace
diff --git a/go.mod b/go.mod
index 9e1a95427..08157eaa5 100644
--- a/go.mod
+++ b/go.mod
@@ -3,6 +3,7 @@ module github.com/cloudposse/atmos
 go 1.21
 
 require (
+	dario.cat/mergo v1.0.0
 	github.com/Masterminds/sprig/v3 v3.2.3
 	github.com/alecthomas/chroma v0.10.0
 	github.com/arsham/figurine v1.3.0
@@ -21,7 +22,6 @@ require (
 	github.com/hashicorp/hcl v1.0.0
 	github.com/hashicorp/hcl/v2 v2.20.1
 	github.com/hashicorp/terraform-config-inspect v0.0.0-20240509232506-4708120f8f30
-	github.com/imdario/mergo v0.3.13
 	github.com/ivanpirog/coloredcobra v1.0.1
 	github.com/json-iterator/go v1.1.12
 	github.com/jwalton/go-supportscolor v1.2.0
@@ -48,7 +48,6 @@ require (
 	cloud.google.com/go/compute/metadata v0.2.3 // indirect
 	cloud.google.com/go/iam v1.1.6 // indirect
 	cloud.google.com/go/storage v1.36.0 // indirect
-	dario.cat/mergo v1.0.0 // indirect
 	github.com/AdaLogics/go-fuzz-headers v0.0.0-20230811130428-ced1acdcaa24 // indirect
 	github.com/Masterminds/goutils v1.1.1 // indirect
 	github.com/Masterminds/semver/v3 v3.2.0 // indirect
@@ -155,6 +154,7 @@ require (
 	github.com/hashicorp/vault/sdk v0.5.0 // indirect
 	github.com/hashicorp/yamux v0.0.0-20211028200310-0bc27b27de87 // indirect
 	github.com/huandu/xstrings v1.3.3 // indirect
+	github.com/imdario/mergo v0.3.13 // indirect
 	github.com/inconshreveable/mousetrap v1.1.0 // indirect
 	github.com/jbenet/go-context v0.0.0-20150711004518-d14ea06fba99 // indirect
 	github.com/jmespath/go-jmespath v0.4.0 // indirect
diff --git a/internal/exec/utils.go b/internal/exec/utils.go
index 0543ae64c..31475c000 100644
--- a/internal/exec/utils.go
+++ b/internal/exec/utils.go
@@ -216,6 +216,7 @@ func processCommandLineArgs(
 	configAndStacksInfo.RedirectStdErr = argsAndFlagsInfo.RedirectStdErr
 	configAndStacksInfo.LogsLevel = argsAndFlagsInfo.LogsLevel
 	configAndStacksInfo.LogsFile = argsAndFlagsInfo.LogsFile
+	configAndStacksInfo.SettingsListMergeStrategy = argsAndFlagsInfo.SettingsListMergeStrategy
 
 	// Check if `-h` or `--help` flags are specified
 	if argsAndFlagsInfo.NeedHelp {
@@ -885,6 +886,19 @@ func processArgsAndFlags(componentType string, inputArgsAndFlags []string) (sche
 			info.LogsFile = logsFileFlagParts[1]
 		}
 
+		if arg == cfg.SettingsListMergeStrategyFlag {
+			if len(inputArgsAndFlags) <= (i + 1) {
+				return info, fmt.Errorf("invalid flag: %s", arg)
+			}
+			info.SettingsListMergeStrategy = inputArgsAndFlags[i+1]
+		} else if strings.HasPrefix(arg+"=", cfg.SettingsListMergeStrategyFlag) {
+			var settingsListMergeStrategyParts = strings.Split(arg, "=")
+			if len(settingsListMergeStrategyParts) != 2 {
+				return info, fmt.Errorf("invalid flag: %s", arg)
+			}
+			info.SettingsListMergeStrategy = settingsListMergeStrategyParts[1]
+		}
+
 		if arg == cfg.FromPlanFlag {
 			info.UseTerraformPlan = true
 		}
diff --git a/pkg/config/const.go b/pkg/config/const.go
index 9cd5d1b3b..ba5569451 100644
--- a/pkg/config/const.go
+++ b/pkg/config/const.go
@@ -58,4 +58,6 @@ const (
 
 	LogsLevelFlag = "--logs-level"
 	LogsFileFlag  = "--logs-file"
+
+	SettingsListMergeStrategyFlag = "--settings-list-merge-strategy"
 )
diff --git a/pkg/config/utils.go b/pkg/config/utils.go
index 3070e6919..264a8f8dd 100644
--- a/pkg/config/utils.go
+++ b/pkg/config/utils.go
@@ -320,6 +320,12 @@ func processEnvVars(cliConfig *schema.CliConfiguration) error {
 		cliConfig.Logs.Level = logsLevel
 	}
 
+	listMergeStrategy := os.Getenv("ATMOS_SETTINGS_LIST_MERGE_STRATEGY")
+	if len(listMergeStrategy) > 0 {
+		u.LogTrace(*cliConfig, fmt.Sprintf("Found ENV var ATMOS_SETTINGS_LIST_MERGE_STRATEGY=%s", listMergeStrategy))
+		cliConfig.Settings.ListMergeStrategy = listMergeStrategy
+	}
+
 	return nil
 }
 
@@ -416,6 +422,10 @@ func processCommandLineArgs(cliConfig *schema.CliConfiguration, configAndStacksI
 		cliConfig.Logs.File = configAndStacksInfo.LogsFile
 		u.LogTrace(*cliConfig, fmt.Sprintf("Using command line argument '%s=%s'", LogsFileFlag, configAndStacksInfo.LogsFile))
 	}
+	if len(configAndStacksInfo.SettingsListMergeStrategy) > 0 {
+		cliConfig.Settings.ListMergeStrategy = configAndStacksInfo.SettingsListMergeStrategy
+		u.LogTrace(*cliConfig, fmt.Sprintf("Using command line argument '%s=%s'", SettingsListMergeStrategyFlag, configAndStacksInfo.SettingsListMergeStrategy))
+	}
 
 	return nil
 }
diff --git a/pkg/merge/merge.go b/pkg/merge/merge.go
index b4b530305..dceaf08e3 100644
--- a/pkg/merge/merge.go
+++ b/pkg/merge/merge.go
@@ -1,9 +1,19 @@
 package merge
 
 import (
+	"fmt"
+
+	"dario.cat/mergo"
 	"github.com/fatih/color"
-	"github.com/imdario/mergo"
 	"gopkg.in/yaml.v2"
+
+	"github.com/cloudposse/atmos/pkg/schema"
+)
+
+const (
+	ListMergeStrategyReplace = "replace"
+	ListMergeStrategyAppend  = "append"
+	ListMergeStrategyMerge   = "merge"
 )
 
 // MergeWithOptions takes a list of maps and options as input, deep-merges the items in the order they are defined in the list,
@@ -45,12 +55,10 @@ func MergeWithOptions(inputs []map[any]any, appendSlice, sliceDeepCopy bool) (ma
 		// It was not working before in `github.com/imdario/mergo` so we need to disable it in our code
 		// opts = append(opts, mergo.WithOverwriteWithEmptyValue)
 
-		if appendSlice {
-			opts = append(opts, mergo.WithAppendSlice)
-		}
-
 		if sliceDeepCopy {
 			opts = append(opts, mergo.WithSliceDeepCopy)
+		} else if appendSlice {
+			opts = append(opts, mergo.WithAppendSlice)
 		}
 
 		if err = mergo.Merge(&merged, dataCurrent, opts...); err != nil {
@@ -64,6 +72,31 @@ func MergeWithOptions(inputs []map[any]any, appendSlice, sliceDeepCopy bool) (ma
 }
 
 // Merge takes a list of maps as input, deep-merges the items in the order they are defined in the list, and returns a single map with the merged contents
-func Merge(inputs []map[any]any) (map[any]any, error) {
-	return MergeWithOptions(inputs, false, false)
+func Merge(
+	cliConfig schema.CliConfiguration,
+	inputs []map[any]any,
+) (map[any]any, error) {
+	if cliConfig.Settings.ListMergeStrategy == "" {
+		cliConfig.Settings.ListMergeStrategy = ListMergeStrategyReplace
+	}
+
+	if cliConfig.Settings.ListMergeStrategy != ListMergeStrategyReplace &&
+		cliConfig.Settings.ListMergeStrategy != ListMergeStrategyAppend &&
+		cliConfig.Settings.ListMergeStrategy != ListMergeStrategyMerge {
+		return nil, fmt.Errorf("invalid Atmos manifests list merge strategy '%s'.\n"+
+			"Supported list merge strategies are: %s.",
+			cliConfig.Settings.ListMergeStrategy,
+			fmt.Sprintf("%s, %s, %s", ListMergeStrategyReplace, ListMergeStrategyAppend, ListMergeStrategyMerge))
+	}
+
+	sliceDeepCopy := false
+	appendSlice := false
+
+	if cliConfig.Settings.ListMergeStrategy == ListMergeStrategyMerge {
+		sliceDeepCopy = true
+	} else if cliConfig.Settings.ListMergeStrategy == ListMergeStrategyAppend {
+		appendSlice = true
+	}
+
+	return MergeWithOptions(inputs, appendSlice, sliceDeepCopy)
 }
diff --git a/pkg/merge/merge_test.go b/pkg/merge/merge_test.go
index 12963e6dd..1aec7ef15 100644
--- a/pkg/merge/merge_test.go
+++ b/pkg/merge/merge_test.go
@@ -4,21 +4,28 @@ import (
 	"testing"
 
 	"github.com/stretchr/testify/assert"
+	"gopkg.in/yaml.v2"
+
+	"github.com/cloudposse/atmos/pkg/schema"
 )
 
 func TestMergeBasic(t *testing.T) {
+	cliConfig := schema.CliConfiguration{}
+
 	map1 := map[any]any{"foo": "bar"}
 	map2 := map[any]any{"baz": "bat"}
 
 	inputs := []map[any]any{map1, map2}
 	expected := map[any]any{"foo": "bar", "baz": "bat"}
 
-	result, err := Merge(inputs)
+	result, err := Merge(cliConfig, inputs)
 	assert.Nil(t, err)
 	assert.Equal(t, expected, result)
 }
 
 func TestMergeBasicOverride(t *testing.T) {
+	cliConfig := schema.CliConfiguration{}
+
 	map1 := map[any]any{"foo": "bar"}
 	map2 := map[any]any{"baz": "bat"}
 	map3 := map[any]any{"foo": "ood"}
@@ -26,7 +33,115 @@ func TestMergeBasicOverride(t *testing.T) {
 	inputs := []map[any]any{map1, map2, map3}
 	expected := map[any]any{"foo": "ood", "baz": "bat"}
 
-	result, err := Merge(inputs)
+	result, err := Merge(cliConfig, inputs)
+	assert.Nil(t, err)
+	assert.Equal(t, expected, result)
+}
+
+func TestMergeListReplace(t *testing.T) {
+	cliConfig := schema.CliConfiguration{
+		Settings: schema.CliSettings{
+			ListMergeStrategy: ListMergeStrategyReplace,
+		},
+	}
+
+	map1 := map[any]any{
+		"list": []string{"1", "2", "3"},
+	}
+
+	map2 := map[any]any{
+		"list": []string{"4", "5", "6"},
+	}
+
+	inputs := []map[any]any{map1, map2}
+	expected := map[any]any{"list": []any{"4", "5", "6"}}
+
+	result, err := Merge(cliConfig, inputs)
 	assert.Nil(t, err)
 	assert.Equal(t, expected, result)
+
+	yamlConfig, err := yaml.Marshal(result)
+	assert.Nil(t, err)
+	t.Log(string(yamlConfig))
+}
+
+func TestMergeListAppend(t *testing.T) {
+	cliConfig := schema.CliConfiguration{
+		Settings: schema.CliSettings{
+			ListMergeStrategy: ListMergeStrategyAppend,
+		},
+	}
+
+	map1 := map[any]any{
+		"list": []string{"1", "2", "3"},
+	}
+
+	map2 := map[any]any{
+		"list": []string{"4", "5", "6"},
+	}
+
+	inputs := []map[any]any{map1, map2}
+	expected := map[any]any{"list": []any{"1", "2", "3", "4", "5", "6"}}
+
+	result, err := Merge(cliConfig, inputs)
+	assert.Nil(t, err)
+	assert.Equal(t, expected, result)
+
+	yamlConfig, err := yaml.Marshal(result)
+	assert.Nil(t, err)
+	t.Log(string(yamlConfig))
+}
+
+func TestMergeListMerge(t *testing.T) {
+	cliConfig := schema.CliConfiguration{
+		Settings: schema.CliSettings{
+			ListMergeStrategy: ListMergeStrategyMerge,
+		},
+	}
+
+	map1 := map[any]any{
+		"list": []map[string]string{
+			{
+				"1": "1",
+				"2": "2",
+				"3": "3",
+				"4": "4",
+			},
+		},
+	}
+
+	map2 := map[any]any{
+		"list": []map[string]string{
+			{
+				"1": "1b",
+				"2": "2",
+				"3": "3b",
+				"5": "5",
+			},
+		},
+	}
+
+	inputs := []map[any]any{map1, map2}
+
+	result, err := Merge(cliConfig, inputs)
+	assert.Nil(t, err)
+
+	var mergedList []any
+	var ok bool
+
+	if mergedList, ok = result["list"].([]any); !ok {
+		t.Errorf("invalid merge result: %v", result)
+	}
+
+	merged := mergedList[0].(map[any]any)
+
+	assert.Equal(t, "1b", merged["1"])
+	assert.Equal(t, "2", merged["2"])
+	assert.Equal(t, "3b", merged["3"])
+	assert.Equal(t, "4", merged["4"])
+	assert.Equal(t, "5", merged["5"])
+
+	yamlConfig, err := yaml.Marshal(result)
+	assert.Nil(t, err)
+	t.Log(string(yamlConfig))
 }
diff --git a/pkg/schema/schema.go b/pkg/schema/schema.go
index 63cfbc2be..a38f5f988 100644
--- a/pkg/schema/schema.go
+++ b/pkg/schema/schema.go
@@ -12,6 +12,7 @@ type CliConfiguration struct {
 	Integrations                  Integrations   `yaml:"integrations,omitempty" json:"integrations,omitempty" mapstructure:"integrations"`
 	Schemas                       Schemas        `yaml:"schemas,omitempty" json:"schemas,omitempty" mapstructure:"schemas"`
 	Templates                     Templates      `yaml:"templates,omitempty" json:"templates,omitempty" mapstructure:"templates"`
+	Settings                      CliSettings    `yaml:"settings,omitempty" json:"settings,omitempty" mapstructure:"settings"`
 	Initialized                   bool           `yaml:"initialized" json:"initialized" mapstructure:"initialized"`
 	StacksBaseAbsolutePath        string         `yaml:"stacksBaseAbsolutePath,omitempty" json:"stacksBaseAbsolutePath,omitempty" mapstructure:"stacksBaseAbsolutePath"`
 	IncludeStackAbsolutePaths     []string       `yaml:"includeStackAbsolutePaths,omitempty" json:"includeStackAbsolutePaths,omitempty" mapstructure:"includeStackAbsolutePaths"`
@@ -23,6 +24,10 @@ type CliConfiguration struct {
 	StackType                     string         `yaml:"stackType,omitempty" json:"StackType,omitempty" mapstructure:"stackType"`
 }
 
+type CliSettings struct {
+	ListMergeStrategy string `yaml:"list_merge_strategy" json:"list_merge_strategy" mapstructure:"list_merge_strategy"`
+}
+
 type Templates struct {
 	Settings TemplatesSettings `yaml:"settings" json:"settings" mapstructure:"settings"`
 }
@@ -108,34 +113,35 @@ type Context struct {
 }
 
 type ArgsAndFlagsInfo struct {
-	AdditionalArgsAndFlags  []string
-	SubCommand              string
-	SubCommand2             string
-	ComponentFromArg        string
-	GlobalOptions           []string
-	TerraformCommand        string
-	TerraformDir            string
-	HelmfileCommand         string
-	HelmfileDir             string
-	ConfigDir               string
-	StacksDir               string
-	WorkflowsDir            string
-	BasePath                string
-	DeployRunInit           string
-	InitRunReconfigure      string
-	AutoGenerateBackendFile string
-	UseTerraformPlan        bool
-	PlanFile                string
-	DryRun                  bool
-	SkipInit                bool
-	NeedHelp                bool
-	JsonSchemaDir           string
-	OpaDir                  string
-	CueDir                  string
-	AtmosManifestJsonSchema string
-	RedirectStdErr          string
-	LogsLevel               string
-	LogsFile                string
+	AdditionalArgsAndFlags    []string
+	SubCommand                string
+	SubCommand2               string
+	ComponentFromArg          string
+	GlobalOptions             []string
+	TerraformCommand          string
+	TerraformDir              string
+	HelmfileCommand           string
+	HelmfileDir               string
+	ConfigDir                 string
+	StacksDir                 string
+	WorkflowsDir              string
+	BasePath                  string
+	DeployRunInit             string
+	InitRunReconfigure        string
+	AutoGenerateBackendFile   string
+	UseTerraformPlan          bool
+	PlanFile                  string
+	DryRun                    bool
+	SkipInit                  bool
+	NeedHelp                  bool
+	JsonSchemaDir             string
+	OpaDir                    string
+	CueDir                    string
+	AtmosManifestJsonSchema   string
+	RedirectStdErr            string
+	LogsLevel                 string
+	LogsFile                  string
+	SettingsListMergeStrategy string
 }
 
 type ConfigAndStacksInfo struct {
@@ -196,6 +202,7 @@ type ConfigAndStacksInfo struct {
 	RedirectStdErr                string
 	LogsLevel                     string
 	LogsFile                      string
+	SettingsListMergeStrategy     string
 }
 
 // Workflows
diff --git a/pkg/stack/stack_processor.go b/pkg/stack/stack_processor.go
index bec412a83..5e30c302b 100644
--- a/pkg/stack/stack_processor.go
+++ b/pkg/stack/stack_processor.go
@@ -292,7 +292,10 @@ func ProcessYAMLConfigFile(
 		}
 	}
 
-	finalTerraformOverrides, err = m.Merge([]map[any]any{globalOverrides, terraformOverrides, parentTerraformOverrides})
+	finalTerraformOverrides, err = m.Merge(
+		cliConfig,
+		[]map[any]any{globalOverrides, terraformOverrides, parentTerraformOverrides},
+	)
 	if err != nil {
 		return nil, nil, nil, err
 	}
@@ -310,7 +313,10 @@ func ProcessYAMLConfigFile(
 		}
 	}
 
-	finalHelmfileOverrides, err = m.Merge([]map[any]any{globalOverrides, helmfileOverrides, parentHelmfileOverrides})
+	finalHelmfileOverrides, err = m.Merge(
+		cliConfig,
+		[]map[any]any{globalOverrides, helmfileOverrides, parentHelmfileOverrides},
+	)
 	if err != nil {
 		return nil, nil, nil, err
 	}
@@ -411,7 +417,7 @@ func ProcessYAMLConfigFile(
 		// The parent `context` takes precedence over the current (imported) `context` and will override items with the same keys.
 		// TODO: instead of calling the conversion functions, we need to switch to generics and update everything to support it
 		listOfMaps := []map[any]any{c.MapsOfStringsToMapsOfInterfaces(importStruct.Context), c.MapsOfStringsToMapsOfInterfaces(context)}
-		mergedContext, err := m.Merge(listOfMaps)
+		mergedContext, err := m.Merge(cliConfig, listOfMaps)
 		if err != nil {
 			return nil, nil, nil, err
 		}
@@ -452,7 +458,7 @@ func ProcessYAMLConfigFile(
 	}
 
 	// Deep-merge the stack manifest and all the imports
-	stackConfigsDeepMerged, err := m.Merge(stackConfigs)
+	stackConfigsDeepMerged, err := m.Merge(cliConfig, stackConfigs)
 	if err != nil {
 		return nil, nil, nil, err
 	}
@@ -564,7 +570,7 @@ func ProcessStackConfig(
 		}
 	}
 
-	globalAndTerraformVars, err := m.Merge([]map[any]any{globalVarsSection, terraformVars})
+	globalAndTerraformVars, err := m.Merge(cliConfig, []map[any]any{globalVarsSection, terraformVars})
 	if err != nil {
 		return nil, err
 	}
@@ -576,7 +582,7 @@ func ProcessStackConfig(
 		}
 	}
 
-	globalAndTerraformSettings, err := m.Merge([]map[any]any{globalSettingsSection, terraformSettings})
+	globalAndTerraformSettings, err := m.Merge(cliConfig, []map[any]any{globalSettingsSection, terraformSettings})
 	if err != nil {
 		return nil, err
 	}
@@ -588,7 +594,7 @@ func ProcessStackConfig(
 		}
 	}
 
-	globalAndTerraformEnv, err := m.Merge([]map[any]any{globalEnvSection, terraformEnv})
+	globalAndTerraformEnv, err := m.Merge(cliConfig, []map[any]any{globalEnvSection, terraformEnv})
 	if err != nil {
 		return nil, err
 	}
@@ -651,7 +657,7 @@ func ProcessStackConfig(
 		}
 	}
 
-	globalAndHelmfileVars, err := m.Merge([]map[any]any{globalVarsSection, helmfileVars})
+	globalAndHelmfileVars, err := m.Merge(cliConfig, []map[any]any{globalVarsSection, helmfileVars})
 	if err != nil {
 		return nil, err
 	}
@@ -663,7 +669,7 @@ func ProcessStackConfig(
 		}
 	}
 
-	globalAndHelmfileSettings, err := m.Merge([]map[any]any{globalSettingsSection, helmfileSettings})
+	globalAndHelmfileSettings, err := m.Merge(cliConfig, []map[any]any{globalSettingsSection, helmfileSettings})
 	if err != nil {
 		return nil, err
 	}
@@ -675,7 +681,7 @@ func ProcessStackConfig(
 		}
 	}
 
-	globalAndHelmfileEnv, err := m.Merge([]map[any]any{globalEnvSection, helmfileEnv})
+	globalAndHelmfileEnv, err := m.Merge(cliConfig, []map[any]any{globalEnvSection, helmfileEnv})
 	if err != nil {
 		return nil, err
 	}
@@ -858,6 +864,7 @@ func ProcessStackConfig(
 
 					// Process the base components recursively to find `componentInheritanceChain`
 					err = ProcessBaseComponentConfig(
+						cliConfig,
 						&baseComponentConfig,
 						allTerraformComponentsMap,
 						component,
@@ -925,6 +932,7 @@ func ProcessStackConfig(
 
 						// Process the baseComponentFromInheritList components recursively to find `componentInheritanceChain`
 						err = ProcessBaseComponentConfig(
+							cliConfig,
 							&baseComponentConfig,
 							allTerraformComponentsMap,
 							component,
@@ -954,42 +962,50 @@ func ProcessStackConfig(
 				sort.Strings(baseComponents)
 
 				// Final configs
-				finalComponentVars, err := m.Merge([]map[any]any{
-					globalAndTerraformVars,
-					baseComponentVars,
-					componentVars,
-					componentOverridesVars,
-				})
+				finalComponentVars, err := m.Merge(
+					cliConfig,
+					[]map[any]any{
+						globalAndTerraformVars,
+						baseComponentVars,
+						componentVars,
+						componentOverridesVars,
+					})
 				if err != nil {
 					return nil, err
 				}
 
-				finalComponentSettings, err := m.Merge([]map[any]any{
-					globalAndTerraformSettings,
-					baseComponentSettings,
-					componentSettings,
-					componentOverridesSettings,
-				})
+				finalComponentSettings, err := m.Merge(
+					cliConfig,
+					[]map[any]any{
+						globalAndTerraformSettings,
+						baseComponentSettings,
+						componentSettings,
+						componentOverridesSettings,
+					})
 				if err != nil {
 					return nil, err
 				}
 
-				finalComponentEnv, err := m.Merge([]map[any]any{
-					globalAndTerraformEnv,
-					baseComponentEnv,
-					componentEnv,
-					componentOverridesEnv,
-				})
+				finalComponentEnv, err := m.Merge(
+					cliConfig,
+					[]map[any]any{
+						globalAndTerraformEnv,
+						baseComponentEnv,
+						componentEnv,
+						componentOverridesEnv,
+					})
 				if err != nil {
 					return nil, err
 				}
 
-				finalComponentProviders, err := m.Merge([]map[any]any{
-					terraformProviders,
-					baseComponentProviders,
-					componentProviders,
-					componentOverridesProviders,
-				})
+				finalComponentProviders, err := m.Merge(
+					cliConfig,
+					[]map[any]any{
+						terraformProviders,
+						baseComponentProviders,
+						componentProviders,
+						componentOverridesProviders,
+					})
 				if err != nil {
 					return nil, err
 				}
@@ -1003,11 +1019,13 @@ func ProcessStackConfig(
 					finalComponentBackendType = componentBackendType
 				}
 
-				finalComponentBackendSection, err := m.Merge([]map[any]any{
-					globalBackendSection,
-					baseComponentBackendSection,
-					componentBackendSection,
-				})
+				finalComponentBackendSection, err := m.Merge(
+					cliConfig,
+					[]map[any]any{
+						globalBackendSection,
+						baseComponentBackendSection,
+						componentBackendSection,
+					})
 				if err != nil {
 					return nil, err
 				}
@@ -1085,21 +1103,25 @@ func ProcessStackConfig(
 					finalComponentRemoteStateBackendType = componentRemoteStateBackendType
 				}
 
-				finalComponentRemoteStateBackendSection, err := m.Merge([]map[any]any{
-					globalRemoteStateBackendSection,
-					baseComponentRemoteStateBackendSection,
-					componentRemoteStateBackendSection,
-				})
+				finalComponentRemoteStateBackendSection, err := m.Merge(
+					cliConfig,
+					[]map[any]any{
+						globalRemoteStateBackendSection,
+						baseComponentRemoteStateBackendSection,
+						componentRemoteStateBackendSection,
+					})
 				if err != nil {
 					return nil, err
 				}
 
 				// Merge `backend` and `remote_state_backend` sections
 				// This will allow keeping `remote_state_backend` section DRY
-				finalComponentRemoteStateBackendSectionMerged, err := m.Merge([]map[any]any{
-					finalComponentBackendSection,
-					finalComponentRemoteStateBackendSection,
-				})
+				finalComponentRemoteStateBackendSectionMerged, err := m.Merge(
+					cliConfig,
+					[]map[any]any{
+						finalComponentBackendSection,
+						finalComponentRemoteStateBackendSection,
+					})
 				if err != nil {
 					return nil, err
 				}
@@ -1296,6 +1318,7 @@ func ProcessStackConfig(
 
 					// Process the base components recursively to find `componentInheritanceChain`
 					err = ProcessBaseComponentConfig(
+						cliConfig,
 						&baseComponentConfig,
 						allHelmfileComponentsMap,
 						component,
@@ -1358,6 +1381,7 @@ func ProcessStackConfig(
 
 						// Process the baseComponentFromInheritList components recursively to find `componentInheritanceChain`
 						err = ProcessBaseComponentConfig(
+							cliConfig,
 							&baseComponentConfig,
 							allHelmfileComponentsMap,
 							component,
@@ -1384,32 +1408,38 @@ func ProcessStackConfig(
 				sort.Strings(baseComponents)
 
 				// Final configs
-				finalComponentVars, err := m.Merge([]map[any]any{
-					globalAndHelmfileVars,
-					baseComponentVars,
-					componentVars,
-					componentOverridesVars,
-				})
+				finalComponentVars, err := m.Merge(
+					cliConfig,
+					[]map[any]any{
+						globalAndHelmfileVars,
+						baseComponentVars,
+						componentVars,
+						componentOverridesVars,
+					})
 				if err != nil {
 					return nil, err
 				}
 
-				finalComponentSettings, err := m.Merge([]map[any]any{
-					globalAndHelmfileSettings,
-					baseComponentSettings,
-					componentSettings,
-					componentOverridesSettings,
-				})
+				finalComponentSettings, err := m.Merge(
+					cliConfig,
+					[]map[any]any{
+						globalAndHelmfileSettings,
+						baseComponentSettings,
+						componentSettings,
+						componentOverridesSettings,
+					})
 				if err != nil {
 					return nil, err
 				}
 
-				finalComponentEnv, err := m.Merge([]map[any]any{
-					globalAndHelmfileEnv,
-					baseComponentEnv,
-					componentEnv,
-					componentOverridesEnv,
-				})
+				finalComponentEnv, err := m.Merge(
+					cliConfig,
+					[]map[any]any{
+						globalAndHelmfileEnv,
+						baseComponentEnv,
+						componentEnv,
+						componentOverridesEnv,
+					})
 				if err != nil {
 					return nil, err
 				}
diff --git a/pkg/stack/stack_processor_utils.go b/pkg/stack/stack_processor_utils.go
index 6920d7a85..b9b654fce 100644
--- a/pkg/stack/stack_processor_utils.go
+++ b/pkg/stack/stack_processor_utils.go
@@ -364,6 +364,7 @@ func getFileContent(filePath string) (string, error) {
 
 // ProcessBaseComponentConfig processes base component(s) config
 func ProcessBaseComponentConfig(
+	cliConfig schema.CliConfiguration,
 	baseComponentConfig *schema.BaseComponentConfig,
 	allComponentsMap map[any]any,
 	component string,
@@ -414,6 +415,7 @@ func ProcessBaseComponentConfig(
 			}
 
 			err := ProcessBaseComponentConfig(
+				cliConfig,
 				baseComponentConfig,
 				allComponentsMap,
 				baseComponent,
@@ -459,6 +461,7 @@ func ProcessBaseComponentConfig(
 
 					// Process the baseComponentFromInheritList components recursively to find `componentInheritanceChain`
 					err := ProcessBaseComponentConfig(
+						cliConfig,
 						baseComponentConfig,
 						allComponentsMap,
 						component,
@@ -546,28 +549,28 @@ func ProcessBaseComponentConfig(
 		}
 
 		// Base component `vars`
-		merged, err := m.Merge([]map[any]any{baseComponentConfig.BaseComponentVars, baseComponentVars})
+		merged, err := m.Merge(cliConfig, []map[any]any{baseComponentConfig.BaseComponentVars, baseComponentVars})
 		if err != nil {
 			return err
 		}
 		baseComponentConfig.BaseComponentVars = merged
 
 		// Base component `settings`
-		merged, err = m.Merge([]map[any]any{baseComponentConfig.BaseComponentSettings, baseComponentSettings})
+		merged, err = m.Merge(cliConfig, []map[any]any{baseComponentConfig.BaseComponentSettings, baseComponentSettings})
 		if err != nil {
 			return err
 		}
 		baseComponentConfig.BaseComponentSettings = merged
 
 		// Base component `env`
-		merged, err = m.Merge([]map[any]any{baseComponentConfig.BaseComponentEnv, baseComponentEnv})
+		merged, err = m.Merge(cliConfig, []map[any]any{baseComponentConfig.BaseComponentEnv, baseComponentEnv})
 		if err != nil {
 			return err
 		}
 		baseComponentConfig.BaseComponentEnv = merged
 
 		// Base component `providers`
-		merged, err = m.Merge([]map[any]any{baseComponentConfig.BaseComponentProviders, baseComponentProviders})
+		merged, err = m.Merge(cliConfig, []map[any]any{baseComponentConfig.BaseComponentProviders, baseComponentProviders})
 		if err != nil {
 			return err
 		}
@@ -580,7 +583,7 @@ func ProcessBaseComponentConfig(
 		baseComponentConfig.BaseComponentBackendType = baseComponentBackendType
 
 		// Base component `backend`
-		merged, err = m.Merge([]map[any]any{baseComponentConfig.BaseComponentBackendSection, baseComponentBackendSection})
+		merged, err = m.Merge(cliConfig, []map[any]any{baseComponentConfig.BaseComponentBackendSection, baseComponentBackendSection})
 		if err != nil {
 			return err
 		}
@@ -590,7 +593,7 @@ func ProcessBaseComponentConfig(
 		baseComponentConfig.BaseComponentRemoteStateBackendType = baseComponentRemoteStateBackendType
 
 		// Base component `remote_state_backend`
-		merged, err = m.Merge([]map[any]any{baseComponentConfig.BaseComponentRemoteStateBackendSection, baseComponentRemoteStateBackendSection})
+		merged, err = m.Merge(cliConfig, []map[any]any{baseComponentConfig.BaseComponentRemoteStateBackendSection, baseComponentRemoteStateBackendSection})
 		if err != nil {
 			return err
 		}
diff --git a/pkg/utils/template_utils.go b/pkg/utils/template_utils.go
index 6facf3538..4607b9f50 100644
--- a/pkg/utils/template_utils.go
+++ b/pkg/utils/template_utils.go
@@ -77,7 +77,7 @@ func ProcessTmplWithDatasources(
 		return "", err
 	}
 
-	templateSettingsMerged, err := merge.Merge([]map[any]any{cliConfigTemplateSettingsMap, stackManifestTemplateSettingsMap})
+	templateSettingsMerged, err := merge.Merge(cliConfig, []map[any]any{cliConfigTemplateSettingsMap, stackManifestTemplateSettingsMap})
 	if err != nil {
 		return "", err
 	}
diff --git a/website/docs/cli/configuration.mdx b/website/docs/cli/configuration.mdx
index 46f802bc5..7e594a61c 100644
--- a/website/docs/cli/configuration.mdx
+++ b/website/docs/cli/configuration.mdx
@@ -134,6 +134,40 @@ If `base_path` is provided, `components.terraform.base_path`, `components.helmfi
 base_path: "."
 ```
 
+## Settings
+
+The `settings` section configures Atmos global settings.
+
+<File title="atmos.yaml">
+    ```yaml
+    settings:
+      # `list_merge_strategy` specifies how lists are merged in Atmos stack manifests.
+      # Can also be set using 'ATMOS_SETTINGS_LIST_MERGE_STRATEGY' environment variable, or '--settings-list-merge-strategy' command-line argument
+      # The following strategies are supported:
+      # `replace`: Most recent list imported wins (the default behavior).
+      # `append`:  The sequence of lists is appended in the same order as imports.
+      # `merge`:   The items in the destination list are deep-merged with the items in the source list.
+      #            The items in the source list take precedence.
+      #            The items are processed starting from the first up to the length of the source list (the remaining items are not processed).
+      #            If the source and destination lists have the same length, all items in the destination lists are
+      #            deep-merged with all items in the source list.
+      list_merge_strategy: replace
+    ```
+</File>
+
+- `settings.list_merge_strategy` specifies how lists are merged in Atmos stack manifests.
+  The following strategies are supported:
+
+  -   `replace` - Most recent list imported wins (the default behavior).
+
+  -   `append` - The sequence of lists is appended in the same order as imports.
+
+  -   `merge` - The items in the destination list are deep-merged with the items in the source list.
+               The items in the source list take precedence.
+               The items are processed starting from the first up to the length of the source list (the remaining items are not processed).
+               If the source and destination lists have the same length, all items in the destination lists are
+               deep-merged with all items in the source list.
+
 ## Components
 
 Specify the default behaviors for components.
@@ -341,7 +375,7 @@ Refer to [Atmos Design Patterns](/design-patterns) for the examples on how to co
 <File title="atmos.yaml">
 ```yaml
 workflows:
-  # Can also be set using 'ATMOS_WORKFLOWS_BASE_PATH' ENV var, or '--workflows-dir' command-line arguments
+  # Can also be set using 'ATMOS_WORKFLOWS_BASE_PATH' ENV var, or '--workflows-dir' command-line argument
   # Supports both absolute and relative paths
   base_path: "stacks/workflows"
 ```
@@ -639,12 +673,12 @@ Configure the paths where to find OPA and JSON Schema files to validate Atmos st
 schemas:
   # https://json-schema.org
   jsonschema:
-    # Can also be set using 'ATMOS_SCHEMAS_JSONSCHEMA_BASE_PATH' ENV var, or '--schemas-jsonschema-dir' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_JSONSCHEMA_BASE_PATH' ENV var, or '--schemas-jsonschema-dir' command-line argument
     # Supports both absolute and relative paths
     base_path: "stacks/schemas/jsonschema"
   # https://www.openpolicyagent.org
   opa:
-    # Can also be set using 'ATMOS_SCHEMAS_OPA_BASE_PATH' ENV var, or '--schemas-opa-dir' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_OPA_BASE_PATH' ENV var, or '--schemas-opa-dir' command-line argument
     # Supports both absolute and relative paths
     base_path: "stacks/schemas/opa"
   # JSON Schema to validate Atmos manifests
@@ -654,7 +688,7 @@ schemas:
   # https://atmos.tools/schemas/atmos/atmos-manifest/1.0/atmos-manifest.json
   # https://json-schema.org/draft/2020-12/release-notes
   atmos:
-    # Can also be set using 'ATMOS_SCHEMAS_ATMOS_MANIFEST' ENV var, or '--schemas-atmos-manifest' command-line arguments
+    # Can also be set using 'ATMOS_SCHEMAS_ATMOS_MANIFEST' ENV var, or '--schemas-atmos-manifest' command-line argument
     # Supports both absolute and relative paths (relative to the `base_path` setting in `atmos.yaml`)
     manifest: "stacks/schemas/atmos/atmos-manifest/1.0/atmos-manifest.json"
 ```
@@ -1021,3 +1055,4 @@ setting `ATMOS_STACKS_BASE_PATH` to a path in `/localhost` to your local develop
 | ATMOS_SCHEMAS_ATMOS_MANIFEST                          | schemas.atmos.manifest                          | Path to JSON Schema to validate Atmos stack manifests. For more details, refer to [Atmos Manifest JSON Schema](/reference/schemas)                                                                                           |
 | ATMOS_LOGS_FILE                                       | logs.file                                       | The file to write Atmos logs to. Logs can be written to any file or any standard file descriptor, including `/dev/stdout`, `/dev/stderr` and `/dev/null`). If omitted, `/dev/stdout` will be used                            |
 | ATMOS_LOGS_LEVEL                                      | logs.level                                      | Logs level. Supported log levels are `Trace`, `Debug`, `Info`, `Warning`, `Off`. If the log level is set to `Off`, Atmos will not log any messages (note that this does not prevent other tools like Terraform from logging) |
+| ATMOS_SETTINGS_LIST_MERGE_STRATEGY                    | settings.list_merge_strategy                    | Specifies how lists are merged in Atmos stack manifests. The following strategies are supported: `replace`, `append`, `merge`                                                                                                |
diff --git a/website/docs/core-concepts/components/terraform-providers.mdx b/website/docs/core-concepts/components/terraform-providers.mdx
index 5579440e4..92156333e 100644
--- a/website/docs/core-concepts/components/terraform-providers.mdx
+++ b/website/docs/core-concepts/components/terraform-providers.mdx
@@ -186,13 +186,13 @@ For example:
 
 The above example uses a list of configuration blocks for the `aws` provider.
 
-Since it's a list, it doesn't currently work with deep-merging of stacks in the
-[inheritance](/core-concepts/components/inheritance) chain (list are not deep-merged, they are replaced).
+Since it's a list, by default it doesn't work with deep-merging of stacks in the
+[inheritance](/core-concepts/components/inheritance) chain since list are not deep-merged, they are replaced.
 
-This configuration will work for a single component.
+If you want to use the above configuration in the inheritance chain and allow appending or merging of lists, consider
+configuring the `settings.list_merge_strategy` in the `atmos.yaml` CLI config file.
 
-In the future Atmos releases, we'll consider an alternative syntax to describe multiple provider configurations using
-maps (maps support deep-merging at all scopes in the inheritance chain).
+For more details, refer to [Atmos CLI Settings](/cli/configuration#settings).
 
 :::
 
diff --git a/website/docs/integrations/atlantis.mdx b/website/docs/integrations/atlantis.mdx
index eb58e1ff6..161526711 100644
--- a/website/docs/integrations/atlantis.mdx
+++ b/website/docs/integrations/atlantis.mdx
@@ -687,7 +687,7 @@ on:
     branches: [ main ]
 
 env:
-  ATMOS_VERSION: 1.75.0
+  ATMOS_VERSION: 1.76.0
   ATMOS_CLI_CONFIG_PATH: ./
 
 jobs:
diff --git a/website/docs/integrations/github-actions/setup-atmos.md b/website/docs/integrations/github-actions/setup-atmos.md
index 593fc56df..da4e2fd82 100644
--- a/website/docs/integrations/github-actions/setup-atmos.md
+++ b/website/docs/integrations/github-actions/setup-atmos.md
@@ -27,5 +27,5 @@ jobs:
         uses: cloudposse/github-action-setup-atmos
         with:
           # Make sure to pin to the latest version of atmos
-          atmos_version: 1.75.0
+          atmos_version: 1.76.0
   ```