diff --git a/ledger-api/grpc-definitions/com/daml/ledger/api/v1/version_service.proto b/ledger-api/grpc-definitions/com/daml/ledger/api/v1/version_service.proto
index aa9cc8378c88..6fac06e6aef7 100644
--- a/ledger-api/grpc-definitions/com/daml/ledger/api/v1/version_service.proto
+++ b/ledger-api/grpc-definitions/com/daml/ledger/api/v1/version_service.proto
@@ -65,6 +65,7 @@ message UserManagementFeature {}
 
 message CommandDeduplicationFeatures {
   DeduplicationPeriodSupport deduplication_period_support = 1;
+  ParticipantDeduplicationSupport participant_deduplication_support = 2;
 }
 
 message DeduplicationPeriodSupport {
@@ -80,3 +81,8 @@ message DeduplicationPeriodSupport {
   OffsetSupport offset_support = 1;
   DurationSupport duration_support = 2;
 }
+enum ParticipantDeduplicationSupport {
+  PARTICIPANT_DEDUPLICATION_NOT_SUPPORTED = 0;
+  PARTICIPANT_DEDUPLICATION_PARALLEL_ONLY = 1;
+  PARTICIPANT_DEDUPLICATION_SUPPORTED = 2;
+}
diff --git a/ledger/participant-state/kvutils/app/src/main/scala/com/daml/ledger/participant/state/kvutils/app/Runner.scala b/ledger/participant-state/kvutils/app/src/main/scala/com/daml/ledger/participant/state/kvutils/app/Runner.scala
index fe5c96b2ae10..6da0456c6000 100644
--- a/ledger/participant-state/kvutils/app/src/main/scala/com/daml/ledger/participant/state/kvutils/app/Runner.scala
+++ b/ledger/participant-state/kvutils/app/src/main/scala/com/daml/ledger/participant/state/kvutils/app/Runner.scala
@@ -15,6 +15,7 @@ import com.daml.ledger.api.health.HealthChecks
 import com.daml.ledger.api.v1.version_service.{
   CommandDeduplicationFeatures,
   DeduplicationPeriodSupport,
+  ParticipantDeduplicationSupport,
 }
 import com.daml.ledger.participant.state.index.impl.inmemory.InMemoryUserManagementStore
 import com.daml.ledger.participant.state.v2.WritePackagesService
@@ -206,7 +207,8 @@ final class Runner[T <: ReadWriteService, Extra](
                               durationSupport =
                                 DeduplicationPeriodSupport.DurationSupport.DURATION_NATIVE_SUPPORT,
                             )
-                          )
+                          ),
+                          ParticipantDeduplicationSupport.PARTICIPANT_DEDUPLICATION_NOT_SUPPORTED,
                         ),
                       ).acquire()
                     } yield {}
diff --git a/ledger/sandbox-classic/src/main/scala/platform/sandbox/SandboxServer.scala b/ledger/sandbox-classic/src/main/scala/platform/sandbox/SandboxServer.scala
index de2055d9c3d5..0736cc3892d6 100644
--- a/ledger/sandbox-classic/src/main/scala/platform/sandbox/SandboxServer.scala
+++ b/ledger/sandbox-classic/src/main/scala/platform/sandbox/SandboxServer.scala
@@ -21,6 +21,7 @@ import com.daml.ledger.api.health.HealthChecks
 import com.daml.ledger.api.v1.version_service.{
   CommandDeduplicationFeatures,
   DeduplicationPeriodSupport,
+  ParticipantDeduplicationSupport,
 }
 import com.daml.ledger.participant.state.index.impl.inmemory.InMemoryUserManagementStore
 import com.daml.ledger.participant.state.v2.metrics.TimedWriteService
@@ -430,7 +431,8 @@ final class SandboxServer(
               offsetSupport = DeduplicationPeriodSupport.OffsetSupport.OFFSET_NOT_SUPPORTED,
               durationSupport = DeduplicationPeriodSupport.DurationSupport.DURATION_NATIVE_SUPPORT,
             )
-          )
+          ),
+          ParticipantDeduplicationSupport.PARTICIPANT_DEDUPLICATION_SUPPORTED,
         ),
       )(materializer, executionSequencerFactory, loggingContext)
         .map(_.withServices(List(resetService)))
diff --git a/ledger/sandbox-on-x/src/main/scala/com/daml/ledger/sandbox/SandboxOnXRunner.scala b/ledger/sandbox-on-x/src/main/scala/com/daml/ledger/sandbox/SandboxOnXRunner.scala
index 866ccdb1bbaf..958242953f6f 100644
--- a/ledger/sandbox-on-x/src/main/scala/com/daml/ledger/sandbox/SandboxOnXRunner.scala
+++ b/ledger/sandbox-on-x/src/main/scala/com/daml/ledger/sandbox/SandboxOnXRunner.scala
@@ -16,6 +16,7 @@ import com.daml.ledger.api.health.HealthChecks
 import com.daml.ledger.api.v1.version_service.{
   CommandDeduplicationFeatures,
   DeduplicationPeriodSupport,
+  ParticipantDeduplicationSupport,
 }
 import com.daml.ledger.offset.Offset
 import com.daml.ledger.participant.state.index.impl.inmemory.InMemoryUserManagementStore
@@ -252,7 +253,8 @@ object SandboxOnXRunner {
             DeduplicationPeriodSupport.OffsetSupport.OFFSET_NOT_SUPPORTED,
             DeduplicationPeriodSupport.DurationSupport.DURATION_NATIVE_SUPPORT,
           )
-        )
+        ),
+        ParticipantDeduplicationSupport.PARTICIPANT_DEDUPLICATION_NOT_SUPPORTED,
       ),
     )
 
diff --git a/ledger/sandbox/src/main/scala/platform/sandboxnext/Runner.scala b/ledger/sandbox/src/main/scala/platform/sandboxnext/Runner.scala
index 408b88c9b190..44daaadcd69a 100644
--- a/ledger/sandbox/src/main/scala/platform/sandboxnext/Runner.scala
+++ b/ledger/sandbox/src/main/scala/platform/sandboxnext/Runner.scala
@@ -20,6 +20,7 @@ import com.daml.ledger.api.health.HealthChecks
 import com.daml.ledger.api.v1.version_service.{
   CommandDeduplicationFeatures,
   DeduplicationPeriodSupport,
+  ParticipantDeduplicationSupport,
 }
 import com.daml.ledger.configuration.LedgerId
 import com.daml.ledger.on.sql.Database.InvalidDatabaseException
@@ -324,7 +325,8 @@ class Runner(config: SandboxConfig) extends ResourceOwner[Port] {
                       durationSupport =
                         DeduplicationPeriodSupport.DurationSupport.DURATION_NATIVE_SUPPORT,
                     )
-                  )
+                  ),
+                  ParticipantDeduplicationSupport.PARTICIPANT_DEDUPLICATION_SUPPORTED,
                 ),
               )
               _ = apiServerServicesClosed.completeWith(apiServer.servicesClosed())