diff --git a/flytekit/clis/sdk_in_container/package.py b/flytekit/clis/sdk_in_container/package.py
index 2a884e29da..1a849d0681 100644
--- a/flytekit/clis/sdk_in_container/package.py
+++ b/flytekit/clis/sdk_in_container/package.py
@@ -77,8 +77,16 @@
     default="/root",
     help="Filesystem path to where the code is copied into within the Dockerfile. look for `COPY . /root` like command.",
 )
+@click.option(
+    "--deref-symlinks",
+    default=False,
+    is_flag=True,
+    help="Enables symlink dereferencing when packaging files in fast registration",
+)
 @click.pass_context
-def package(ctx, image_config, source, output, force, fast, in_container_source_path, python_interpreter):
+def package(
+    ctx, image_config, source, output, force, fast, in_container_source_path, python_interpreter, deref_symlinks
+):
     """
     This command produces a Flyte backend registrable package of all entities in Flyte.
     For tasks, one pb file is produced for each task, representing one TaskTemplate object.
@@ -103,6 +111,6 @@ def package(ctx, image_config, source, output, force, fast, in_container_source_
         display_help_with_error(ctx, "No packages to scan for flyte entities. Aborting!")
 
     try:
-        serialize_and_package(pkgs, serialization_settings, source, output, fast)
+        serialize_and_package(pkgs, serialization_settings, source, output, fast, deref_symlinks)
     except NoSerializableEntitiesError:
         click.secho(f"No flyte objects found in packages {pkgs}", fg="yellow")
diff --git a/flytekit/clis/sdk_in_container/register.py b/flytekit/clis/sdk_in_container/register.py
index 03e00d7896..024b70edde 100644
--- a/flytekit/clis/sdk_in_container/register.py
+++ b/flytekit/clis/sdk_in_container/register.py
@@ -99,6 +99,12 @@
     type=str,
     help="Version the package or module is registered with",
 )
+@click.option(
+    "--deref-symlinks",
+    default=False,
+    is_flag=True,
+    help="Enables symlink dereferencing when packaging files in fast registration",
+)
 @click.argument("package-or-module", type=click.Path(exists=True, readable=True, resolve_path=True), nargs=-1)
 @click.pass_context
 def register(
@@ -111,6 +117,7 @@ def register(
     service_account: str,
     raw_data_prefix: str,
     version: typing.Optional[str],
+    deref_symlinks: bool,
     package_or_module: typing.Tuple[str],
 ):
     """
@@ -142,7 +149,7 @@ def register(
     # Create a zip file containing all the entries.
     detected_root = find_common_root(package_or_module)
     cli_logger.debug(f"Using {detected_root} as root folder for project")
-    zip_file = fast_package(detected_root, output)
+    zip_file = fast_package(detected_root, output, deref_symlinks)
 
     # Upload zip file to Admin using FlyteRemote.
     md5_bytes, native_url = remote._upload_file(pathlib.Path(zip_file))
diff --git a/flytekit/clis/sdk_in_container/serialize.py b/flytekit/clis/sdk_in_container/serialize.py
index 0b12d6b406..33c0b47940 100644
--- a/flytekit/clis/sdk_in_container/serialize.py
+++ b/flytekit/clis/sdk_in_container/serialize.py
@@ -155,16 +155,22 @@ def fast(ctx):
 
 
 @click.command("workflows")
+@click.option(
+    "--deref-symlinks",
+    default=False,
+    is_flag=True,
+    help="Enables symlink dereferencing when packaging files in fast registration",
+)
 @click.option("-f", "--folder", type=click.Path(exists=True))
 @click.pass_context
-def fast_workflows(ctx, folder=None):
+def fast_workflows(ctx, folder=None, deref_symlinks=False):
 
     if folder:
         click.echo(f"Writing output to {folder}")
 
     source_dir = ctx.obj[CTX_LOCAL_SRC_ROOT]
     # Write using gzip
-    archive_fname = fast_package(source_dir, folder)
+    archive_fname = fast_package(source_dir, folder, deref_symlinks)
     click.echo(f"Wrote compressed archive to {archive_fname}")
 
     pkgs = ctx.obj[CTX_PACKAGES]
diff --git a/flytekit/tools/fast_registration.py b/flytekit/tools/fast_registration.py
index c4ac31a01a..34faadc58c 100644
--- a/flytekit/tools/fast_registration.py
+++ b/flytekit/tools/fast_registration.py
@@ -21,12 +21,13 @@
 file_access = FlyteContextManager.current_context().file_access
 
 
-def fast_package(source: os.PathLike, output_dir: os.PathLike) -> os.PathLike:
+def fast_package(source: os.PathLike, output_dir: os.PathLike, deref_symlinks: bool = False) -> os.PathLike:
     """
     Takes a source directory and packages everything not covered by common ignores into a tarball
     named after a hexdigest of the included files.
     :param os.PathLike source:
     :param os.PathLike output_dir:
+    :param bool deref_symlinks: Enables dereferencing symlinks when packaging directory
     :return os.PathLike:
     """
     ignore = IgnoreGroup(source, [GitIgnore, DockerIgnore, StandardIgnore])
@@ -41,7 +42,7 @@ def fast_package(source: os.PathLike, output_dir: os.PathLike) -> os.PathLike:
 
     with tempfile.TemporaryDirectory() as tmp_dir:
         tar_path = os.path.join(tmp_dir, "tmp.tar")
-        with tarfile.open(tar_path, "w") as tar:
+        with tarfile.open(tar_path, "w", dereference=deref_symlinks) as tar:
             tar.add(source, arcname="", filter=lambda x: ignore.tar_filter(tar_strip_file_attributes(x)))
         with gzip.GzipFile(filename=archive_fname, mode="wb", mtime=0) as gzipped:
             with open(tar_path, "rb") as tar_file:
diff --git a/flytekit/tools/repo.py b/flytekit/tools/repo.py
index 167c772184..ceaee36435 100644
--- a/flytekit/tools/repo.py
+++ b/flytekit/tools/repo.py
@@ -75,6 +75,7 @@ def package(
     source: str = ".",
     output: str = "./flyte-package.tgz",
     fast: bool = False,
+    deref_symlinks: bool = False,
 ):
     """
     Package the given entities and the source code (if fast is enabled) into a package with the given name in output
@@ -82,6 +83,7 @@ def package(
     :param source: source folder
     :param output: output package name with suffix
     :param fast: fast enabled implies source code is bundled
+    :param deref_symlinks: if enabled then symlinks are dereferenced during packaging
     """
     if not registrable_entities:
         raise NoSerializableEntitiesError("Nothing to package")
@@ -95,7 +97,7 @@ def package(
             if os.path.abspath(output).startswith(os.path.abspath(source)) and os.path.exists(output):
                 click.secho(f"{output} already exists within {source}, deleting and re-creating it", fg="yellow")
                 os.remove(output)
-            archive_fname = fast_registration.fast_package(source, output_tmpdir)
+            archive_fname = fast_registration.fast_package(source, output_tmpdir, deref_symlinks)
             click.secho(f"Fast mode enabled: compressed archive {archive_fname}", dim=True)
 
         with tarfile.open(output, "w:gz") as tar:
@@ -110,13 +112,14 @@ def serialize_and_package(
     source: str = ".",
     output: str = "./flyte-package.tgz",
     fast: bool = False,
+    deref_symlinks: bool = False,
     options: typing.Optional[Options] = None,
 ):
     """
     Fist serialize and then package all entities
     """
     registrable_entities = serialize(pkgs, settings, source, options=options)
-    package(registrable_entities, source, output, fast)
+    package(registrable_entities, source, output, fast, deref_symlinks)
 
 
 def register(
diff --git a/tests/flytekit/unit/tools/test_fast_registration.py b/tests/flytekit/unit/tools/test_fast_registration.py
index 0b50d6fdcf..aae3995bcb 100644
--- a/tests/flytekit/unit/tools/test_fast_registration.py
+++ b/tests/flytekit/unit/tools/test_fast_registration.py
@@ -23,7 +23,10 @@ def flyte_project(tmp_path):
             "workflows": {
                 "__pycache__": {"some.pyc": ""},
                 "hello_world.py": "print('Hello World!')",
-            }
+            },
+        },
+        "utils": {
+            "util.py": "print('Hello from utils!')",
         },
         ".venv": {"lots": "", "of": "", "packages": ""},
         ".env": "supersecret",
@@ -35,6 +38,7 @@ def flyte_project(tmp_path):
     }
 
     make_tree(tmp_path, tree)
+    os.symlink(str(tmp_path) + "/utils/util.py", str(tmp_path) + "/src/util")
     subprocess.run(["git", "init", str(tmp_path)])
     return tmp_path
 
@@ -48,9 +52,29 @@ def test_package(flyte_project, tmp_path):
             ".gitignore",
             "keep.foo",
             "src",
+            "src/util",
             "src/workflows",
             "src/workflows/hello_world.py",
+            "utils",
+            "utils/util.py",
+        ]
+        util = tar.getmember("src/util")
+        assert util.issym()
+    assert str(os.path.basename(archive_fname)).startswith(FAST_PREFIX)
+    assert str(archive_fname).endswith(FAST_FILEENDING)
+
+
+def test_package_with_symlink(flyte_project, tmp_path):
+    archive_fname = fast_package(source=flyte_project / "src", output_dir=tmp_path, deref_symlinks=True)
+    with tarfile.open(archive_fname, dereference=True) as tar:
+        assert tar.getnames() == [
+            "",  # tar root, output removes leading '/'
+            "util",
+            "workflows",
+            "workflows/hello_world.py",
         ]
+        util = tar.getmember("util")
+        assert util.isfile()
     assert str(os.path.basename(archive_fname)).startswith(FAST_PREFIX)
     assert str(archive_fname).endswith(FAST_FILEENDING)