diff --git a/CHANGELOG.adoc b/CHANGELOG.adoc
index 298a26f3be..9af3bc19da 100644
--- a/CHANGELOG.adoc
+++ b/CHANGELOG.adoc
@@ -18,6 +18,10 @@
 |===
 | | Description | PR
 
+| 🎁
+| Add target-utilization option for `service create` and `service update` (`--target-utilization`)
+| https://github.com/knative/client/pull/788[#788]
+
 | 🐣
 | Refactor `e2e` common code into `lib/test`
 | https://github.com/knative/client/pull/765[#765]
diff --git a/docs/cmd/kn_service_create.md b/docs/cmd/kn_service_create.md
index 834e94f1a9..8e6bd5105f 100644
--- a/docs/cmd/kn_service_create.md
+++ b/docs/cmd/kn_service_create.md
@@ -77,6 +77,7 @@ kn service create NAME --image IMAGE [flags]
       --requests-memory string       The requested memory (e.g., 64Mi).
       --revision-name string         The revision name to set. Must start with the service name and a dash as a prefix. Empty revision name will result in the server generating a name for the revision. Accepts golang templates, allowing {{.Service}} for the service name, {{.Generation}} for the generation, and {{.Random [n]}} for n random consonants. (default "{{.Service}}-{{.Random 5}}-{{.Generation}}")
       --service-account string       Service account name to set. An empty argument ("") clears the service account. The referenced service account must exist in the service's namespace.
+      --target-utilization int       Percentage of concurrent requests utilization before scaling up (default 70)
       --user int                     The user ID to run the container (e.g., 1001).
       --volume stringArray           Add a volume from a ConfigMap (prefix cm: or config-map:) or a Secret (prefix secret: or sc:). Example: --volume myvolume=cm:myconfigmap or --volume myvolume=secret:mysecret. You can use this flag multiple times. To unset a ConfigMap/Secret reference, append "-" to the name, e.g. --volume myvolume-.
       --wait-timeout int             Seconds to wait before giving up on waiting for service to be ready. (default 600)
diff --git a/docs/cmd/kn_service_update.md b/docs/cmd/kn_service_update.md
index b6afaa9107..fc00e3c14e 100644
--- a/docs/cmd/kn_service_update.md
+++ b/docs/cmd/kn_service_update.md
@@ -72,6 +72,7 @@ kn service update NAME [flags]
       --tag strings                  Set tag (format: --tag revisionRef=tagName) where revisionRef can be a revision or '@latest' string representing latest ready revision. This flag can be specified multiple times.
       --traffic strings              Set traffic distribution (format: --traffic revisionRef=percent) where revisionRef can be a revision or a tag or '@latest' string representing latest ready revision. This flag can be given multiple times with percent summing up to 100%.
       --untag strings                Untag revision (format: --untag tagName). This flag can be specified multiple times.
+      --target-utilization int       Percentage of concurrent requests utilization before scaling up (default 70)
       --user int                     The user ID to run the container (e.g., 1001).
       --volume stringArray           Add a volume from a ConfigMap (prefix cm: or config-map:) or a Secret (prefix secret: or sc:). Example: --volume myvolume=cm:myconfigmap or --volume myvolume=secret:mysecret. You can use this flag multiple times. To unset a ConfigMap/Secret reference, append "-" to the name, e.g. --volume myvolume-.
       --wait-timeout int             Seconds to wait before giving up on waiting for service to be ready. (default 600)
diff --git a/pkg/kn/commands/revision/describe.go b/pkg/kn/commands/revision/describe.go
index b6f9119489..909f7e20ea 100644
--- a/pkg/kn/commands/revision/describe.go
+++ b/pkg/kn/commands/revision/describe.go
@@ -131,7 +131,8 @@ func WriteConcurrencyOptions(dw printers.PrefixWriter, revision *servingv1.Revis
 	target := clientserving.ConcurrencyTarget(&revision.ObjectMeta)
 	limit := revision.Spec.ContainerConcurrency
 	autoscaleWindow := clientserving.AutoscaleWindow(&revision.ObjectMeta)
-	if target != nil || limit != nil && *limit != 0 || autoscaleWindow != "" {
+	targetUtilization := clientserving.ConcurrencyTargetUtilization(&revision.ObjectMeta)
+	if target != nil || limit != nil && *limit != 0 || autoscaleWindow != "" || targetUtilization != nil {
 		section := dw.WriteAttribute("Concurrency", "")
 		if limit != nil && *limit != 0 {
 			section.WriteAttribute("Limit", strconv.FormatInt(int64(*limit), 10))
@@ -142,6 +143,9 @@ func WriteConcurrencyOptions(dw printers.PrefixWriter, revision *servingv1.Revis
 		if autoscaleWindow != "" {
 			section.WriteAttribute("Window", autoscaleWindow)
 		}
+		if targetUtilization != nil {
+			section.WriteAttribute("TargetUtilization", strconv.Itoa(*targetUtilization))
+		}
 	}
 
 }
diff --git a/pkg/kn/commands/service/configuration_edit_flags.go b/pkg/kn/commands/service/configuration_edit_flags.go
index 26a1516f2d..d92426879e 100644
--- a/pkg/kn/commands/service/configuration_edit_flags.go
+++ b/pkg/kn/commands/service/configuration_edit_flags.go
@@ -48,6 +48,7 @@ type ConfigurationEditFlags struct {
 	MaxScale                   int
 	ConcurrencyTarget          int
 	ConcurrencyLimit           int
+	TargetUtilization          int
 	AutoscaleWindow            string
 	Port                       int32
 	Labels                     []string
@@ -180,6 +181,10 @@ func (p *ConfigurationEditFlags) addSharedFlags(command *cobra.Command) {
 		"Hard Limit of concurrent requests to be processed by a single replica.")
 	p.markFlagMakesRevision("concurrency-limit")
 
+	command.Flags().IntVar(&p.TargetUtilization, "target-utilization", 70,
+		"Percentage of concurrent requests utilization before scaling up")
+	p.markFlagMakesRevision("target-utilization")
+
 	command.Flags().Int32VarP(&p.Port, "port", "p", 0, "The port where application listens on.")
 	p.markFlagMakesRevision("port")
 
@@ -404,6 +409,13 @@ func (p *ConfigurationEditFlags) Apply(
 		}
 	}
 
+	if cmd.Flags().Changed("target-utilization") {
+		err = servinglib.UpdateTargetUtilization(template, p.TargetUtilization)
+		if err != nil {
+			return err
+		}
+	}
+
 	if cmd.Flags().Changed("cluster-local") || cmd.Flags().Changed("no-cluster-local") {
 		if p.ClusterLocal {
 			labels := servinglib.UpdateLabels(service.ObjectMeta.Labels, map[string]string{serving.VisibilityLabelKey: serving.VisibilityClusterLocal}, []string{})
diff --git a/pkg/kn/commands/service/create_test.go b/pkg/kn/commands/service/create_test.go
index 0ade9c327c..e3ee9be9ba 100644
--- a/pkg/kn/commands/service/create_test.go
+++ b/pkg/kn/commands/service/create_test.go
@@ -370,6 +370,7 @@ func TestServiceCreateMaxMinScale(t *testing.T) {
 		"service", "create", "foo", "--image", "gcr.io/foo/bar:baz",
 		"--min-scale", "1", "--max-scale", "5",
 		"--concurrency-target", "10", "--concurrency-limit", "100",
+		"--target-utilization", "50",
 		"--no-wait"}, false)
 
 	if err != nil {
@@ -385,6 +386,7 @@ func TestServiceCreateMaxMinScale(t *testing.T) {
 		"autoscaling.knative.dev/minScale", "1",
 		"autoscaling.knative.dev/maxScale", "5",
 		"autoscaling.knative.dev/target", "10",
+		"autoscaling.knative.dev/targetUtilizationPercentage", "50",
 	}
 
 	for i := 0; i < len(expectedAnnos); i += 2 {
diff --git a/pkg/kn/commands/service/update_test.go b/pkg/kn/commands/service/update_test.go
index bb48aad86f..16d162327a 100644
--- a/pkg/kn/commands/service/update_test.go
+++ b/pkg/kn/commands/service/update_test.go
@@ -311,7 +311,7 @@ func TestServiceUpdateMaxMinScale(t *testing.T) {
 
 	action, updated, _, err := fakeServiceUpdate(original, []string{
 		"service", "update", "foo",
-		"--min-scale", "1", "--max-scale", "5", "--concurrency-target", "10", "--concurrency-limit", "100", "--no-wait"})
+		"--min-scale", "1", "--max-scale", "5", "--concurrency-target", "10", "--concurrency-limit", "100", "--target-utilization", "50", "--no-wait"})
 
 	if err != nil {
 		t.Fatal(err)
@@ -329,6 +329,7 @@ func TestServiceUpdateMaxMinScale(t *testing.T) {
 		"autoscaling.knative.dev/minScale", "1",
 		"autoscaling.knative.dev/maxScale", "5",
 		"autoscaling.knative.dev/target", "10",
+		"autoscaling.knative.dev/targetUtilizationPercentage", "50",
 	}
 
 	for i := 0; i < len(expectedAnnos); i += 2 {
diff --git a/pkg/serving/config_changes.go b/pkg/serving/config_changes.go
index b91e2612e2..3b12bf99b7 100644
--- a/pkg/serving/config_changes.go
+++ b/pkg/serving/config_changes.go
@@ -198,6 +198,11 @@ func UpdateConcurrencyTarget(template *servingv1.RevisionTemplateSpec, target in
 	return UpdateRevisionTemplateAnnotation(template, autoscaling.TargetAnnotationKey, strconv.Itoa(target))
 }
 
+// UpdateTargetUtilization updates container target utilization percentage annotation
+func UpdateTargetUtilization(template *servingv1.RevisionTemplateSpec, target int) error {
+	return UpdateRevisionTemplateAnnotation(template, autoscaling.TargetUtilizationPercentageKey, strconv.Itoa(target))
+}
+
 // UpdateConcurrencyLimit updates container concurrency limit
 func UpdateConcurrencyLimit(template *servingv1.RevisionTemplateSpec, limit int64) error {
 	if limit < 0 {
diff --git a/pkg/serving/revision_template.go b/pkg/serving/revision_template.go
index a42add6e37..553ebc9e95 100644
--- a/pkg/serving/revision_template.go
+++ b/pkg/serving/revision_template.go
@@ -63,6 +63,11 @@ func ConcurrencyTarget(m *metav1.ObjectMeta) *int {
 	return ret
 }
 
+func ConcurrencyTargetUtilization(m *metav1.ObjectMeta) *int {
+	ret, _ := annotationAsInt(m, autoscaling.TargetUtilizationPercentageKey)
+	return ret
+}
+
 func AutoscaleWindow(m *metav1.ObjectMeta) string {
 	return m.Annotations[autoscaling.WindowAnnotationKey]
 }
diff --git a/test/e2e/service_options_test.go b/test/e2e/service_options_test.go
index 3de24a8599..b142d432c3 100644
--- a/test/e2e/service_options_test.go
+++ b/test/e2e/service_options_test.go
@@ -46,9 +46,10 @@ func TestServiceOptions(t *testing.T) {
 	t.Log("create and validate service with concurrency options")
 	defer r.DumpIfFailed()
 
-	serviceCreateWithOptions(t, it, r, "svc1", "--concurrency-limit", "250", "--concurrency-target", "300")
+	serviceCreateWithOptions(t, it, r, "svc1", "--concurrency-limit", "250", "--concurrency-target", "300", "--target-utilization", "50")
 	validateServiceConcurrencyTarget(t, it, r, "svc1", "300")
 	validateServiceConcurrencyLimit(t, it, r, "svc1", "250")
+	validateServiceTargetUtilization(t, it, r, "svc1", "50")
 
 	t.Log("update and validate service with concurrency limit")
 	serviceUpdate(t, it, r, "svc1", "--concurrency-limit", "300")
@@ -62,6 +63,7 @@ func TestServiceOptions(t *testing.T) {
 	t.Log("returns steady concurrency options for service")
 	validateServiceConcurrencyLimit(t, it, r, "svc1", "300")
 	validateServiceConcurrencyTarget(t, it, r, "svc1", "300")
+	validateServiceTargetUtilization(t, it, r, "svc1", "50")
 
 	t.Log("delete service")
 	serviceDelete(t, it, r, "svc1")
@@ -134,6 +136,13 @@ func validateServiceConcurrencyTarget(t *testing.T, it *test.KnTest, r *test.KnR
 	r.AssertNoError(out)
 }
 
+func validateServiceTargetUtilization(t *testing.T, it *test.KnTest, r *test.KnRunResultCollector, serviceName, targetUtilization string) {
+	jsonpath := "jsonpath={.items[0].spec.template.metadata.annotations.autoscaling\\.knative\\.dev/targetUtilizationPercentage}"
+	out := it.Kn().Run("service", "list", serviceName, "-o", jsonpath)
+	assert.Equal(t, out.Stdout, targetUtilization)
+	r.AssertNoError(out)
+}
+
 func validateAutoscaleWindow(t *testing.T, it *test.KnTest, r *test.KnRunResultCollector, serviceName, window string) {
 	jsonpath := "jsonpath={.items[0].spec.template.metadata.annotations.autoscaling\\.knative\\.dev/window}"
 	out := it.Kn().Run("service", "list", serviceName, "-o", jsonpath)