diff --git a/include/spdk/blob.h b/include/spdk/blob.h
index 1cd1288c4f..21f4961b5f 100644
--- a/include/spdk/blob.h
+++ b/include/spdk/blob.h
@@ -208,6 +208,7 @@ uint64_t spdk_blob_get_num_clusters(struct spdk_blob *blob);
 
 struct spdk_blob_opts {
 	uint64_t  num_clusters;
+	bool	thin_provision;
 	/* Number of attributes */
 	size_t	xattr_count;
 	/* Array of attribute names. Caller should free this array after use. */
diff --git a/lib/blob/blobstore.c b/lib/blob/blobstore.c
index 8dcc85525b..1749d43699 100644
--- a/lib/blob/blobstore.c
+++ b/lib/blob/blobstore.c
@@ -87,6 +87,7 @@ void
 spdk_blob_opts_init(struct spdk_blob_opts *opts)
 {
 	opts->num_clusters = 0;
+	opts->thin_provision = false;
 	opts->xattr_count = 0;
 	opts->xattr_names = NULL;
 	opts->xattr_ctx = NULL;
@@ -2735,6 +2736,13 @@ _spdk_blob_set_xattrs(struct spdk_blob	*blob, const struct spdk_blob_opts *opts)
 	return 0;
 }
 
+static void
+_spdk_blob_set_thin_provision(struct spdk_blob_data *blob)
+{
+	blob->invalid_flags |= SPDK_BLOB_THIN_PROV;
+	blob->state = SPDK_BLOB_STATE_DIRTY;
+}
+
 void spdk_bs_create_blob_ext(struct spdk_blob_store *bs, const struct spdk_blob_opts *opts,
 			     spdk_blob_op_with_id_complete cb_fn, void *cb_arg)
 {
@@ -2774,6 +2782,9 @@ void spdk_bs_create_blob_ext(struct spdk_blob_store *bs, const struct spdk_blob_
 		cb_fn(cb_arg, 0, rc);
 		return;
 	}
+	if (opts->thin_provision) {
+		_spdk_blob_set_thin_provision(blob);
+	}
 	spdk_blob_resize(__data_to_blob(blob), opts->num_clusters);
 	cpl.type = SPDK_BS_CPL_TYPE_BLOBID;
 	cpl.u.blobid.cb_fn = cb_fn;
diff --git a/lib/blob/blobstore.h b/lib/blob/blobstore.h
index 7e7578f565..f650436766 100644
--- a/lib/blob/blobstore.h
+++ b/lib/blob/blobstore.h
@@ -235,11 +235,8 @@ struct spdk_blob_md_descriptor_extent {
 	} extents[0];
 };
 
-/*
- * As new flags are defined, these values will be updated to reflect the
- *  mask of all flag values understood by this application.
- */
-#define SPDK_BLOB_INVALID_FLAGS_MASK	0
+#define SPDK_BLOB_THIN_PROV (1ULL << 0)
+#define SPDK_BLOB_INVALID_FLAGS_MASK	SPDK_BLOB_THIN_PROV
 
 #define SPDK_BLOB_READ_ONLY (1ULL << 0)
 #define SPDK_BLOB_DATA_RO_FLAGS_MASK	SPDK_BLOB_READ_ONLY
diff --git a/test/unit/lib/blob/blob.c/blob_ut.c b/test/unit/lib/blob/blob.c/blob_ut.c
index de783ebced..fe61853b4b 100644
--- a/test/unit/lib/blob/blob.c/blob_ut.c
+++ b/test/unit/lib/blob/blob.c/blob_ut.c
@@ -343,6 +343,75 @@ blob_create(void)
 	g_bs = NULL;
 
 }
+
+static void
+blob_thin_provision(void)
+{
+	struct spdk_blob_store *bs;
+	struct spdk_bs_dev *dev;
+	struct spdk_blob *blob;
+	struct spdk_blob_opts opts;
+	struct spdk_bs_opts bs_opts;
+	spdk_blob_id blobid;
+
+	dev = init_dev();
+	spdk_bs_opts_init(&bs_opts);
+	strncpy(bs_opts.bstype.bstype, "TESTTYPE", SPDK_BLOBSTORE_TYPE_LENGTH);
+
+	/* Initialize a new blob store */
+	spdk_bs_init(dev, &bs_opts, bs_op_with_handle_complete, NULL);
+	CU_ASSERT(g_bserrno == 0);
+	SPDK_CU_ASSERT_FATAL(g_bs != NULL);
+
+	bs = g_bs;
+
+	/* Create blob with thin provisioning enabled */
+
+	spdk_blob_opts_init(&opts);
+	opts.thin_provision = true;
+	opts.num_clusters = 10;
+
+	spdk_bs_create_blob_ext(bs, &opts, blob_op_with_id_complete, NULL);
+	CU_ASSERT(g_bserrno == 0);
+	CU_ASSERT(g_blobid != SPDK_BLOBID_INVALID);
+	blobid = g_blobid;
+
+	spdk_bs_open_blob(bs, blobid, blob_op_with_handle_complete, NULL);
+	CU_ASSERT(g_bserrno == 0);
+	SPDK_CU_ASSERT_FATAL(g_blob != NULL);
+	blob = g_blob;
+	CU_ASSERT(__blob_to_data(blob)->invalid_flags & SPDK_BLOB_THIN_PROV);
+
+	spdk_blob_close(blob, blob_op_complete, NULL);
+	CU_ASSERT(g_bserrno == 0);
+
+	spdk_bs_unload(g_bs, bs_op_complete, NULL);
+	CU_ASSERT(g_bserrno == 0);
+	g_bs = NULL;
+
+	/* Load an existing blob store and check if invalid_flags is set */
+	dev = init_dev();
+	strncpy(bs_opts.bstype.bstype, "TESTTYPE", SPDK_BLOBSTORE_TYPE_LENGTH);
+	spdk_bs_load(dev, &bs_opts, bs_op_with_handle_complete, NULL);
+	CU_ASSERT(g_bserrno == 0);
+	SPDK_CU_ASSERT_FATAL(g_bs != NULL);
+
+	bs = g_bs;
+
+	spdk_bs_open_blob(bs, blobid, blob_op_with_handle_complete, NULL);
+	CU_ASSERT(g_bserrno == 0);
+	SPDK_CU_ASSERT_FATAL(g_blob != NULL);
+	blob = g_blob;
+	CU_ASSERT(__blob_to_data(blob)->invalid_flags & SPDK_BLOB_THIN_PROV);
+
+	spdk_blob_close(blob, blob_op_complete, NULL);
+	CU_ASSERT(g_bserrno == 0);
+
+	spdk_bs_unload(g_bs, bs_op_complete, NULL);
+	CU_ASSERT(g_bserrno == 0);
+	g_bs = NULL;
+}
+
 static void
 blob_delete(void)
 {
@@ -2483,6 +2552,7 @@ int main(int argc, char **argv)
 		CU_add_test(suite, "blob_init", blob_init) == NULL ||
 		CU_add_test(suite, "blob_open", blob_open) == NULL ||
 		CU_add_test(suite, "blob_create", blob_create) == NULL ||
+		CU_add_test(suite, "blob_thin_provision", blob_thin_provision) == NULL ||
 		CU_add_test(suite, "blob_delete", blob_delete) == NULL ||
 		CU_add_test(suite, "blob_resize", blob_resize) == NULL ||
 		CU_add_test(suite, "blob_read_only", blob_read_only) == NULL ||