diff --git a/dgraph/cmd/bulk/loader.go b/dgraph/cmd/bulk/loader.go
index 51562bd15bb..77a88fa5edf 100644
--- a/dgraph/cmd/bulk/loader.go
+++ b/dgraph/cmd/bulk/loader.go
@@ -78,6 +78,8 @@ type options struct {
 	EncryptionKey x.SensitiveByteSlice
 	// BadgerCompressionlevel is the compression level to use while writing to badger.
 	BadgerCompressionLevel int
+	BlockCacheSize         int64
+	IndexCacheSize         int64
 }
 
 type state struct {
diff --git a/dgraph/cmd/bulk/reduce.go b/dgraph/cmd/bulk/reduce.go
index 0bc01af84fd..27b11ac4b84 100644
--- a/dgraph/cmd/bulk/reduce.go
+++ b/dgraph/cmd/bulk/reduce.go
@@ -142,13 +142,22 @@ func (r *reducer) createBadgerInternal(dir string, compression bool) *badger.DB
 		}
 	}
 
-	opt := badger.DefaultOptions(dir).WithSyncWrites(false).
-		WithTableLoadingMode(bo.MemoryMap).WithValueThreshold(1 << 10 /* 1 KB */).
-		WithLogger(nil).WithBlockCacheSize(1 << 20).
-		WithEncryptionKey(r.opt.EncryptionKey)
-
+	opt := badger.DefaultOptions(dir).
+		WithSyncWrites(false).
+		WithTableLoadingMode(bo.MemoryMap).
+		WithValueThreshold(1 << 10 /* 1 KB */).
+		WithLogger(nil).
+		WithEncryptionKey(r.opt.EncryptionKey).
+		WithBlockCacheSize(r.opt.BlockCacheSize).
+		WithIndexCacheSize(r.opt.IndexCacheSize)
+
+	opt.Compression = bo.None
+	opt.ZSTDCompressionLevel = 0
 	// Overwrite badger options based on the options provided by the user.
-	r.setBadgerOptions(&opt, compression)
+	if compression {
+		opt.Compression = bo.ZSTD
+		opt.ZSTDCompressionLevel = r.state.opt.BadgerCompressionLevel
+	}
 
 	db, err := badger.OpenManaged(opt)
 	x.Check(err)
@@ -173,20 +182,6 @@ func (r *reducer) createTmpBadger() *badger.DB {
 	return db
 }
 
-func (r *reducer) setBadgerOptions(opt *badger.Options, compression bool) {
-	if !compression {
-		opt.Compression = bo.None
-		opt.ZSTDCompressionLevel = 0
-		return
-	}
-	// Set the compression level.
-	opt.ZSTDCompressionLevel = r.state.opt.BadgerCompressionLevel
-	if r.state.opt.BadgerCompressionLevel < 1 {
-		x.Fatalf("Invalid compression level: %d. It should be greater than zero",
-			r.state.opt.BadgerCompressionLevel)
-	}
-}
-
 type mapIterator struct {
 	fd      *os.File
 	reader  *bufio.Reader
diff --git a/dgraph/cmd/bulk/run.go b/dgraph/cmd/bulk/run.go
index 4b01bb79bd8..d208090e546 100644
--- a/dgraph/cmd/bulk/run.go
+++ b/dgraph/cmd/bulk/run.go
@@ -106,38 +106,42 @@ func init() {
 	// Options around how to set up Badger.
 	flag.Int("badger.compression_level", 1,
 		"The compression level for Badger. A higher value uses more resources.")
+	flag.Int64("badger.cache_mb", 0, "Total size of cache (in MB) per shard in reducer.")
+	flag.String("badger.cache_percentage", "0,100",
+		"Cache percentages summing up to 100 for various caches"+
+			" (FORMAT: BlockCacheSize, IndexCacheSize).")
 
 	// Encryption and Vault options
 	enc.RegisterFlags(flag)
 }
 
 func run() {
-	var err error
 	opt := options{
-		DataFiles:              Bulk.Conf.GetString("files"),
-		DataFormat:             Bulk.Conf.GetString("format"),
-		SchemaFile:             Bulk.Conf.GetString("schema"),
-		GqlSchemaFile:          Bulk.Conf.GetString("graphql_schema"),
-		Encrypted:              Bulk.Conf.GetBool("encrypted"),
-		OutDir:                 Bulk.Conf.GetString("out"),
-		ReplaceOutDir:          Bulk.Conf.GetBool("replace_out"),
-		TmpDir:                 Bulk.Conf.GetString("tmp"),
-		NumGoroutines:          Bulk.Conf.GetInt("num_go_routines"),
-		MapBufSize:             uint64(Bulk.Conf.GetInt("mapoutput_mb")),
-		PartitionBufSize:       int64(Bulk.Conf.GetInt("partition_mb")),
-		SkipMapPhase:           Bulk.Conf.GetBool("skip_map_phase"),
-		CleanupTmp:             Bulk.Conf.GetBool("cleanup_tmp"),
-		NumReducers:            Bulk.Conf.GetInt("reducers"),
-		Version:                Bulk.Conf.GetBool("version"),
-		StoreXids:              Bulk.Conf.GetBool("store_xids"),
-		ZeroAddr:               Bulk.Conf.GetString("zero"),
-		HttpAddr:               Bulk.Conf.GetString("http"),
-		IgnoreErrors:           Bulk.Conf.GetBool("ignore_errors"),
-		MapShards:              Bulk.Conf.GetInt("map_shards"),
-		ReduceShards:           Bulk.Conf.GetInt("reduce_shards"),
-		CustomTokenizers:       Bulk.Conf.GetString("custom_tokenizers"),
-		NewUids:                Bulk.Conf.GetBool("new_uids"),
-		ClientDir:              Bulk.Conf.GetString("xidmap"),
+		DataFiles:        Bulk.Conf.GetString("files"),
+		DataFormat:       Bulk.Conf.GetString("format"),
+		SchemaFile:       Bulk.Conf.GetString("schema"),
+		GqlSchemaFile:    Bulk.Conf.GetString("graphql_schema"),
+		Encrypted:        Bulk.Conf.GetBool("encrypted"),
+		OutDir:           Bulk.Conf.GetString("out"),
+		ReplaceOutDir:    Bulk.Conf.GetBool("replace_out"),
+		TmpDir:           Bulk.Conf.GetString("tmp"),
+		NumGoroutines:    Bulk.Conf.GetInt("num_go_routines"),
+		MapBufSize:       uint64(Bulk.Conf.GetInt("mapoutput_mb")),
+		PartitionBufSize: int64(Bulk.Conf.GetInt("partition_mb")),
+		SkipMapPhase:     Bulk.Conf.GetBool("skip_map_phase"),
+		CleanupTmp:       Bulk.Conf.GetBool("cleanup_tmp"),
+		NumReducers:      Bulk.Conf.GetInt("reducers"),
+		Version:          Bulk.Conf.GetBool("version"),
+		StoreXids:        Bulk.Conf.GetBool("store_xids"),
+		ZeroAddr:         Bulk.Conf.GetString("zero"),
+		HttpAddr:         Bulk.Conf.GetString("http"),
+		IgnoreErrors:     Bulk.Conf.GetBool("ignore_errors"),
+		MapShards:        Bulk.Conf.GetInt("map_shards"),
+		ReduceShards:     Bulk.Conf.GetInt("reduce_shards"),
+		CustomTokenizers: Bulk.Conf.GetString("custom_tokenizers"),
+		NewUids:          Bulk.Conf.GetBool("new_uids"),
+		ClientDir:        Bulk.Conf.GetString("xidmap"),
+		// Badger options
 		BadgerCompressionLevel: Bulk.Conf.GetInt("badger.compression_level"),
 	}
 
@@ -145,6 +149,19 @@ func run() {
 	if opt.Version {
 		os.Exit(0)
 	}
+	if opt.BadgerCompressionLevel < 0 {
+		fmt.Printf("Invalid compression level: %d. It should be non-negative",
+			opt.BadgerCompressionLevel)
+	}
+
+	totalCache := int64(Bulk.Conf.GetInt("badger.cache_mb"))
+	x.AssertTruef(totalCache >= 0, "ERROR: Cache size must be non-negative")
+	cachePercent, err := x.GetCachePercentages(Bulk.Conf.GetString("badger.cache_percentage"), 2)
+	x.Check(err)
+	totalCache <<= 20 // Convert to MB.
+	opt.BlockCacheSize = (cachePercent[0] * totalCache) / 100
+	opt.IndexCacheSize = (cachePercent[1] * totalCache) / 100
+
 	if opt.EncryptionKey, err = enc.ReadKey(Bulk.Conf); err != nil {
 		fmt.Printf("unable to read key %v", err)
 		return