diff --git a/src/libs/kata-types/src/config/hypervisor/mod.rs b/src/libs/kata-types/src/config/hypervisor/mod.rs
index f17cc87239..f5fff4ba06 100644
--- a/src/libs/kata-types/src/config/hypervisor/mod.rs
+++ b/src/libs/kata-types/src/config/hypervisor/mod.rs
@@ -491,6 +491,12 @@ pub struct DeviceInfo {
     /// Enabling this will result in the VM device having iommu_platform=on set
     #[serde(default)]
     pub enable_iommu_platform: bool,
+
+    /// Enable balloon f_reporting, default false
+    ///
+    /// Enabling this will result in the VM balloon device having f_reporting=on set
+    #[serde(default)]
+    pub enable_balloon_f_reporting: bool,
 }
 
 impl DeviceInfo {
diff --git a/src/runtime-rs/config/configuration-dragonball.toml.in b/src/runtime-rs/config/configuration-dragonball.toml.in
index b2a226f202..53f5092acf 100644
--- a/src/runtime-rs/config/configuration-dragonball.toml.in
+++ b/src/runtime-rs/config/configuration-dragonball.toml.in
@@ -98,6 +98,12 @@ default_maxvcpus = @DEFMAXVCPUS_DB@
 # > 5                --> will be set to 5
 default_bridges = @DEFBRIDGES@
 
+# Enable balloon f_reporting, default false
+# Enabling this will result in the VM balloon device having f_reporting=on set
+#
+# Default false
+#enable_balloon_f_reporting = true
+
 # Default memory size in MiB for SB/VM.
 # If unspecified then it will be set @DEFMEMSZ@ MiB.
 default_memory = @DEFMEMSZ@
diff --git a/src/runtime-rs/crates/hypervisor/src/dragonball/inner.rs b/src/runtime-rs/crates/hypervisor/src/dragonball/inner.rs
index ab51f8dcc4..57613813dd 100644
--- a/src/runtime-rs/crates/hypervisor/src/dragonball/inner.rs
+++ b/src/runtime-rs/crates/hypervisor/src/dragonball/inner.rs
@@ -6,8 +6,9 @@
 
 use super::vmm_instance::VmmInstance;
 use crate::{
-    device::DeviceType, hypervisor_persist::HypervisorState, kernel_param::KernelParams,
-    MemoryConfig, VmmState, DEV_HUGEPAGES, HUGETLBFS, HUGE_SHMEM, HYPERVISOR_DRAGONBALL, SHMEM,
+    device::DeviceType, firecracker::sl, hypervisor_persist::HypervisorState,
+    kernel_param::KernelParams, MemoryConfig, VmmState, DEV_HUGEPAGES, HUGETLBFS, HUGE_SHMEM,
+    HYPERVISOR_DRAGONBALL, SHMEM,
 };
 use anyhow::{anyhow, Context, Result};
 use async_trait::async_trait;
@@ -118,6 +119,20 @@ impl DragonballInner {
         }
     }
 
+    pub(crate) async fn try_insert_balloon_f_reporting(&mut self) {
+        let balloon_config = BalloonDeviceConfigInfo {
+            balloon_id: BALLOON_DEVICE_ID.to_owned(),
+            size_mib: 0,
+            use_shared_irq: None,
+            use_generic_irq: None,
+            f_deflate_on_oom: false,
+            f_reporting: true,
+        };
+        if let Err(e) = self.vmm_instance.insert_balloon_device(balloon_config) {
+            error!(sl(), "failed to insert f_reporting balloon device: {:?}", e);
+        }
+    }
+
     pub(crate) async fn cold_start_vm(&mut self, timeout: i32) -> Result<()> {
         info!(sl!(), "start sandbox cold");
 
@@ -415,7 +430,7 @@ impl DragonballInner {
                         use_shared_irq: None,
                         use_generic_irq: None,
                         f_deflate_on_oom: false,
-                        f_reporting: false,
+                        f_reporting: self.config.device_info.enable_balloon_f_reporting,
                     };
                     self.vmm_instance
                         .insert_balloon_device(balloon_config)
@@ -447,7 +462,7 @@ impl DragonballInner {
                     use_shared_irq: None,
                     use_generic_irq: None,
                     f_deflate_on_oom: false,
-                    f_reporting: false,
+                    f_reporting: self.config.device_info.enable_balloon_f_reporting,
                 };
                 self.balloon_size = had_mem_mb - new_mem_mb;
                 self.vmm_instance
diff --git a/src/runtime-rs/crates/hypervisor/src/dragonball/mod.rs b/src/runtime-rs/crates/hypervisor/src/dragonball/mod.rs
index 9313854714..36ac15f932 100644
--- a/src/runtime-rs/crates/hypervisor/src/dragonball/mod.rs
+++ b/src/runtime-rs/crates/hypervisor/src/dragonball/mod.rs
@@ -77,7 +77,26 @@ impl Hypervisor for Dragonball {
     #[instrument]
     async fn start_vm(&self, timeout: i32) -> Result<()> {
         let mut inner = self.inner.write().await;
-        inner.start_vm(timeout).await
+        let ret = inner.start_vm(timeout).await;
+
+        if ret.is_ok() && inner.config.device_info.enable_balloon_f_reporting {
+            // The virtio-balloon device must be inserted into dragonball and
+            // recognized by the guest kernel only after the dragonball upcall is ready.
+            // The dragonball upcall is not ready immediately after the VM starts,
+            // so here we create an asynchronous task that waits for 5 seconds before
+            // inserting the virtio-balloon device.
+            let inner_clone = self.inner.clone();
+            tokio::spawn(async move {
+                tokio::time::sleep(tokio::time::Duration::from_secs(5)).await;
+                inner_clone
+                    .write()
+                    .await
+                    .try_insert_balloon_f_reporting()
+                    .await;
+            });
+        }
+
+        ret
     }
 
     async fn stop_vm(&self) -> Result<()> {
diff --git a/tools/packaging/kernel/configs/fragments/build-type/dragonball-experimental/mm.conf b/tools/packaging/kernel/configs/fragments/build-type/dragonball-experimental/mm.conf
new file mode 100644
index 0000000000..13872f2ce0
--- /dev/null
+++ b/tools/packaging/kernel/configs/fragments/build-type/dragonball-experimental/mm.conf
@@ -0,0 +1,2 @@
+CONFIG_BALLOON_COMPACTION=y
+CONFIG_PAGE_REPORTING=y
diff --git a/tools/packaging/kernel/configs/fragments/build-type/dragonball-experimental/virtio.conf b/tools/packaging/kernel/configs/fragments/build-type/dragonball-experimental/virtio.conf
new file mode 100644
index 0000000000..1992c34fd5
--- /dev/null
+++ b/tools/packaging/kernel/configs/fragments/build-type/dragonball-experimental/virtio.conf
@@ -0,0 +1 @@
+CONFIG_VIRTIO_BALLOON=y
diff --git a/tools/packaging/kernel/kata_config_version b/tools/packaging/kernel/kata_config_version
index c8b255fc8e..7296f257eb 100644
--- a/tools/packaging/kernel/kata_config_version
+++ b/tools/packaging/kernel/kata_config_version
@@ -1 +1 @@
-135
+136