diff --git a/cmd/argocd/commands/app.go b/cmd/argocd/commands/app.go
index ea0dbbfab86dd..e7d07fcbedc7e 100644
--- a/cmd/argocd/commands/app.go
+++ b/cmd/argocd/commands/app.go
@@ -1295,6 +1295,7 @@ func NewApplicationSyncCommand(clientOpts *argocdclient.ClientOptions) *cobra.Co
 		strategy                string
 		force                   bool
 		replace                 bool
+		serverSide              bool
 		async                   bool
 		retryLimit              int64
 		retryBackoffDuration    time.Duration
@@ -1411,6 +1412,9 @@ func NewApplicationSyncCommand(clientOpts *argocdclient.ClientOptions) *cobra.Co
 					if replace {
 						items = append(items, common.SyncOptionReplace)
 					}
+					if serverSide {
+						items = append(items, common.SyncOptionServerSide)
+					}
 
 					if len(items) == 0 {
 						// for prevent send even empty array if not need
@@ -1488,6 +1492,7 @@ func NewApplicationSyncCommand(clientOpts *argocdclient.ClientOptions) *cobra.Co
 	command.Flags().StringVar(&strategy, "strategy", "", "Sync strategy (one of: apply|hook)")
 	command.Flags().BoolVar(&force, "force", false, "Use a force apply")
 	command.Flags().BoolVar(&replace, "replace", false, "Use a kubectl create/replace instead apply")
+	command.Flags().BoolVar(&serverSide, "server-side", false, "Use a kubectl server-side instead of client-side")
 	command.Flags().BoolVar(&async, "async", false, "Do not wait for application to sync before continuing")
 	command.Flags().StringVar(&local, "local", "", "Path to a local directory. When this flag is present no git queries will be made")
 	command.Flags().StringVar(&localRepoRoot, "local-repo-root", "/", "Path to the repository root. Used together with --local allows setting the repository root")
diff --git a/docs/user-guide/sync-options.md b/docs/user-guide/sync-options.md
index 11cc42336000e..09010f3f70a05 100644
--- a/docs/user-guide/sync-options.md
+++ b/docs/user-guide/sync-options.md
@@ -134,6 +134,30 @@ metadata:
     argocd.argoproj.io/sync-options: Replace=true
 ```
 
+## Server-side apply
+
+By default, ArgoCD executes `kubectl apply` operation to apply the configuration stored in Git. In some cases
+`kubectl apply --server-side` is needed instead. For example, resource spec might be too big and won't fit into
+`kubectl.kubernetes.io/last-applied-configuration` annotation that is added by `kubectl apply`. In such cases you
+might use `ServerSideApply=true` sync option:
+
+```yaml
+syncOptions:
+- ServerSideApply=true
+```
+
+If the `ServerSideApply=true` sync option is set the ArgoCD will use `kubectl apply --server-side` command to apply changes.
+
+This can also be configured at individual resource level.
+```yaml
+metadata:
+  annotations:
+    argocd.argoproj.io/sync-options: ServerSideApply=true
+```
+
+Note: [`Replace=true`](#replace-resource-instead-of-applying-changes) takes
+precedence over `ServerSideApply=true`.
+
 ## Fail the sync if a shared resource is found
 
 By default, ArgoCD will apply all manifests found in the git path configured in the Application regardless if the resources
diff --git a/go.mod b/go.mod
index 8ae9681251303..eb8713822ee2c 100644
--- a/go.mod
+++ b/go.mod
@@ -94,6 +94,8 @@ require (
 )
 
 replace (
+	github.com/argoproj/gitops-engine => github.com/sathieu/gitops-engine v0.4.1-0.20220108164648-711967650f3c
+
 	// https://github.com/golang/go/issues/33546#issuecomment-519656923
 	github.com/go-check/check => github.com/go-check/check v0.0.0-20180628173108-788fd7840127
 
diff --git a/go.sum b/go.sum
index 5563bf6324d50..feea22a6e1bfa 100644
--- a/go.sum
+++ b/go.sum
@@ -117,8 +117,6 @@ github.com/antonmedv/expr v1.8.9/go.mod h1:5qsM3oLGDND7sDmQGDXHkYfkjYMUX14qsgqmH
 github.com/apache/thrift v0.12.0/go.mod h1:cp2SuWMxlEZw2r+iP2GNCdIi4C1qmUzdZFSVb+bacwQ=
 github.com/apache/thrift v0.13.0/go.mod h1:cp2SuWMxlEZw2r+iP2GNCdIi4C1qmUzdZFSVb+bacwQ=
 github.com/appscode/go v0.0.0-20190808133642-1d4ef1f1c1e0/go.mod h1:iy07dV61Z7QQdCKJCIvUoDL21u6AIceRhZzyleh2ymc=
-github.com/argoproj/gitops-engine v0.5.1-0.20211222191605-f6495020a330 h1:jCWvj9G6m+ayVIYX6pkaMaymCwEWHZIjKWgCyJz07SY=
-github.com/argoproj/gitops-engine v0.5.1-0.20211222191605-f6495020a330/go.mod h1:K2RYpGXh11VdFwDksS23SyFTOJaPcsF+MVJ/FHlqEOE=
 github.com/argoproj/notifications-engine v0.3.0 h1:1KMVYwXlg7SGzX00eg/bU0YupXDVdfpm8FlpNbrkUxM=
 github.com/argoproj/notifications-engine v0.3.0/go.mod h1:0TEB4QbOsNN8URcsUJpAFuuG6aw8KS8ZY/YCzsss9JQ=
 github.com/argoproj/pkg v0.11.1-0.20211203175135-36c59d8fafe0 h1:Cfp7rO/HpVxnwlRqJe0jHiBbZ77ZgXhB6HWlYD02Xdc=
@@ -867,6 +865,8 @@ github.com/russross/blackfriday/v2 v2.0.1/go.mod h1:+Rmxgy9KzJVeS9/2gXHxylqXiyQD
 github.com/ryanuber/columnize v0.0.0-20160712163229-9b3edd62028f/go.mod h1:sm1tb6uqfes/u+d4ooFouqFdy9/2g9QGwK3SQygK0Ts=
 github.com/samuel/go-zookeeper v0.0.0-20190923202752-2cc03de413da/go.mod h1:gi+0XIa01GRL2eRQVjQkKGqKF3SF9vZR/HnPullcV2E=
 github.com/sanity-io/litter v1.2.0/go.mod h1:JF6pZUFgu2Q0sBZ+HSV35P8TVPI1TTzEwyu9FXAw2W4=
+github.com/sathieu/gitops-engine v0.4.1-0.20220108164648-711967650f3c h1:IGdvVR3cJeIBr2FLdc3ZkYWu3FfGEI/yICreBiPpkN8=
+github.com/sathieu/gitops-engine v0.4.1-0.20220108164648-711967650f3c/go.mod h1:K2RYpGXh11VdFwDksS23SyFTOJaPcsF+MVJ/FHlqEOE=
 github.com/sean-/seed v0.0.0-20170313163322-e2103e2c3529/go.mod h1:DxrIzT+xaE7yg65j358z/aeFdxmN0P9QXhEzd20vsDc=
 github.com/seccomp/libseccomp-golang v0.9.1/go.mod h1:GbW5+tmTXfcxTToHLXlScSlAvWlF4P2Ca7zGrPiEpWo=
 github.com/sergi/go-diff v1.0.0/go.mod h1:0CfEIISq7TuYL3j771MWULgwwjU+GofnZX9QAmXWZgo=