diff --git a/reactos/config b/reactos/config
index 8edf2b8696f..3ae886f24c3 100644
--- a/reactos/config
+++ b/reactos/config
@@ -15,6 +15,11 @@ KDBG := 0
 #
 DBG := 0
 
+#
+# Whether to compile with optimizations
+#
+OPTIMIZED := 0
+
 #
 # Whether to compile a multiprocessor or single processor version
 #
diff --git a/reactos/ntoskrnl/Makefile b/reactos/ntoskrnl/Makefile
index 352d8478a74..77a819785d1 100644
--- a/reactos/ntoskrnl/Makefile
+++ b/reactos/ntoskrnl/Makefile
@@ -1,4 +1,4 @@
-# $Id: Makefile,v 1.132 2004/07/17 05:13:05 ion Exp $
+# $Id: Makefile,v 1.133 2004/07/19 04:52:23 ion Exp $
 #
 # ReactOS Operating System
 #
@@ -25,6 +25,12 @@ LINKER_SCRIPT := ntoskrnl.lnk
 STRIP_FLAGS := -Wl,-s
 endif
 
+ifeq ($(OPTIMIZED), 1)
+CFLAGS_OPT := -O2 -fno-strict-aliasing
+else
+CFLAGS_OPT :=
+endif
+
 ifeq ($(KDBG), 1)
 OBJECTS_KDBG := dbg/kdb.o dbg/kdb_serial.o dbg/kdb_keyboard.o dbg/rdebug.o \
                 dbg/i386/kdb_help.o dbg/kdb_stabs.o dbg/profile.o \
@@ -40,10 +46,10 @@ endif
 
 ifeq ($(strip $(SDK_PATH_INC)),)
 ASFLAGS += -I./include
-CFLAGS += -I./include -D__NTOSKRNL__ $(CFLAGS_DBG) -Wall -Werror
+CFLAGS += -I./include -D__NTOSKRNL__ $(CFLAGS_DBG) $(CFLAGS_OPT) -Wall -Werror
 else
 ASFLAGS += -I./include -I$(SDK_PATH_INC)
-CFLAGS += -I./include -I$(SDK_PATH_INC) -D__NTOSKRNL__ $(CFLAGS_DBG) -Wall -Werror
+CFLAGS += -I./include -I$(SDK_PATH_INC) -D__NTOSKRNL__ $(CFLAGS_DBG) $(CFLAGS_OPT) -Wall -Werror
 endif
 
 # ASFLAGS += -D__USE_W32API -D_NTOSKRNL_
diff --git a/reactos/subsys/win32k/makefile b/reactos/subsys/win32k/makefile
index e5843d6434c..11bc6d48450 100644
--- a/reactos/subsys/win32k/makefile
+++ b/reactos/subsys/win32k/makefile
@@ -1,4 +1,4 @@
-# $Id: makefile,v 1.101 2004/07/03 13:55:36 navaraf Exp $
+# $Id: makefile,v 1.102 2004/07/19 04:52:24 ion Exp $
 
 PATH_TO_TOP = ../..
 
@@ -26,6 +26,12 @@ else
 CFLAGS_DBG :=
 endif
 
+ifeq ($(OPTIMIZED), 1)
+CFLAGS_OPT := -O2 -Wno-strict-aliasing
+else
+CFLAGS_OPT :=
+endif
+
 TARGET_CFLAGS =\
  $(CFLAGS_DBG) \
  -I. \
@@ -34,7 +40,8 @@ TARGET_CFLAGS =\
  -DUNICODE \
  -Wall -Werror \
  -D__USE_W32API -D_WIN32_WINNT=0x0501 \
- -DWINVER=0x600 -D_WIN32K_
+ -DWINVER=0x600 -D_WIN32K_ \
+ $(CFLAGS_OPT)
 
 TARGET_LFLAGS =\
  $(PATH_TO_TOP)/dk/nkm/lib/freetype.a \