diff --git a/config.template.toml b/config.template.toml
index 53001a8865..f04e386ed8 100644
--- a/config.template.toml
+++ b/config.template.toml
@@ -42,6 +42,10 @@ workspace_base = "./workspace"
 # If it's a folder, the session id will be used as the file name
 #save_trajectory_path="./trajectories"
 
+# Whether to save screenshots in the trajectory
+# The screenshots are encoded and can make trajectory json files very large
+#save_screenshots_in_trajectory = false
+
 # Path to replay a trajectory, must be a file path
 # If provided, trajectory will be loaded and replayed before the
 # agent responds to any user instruction
diff --git a/openhands/controller/agent_controller.py b/openhands/controller/agent_controller.py
index 3d3e611140..6640c84d6b 100644
--- a/openhands/controller/agent_controller.py
+++ b/openhands/controller/agent_controller.py
@@ -897,10 +897,13 @@ class AgentController:
         # Always load from the event stream to avoid losing history
         self._init_history()
 
-    def get_trajectory(self) -> list[dict]:
+    def get_trajectory(self, include_screenshots: bool = False) -> list[dict]:
         # state history could be partially hidden/truncated before controller is closed
         assert self._closed
-        return [event_to_trajectory(event) for event in self.state.history]
+        return [
+            event_to_trajectory(event, include_screenshots)
+            for event in self.state.history
+        ]
 
     def _init_history(self) -> None:
         """Initializes the agent's history from the event stream.
diff --git a/openhands/core/config/app_config.py b/openhands/core/config/app_config.py
index 7a43124ba7..b06c0bf3b7 100644
--- a/openhands/core/config/app_config.py
+++ b/openhands/core/config/app_config.py
@@ -29,6 +29,7 @@ class AppConfig(BaseModel):
         file_store: Type of file store to use.
         file_store_path: Path to the file store.
         save_trajectory_path: Either a folder path to store trajectories with auto-generated filenames, or a designated trajectory file path.
+        save_screenshots_in_trajectory: Whether to save screenshots in trajectory (in encoded image format).
         replay_trajectory_path: Path to load trajectory and replay. If provided, trajectory would be replayed first before user's instruction.
         workspace_base: Base path for the workspace. Defaults to `./workspace` as absolute path.
         workspace_mount_path: Path to mount the workspace. Defaults to `workspace_base`.
@@ -58,6 +59,7 @@ class AppConfig(BaseModel):
     file_store: str = Field(default='local')
     file_store_path: str = Field(default='/tmp/openhands_file_store')
     save_trajectory_path: str | None = Field(default=None)
+    save_screenshots_in_trajectory: bool = Field(default=False)
     replay_trajectory_path: str | None = Field(default=None)
     workspace_base: str | None = Field(default=None)
     workspace_mount_path: str | None = Field(default=None)
diff --git a/openhands/core/main.py b/openhands/core/main.py
index fcd8a5468e..a99fddbd5e 100644
--- a/openhands/core/main.py
+++ b/openhands/core/main.py
@@ -210,9 +210,9 @@ async def run_controller(
         else:
             file_path = config.save_trajectory_path
         os.makedirs(os.path.dirname(file_path), exist_ok=True)
-        histories = controller.get_trajectory()
+        histories = controller.get_trajectory(config.save_screenshots_in_trajectory)
         with open(file_path, 'w') as f:
-            json.dump(histories, f)
+            json.dump(histories, f, indent=4)
 
     return state
 
diff --git a/openhands/events/serialization/event.py b/openhands/events/serialization/event.py
index 7844e997cf..ac0d9fb6c4 100644
--- a/openhands/events/serialization/event.py
+++ b/openhands/events/serialization/event.py
@@ -5,7 +5,6 @@ from enum import Enum
 from pydantic import BaseModel
 
 from openhands.events import Event, EventSource
-from openhands.events.observation.observation import Observation
 from openhands.events.serialization.action import action_from_dict
 from openhands.events.serialization.observation import observation_from_dict
 from openhands.events.serialization.utils import remove_fields
@@ -34,7 +33,6 @@ UNDERSCORE_KEYS = [
 ]
 
 DELETE_FROM_TRAJECTORY_EXTRAS = {
-    'screenshot',
     'dom_object',
     'axtree_object',
     'active_page_index',
@@ -44,6 +42,11 @@ DELETE_FROM_TRAJECTORY_EXTRAS = {
     'extra_element_properties',
 }
 
+DELETE_FROM_TRAJECTORY_EXTRAS_AND_SCREENSHOTS = DELETE_FROM_TRAJECTORY_EXTRAS | {
+    'screenshot',
+    'set_of_marks',
+}
+
 
 def event_from_dict(data) -> 'Event':
     evt: Event
@@ -133,10 +136,15 @@ def event_to_dict(event: 'Event') -> dict:
     return d
 
 
-def event_to_trajectory(event: 'Event') -> dict:
+def event_to_trajectory(event: 'Event', include_screenshots: bool = False) -> dict:
     d = event_to_dict(event)
     if 'extras' in d:
-        remove_fields(d['extras'], DELETE_FROM_TRAJECTORY_EXTRAS)
+        remove_fields(
+            d['extras'],
+            DELETE_FROM_TRAJECTORY_EXTRAS
+            if include_screenshots
+            else DELETE_FROM_TRAJECTORY_EXTRAS_AND_SCREENSHOTS,
+        )
     return d