diff --git a/meta-oe/classes/image_types_sparse.bbclass b/meta-oe/classes/image_types_sparse.bbclass
index 4263593a8d..b092f68406 100644
--- a/meta-oe/classes/image_types_sparse.bbclass
+++ b/meta-oe/classes/image_types_sparse.bbclass
@@ -1,8 +1,16 @@
 inherit image_types
 
+# This sets the granularity of the sparse image conversion. Chunk sizes will be
+# specified in units of this value. Setting this value smaller than the
+# underlying image's block size will not result in any further space saving.
+# However, there is no loss in correctness if this value is larger or smaller
+# than optimal. This value should be a power of two.
+SPARSE_BLOCK_SIZE ??= "4096"
+
 CONVERSIONTYPES += "sparse"
 CONVERSION_CMD:sparse = " \
-    img2simg "${IMAGE_NAME}${IMAGE_NAME_SUFFIX}.${type}" \
-             "${IMAGE_NAME}${IMAGE_NAME_SUFFIX}.${type}.sparse" \
+    INPUT="${IMAGE_NAME}${IMAGE_NAME_SUFFIX}.${type}" && \
+    truncate --no-create --size=%${SPARSE_BLOCK_SIZE} "$INPUT" && \
+    img2simg "$INPUT" "$INPUT.sparse" ${SPARSE_BLOCK_SIZE} \
 "
 CONVERSION_DEPENDS_sparse = "android-tools-native"