diff --git a/src/bin/edje/edje_cc.c b/src/bin/edje/edje_cc.c
index 5f36270c6a..b3bb014877 100644
--- a/src/bin/edje/edje_cc.c
+++ b/src/bin/edje/edje_cc.c
@@ -36,7 +36,8 @@ int        min_quality = 0;
 int        max_quality = 100;
 int        compress_mode = EET_COMPRESSION_HI;
 int        threads = 0;
-int	   anotate = 0;
+int        anotate = 0;
+int        allow_etc1 = 0;
 
 static void
 _edje_cc_log_cb(const Eina_Log_Domain *d,
@@ -92,7 +93,7 @@ main_help(void)
       "-id image/directory      Add a directory to look in for relative path images\n"
       "-fd font/directory       Add a directory to look in for relative path fonts\n"
       "-sd sound/directory      Add a directory to look in for relative path sounds samples\n"
-      "-vd vbiration/directory  Add a directory to look in for relative path vibration samples\n"
+      "-vd vibration/directory  Add a directory to look in for relative path vibration samples\n"
       "-dd data/directory       Add a directory to look in for relative path data.file entries\n"
       "-td temp/directory       Directory to store temporary files\n"
       "-l license               Specify the license of a theme\n"
@@ -101,6 +102,7 @@ main_help(void)
       "-no-lossy                Do NOT allow images to be lossy\n"
       "-no-comp                 Do NOT allow images to be stored with lossless compression\n"
       "-no-raw                  Do NOT allow images to be stored with zero compression (raw)\n"
+      "-etc1                    Allow images to be stored as ETC1 in the EDJ file (incompatible with -no-lossy, default: no)\n"
       "-no-save                 Do NOT store the input EDC file in the EDJ file\n"
       "-min-quality VAL         Do NOT allow lossy images with quality < VAL (0-100)\n"
       "-max-quality VAL         Do NOT allow lossy images with quality > VAL (0-100)\n"
@@ -171,6 +173,10 @@ main(int argc, char **argv)
 	  {
 	     no_raw = 1;
 	  }
+	else if (!strcmp(argv[i], "-etc1") || !strcmp(argv[i], "--allow-etc1"))
+	  {
+	     allow_etc1 = 1;
+	  }
 	else if (!strcmp(argv[i], "-no-save"))
 	  {
 	     no_save = 1;
@@ -282,7 +288,11 @@ main(int argc, char **argv)
 	exit(-1);
      }
 
-   
+   if (allow_etc1 && no_lossy)
+     {
+        WRN("-etc1 and -no-lossy are not compatible, discarded -etc1");
+        allow_etc1 = 0;
+     }
 
    pfx = eina_prefix_new(argv[0],            /* argv[0] value (optional) */
                          main,               /* an optional symbol to check path of */
diff --git a/src/bin/edje/edje_cc.h b/src/bin/edje/edje_cc.h
index c611af033e..80952a609a 100644
--- a/src/bin/edje/edje_cc.h
+++ b/src/bin/edje/edje_cc.h
@@ -237,6 +237,7 @@ extern Eina_List             *licenses;
 extern int                    no_lossy;
 extern int                    no_comp;
 extern int                    no_raw;
+extern int                    allow_etc1;
 extern int                    no_save;
 extern int                    min_quality;
 extern int                    max_quality;
diff --git a/src/bin/edje/edje_cc_out.c b/src/bin/edje/edje_cc_out.c
index b89dd45270..3302fa6768 100644
--- a/src/bin/edje/edje_cc_out.c
+++ b/src/bin/edje/edje_cc_out.c
@@ -753,6 +753,7 @@ data_thread_image(void *data, Ecore_Thread *thread EINA_UNUSED)
 
    if ((iw->data) && (iw->w > 0) && (iw->h > 0))
      {
+        Eet_Image_Encoding lossy = EET_IMAGE_LOSSLESS;
         int mode, qual;
 
         snprintf(buf, sizeof(buf), "edje/images/%i", iw->img->id);
@@ -785,6 +786,8 @@ data_thread_image(void *data, Ecore_Thread *thread EINA_UNUSED)
              qual = iw->img->source_param;
              if (qual < min_quality) qual = min_quality;
              if (qual > max_quality) qual = max_quality;
+             if (!allow_etc1 || (iw->alpha)) lossy = EET_IMAGE_JPEG;
+             else lossy = EET_IMAGE_ETC1;
           }
         if (iw->alpha)
           {
@@ -816,7 +819,7 @@ data_thread_image(void *data, Ecore_Thread *thread EINA_UNUSED)
           bytes = eet_data_image_write(iw->ef, buf,
                                        iw->data, iw->w, iw->h,
                                        iw->alpha,
-                                       0, qual, 1);
+                                       0, qual, lossy);
         if (bytes <= 0)
           {
              snprintf(buf2, sizeof(buf2),