diff --git a/docs/source/tools/ledger-api-test-tool/index.rst b/docs/source/tools/ledger-api-test-tool/index.rst
index 04b2cb9cf4..b2dcda3e7f 100644
--- a/docs/source/tools/ledger-api-test-tool/index.rst
+++ b/docs/source/tools/ledger-api-test-tool/index.rst
@@ -69,6 +69,7 @@ Use the following command line flags to select which tests to run:
 - ``--include``: only run the tests that match the argument
 - ``--exclude``: do not run the tests that match the argument
 - ``--perf-tests``: list performance tests to run; cannot be combined with normal tests
+- ``--skip-dar-upload``: skip upload of DAR files into ledger. DAR files should be uploaded manually before the tests.
 
 Include and exclude are matched as prefixes, e.g. ``--exclude=SemanticTests``
 will exclude all tests whose name starts with ``SemanticTests``. Test names
diff --git a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/Cli.scala b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/Cli.scala
index ba45a253cf..d425b36290 100644
--- a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/Cli.scala
+++ b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/Cli.scala
@@ -202,6 +202,11 @@ object Cli {
       .action((interval, c) => c.copy(ledgerClockGranularityMs = interval))
       .text("Specify the largest interval in ms that you will see between clock ticks on the ledger under test.  The default is 10000ms")
 
+    opt[Unit]("skip-dar-upload")
+      .optional()
+      .action((_, c) => c.copy(uploadDars = false))
+      .text("Skip DARs upload into ledger before running tests")
+
     help("help").text("Prints this usage text")
 
   }
diff --git a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/Config.scala b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/Config.scala
index d50e0c38c2..1ec4003a86 100644
--- a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/Config.scala
+++ b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/Config.scala
@@ -27,6 +27,7 @@ final case class Config(
     shuffleParticipants: Boolean,
     partyAllocation: PartyAllocationConfiguration,
     ledgerClockGranularityMs: Int,
+    uploadDars: Boolean,
 )
 
 object Config {
@@ -48,5 +49,6 @@ object Config {
     shuffleParticipants = false,
     partyAllocation = PartyAllocationConfiguration.ClosedWorldWaitingForAllParticipants,
     ledgerClockGranularityMs = 10000,
+    uploadDars = true,
   )
 }
diff --git a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/LedgerApiTestTool.scala b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/LedgerApiTestTool.scala
index daea49810b..de82855ece 100644
--- a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/LedgerApiTestTool.scala
+++ b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/LedgerApiTestTool.scala
@@ -187,5 +187,6 @@ object LedgerApiTestTool {
       identifierSuffix,
       config.timeoutScaleFactor,
       concurrencyOverride.getOrElse(config.concurrentTestRuns),
+      uploadDars = config.uploadDars,
     )
 }
diff --git a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/LedgerTestCasesRunner.scala b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/LedgerTestCasesRunner.scala
index 32b7a1b695..7ed50f517b 100644
--- a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/LedgerTestCasesRunner.scala
+++ b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/LedgerTestCasesRunner.scala
@@ -11,7 +11,10 @@ import akka.stream.Materializer
 import akka.stream.scaladsl.{Sink, Source}
 import com.daml.ledger.api.testtool.infrastructure.LedgerTestCasesRunner._
 import com.daml.ledger.api.testtool.infrastructure.Result.Retired
-import com.daml.ledger.api.testtool.infrastructure.participant.ParticipantSessionManager
+import com.daml.ledger.api.testtool.infrastructure.participant.{
+  ParticipantSessionManager,
+  ParticipantTestContext
+}
 import org.slf4j.LoggerFactory
 
 import scala.concurrent.duration.{Duration, DurationInt}
@@ -39,6 +42,7 @@ final class LedgerTestCasesRunner(
     identifierSuffix: String,
     suiteTimeoutScale: Double,
     concurrentTestRuns: Int,
+    uploadDars: Boolean,
 ) {
   private[this] val verifyRequirements: Try[Unit] =
     Try {
@@ -112,28 +116,34 @@ final class LedgerTestCasesRunner(
   ): Future[Either[Result.Failure, Result.Success]] =
     result(start(test, session))
 
+  private def uploadDarsIfRequired(participantSessionManager: ParticipantSessionManager)(
+      implicit ec: ExecutionContext): Future[Unit] =
+    if (uploadDars) {
+      def uploadDar(context: ParticipantTestContext, name: String): Future[Unit] = {
+        logger.info(s"""Uploading DAR "$name"...""")
+        context.uploadDarFile(Dars.read(name)).andThen {
+          case _ => logger.info(s"""Uploaded DAR "$name".""")
+        }
+      }
+
+      Future
+        .sequence(participantSessionManager.allSessions.map { session =>
+          for {
+            context <- session.createInitContext("upload-dars", identifierSuffix)
+            _ <- Future.sequence(Dars.resources.map(uploadDar(context, _)))
+          } yield ()
+        })
+        .map(_ => ())
+    } else {
+      Future.successful(logger.info("DAR files upload skipped."))
+    }
+
   private def run(completionCallback: Try[Vector[LedgerTestSummary]] => Unit): Unit = {
 
     val system: ActorSystem = ActorSystem(classOf[LedgerTestCasesRunner].getSimpleName)
     implicit val materializer: Materializer = Materializer(system)
     implicit val executionContext: ExecutionContext = materializer.executionContext
 
-    def uploadDars(participantSessionManager: ParticipantSessionManager): Future[Unit] =
-      Future
-        .sequence(participantSessionManager.allSessions.map { session =>
-          for {
-            context <- session.createInitContext("upload-dars", identifierSuffix)
-            _ <- Future.sequence(Dars.resources.map { name =>
-              logger.info("Uploading DAR \"{}\"...", name)
-              context.uploadDarFile(Dars.read(name)).andThen {
-                case _ =>
-                  logger.info("Uploaded DAR \"{}\".", name)
-              }
-            })
-          } yield ()
-        })
-        .map(_ => ())
-
     def runTestCases(
         ledgerSession: LedgerSession,
         testCases: Vector[LedgerTestCase],
@@ -156,7 +166,7 @@ final class LedgerTestCasesRunner(
         val ledgerSession = LedgerSession(participantSessionManager, config.shuffleParticipants)
         val testResults =
           for {
-            _ <- uploadDars(participantSessionManager)
+            _ <- uploadDarsIfRequired(participantSessionManager)
             concurrentTestResults <- runTestCases(
               ledgerSession,
               concurrentTestCases,