diff --git a/app/cdap/components/DataPrep/Directives/ChangeDataType/DecimalOptions.tsx b/app/cdap/components/DataPrep/Directives/ChangeDataType/DecimalOptions.tsx
index 6eee69b9277..0d075218d77 100644
--- a/app/cdap/components/DataPrep/Directives/ChangeDataType/DecimalOptions.tsx
+++ b/app/cdap/components/DataPrep/Directives/ChangeDataType/DecimalOptions.tsx
@@ -47,8 +47,9 @@ const ROUNDING_PREFIX = `${PREFIX}.roundingOptions`;
 const ID_PREFIX = 'DataPrep-Directives-ChangeDataType-decimal';
 
 const SCALE_INPUT_ID = `${ID_PREFIX}-scaleInputId`;
+const PRECISION_INPUT_ID = `${ID_PREFIX}-precisionInputId`;
 const ROUNDING_INPUT_ID = `${ID_PREFIX}-roundingInputId`;
-const ROUNDING_LABEL_ID = `${ID_PREFIX}-roundingLableId`;
+const ROUNDING_LABEL_ID = `${ID_PREFIX}-roundingLabelId`;
 
 interface IRoundingMode {
   value: string;
@@ -114,16 +115,22 @@ const useStyles = makeStyles((theme) => ({
 
 export const DecimalOptions = ({ onApply, onCancel }: ISubmenuProps): JSX.Element => {
   const [scale, setScale] = useState<string>('');
+  const [precision, setPrecision] = useState<string>('');
   const [rounding, setRounding] = useState<string>('');
 
   const classes = useStyles();
-  const isRoundingDisabled = scale === '';
+  const isRoundingDisabled = scale === '' && precision === '';
 
   function handleScaleChange(event) {
     const val = event.target.value;
     setScale(val);
   }
 
+  function handlePrecisionChange(event) {
+    const val = event.target.value;
+    setPrecision(val);
+  }
+
   function handleRoundingChange(event) {
     const val = event.target.value;
     setRounding(val);
@@ -131,7 +138,13 @@ export const DecimalOptions = ({ onApply, onCancel }: ISubmenuProps): JSX.Elemen
 
   function applyDirective() {
     const option = 'decimal';
-    const extraArgs = scale !== '' ? `${scale} '${rounding || 'HALF_EVEN'}'` : '';
+    let extraArgs = scale !== '' ? `${scale}` : '';
+    if (scale !== '' || precision !== '') {
+      extraArgs = `${extraArgs} '${rounding || 'HALF_EVEN'}'`;
+    }
+    if (precision !== '') {
+      extraArgs = `${extraArgs} prop:{precision=${precision}}`;
+    }
     return onApply(option, extraArgs);
   }
 
@@ -168,6 +181,37 @@ export const DecimalOptions = ({ onApply, onCancel }: ISubmenuProps): JSX.Elemen
             />
             <FormHelperText>{T.translate(`${PREFIX}.scaleHelperText`)}</FormHelperText>
           </FormControl>
+          <FormControl variant="outlined">
+            <InputLabel htmlFor={PRECISION_INPUT_ID}>
+              {T.translate(`${PREFIX}.precisionLabel`)}
+            </InputLabel>
+            <OutlinedInput
+              fullWidth
+              labelWidth={72}
+              id={PRECISION_INPUT_ID}
+              type="number"
+              value={precision}
+              onChange={handlePrecisionChange}
+              endAdornment={
+                <InputAdornment position="end">
+                  <Tooltip
+                    arrow
+                    enterDelay={500}
+                    title={T.translate(`${PREFIX}.precisionTooltip`).toString()}
+                    classes={{ tooltip: classes.customTooltip, arrow: classes.customTooltipArrow }}
+                  >
+                    <IconButton
+                      aria-label={T.translate(`${PREFIX}.precisionHelpButton`).toString()}
+                      edge="end"
+                    >
+                      <HelpIcon />
+                    </IconButton>
+                  </Tooltip>
+                </InputAdornment>
+              }
+            />
+            <FormHelperText>{T.translate(`${PREFIX}.precisionHelperText`)}</FormHelperText>
+          </FormControl>
           <Tooltip
             arrow
             placement="top"
diff --git a/app/cdap/components/DataPrep/Directives/ChangeDataType/__test__/DecimalOptions.test.tsx b/app/cdap/components/DataPrep/Directives/ChangeDataType/__test__/DecimalOptions.test.tsx
index f893929184d..b3de89c51ee 100644
--- a/app/cdap/components/DataPrep/Directives/ChangeDataType/__test__/DecimalOptions.test.tsx
+++ b/app/cdap/components/DataPrep/Directives/ChangeDataType/__test__/DecimalOptions.test.tsx
@@ -33,6 +33,7 @@ const ROUNDING_OPTIONS = [
 
 describe('DecimalOptions component', () => {
   const SCALE_LABEL = T.translate(`${PREFIX}.scaleLabel`).toString();
+  const PRECISION_LABEL = T.translate(`${PREFIX}.precisionLabel`).toString();
   const ROUNDING_LABEL = T.translate(`${PREFIX}.roundingLabel`).toString();
   const FLOOR = T.translate(`${PREFIX}.roundingOptions.FLOOR.label`).toString();
   const APPLY = T.translate(`${PREFIX}.applyButton`).toString();
@@ -51,21 +52,26 @@ describe('DecimalOptions component', () => {
     submenu = render(<DecimalOptions onApply={onApply} onCancel={onCancel} />);
   });
 
-  it('should render a number input for scale and a select dropdown for rounding mode', () => {
+  it('should render a number input for scale, precision and a select dropdown for rounding mode', () => {
     const scaleInput = submenu.getByLabelText(SCALE_LABEL);
+    const precisionInput = submenu.getByLabelText(PRECISION_LABEL);
     const roundingInput = submenu.getByLabelText(ROUNDING_LABEL);
 
     expect(scaleInput).toBeVisible();
     expect(scaleInput).toBeEnabled();
     expect(scaleInput).toHaveAttribute('type', 'number');
 
+    expect(precisionInput).toBeVisible();
+    expect(precisionInput).toBeEnabled();
+    expect(precisionInput).toHaveAttribute('type', 'number');
+
     // Rounding mode select dropdown should be disabled initially as no scale
     // has been specified yet.
     expect(roundingInput).toBeVisible();
     expect(roundingInput).toHaveClass('Mui-disabled');
   });
 
-  it('should enable the rounding mode input only when scale is specified', () => {
+  it('should enable the rounding mode input when scale is specified', () => {
     const scaleInput = submenu.getByLabelText(SCALE_LABEL);
     const roundingInput = submenu.getByLabelText(ROUNDING_LABEL);
 
@@ -78,7 +84,7 @@ describe('DecimalOptions component', () => {
     const options = within(listbox).getAllByRole('option');
     const optionValues = options.map((li) => li.getAttribute('data-value'));
 
-    // The roundig modes select menu should have the 8 rounding modes
+    // The rounding modes select menu should have the 8 rounding modes
     // in any order
     expect(optionValues).toHaveLength(8);
     ROUNDING_OPTIONS.forEach((opt) => expect(optionValues).toContain(opt));
@@ -87,11 +93,35 @@ describe('DecimalOptions component', () => {
     expect(roundingInput).toHaveClass('Mui-disabled');
   });
 
+  it('should enable the rounding mode input when precision is specified', () => {
+    const precisionInput = submenu.getByLabelText(PRECISION_LABEL);
+    const roundingInput = submenu.getByLabelText(ROUNDING_LABEL);
+
+    expect(roundingInput).toHaveClass('Mui-disabled');
+    fireEvent.change(precisionInput, { target: { value: '8' } });
+    expect(roundingInput).not.toHaveClass('Mui-disabled');
+
+    fireEvent.mouseDown(roundingInput);
+    const listbox = within(screen.getByRole('presentation')).getByRole('listbox');
+    const options = within(listbox).getAllByRole('option');
+    const optionValues = options.map((li) => li.getAttribute('data-value'));
+
+    // The rounding modes select menu should have the 8 rounding modes
+    // in any order
+    expect(optionValues).toHaveLength(8);
+    ROUNDING_OPTIONS.forEach((opt) => expect(optionValues).toContain(opt));
+
+    fireEvent.change(precisionInput, { target: { value: '' } });
+    expect(roundingInput).toHaveClass('Mui-disabled');
+  });
+
   it('should pass correct args to the directive on apply', () => {
     const scaleInput = submenu.getByLabelText(SCALE_LABEL);
+    const precisionInput = submenu.getByLabelText(PRECISION_LABEL);
     const roundingInput = submenu.getByLabelText(ROUNDING_LABEL);
 
     fireEvent.change(scaleInput, { target: { value: '4' } });
+    fireEvent.change(precisionInput, { target: { value: '8' } });
     fireEvent.mouseDown(roundingInput);
     fireEvent.click(submenu.getByText(FLOOR));
     fireEvent.click(submenu.getByText(APPLY));
@@ -99,10 +129,10 @@ describe('DecimalOptions component', () => {
     expect(onApply.mock.calls).toHaveLength(1);
     expect(onApply.mock.calls[0]).toHaveLength(2);
     expect(onApply.mock.calls[0][0]).toBe('decimal');
-    expect(onApply.mock.calls[0][1]).toBe("4 'FLOOR'");
+    expect(onApply.mock.calls[0][1]).toBe("4 'FLOOR' prop:{precision=8}");
   });
 
-  it('should default rouding mode to HALF_EVEN if scale is specified and rounding mode is not specified', () => {
+  it('should default rounding mode to HALF_EVEN if scale is specified and rounding mode is not specified', () => {
     const scaleInput = submenu.getByLabelText(SCALE_LABEL);
     fireEvent.change(scaleInput, { target: { value: '2' } });
     fireEvent.click(submenu.getByText(APPLY));
@@ -113,7 +143,18 @@ describe('DecimalOptions component', () => {
     expect(onApply.mock.calls[0][1]).toBe("2 'HALF_EVEN'");
   });
 
-  it('should not add any extra args if scale is not specified', () => {
+  it('should default rounding mode to HALF_EVEN if precision is specified and rounding mode is not specified', () => {
+    const precisionInput = submenu.getByLabelText(PRECISION_LABEL);
+    fireEvent.change(precisionInput, { target: { value: '8' } });
+    fireEvent.click(submenu.getByText(APPLY));
+
+    expect(onApply.mock.calls).toHaveLength(1);
+    expect(onApply.mock.calls[0]).toHaveLength(2);
+    expect(onApply.mock.calls[0][0]).toBe('decimal');
+    expect(onApply.mock.calls[0][1]).toBe(" 'HALF_EVEN' prop:{precision=8}");
+  });
+
+  it('should not add any extra args if scale and precision are not specified', () => {
     fireEvent.click(submenu.getByText(APPLY));
     expect(onApply.mock.calls).toHaveLength(1);
     expect(onApply.mock.calls[0]).toHaveLength(2);
diff --git a/app/cdap/text/text-en.yaml b/app/cdap/text/text-en.yaml
index c994aab5605..d2db1f1b5a9 100644
--- a/app/cdap/text/text-en.yaml
+++ b/app/cdap/text/text-en.yaml
@@ -769,6 +769,10 @@ features:
         decimalConfig:
           applyButton: APPLY
           cancelButton: CANCEL
+          precisionLabel: Precision
+          precisionHelpButton: Tooltip for precision input
+          precisionHelperText: Define precision here
+          precisionTooltip: Specifies the precision of the decimal.
           scaleLabel: Scale
           scaleHelpButton: Tooltip for scale input
           scaleHelperText: Define scale here