diff --git a/docs/configuration/processing.md b/docs/configuration/processing.md
index f57b23d7..aee16c3b 100644
--- a/docs/configuration/processing.md
+++ b/docs/configuration/processing.md
@@ -35,6 +35,7 @@ processing:
 
     # Image settings
     images_scale: 2.0                        # Image scale factor
+    generate_picture_images: false           # Include embedded images in output
 ```
 
 ### Conversion Options
@@ -73,10 +74,12 @@ conversion_options:
 
 ```yaml
 conversion_options:
-  images_scale: 2.0  # Image resolution scale factor
+  images_scale: 2.0               # Image resolution scale factor
+  generate_picture_images: false  # Include embedded images in output
 ```
 
 - **images_scale**: Scale factor for extracted images. Higher values = better quality but larger size. Typical range: 1.0-3.0.
+- **generate_picture_images**: When `true`, embedded images (figures, diagrams) are included as base64-encoded data in the document. When `false` (default), images are excluded to reduce chunk size and avoid context bloat.
 
 ### Local vs Remote Processing
 
diff --git a/haiku_rag_slim/haiku/rag/config/models.py b/haiku_rag_slim/haiku/rag/config/models.py
index 9c8eeec2..36b58d11 100644
--- a/haiku_rag_slim/haiku/rag/config/models.py
+++ b/haiku_rag_slim/haiku/rag/config/models.py
@@ -106,6 +106,7 @@ class ConversionOptions(BaseModel):
 
     # Image options
     images_scale: float = 2.0
+    generate_picture_images: bool = False
 
 
 class ProcessingConfig(BaseModel):
diff --git a/haiku_rag_slim/haiku/rag/converters/docling_local.py b/haiku_rag_slim/haiku/rag/converters/docling_local.py
index 64d817b5..594090a8 100644
--- a/haiku_rag_slim/haiku/rag/converters/docling_local.py
+++ b/haiku_rag_slim/haiku/rag/converters/docling_local.py
@@ -79,6 +79,7 @@ class DoclingLocalConverter(DocumentConverter):
             do_table_structure=opts.do_table_structure,
             images_scale=opts.images_scale,
             generate_page_images=True,
+            generate_picture_images=opts.generate_picture_images,
             table_structure_options=TableStructureOptions(
                 do_cell_matching=opts.table_cell_matching,
                 mode=(
diff --git a/haiku_rag_slim/haiku/rag/converters/docling_serve.py b/haiku_rag_slim/haiku/rag/converters/docling_serve.py
index 5f61d7bb..4cdb8257 100644
--- a/haiku_rag_slim/haiku/rag/converters/docling_serve.py
+++ b/haiku_rag_slim/haiku/rag/converters/docling_serve.py
@@ -88,6 +88,7 @@ class DoclingServeConverter(DocumentConverter):
                 "table_mode": opts.table_mode,
                 "table_cell_matching": str(opts.table_cell_matching).lower(),
                 "images_scale": str(opts.images_scale),
+                "generate_picture_images": str(opts.generate_picture_images).lower(),
             }
 
             if opts.ocr_lang:
diff --git a/tests/test_converters.py b/tests/test_converters.py
index c8fd2f85..595831bb 100644
--- a/tests/test_converters.py
+++ b/tests/test_converters.py
@@ -237,6 +237,45 @@ class TestDoclingLocalConverter:
         assert converter.config.processing.conversion_options.table_mode == "fast"
         assert converter.config.processing.conversion_options.images_scale == 3.0
 
+    @pytest.mark.asyncio
+    async def test_convert_pdf_without_picture_images(self, config):
+        """Test PDF conversion excludes embedded images by default."""
+        pdf_path = Path("tests/data/doclaynet.pdf")
+        if not pdf_path.exists():
+            pytest.skip("doclaynet.pdf not found")
+
+        config.processing.conversion_options.generate_picture_images = False
+        converter = DoclingLocalConverter(config)
+
+        doc = await converter.convert_file(pdf_path)
+        assert isinstance(doc, DoclingDocument)
+
+        # Check that pictures don't have image data
+        for picture in doc.pictures:
+            assert picture.image is None, (
+                "Pictures should not have image data when generate_picture_images=False"
+            )
+
+    @pytest.mark.asyncio
+    async def test_convert_pdf_with_picture_images(self, config):
+        """Test PDF conversion includes embedded images when enabled."""
+        pdf_path = Path("tests/data/doclaynet.pdf")
+        if not pdf_path.exists():
+            pytest.skip("doclaynet.pdf not found")
+
+        config.processing.conversion_options.generate_picture_images = True
+        converter = DoclingLocalConverter(config)
+
+        doc = await converter.convert_file(pdf_path)
+        assert isinstance(doc, DoclingDocument)
+
+        # Check that at least some pictures have image data
+        pictures_with_images = [p for p in doc.pictures if p.image is not None]
+        if doc.pictures:
+            assert len(pictures_with_images) > 0, (
+                "Pictures should have image data when generate_picture_images=True"
+            )
+
 
 class TestDoclingServeConverter:
     """Tests for DoclingServeConverter (mocked)."""