diff --git a/octo/data/dataset.py b/octo/data/dataset.py
index a549c2c0..28f89fcd 100644
--- a/octo/data/dataset.py
+++ b/octo/data/dataset.py
@@ -140,6 +140,8 @@ def apply_frame_transforms(
     image_augment_kwargs: Union[dict, Mapping[str, dict]] = {},
     resize_size: Union[Tuple[int, int], Mapping[str, Tuple[int, int]]] = {},
     depth_resize_size: Union[Tuple[int, int], Mapping[str, Tuple[int, int]]] = {},
+    image_dropout_prob: float = 0.0,
+    image_dropout_keep_key: Optional[str] = None,
     num_parallel_calls: int = tf.data.AUTOTUNE,
 ) -> dl.DLataset:
     """Applies common transforms that happen at a frame level. These transforms are usually more
@@ -159,6 +161,10 @@ def apply_frame_transforms(
             keys (so pass an empty dict to skip resizing for all images).
         depth_resize_size (Tuple[int, int]|Mapping[str, Tuple[int, int]]): Same as resize_size, but for depth
             images.
+        image_dropout_prob (float): Probability of dropping out images, applied to each image key
+            independently. At least one image will always be present.
+        image_dropout_keep_key (str, optional): Optionally provide a key to always keep during image dropout
+            for example for image observations that are essential for action prediction.
         num_parallel_calls (int): number of parallel calls for frame_map operations. Default to AUTOTUNE.
     """
 
@@ -186,14 +192,22 @@ def apply_obs_transform(fn: Callable[[dict], dict], frame: dict) -> dict:
 
     if train:
         # augment all images with the same seed, skipping padding images
-        def aug(frame: dict):
+        def aug_and_dropout(frame: dict):
             seed = tf.random.uniform([2], maxval=tf.dtypes.int32.max, dtype=tf.int32)
+            dropout_fn = partial(
+                obs_transforms.image_dropout,
+                seed=seed,
+                dropout_prob=image_dropout_prob,
+                always_keep_key=image_dropout_keep_key,
+            )
             aug_fn = partial(
                 obs_transforms.augment, seed=seed, augment_kwargs=image_augment_kwargs
             )
-            return apply_obs_transform(aug_fn, frame)
+            frame = apply_obs_transform(dropout_fn, frame)
+            frame = apply_obs_transform(aug_fn, frame)
+            return frame
 
-        dataset = dataset.frame_map(aug, num_parallel_calls)
+        dataset = dataset.frame_map(aug_and_dropout, num_parallel_calls)
 
     return dataset
 
diff --git a/octo/data/obs_transforms.py b/octo/data/obs_transforms.py
index efb49942..97a28b41 100644
--- a/octo/data/obs_transforms.py
+++ b/octo/data/obs_transforms.py
@@ -2,7 +2,7 @@
 Contains observation-level transforms used in the octo data pipeline. These transforms operate on the
 "observation" dictionary, and are applied at a per-frame level.
 """
-from typing import Mapping, Tuple, Union
+from typing import Mapping, Optional, Tuple, Union
 
 from absl import logging
 import dlimp as dl
@@ -39,6 +39,61 @@ def augment(
     return obs
 
 
+def image_dropout(
+    obs: dict,
+    seed: tf.Tensor,
+    dropout_prob: float,
+    always_keep_key: Optional[str] = None,
+) -> dict:
+    """Independently drops out image keys, each with probability `dropout_prob`, but always keeps at least one
+    image present.
+    """
+    image_keys = [key for key in obs if key.startswith("image_")]
+    if not image_keys:
+        return obs
+    pad_mask = tf.stack([obs["pad_mask_dict"][key] for key in image_keys])
+    # if any non-padding images exist, pick one of them to keep no matter what
+    shuffle_seed, seed = tf.unstack(tf.random.split(seed))
+
+    if always_keep_key:
+        assert (
+            always_keep_key in image_keys
+        ), f"Specified always_keep_key {always_keep_key} not present in image_keys: {image_keys} during dropout."
+        always_keep_index = tf.constant(
+            image_keys.index(always_keep_key), dtype=tf.int64
+        )
+    else:
+        always_keep_index = tf.cond(
+            tf.reduce_any(pad_mask),
+            # pick a random index from the non-padding images
+            lambda: tf.random.experimental.stateless_shuffle(
+                tf.where(pad_mask)[:, 0], seed=shuffle_seed
+            )[0],
+            # all images are padding, so it doesn't matter
+            lambda: tf.constant(0, dtype=tf.int64),
+        )
+
+    # drop images independently, except for the one at always_keep_index
+    rands = tf.random.stateless_uniform([len(image_keys)], seed=seed)
+    pad_mask = tf.logical_and(
+        pad_mask,
+        tf.logical_or(
+            tf.range(len(image_keys), dtype=tf.int64) == always_keep_index,
+            rands > dropout_prob,
+        ),
+    )
+
+    # perform the dropout and update pad_mask_dict
+    for i, key in enumerate(image_keys):
+        obs["pad_mask_dict"][key] = pad_mask[i]
+        obs[key] = tf.cond(
+            pad_mask[i],
+            lambda: obs[key],
+            lambda: tf.zeros_like(obs[key]),
+        )
+    return obs
+
+
 def decode_and_resize(
     obs: dict,
     resize_size: Union[Tuple[int, int], Mapping[str, Tuple[int, int]]],
diff --git a/scripts/configs/config.py b/scripts/configs/config.py
index 1d74b74c..8185956f 100644
--- a/scripts/configs/config.py
+++ b/scripts/configs/config.py
@@ -135,6 +135,7 @@ def get_dataset_config(window_size=1):
         ),
         "frame_transform_kwargs": dict(
             resize_size=(256, 256),
+            image_dropout_prob=0.0,
             image_augment_kwargs=dict(
                 random_resized_crop=dict(scale=[0.8, 1.0], ratio=[0.9, 1.1]),
                 random_brightness=[0.2],
diff --git a/scripts/configs/octo_pretrain_config.py b/scripts/configs/octo_pretrain_config.py
index 39e47495..19e3622e 100644
--- a/scripts/configs/octo_pretrain_config.py
+++ b/scripts/configs/octo_pretrain_config.py
@@ -123,6 +123,9 @@ def get_config(config_string=None):
                     rephrase_prob=0.5,
                 ),
             ),
+            frame_transform_kwargs=dict(
+                image_dropout_prob=0.5,
+            ),
             batch_size=128,
             shuffle_buffer_size=500000,
             balance_weights=True,