diff --git a/crates/env/Cargo.toml b/crates/env/Cargo.toml
index 289b96612d..bb69aab008 100644
--- a/crates/env/Cargo.toml
+++ b/crates/env/Cargo.toml
@@ -86,3 +86,6 @@ ink-debug = []
 
 # Disable the ink! provided global memory allocator.
 no-allocator = [ "ink_allocator/no-allocator" ]
+
+# Disable the ink! provided panic handler.
+no-panic-handler = []
diff --git a/crates/env/src/lib.rs b/crates/env/src/lib.rs
index f5adef5763..9959ccccef 100644
--- a/crates/env/src/lib.rs
+++ b/crates/env/src/lib.rs
@@ -55,7 +55,7 @@ pub const BUFFER_SIZE: usize = 16384;
 #[allow(unused_extern_crates)]
 extern crate rlibc;
 
-#[cfg(not(feature = "std"))]
+#[cfg(not(any(feature = "std", feature = "no-panic-handler")))]
 #[allow(unused_variables)]
 #[panic_handler]
 fn panic(info: &core::panic::PanicInfo) -> ! {
diff --git a/crates/ink/Cargo.toml b/crates/ink/Cargo.toml
index f2790b0714..bb23bdc918 100644
--- a/crates/ink/Cargo.toml
+++ b/crates/ink/Cargo.toml
@@ -53,3 +53,6 @@ show-codegen-docs = []
 
 # Disable the ink! provided global memory allocator.
 no-allocator = [ "ink_env/no-allocator" ]
+
+# Disable the ink! provided panic handler.
+no-panic-handler = ["ink_env/no-panic-handler"]