diff --git a/package/python-web2py/Config.in b/package/python-web2py/Config.in
index b10d3a48a5..3b55153236 100644
--- a/package/python-web2py/Config.in
+++ b/package/python-web2py/Config.in
@@ -14,6 +14,15 @@ config BR2_PACKAGE_PYTHON_WEB2PY
 
 if BR2_PACKAGE_PYTHON_WEB2PY
 
+config BR2_PACKAGE_PYTHON_WEB2PY_INSTALL_ADMIN
+	bool "install admin panel application"
+	default y
+	help
+	  This option install web2py admin panel application.
+	  It can be removed to save space on embedded systems.
+
+if BR2_PACKAGE_PYTHON_WEB2PY_INSTALL_ADMIN
+
 config BR2_PACKAGE_PYTHON_WEB2PY_PASSWORD
 	string "admin panel password"
 	default web2py
@@ -21,3 +30,5 @@ config BR2_PACKAGE_PYTHON_WEB2PY_PASSWORD
 	  Set the admin panel password.
 
 endif
+
+endif
diff --git a/package/python-web2py/python-web2py.mk b/package/python-web2py/python-web2py.mk
index 3f9d089bcd..887925b64e 100644
--- a/package/python-web2py/python-web2py.mk
+++ b/package/python-web2py/python-web2py.mk
@@ -36,7 +36,11 @@ define PYTHON_WEB2PY_GENERATE_PASSWORD
 		save_password($(BR2_PACKAGE_PYTHON_WEB2PY_PASSWORD),8000)'
 endef
 
+ifeq ($(BR2_PACKAGE_PYTHON_WEB2PY_INSTALL_ADMIN),y)
 PYTHON_WEB2PY_POST_BUILD_HOOKS += PYTHON_WEB2PY_GENERATE_PASSWORD
+else
+PYTHON_WEB2PY_EXCLUSIONS += applications/admin
+endif
 
 define PYTHON_WEB2PY_INSTALL_TARGET_CMDS
 	mkdir -p $(TARGET_DIR)/var/www/web2py