diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index d1e2610..499dba5 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -74,6 +74,35 @@ jobs:
         if: always()
         uses: crazy-max/ghaction-dump-context@v2
 
+  daemon-config:
+    runs-on: ${{ matrix.os }}
+    strategy:
+      fail-fast: false
+      matrix:
+        os:
+          - ubuntu-latest
+          - macos-latest
+          - windows-latest
+    steps:
+      -
+        name: Checkout
+        uses: actions/checkout@v3
+      -
+        name: Set up Docker
+        uses: ./
+        with:
+          daemon-config: |
+            {
+              "debug": true,
+              "features": {
+                "containerd-snapshotter": true
+              }
+            }
+      -
+        name: Dump context
+        if: always()
+        uses: crazy-max/ghaction-dump-context@v2
+
   context:
     runs-on: ${{ matrix.os }}
     strategy:
diff --git a/README.md b/README.md
index 95ea178..41b35fa 100644
--- a/README.md
+++ b/README.md
@@ -14,6 +14,8 @@ Works on Linux, macOS and Windows.
 ___
 
 * [Usage](#usage)
+  * [Quick start](#quick-start)
+  * [Daemon configuration](#daemon-configuration)
 * [Customizing](#customizing)
   * [inputs](#inputs)
 * [Notes](#notes)
@@ -22,6 +24,8 @@ ___
 
 ## Usage
 
+### Quick start
+
 ```yaml
 name: ci
 
@@ -37,17 +41,48 @@ jobs:
         uses: crazy-max/ghaction-setup-docker@v1
 ```
 
+### Daemon configuration
+
+You can [configure the Docker daemon](https://docs.docker.com/engine/reference/commandline/dockerd/#daemon-configuration-file)
+using the `daemon-config` input. In the following example, we configure the
+Docker daemon to enable debug and the [containerd image store](https://docs.docker.com/storage/containerd/)
+feature:
+
+```yaml
+name: ci
+
+on:
+  push:
+
+jobs:
+  docker:
+    runs-on: ubuntu-latest
+    steps:
+      -
+        name: Set up Docker
+        uses: crazy-max/ghaction-setup-docker@v1
+        with:
+          daemon-config: |
+            {
+              "debug": true,
+              "features": {
+                "containerd-snapshotter": true
+              }
+            }
+```
+
 ## Customizing
 
 ### inputs
 
 Following inputs can be used as `step.with` keys
 
-| Name      | Type   | Default               | Description                                                                                       |
-|-----------|--------|-----------------------|---------------------------------------------------------------------------------------------------|
-| `version` | String | `latest`              | Docker CE version (e.g., `v23.0.1`).                                                              |
-| `channel` | String | `stable`              | Docker CE [channel](https://download.docker.com/linux/static/) (e.g, `stable`, `edge` or `test`). |
-| `context` | String | `setup-docker-action` | Docker context name.                                                                              |
+| Name            | Type   | Default               | Description                                                                                                                 |
+|-----------------|--------|-----------------------|-----------------------------------------------------------------------------------------------------------------------------|
+| `version`       | String | `latest`              | Docker CE version (e.g., `v23.0.1`).                                                                                        |
+| `channel`       | String | `stable`              | Docker CE [channel](https://download.docker.com/linux/static/) (e.g, `stable`, `edge` or `test`).                           |
+| `daemon-config` | String |                       | [Docker daemon JSON configuration](https://docs.docker.com/engine/reference/commandline/dockerd/#daemon-configuration-file) |
+| `context`       | String | `setup-docker-action` | Docker context name.                                                                                                        |
 
 ## Notes
 
diff --git a/__tests__/context.test.ts b/__tests__/context.test.ts
index bc23768..187bfbd 100644
--- a/__tests__/context.test.ts
+++ b/__tests__/context.test.ts
@@ -23,6 +23,7 @@ describe('getInputs', () => {
         version: 'v23.0.1',
         channel: '',
         context: '',
+        daemonConfig: '',
       } as context.Inputs
     ],
     [
@@ -31,11 +32,13 @@ describe('getInputs', () => {
         ['version', 'v23.0.0-rc.4'],
         ['channel', 'test'],
         ['context', 'foo'],
+        ['daemon-config', `{"debug":true,"features":{"containerd-snapshotter":true}}`],
       ]),
       {
         version: 'v23.0.0-rc.4',
         channel: 'test',
         context: 'foo',
+        daemonConfig: `{"debug":true,"features":{"containerd-snapshotter":true}}`,
       } as context.Inputs
     ],
     [
@@ -45,6 +48,7 @@ describe('getInputs', () => {
         version: 'latest',
         channel: '',
         context: '',
+        daemonConfig: '',
       } as context.Inputs
     ]
   ])(
diff --git a/action.yml b/action.yml
index 548a519..c8d8d0c 100644
--- a/action.yml
+++ b/action.yml
@@ -14,6 +14,9 @@ inputs:
   channel:
     description: 'Docker CE channel. (e.g, stable, edge or test)'
     required: false
+  daemon-config:
+    description: 'Docker daemon JSON configuration'
+    required: false
   context:
     description: 'Docker context name. (default setup-docker-action)'
     required: false
diff --git a/src/context.ts b/src/context.ts
index b5f0260..40ee91b 100644
--- a/src/context.ts
+++ b/src/context.ts
@@ -3,6 +3,7 @@ import * as core from '@actions/core';
 export interface Inputs {
   version: string;
   channel: string;
+  daemonConfig?: string;
   context: string;
 }
 
@@ -10,6 +11,7 @@ export function getInputs(): Inputs {
   return {
     version: core.getInput('version') || 'latest',
     channel: core.getInput('channel'),
+    daemonConfig: core.getInput('daemon-config'),
     context: core.getInput('context')
   };
 }
diff --git a/src/main.ts b/src/main.ts
index e6d3930..27f259e 100644
--- a/src/main.ts
+++ b/src/main.ts
@@ -23,7 +23,8 @@ actionsToolkit.run(
       runDir: runDir,
       version: input.version,
       channel: input.channel || 'stable',
-      contextName: input.context || 'setup-docker-action'
+      contextName: input.context || 'setup-docker-action',
+      daemonConfig: input.daemonConfig
     });
     let toolDir;
     if (!(await Docker.isAvailable()) || input.version) {