diff --git a/.changeset/configurable-sourcemap.md b/.changeset/configurable-sourcemap.md
new file mode 100644
index 0000000000..6df2abbca6
--- /dev/null
+++ b/.changeset/configurable-sourcemap.md
@@ -0,0 +1,6 @@
+---
+"@workflow/builders": minor
+"@workflow/nitro": minor
+---
+
+Add a `sourcemap` builder option and matching `WORKFLOW_SOURCEMAP` environment variable that accept esbuild's sourcemap values. Setting this to `false` drops inline sourcemaps from generated bundles to reduce function size.
diff --git a/packages/builders/src/base-builder.ts b/packages/builders/src/base-builder.ts
index b3678f1adf..22a3d22d1a 100644
--- a/packages/builders/src/base-builder.ts
+++ b/packages/builders/src/base-builder.ts
@@ -18,7 +18,7 @@ import { getImportPath } from './module-specifier.js';
 import { createNodeModuleErrorPlugin } from './node-module-esbuild-plugin.js';
 import { createPseudoPackagePlugin } from './pseudo-package-esbuild-plugin.js';
 import { createSwcPlugin } from './swc-esbuild-plugin.js';
-import type { WorkflowConfig } from './types.js';
+import type { SourcemapMode, WorkflowConfig } from './types.js';
 import { extractWorkflowGraphs } from './workflows-extractor.js';
 
 const enhancedResolve = promisify(enhancedResolveOriginal);
@@ -26,6 +26,40 @@ const enhancedResolve = promisify(enhancedResolveOriginal);
 const EMIT_SOURCEMAPS_FOR_DEBUGGING =
   process.env.WORKFLOW_EMIT_SOURCEMAPS_FOR_DEBUGGING === '1';
 
+/**
+ * Parses the `WORKFLOW_SOURCEMAP` environment variable. Accepts the same
+ * values as esbuild's `sourcemap` option plus the strings `"true"`/`"false"`.
+ * Returns `undefined` if unset or unrecognized.
+ */
+function parseSourcemapEnv(
+  value: string | undefined
+): SourcemapMode | undefined {
+  if (value === undefined) return undefined;
+  const normalized = value.trim().toLowerCase();
+  switch (normalized) {
+    case '':
+      return undefined;
+    case 'true':
+    case '1':
+      return true;
+    case 'false':
+    case '0':
+      return false;
+    case 'inline':
+    case 'linked':
+    case 'external':
+    case 'both':
+      return normalized;
+    default:
+      console.warn(
+        `Unrecognized WORKFLOW_SOURCEMAP value: ${JSON.stringify(value)}. ` +
+          `Expected one of: true, false, inline, linked, external, both. ` +
+          `Falling back to the builder's configured default.`
+      );
+      return undefined;
+  }
+}
+
 /**
  * Normalize an array of file paths by appending the `realpath()` of each entry
  * (to handle symlinks, e.g. pnpm/workspace layouts) and deduplicating.
@@ -68,6 +102,34 @@ export abstract class BaseBuilder {
     return this.config.projectRoot || this.config.workingDir;
   }
 
+  /**
+   * Resolves the sourcemap mode to apply to esbuild invocations.
+   *
+   * Priority:
+   *   1. Explicit `sourcemap` value on the builder config.
+   *   2. `WORKFLOW_SOURCEMAP` environment variable.
+   *   3. The provided `defaultMode` (per-bundle-site default).
+   */
+  protected resolveSourcemap(defaultMode: SourcemapMode): SourcemapMode {
+    if (this.config.sourcemap !== undefined) {
+      return this.config.sourcemap;
+    }
+    const fromEnv = parseSourcemapEnv(process.env.WORKFLOW_SOURCEMAP);
+    if (fromEnv !== undefined) {
+      return fromEnv;
+    }
+    return defaultMode;
+  }
+
+  /**
+   * Whether the resolved sourcemap mode produces any form of sourcemap output
+   * (either inline, linked, external, or both). Useful for toggling
+   * `shouldAddSourcemapSupport` on generated Vercel function configs.
+   */
+  protected get sourcemapsEnabled(): boolean {
+    return this.resolveSourcemap(true) !== false;
+  }
+
   /**
    * Whether informational BaseBuilder logs should be printed.
    * Subclasses can override this to silence progress logs while keeping warnings/errors.
@@ -568,7 +630,11 @@ export abstract class BaseBuilder {
       // Steps execute in Node.js context and inline sourcemaps ensure we get
       // meaningful stack traces with proper file names and line numbers when errors
       // occur in deeply nested function calls across multiple files.
-      sourcemap: 'inline',
+      //
+      // Callers can override via the `sourcemap` builder config option or the
+      // `WORKFLOW_SOURCEMAP` environment variable (e.g. to disable sourcemaps
+      // entirely and shrink the function bundle size).
+      sourcemap: this.resolveSourcemap('inline'),
       plugins: [
         // Handle pseudo-packages like 'server-only' and 'client-only' by providing
         // empty modules. Must run first to intercept these before other resolution.
@@ -772,7 +838,12 @@ export abstract class BaseBuilder {
       // Inline source maps for better stack traces in workflow VM execution.
       // This intermediate bundle is executed via runInContext() in a VM, so we need
       // inline source maps to get meaningful stack traces instead of "evalmachine.<anonymous>".
-      sourcemap: 'inline',
+      //
+      // This bundle is never written to disk (its contents are embedded as a string
+      // into the final workflow bundle), so non-inline modes like 'external' or
+      // 'linked' would be meaningless — we collapse them to 'inline'. A caller that
+      // disables sourcemaps entirely (`sourcemap: false`) still gets no sourcemap.
+      sourcemap: this.resolveSourcemap('inline') === false ? false : 'inline',
       // Use tsconfig for path alias resolution.
       // For symlinked configs this uses tsconfigRaw to preserve cwd-relative aliases.
       ...esbuildTsconfigOptions,
@@ -943,8 +1014,10 @@ export const POST = workflowEntrypoint(workflowCode);`;
           },
           outfile,
           // Source maps for the final workflow bundle wrapper (not important since this code
-          // doesn't run in the VM - only the intermediate bundle sourcemap is relevant)
-          sourcemap: EMIT_SOURCEMAPS_FOR_DEBUGGING,
+          // doesn't run in the VM - only the intermediate bundle sourcemap is relevant).
+          // Default is off; callers can override via `sourcemap` config or
+          // `WORKFLOW_SOURCEMAP` / `WORKFLOW_EMIT_SOURCEMAPS_FOR_DEBUGGING` env vars.
+          sourcemap: this.resolveSourcemap(EMIT_SOURCEMAPS_FOR_DEBUGGING),
           absWorkingDir: this.config.workingDir,
           bundle: true,
           format,
@@ -1213,7 +1286,9 @@ export const OPTIONS = handler;`;
         '.mjs',
         '.cjs',
       ],
-      sourcemap: EMIT_SOURCEMAPS_FOR_DEBUGGING,
+      // Default is off; callers can override via `sourcemap` config or
+      // `WORKFLOW_SOURCEMAP` / `WORKFLOW_EMIT_SOURCEMAPS_FOR_DEBUGGING` env vars.
+      sourcemap: this.resolveSourcemap(EMIT_SOURCEMAPS_FOR_DEBUGGING),
       mainFields: ['module', 'main'],
       // Don't externalize anything - bundle everything including workflow packages
       external: [],
diff --git a/packages/builders/src/config-helpers.ts b/packages/builders/src/config-helpers.ts
index 94b50aa5a0..e07975e26c 100644
--- a/packages/builders/src/config-helpers.ts
+++ b/packages/builders/src/config-helpers.ts
@@ -1,7 +1,7 @@
 import { readFile } from 'node:fs/promises';
 import { findUp } from 'find-up';
 import JSON5 from 'json5';
-import type { WorkflowConfig } from './types.js';
+import type { SourcemapMode, WorkflowConfig } from './types.js';
 
 export interface DecoratorOptions {
   decorators: boolean;
@@ -96,6 +96,7 @@ export function createBaseBuilderConfig(options: {
   watch?: boolean;
   externalPackages?: string[];
   runtime?: string;
+  sourcemap?: SourcemapMode;
 }): Omit<WorkflowConfig, 'buildTarget'> {
   return {
     dirs: options.dirs ?? ['workflows'],
@@ -107,5 +108,6 @@ export function createBaseBuilderConfig(options: {
     webhookBundlePath: '', // Not used by base builder methods
     externalPackages: options.externalPackages,
     runtime: options.runtime,
+    sourcemap: options.sourcemap,
   };
 }
diff --git a/packages/builders/src/resolve-sourcemap.test.ts b/packages/builders/src/resolve-sourcemap.test.ts
new file mode 100644
index 0000000000..63f288d37c
--- /dev/null
+++ b/packages/builders/src/resolve-sourcemap.test.ts
@@ -0,0 +1,151 @@
+import { afterEach, beforeEach, describe, expect, it } from 'vitest';
+import { BaseBuilder } from './base-builder.js';
+import type { SourcemapMode, StandaloneConfig } from './types.js';
+
+/**
+ * Minimal subclass that exposes the protected `resolveSourcemap()` and
+ * `sourcemapsEnabled` members for testing.
+ */
+class TestBuilder extends BaseBuilder {
+  async build(): Promise<void> {
+    // no-op
+  }
+
+  public callResolveSourcemap(defaultMode: SourcemapMode): SourcemapMode {
+    return this.resolveSourcemap(defaultMode);
+  }
+
+  public get publicSourcemapsEnabled(): boolean {
+    return this.sourcemapsEnabled;
+  }
+}
+
+function createBuilder(sourcemap?: SourcemapMode): TestBuilder {
+  const config: StandaloneConfig = {
+    buildTarget: 'standalone',
+    workingDir: '/tmp/workflow-test',
+    dirs: ['.'],
+    stepsBundlePath: '',
+    workflowsBundlePath: '',
+    webhookBundlePath: '',
+    sourcemap,
+  };
+  return new TestBuilder(config);
+}
+
+describe('resolveSourcemap', () => {
+  const originalEnv = process.env.WORKFLOW_SOURCEMAP;
+
+  beforeEach(() => {
+    delete process.env.WORKFLOW_SOURCEMAP;
+  });
+
+  afterEach(() => {
+    if (originalEnv === undefined) {
+      delete process.env.WORKFLOW_SOURCEMAP;
+    } else {
+      process.env.WORKFLOW_SOURCEMAP = originalEnv;
+    }
+  });
+
+  it('returns the default when no config or env var is set', () => {
+    const builder = createBuilder();
+    expect(builder.callResolveSourcemap('inline')).toBe('inline');
+    expect(builder.callResolveSourcemap(false)).toBe(false);
+    expect(builder.callResolveSourcemap(true)).toBe(true);
+  });
+
+  it('prefers explicit config over the default', () => {
+    expect(createBuilder(false).callResolveSourcemap('inline')).toBe(false);
+    expect(createBuilder('external').callResolveSourcemap('inline')).toBe(
+      'external'
+    );
+    expect(createBuilder('linked').callResolveSourcemap(false)).toBe('linked');
+    expect(createBuilder(true).callResolveSourcemap('inline')).toBe(true);
+  });
+
+  it('prefers explicit config over environment variable', () => {
+    process.env.WORKFLOW_SOURCEMAP = 'inline';
+    expect(createBuilder(false).callResolveSourcemap('inline')).toBe(false);
+    expect(createBuilder('external').callResolveSourcemap('inline')).toBe(
+      'external'
+    );
+  });
+
+  it('uses environment variable when config is not set', () => {
+    process.env.WORKFLOW_SOURCEMAP = 'false';
+    expect(createBuilder().callResolveSourcemap('inline')).toBe(false);
+
+    process.env.WORKFLOW_SOURCEMAP = 'true';
+    expect(createBuilder().callResolveSourcemap(false)).toBe(true);
+
+    for (const mode of ['inline', 'linked', 'external', 'both'] as const) {
+      process.env.WORKFLOW_SOURCEMAP = mode;
+      expect(createBuilder().callResolveSourcemap('inline')).toBe(mode);
+    }
+  });
+
+  it('accepts "0" / "1" as environment variable aliases for false / true', () => {
+    process.env.WORKFLOW_SOURCEMAP = '0';
+    expect(createBuilder().callResolveSourcemap('inline')).toBe(false);
+
+    process.env.WORKFLOW_SOURCEMAP = '1';
+    expect(createBuilder().callResolveSourcemap(false)).toBe(true);
+  });
+
+  it('falls back to default when env var is empty or unrecognized', () => {
+    process.env.WORKFLOW_SOURCEMAP = '';
+    expect(createBuilder().callResolveSourcemap('inline')).toBe('inline');
+
+    // Suppress the expected warning
+    const originalWarn = console.warn;
+    console.warn = () => {};
+    try {
+      process.env.WORKFLOW_SOURCEMAP = 'nonsense';
+      expect(createBuilder().callResolveSourcemap('inline')).toBe('inline');
+    } finally {
+      console.warn = originalWarn;
+    }
+  });
+});
+
+describe('sourcemapsEnabled', () => {
+  const originalEnv = process.env.WORKFLOW_SOURCEMAP;
+
+  beforeEach(() => {
+    delete process.env.WORKFLOW_SOURCEMAP;
+  });
+
+  afterEach(() => {
+    if (originalEnv === undefined) {
+      delete process.env.WORKFLOW_SOURCEMAP;
+    } else {
+      process.env.WORKFLOW_SOURCEMAP = originalEnv;
+    }
+  });
+
+  it('is true by default', () => {
+    expect(createBuilder().publicSourcemapsEnabled).toBe(true);
+  });
+
+  it('is false when config sourcemap is false', () => {
+    expect(createBuilder(false).publicSourcemapsEnabled).toBe(false);
+  });
+
+  it('is true for any non-false config value', () => {
+    for (const mode of [
+      true,
+      'inline',
+      'linked',
+      'external',
+      'both',
+    ] as const) {
+      expect(createBuilder(mode).publicSourcemapsEnabled).toBe(true);
+    }
+  });
+
+  it('is false when WORKFLOW_SOURCEMAP env is false', () => {
+    process.env.WORKFLOW_SOURCEMAP = 'false';
+    expect(createBuilder().publicSourcemapsEnabled).toBe(false);
+  });
+});
diff --git a/packages/builders/src/types.ts b/packages/builders/src/types.ts
index 688b14826e..f0bcb05d90 100644
--- a/packages/builders/src/types.ts
+++ b/packages/builders/src/types.ts
@@ -8,6 +8,19 @@ export const validBuildTargets = [
 ] as const;
 export type BuildTarget = (typeof validBuildTargets)[number];
 
+/**
+ * Sourcemap mode for generated workflow bundles. Matches the values
+ * accepted by esbuild's `sourcemap` option.
+ *
+ * - `true` / `'linked'` — emit a separate `.map` file and append a
+ *   `//# sourceMappingURL=` comment pointing to it.
+ * - `'inline'` — inline the sourcemap as a base64 data URL in the bundle.
+ * - `'external'` — emit a separate `.map` file without a reference comment.
+ * - `'both'` — inline *and* emit a separate `.map` file.
+ * - `false` — do not emit a sourcemap at all.
+ */
+export type SourcemapMode = boolean | 'inline' | 'linked' | 'external' | 'both';
+
 /**
  * Common configuration options shared across all builder types.
  */
@@ -48,6 +61,24 @@ interface BaseWorkflowConfig {
 
   // Node.js runtime version for Vercel Functions (e.g., "nodejs22.x", "nodejs24.x")
   runtime?: string;
+
+  /**
+   * Sourcemap mode for generated workflow bundles (steps, workflows, webhook).
+   *
+   * Accepts the same values as esbuild's `sourcemap` option:
+   * `true` / `'linked'`, `'inline'`, `'external'`, `'both'`, or `false`.
+   *
+   * If unset, the value of the `WORKFLOW_SOURCEMAP` environment variable is
+   * consulted (valid values: `true`, `false`, `inline`, `linked`, `external`,
+   * `both`). If neither is set, sourcemaps default to `'inline'` so stack
+   * traces from step and workflow VM execution include original file names
+   * and line numbers.
+   *
+   * Setting this to `false` can dramatically reduce the generated function
+   * bundle size, which is useful for hitting Vercel's 250MB function size
+   * limit.
+   */
+  sourcemap?: SourcemapMode;
 }
 
 /**
diff --git a/packages/builders/src/vercel-build-output-api.ts b/packages/builders/src/vercel-build-output-api.ts
index 81ab83342f..43952041ed 100644
--- a/packages/builders/src/vercel-build-output-api.ts
+++ b/packages/builders/src/vercel-build-output-api.ts
@@ -79,11 +79,13 @@ export class VercelBuildOutputAPIBuilder extends BaseBuilder {
       tsconfigPath,
     });
 
-    // Create package.json and .vc-config.json for steps function
+    // Create package.json and .vc-config.json for steps function.
+    // Only enable sourcemap support on the Vercel runtime when we're actually
+    // emitting sourcemaps — enabling it otherwise just adds runtime overhead.
     await this.createPackageJson(stepsFuncDir, 'module');
     await this.createVcConfig(stepsFuncDir, {
       handler: 'index.mjs',
-      shouldAddSourcemapSupport: true,
+      shouldAddSourcemapSupport: this.sourcemapsEnabled,
       maxDuration: 'max',
       experimentalTriggers: [STEP_QUEUE_TRIGGER],
       runtime: this.config.runtime,
diff --git a/packages/nitro/src/builders.ts b/packages/nitro/src/builders.ts
index cd87a308b6..061e9af958 100644
--- a/packages/nitro/src/builders.ts
+++ b/packages/nitro/src/builders.ts
@@ -15,6 +15,7 @@ export class VercelBuilder extends VercelBuildOutputAPIBuilder {
         workingDir: nitro.options.rootDir,
         dirs: ['.'], // Different apps that use nitro have different directories
         runtime: nitro.options.workflow?.runtime,
+        sourcemap: nitro.options.workflow?.sourcemap,
       }),
       buildTarget: 'vercel-build-output-api',
     });
@@ -41,6 +42,7 @@ export class LocalBuilder extends BaseBuilder {
         workingDir: nitro.options.rootDir,
         watch: nitro.options.dev,
         dirs: ['.'], // Different apps that use nitro have different directories
+        sourcemap: nitro.options.workflow?.sourcemap,
       }),
       buildTarget: 'next', // Placeholder, not actually used
     });
diff --git a/packages/nitro/src/types.ts b/packages/nitro/src/types.ts
index d8fd832f52..8289445eb8 100644
--- a/packages/nitro/src/types.ts
+++ b/packages/nitro/src/types.ts
@@ -21,6 +21,20 @@ export interface ModuleOptions {
    * @example "nodejs24.x"
    */
   runtime?: string;
+
+  /**
+   * Sourcemap mode for generated workflow bundles. Accepts the same values
+   * as esbuild's `sourcemap` option: `true` / `'linked'`, `'inline'`,
+   * `'external'`, `'both'`, or `false`.
+   *
+   * If unset, the value of the `WORKFLOW_SOURCEMAP` environment variable is
+   * consulted. If neither is set, the builder's default (`'inline'`) is used.
+   *
+   * Setting this to `false` can dramatically reduce the generated function
+   * bundle size when deploying to Vercel (useful for staying under the 250MB
+   * function size limit).
+   */
+  sourcemap?: boolean | 'inline' | 'linked' | 'external' | 'both';
 }
 
 declare module 'nitro/types' {