diff --git a/bundle/config/mutator/apply_presets.go b/bundle/config/mutator/apply_presets.go
index d2a1d0c7..4b29f005 100644
--- a/bundle/config/mutator/apply_presets.go
+++ b/bundle/config/mutator/apply_presets.go
@@ -11,6 +11,7 @@ import (
 	"github.com/databricks/cli/bundle/config"
 	"github.com/databricks/cli/libs/diag"
 	"github.com/databricks/cli/libs/dyn"
+	"github.com/databricks/cli/libs/env"
 	"github.com/databricks/cli/libs/textutil"
 	"github.com/databricks/databricks-sdk-go/service/catalog"
 	"github.com/databricks/databricks-sdk-go/service/jobs"
@@ -221,6 +222,15 @@ func (m *applyPresets) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnos
 		dashboard.DisplayName = prefix + dashboard.DisplayName
 	}
 
+	root := b.SyncRoot.Native()
+	_, ok := env.Lookup(ctx, envDatabricksRuntimeVersion)
+	isInWorkspace := ok && strings.HasPrefix(root, "/Workspace/")
+
+	if !isInWorkspace {
+		disabled := false
+		b.Config.Presets.InPlaceDeployment = &disabled
+	}
+
 	return diags
 }
 
diff --git a/bundle/config/mutator/process_target_mode.go b/bundle/config/mutator/process_target_mode.go
index 44b53681..6ea0e7ef 100644
--- a/bundle/config/mutator/process_target_mode.go
+++ b/bundle/config/mutator/process_target_mode.go
@@ -57,6 +57,11 @@ func transformDevelopmentMode(ctx context.Context, b *bundle.Bundle) {
 		t.TriggerPauseStatus = config.Paused
 	}
 
+	if !config.IsExplicitlyDisabled(t.InPlaceDeployment) {
+		enabled := true
+		t.InPlaceDeployment = &enabled
+	}
+
 	if !config.IsExplicitlyDisabled(t.PipelinesDevelopment) {
 		enabled := true
 		t.PipelinesDevelopment = &enabled
diff --git a/bundle/config/mutator/translate_paths.go b/bundle/config/mutator/translate_paths.go
index 82b0b3ca..fe3f2f8b 100644
--- a/bundle/config/mutator/translate_paths.go
+++ b/bundle/config/mutator/translate_paths.go
@@ -11,6 +11,8 @@ import (
 	"strings"
 
 	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/bundle/config"
+	"github.com/databricks/cli/bundle/libraries"
 	"github.com/databricks/cli/libs/diag"
 	"github.com/databricks/cli/libs/dyn"
 	"github.com/databricks/cli/libs/notebook"
@@ -129,6 +131,9 @@ func (t *translateContext) translateNotebookPath(literal, localFullPath, localRe
 		return "", ErrIsNotNotebook{localFullPath}
 	}
 
+	if t.shouldTranslateRemotePaths(localFullPath) {
+		return localFullPath, nil
+	}
 	// Upon import, notebooks are stripped of their extension.
 	return strings.TrimSuffix(remotePath, filepath.Ext(localFullPath)), nil
 }
@@ -144,6 +149,9 @@ func (t *translateContext) translateFilePath(literal, localFullPath, localRelPat
 	if nb {
 		return "", ErrIsNotebook{localFullPath}
 	}
+	if t.shouldTranslateRemotePaths(localFullPath) {
+		return localFullPath, nil
+	}
 	return remotePath, nil
 }
 
@@ -155,10 +163,16 @@ func (t *translateContext) translateDirectoryPath(literal, localFullPath, localR
 	if !info.IsDir() {
 		return "", fmt.Errorf("%s is not a directory", localFullPath)
 	}
+	if t.shouldTranslateRemotePaths(localFullPath) {
+		return localFullPath, nil
+	}
 	return remotePath, nil
 }
 
 func (t *translateContext) translateNoOp(literal, localFullPath, localRelPath, remotePath string) (string, error) {
+	if t.shouldTranslateRemotePaths(localFullPath) {
+		return localFullPath, nil
+	}
 	return localRelPath, nil
 }
 
@@ -177,6 +191,10 @@ func (t *translateContext) retainLocalAbsoluteFilePath(literal, localFullPath, l
 }
 
 func (t *translateContext) translateNoOpWithPrefix(literal, localFullPath, localRelPath, remotePath string) (string, error) {
+	if t.shouldTranslateRemotePaths(localFullPath) {
+		return localFullPath, nil
+	}
+
 	if !strings.HasPrefix(localRelPath, ".") {
 		localRelPath = "." + string(filepath.Separator) + localRelPath
 	}
@@ -217,6 +235,11 @@ func (t *translateContext) rewriteRelativeTo(p dyn.Path, v dyn.Value, fn rewrite
 	return dyn.InvalidValue, err
 }
 
+func (t *translateContext) shouldTranslateRemotePaths(localFullPath string) bool {
+	return config.IsExplicitlyEnabled(t.b.Config.Presets.InPlaceDeployment) &&
+		libraries.IsWorkspacePath(localFullPath)
+}
+
 func (m *translatePaths) Apply(_ context.Context, b *bundle.Bundle) diag.Diagnostics {
 	t := &translateContext{
 		b:    b,
diff --git a/bundle/config/presets.go b/bundle/config/presets.go
index 61009a25..c5fb6e10 100644
--- a/bundle/config/presets.go
+++ b/bundle/config/presets.go
@@ -17,6 +17,11 @@ type Presets struct {
 	// JobsMaxConcurrentRuns is the default value for the max concurrent runs of jobs.
 	JobsMaxConcurrentRuns int `json:"jobs_max_concurrent_runs,omitempty"`
 
+	// InPlaceDeployment indicates whether in-place deployment is enabled. Works only in workspace
+	// When set to true, resources created during deployment will point to source files in the workspace instead of their workspace copies.
+	// No resources will be uploaded to workspace
+	InPlaceDeployment *bool `json:"in_place_deployment,omitempty"`
+
 	// Tags to add to all resources.
 	Tags map[string]string `json:"tags,omitempty"`
 }
diff --git a/bundle/deploy/files/upload.go b/bundle/deploy/files/upload.go
index bab4e176..bdad6f01 100644
--- a/bundle/deploy/files/upload.go
+++ b/bundle/deploy/files/upload.go
@@ -7,6 +7,7 @@ import (
 	"io/fs"
 
 	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/bundle/config"
 	"github.com/databricks/cli/bundle/permissions"
 	"github.com/databricks/cli/libs/cmdio"
 	"github.com/databricks/cli/libs/diag"
@@ -23,6 +24,11 @@ func (m *upload) Name() string {
 }
 
 func (m *upload) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	if config.IsExplicitlyEnabled(b.Config.Presets.InPlaceDeployment) {
+		cmdio.LogString(ctx, "Bundle files uploading skipped: in-place deployment is enabled")
+		return nil
+	}
+
 	cmdio.LogString(ctx, fmt.Sprintf("Uploading bundle files to %s...", b.Config.Workspace.FilePath))
 	opts, err := GetSyncOptions(ctx, bundle.ReadOnly(b))
 	if err != nil {