diff --git a/rules/android_binary/attrs.bzl b/rules/android_binary/attrs.bzl
index aac6bf0..134e4ba 100644
--- a/rules/android_binary/attrs.bzl
+++ b/rules/android_binary/attrs.bzl
@@ -189,6 +189,13 @@
                       WARNING: Do not use outside of privacy sandbox build rules.
                       """,
             ),
+            enable_sparse_encoding = attr.bool(
+                default = False,
+                doc = """
+                      Whether to enable sparse encoding for the resource table. No-op unless
+                      minSdkVersion 32+. Will reduce APK size.
+                      """,
+            ),
             _java_toolchain = attr.label(
                 default = Label("//tools/jdk:toolchain_android_only"),
             ),
diff --git a/rules/android_binary/impl.bzl b/rules/android_binary/impl.bzl
index d567a90..7e3fced 100644
--- a/rules/android_binary/impl.bzl
+++ b/rules/android_binary/impl.bzl
@@ -872,6 +872,7 @@
         ctx,
         resources_apk = shrunk_resource_output.resources_apk if enable_resource_shrinking else packaged_resources_ctx.resources_apk,
         resource_optimization_config = shrunk_resource_output.optimization_config if enable_resource_shrinking else None,
+        enable_sparse_encoding = ctx.attr.enable_sparse_encoding,
         is_resource_shrunk = enable_resource_shrinking,
         aapt = get_android_toolchain(ctx).aapt2.files_to_run,
         busybox = get_android_toolchain(ctx).android_resources_busybox.files_to_run,
diff --git a/rules/busybox.bzl b/rules/busybox.bzl
index 8e52178..e087e0e 100644
--- a/rules/busybox.bzl
+++ b/rules/busybox.bzl
@@ -1313,6 +1313,7 @@
         in_apk,
         resource_path_shortening_map = None,
         resource_optimization_config = None,
+        enable_sparse_encoding = False,
         aapt = None,
         busybox = None,
         host_javabase = None):
@@ -1324,6 +1325,7 @@
         in_apk: File. The resource ap_ package to be optimized.
         resource_path_shortening_map: File. The output path shortening map. Optional.
         resource_optimization_config: File. The input optimization config. Optional.
+        enable_sparse_encoding: Boolean. Enable sparse encoding, no-op unless minSdk 32+
         aapt: FilesToRunProvider. The AAPT executable.
         busybox: FilesToRunProvider. The ResourceBusyBox executable.
         host_javabase: Target. The host javabase.
@@ -1347,6 +1349,8 @@
         args.add("--collapse-resource-names")
         args.add("--resources-config-path", resource_optimization_config)
         input_files.append(resource_optimization_config)
+    if enable_sparse_encoding:
+        args.add("--enable-sparse-encoding")
     args.add("-o", out_apk)
     args.add(in_apk)
 
diff --git a/rules/resources.bzl b/rules/resources.bzl
index f266a98..0b7cd7f 100644
--- a/rules/resources.bzl
+++ b/rules/resources.bzl
@@ -1970,6 +1970,7 @@
         resources_apk = None,
         resource_optimization_config = None,
         is_resource_shrunk = False,
+        enable_sparse_encoding = False,
         aapt = None,
         busybox = None,
         host_javabase = None):
@@ -1981,6 +1982,7 @@
         resource_optimization_config: File. The resource optimization config outputted
           by resource shrinking. It will only be used if resource name obfuscation is enabled.
         is_resource_shrunk: Boolean. Whether the resources has been shrunk or not.
+        enable_sparse_encoding: Boolean. Whether to enable sparse encoding, no-op unless minSdk 32+.
         aapt: FilesToRunProvider. The AAPT executable.
         busybox: FilesToRunProvider. The ResourceBusyBox executable.
         host_javabase: Target. The host javabase.
@@ -1996,7 +1998,8 @@
     use_resource_path_shortening_map = _is_resource_path_shortening_enabled(ctx)
     use_resource_optimization_config = _is_resource_name_obfuscation_enabled(ctx, is_resource_shrunk)
 
-    if not (use_resource_path_shortening_map or use_resource_optimization_config):
+    if not (use_resource_path_shortening_map or use_resource_optimization_config or
+            enable_sparse_encoding):
         return _ResourcesOptimizeContextInfo(**optimize_ctx)
 
     optimized_resource_apk = ctx.actions.declare_file(ctx.label.name + "_optimized.ap_")
@@ -2013,6 +2016,7 @@
         in_apk = resources_apk,
         resource_path_shortening_map = optimize_ctx[_RESOURCE_PATH_SHORTENING_MAP],
         resource_optimization_config = resource_optimization_config if use_resource_optimization_config else None,
+        enable_sparse_encoding = enable_sparse_encoding,
         aapt = aapt,
         busybox = busybox,
         host_javabase = host_javabase,
diff --git a/test/rules/android_binary/res/values-es/strings.xml b/test/rules/android_binary/res/values-es/strings.xml
new file mode 100644
index 0000000..c0e9d50
--- /dev/null
+++ b/test/rules/android_binary/res/values-es/strings.xml
@@ -0,0 +1,3 @@
+<resources>
+  <string name="app_name">Spanish Name</string>
+</resources>
diff --git a/test/rules/android_binary/res/values-fr/strings.xml b/test/rules/android_binary/res/values-fr/strings.xml
new file mode 100644
index 0000000..ca38dad
--- /dev/null
+++ b/test/rules/android_binary/res/values-fr/strings.xml
@@ -0,0 +1,3 @@
+<resources>
+  <string name="app_name">French Name</string>
+</resources>
diff --git a/test/rules/android_binary/res/values/strings.xml b/test/rules/android_binary/res/values/strings.xml
new file mode 100644
index 0000000..2e64a6d
--- /dev/null
+++ b/test/rules/android_binary/res/values/strings.xml
@@ -0,0 +1,104 @@
+<resources>
+  <string name="app_name">Default Name</string>
+  <string name="foo">Foo</string>
+  <string name="foo1">Foo1</string>
+  <string name="foo2">Foo2</string>
+  <string name="foo3">Foo3</string>
+  <string name="foo4">Foo4</string>
+  <string name="foo5">Foo5</string>
+  <string name="foo6">Foo6</string>
+  <string name="foo7">Foo7</string>
+  <string name="foo8">Foo8</string>
+  <string name="foo9">Foo9</string>
+  <string name="foo10">Foo10</string>
+  <string name="foo11">Foo11</string>
+  <string name="foo12">Foo12</string>
+  <string name="foo13">Foo13</string>
+  <string name="foo14">Foo14</string>
+  <string name="foo15">Foo15</string>
+  <string name="foo16">Foo16</string>
+  <string name="foo17">Foo17</string>
+  <string name="foo18">Foo18</string>
+  <string name="foo19">Foo19</string>
+  <string name="foo20">Foo20</string>
+  <string name="foo21">Foo21</string>
+  <string name="foo22">Foo22</string>
+  <string name="foo23">Foo23</string>
+  <string name="foo24">Foo24</string>
+  <string name="foo25">Foo25</string>
+  <string name="foo26">Foo26</string>
+  <string name="foo27">Foo27</string>
+  <string name="foo28">Foo28</string>
+  <string name="foo29">Foo29</string>
+  <string name="foo30">Foo30</string>
+  <string name="foo31">Foo31</string>
+  <string name="foo32">Foo32</string>
+  <string name="foo33">Foo33</string>
+  <string name="foo34">Foo34</string>
+  <string name="foo35">Foo35</string>
+  <string name="foo36">Foo36</string>
+  <string name="foo37">Foo37</string>
+  <string name="foo38">Foo38</string>
+  <string name="foo39">Foo39</string>
+  <string name="foo40">Foo40</string>
+  <string name="foo41">Foo41</string>
+  <string name="foo42">Foo42</string>
+  <string name="foo43">Foo43</string>
+  <string name="foo44">Foo44</string>
+  <string name="foo45">Foo45</string>
+  <string name="foo46">Foo46</string>
+  <string name="foo47">Foo47</string>
+  <string name="foo48">Foo48</string>
+  <string name="foo49">Foo49</string>
+  <string name="foo50">Foo50</string>
+  <string name="foo51">Foo51</string>
+  <string name="foo52">Foo52</string>
+  <string name="foo53">Foo53</string>
+  <string name="foo54">Foo54</string>
+  <string name="foo55">Foo55</string>
+  <string name="foo56">Foo56</string>
+  <string name="foo57">Foo57</string>
+  <string name="foo58">Foo58</string>
+  <string name="foo59">Foo59</string>
+  <string name="foo60">Foo60</string>
+  <string name="foo61">Foo61</string>
+  <string name="foo62">Foo62</string>
+  <string name="foo63">Foo63</string>
+  <string name="foo64">Foo64</string>
+  <string name="foo65">Foo65</string>
+  <string name="foo66">Foo66</string>
+  <string name="foo67">Foo67</string>
+  <string name="foo68">Foo68</string>
+  <string name="foo69">Foo69</string>
+  <string name="foo70">Foo70</string>
+  <string name="foo71">Foo71</string>
+  <string name="foo72">Foo72</string>
+  <string name="foo73">Foo73</string>
+  <string name="foo74">Foo74</string>
+  <string name="foo75">Foo75</string>
+  <string name="foo76">Foo76</string>
+  <string name="foo77">Foo77</string>
+  <string name="foo78">Foo78</string>
+  <string name="foo79">Foo79</string>
+  <string name="foo80">Foo80</string>
+  <string name="foo81">Foo81</string>
+  <string name="foo82">Foo82</string>
+  <string name="foo83">Foo83</string>
+  <string name="foo84">Foo84</string>
+  <string name="foo85">Foo85</string>
+  <string name="foo86">Foo86</string>
+  <string name="foo87">Foo87</string>
+  <string name="foo88">Foo88</string>
+  <string name="foo89">Foo89</string>
+  <string name="foo90">Foo90</string>
+  <string name="foo91">Foo91</string>
+  <string name="foo92">Foo92</string>
+  <string name="foo93">Foo93</string>
+  <string name="foo94">Foo94</string>
+  <string name="foo95">Foo95</string>
+  <string name="foo96">Foo96</string>
+  <string name="foo97">Foo97</string>
+  <string name="foo98">Foo98</string>
+  <string name="foo99">Foo99</string>
+  <string name="foo100">Foo100</string>
+</resources>