diff --git a/cmd/main.go b/cmd/main.go
index abeabdc4eec..45145c54710 100644
--- a/cmd/main.go
+++ b/cmd/main.go
@@ -38,6 +38,8 @@ import (
 	argocdprovisioner "github.com/argoproj-labs/argocd-operator/controllers/argocd"
 	"github.com/argoproj-labs/argocd-operator/controllers/argoutil"
 	notificationsprovisioner "github.com/argoproj-labs/argocd-operator/controllers/notificationsconfiguration"
+	"github.com/argoproj-labs/argocd-operator/pkg/cacheutils"
+	cw "github.com/argoproj-labs/argocd-operator/pkg/clientwrapper"
 	appsv1 "github.com/openshift/api/apps/v1"
 	configv1 "github.com/openshift/api/config/v1"
 	console "github.com/openshift/api/console/v1"
@@ -47,11 +49,14 @@ import (
 	operatorsv1 "github.com/operator-framework/api/pkg/operators/v1"
 	operatorsv1alpha1 "github.com/operator-framework/api/pkg/operators/v1alpha1"
 	monitoringv1 "github.com/prometheus-operator/prometheus-operator/pkg/apis/monitoring/v1"
+	corev1 "k8s.io/api/core/v1"
 	crdv1 "k8s.io/apiextensions-apiserver/pkg/apis/apiextensions/v1"
 	"k8s.io/apimachinery/pkg/labels"
 	utilruntime "k8s.io/apimachinery/pkg/util/runtime"
 	clientgoscheme "k8s.io/client-go/kubernetes/scheme"
 	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	crclient "sigs.k8s.io/controller-runtime/pkg/client"
 	"sigs.k8s.io/controller-runtime/pkg/client/config"
 	controllerconfig "sigs.k8s.io/controller-runtime/pkg/config"
 	"sigs.k8s.io/controller-runtime/pkg/healthz"
@@ -147,7 +152,8 @@ func main() {
 		TLSOpts:     []func(*tls.Config){disableHTTP2},
 	}
 
-	mgr, err := ctrl.NewManager(ctrl.GetConfigOrDie(), ctrl.Options{
+	// Set default manager options
+	options := ctrl.Options{
 		Scheme:                 scheme,
 		Metrics:                metricsServerOptions,
 		WebhookServer:          webhookServer,
@@ -157,12 +163,39 @@ func main() {
 		Controller: controllerconfig.Controller{
 			SkipNameValidation: &skipControllerNameValidation,
 		},
-	})
+	}
+
+	// Use transformers to strip data from Secrets and ConfigMaps
+	// that are not tracked by the operator to reduce memory usage.
+	if strings.ToLower(os.Getenv("MEMORY_OPTIMIZATION_ENABLED")) != "false" {
+		setupLog.Info("memory optimization is enabled")
+		options.Cache = cache.Options{
+			Scheme: scheme,
+			ByObject: map[crclient.Object]cache.ByObject{
+				&corev1.Secret{}:    {Transform: cacheutils.StripDataFromSecretOrConfigMapTransform()},
+				&corev1.ConfigMap{}: {Transform: cacheutils.StripDataFromSecretOrConfigMapTransform()},
+			},
+		}
+	}
+
+	mgr, err := ctrl.NewManager(ctrl.GetConfigOrDie(), options)
 	if err != nil {
 		setupLog.Error(err, "unable to start manager")
 		os.Exit(1)
 	}
 
+	var client crclient.Client
+	if strings.ToLower(os.Getenv("MEMORY_OPTIMIZATION_ENABLED")) != "false" {
+		liveClient, err := crclient.New(ctrl.GetConfigOrDie(), crclient.Options{Scheme: mgr.GetScheme()})
+		if err != nil {
+			setupLog.Error(err, "unable to create live client")
+			os.Exit(1)
+		}
+		client = cw.NewClientWrapper(mgr.GetClient(), liveClient)
+	} else {
+		client = mgr.GetClient()
+	}
+
 	registerComponentOrExit(mgr, console.AddToScheme)
 	registerComponentOrExit(mgr, routev1.AddToScheme) // Adding the routev1 api
 	registerComponentOrExit(mgr, operatorsv1.AddToScheme)
@@ -186,7 +219,7 @@ func main() {
 	}
 
 	if err = (&controllers.ReconcileGitopsService{
-		Client:                mgr.GetClient(),
+		Client:                client,
 		Scheme:                mgr.GetScheme(),
 		DisableDefaultInstall: strings.ToLower(os.Getenv(common.DisableDefaultInstallEnvVar)) == "true",
 	}).SetupWithManager(mgr); err != nil {
@@ -195,7 +228,7 @@ func main() {
 	}
 
 	if err = (&controllers.ReconcileArgoCDRoute{
-		Client: mgr.GetClient(),
+		Client: client,
 		Scheme: mgr.GetScheme(),
 	}).SetupWithManager(mgr); err != nil {
 		setupLog.Error(err, "unable to create controller", "controller", "Argo CD route")
@@ -203,7 +236,7 @@ func main() {
 	}
 
 	if err = (&controllers.ArgoCDMetricsReconciler{
-		Client: mgr.GetClient(),
+		Client: client,
 		Scheme: mgr.GetScheme(),
 	}).SetupWithManager(mgr); err != nil {
 		setupLog.Error(err, "unable to create controller", "controller", "Argo CD metrics")
@@ -225,7 +258,7 @@ func main() {
 	argocdprovisioner.Register(openshift.ReconcilerHook, openshift.BuilderHook)
 
 	if err = (&argocdprovisioner.ReconcileArgoCD{
-		Client:        mgr.GetClient(),
+		Client:        client,
 		Scheme:        mgr.GetScheme(),
 		LabelSelector: labelSelectorFlag,
 		K8sClient:     k8sClient,
@@ -251,7 +284,7 @@ func main() {
 	}
 
 	if err = (&rolloutManagerProvisioner.RolloutManagerReconciler{
-		Client:                                mgr.GetClient(),
+		Client:                                client,
 		Scheme:                                mgr.GetScheme(),
 		OpenShiftRoutePluginLocation:          getArgoRolloutsOpenshiftRouteTrafficManagerPath(),
 		NamespaceScopedArgoRolloutsController: isNamespaceScoped,
@@ -262,7 +295,7 @@ func main() {
 	}
 
 	if err = (&notificationsprovisioner.NotificationsConfigurationReconciler{
-		Client: mgr.GetClient(),
+		Client: client,
 		Scheme: mgr.GetScheme(),
 	}).SetupWithManager(mgr); err != nil {
 		setupLog.Error(err, "unable to create controller", "controller", "Notifications Configuration")
diff --git a/go.mod b/go.mod
index a8adf072bef..e4c396799b0 100644
--- a/go.mod
+++ b/go.mod
@@ -4,7 +4,7 @@ go 1.24.6
 
 require (
 	github.com/argoproj-labs/argo-rollouts-manager v0.0.7-0.20251105123110-0c547c7a7765
-	github.com/argoproj-labs/argocd-operator v0.14.0-rc1.0.20251104052658-38b9581ce39a
+	github.com/argoproj-labs/argocd-operator v0.14.0-rc1.0.20251105202113-2a10f87771b9
 	github.com/argoproj/argo-cd/v3 v3.1.8
 	github.com/argoproj/gitops-engine v0.7.1-0.20250905160054-e48120133eec
 	github.com/go-logr/logr v1.4.3
diff --git a/go.sum b/go.sum
index 893fbdb1275..d0802412d28 100644
--- a/go.sum
+++ b/go.sum
@@ -31,8 +31,8 @@ github.com/anmitsu/go-shlex v0.0.0-20200514113438-38f4b401e2be h1:9AeTilPcZAjCFI
 github.com/anmitsu/go-shlex v0.0.0-20200514113438-38f4b401e2be/go.mod h1:ySMOLuWl6zY27l47sB3qLNK6tF2fkHG55UZxx8oIVo4=
 github.com/argoproj-labs/argo-rollouts-manager v0.0.7-0.20251105123110-0c547c7a7765 h1:zVN+W/nQrRB/kB63YcvcCseuiE//sEzNw6Oa8rqiFOs=
 github.com/argoproj-labs/argo-rollouts-manager v0.0.7-0.20251105123110-0c547c7a7765/go.mod h1:WPyZkNHZjir/OTt8mrRwcUZKe1euHrHPJsRv1Wp/F/0=
-github.com/argoproj-labs/argocd-operator v0.14.0-rc1.0.20251104052658-38b9581ce39a h1:MruEtChFnhTI8Owa1Boqo7BChWxnVRkyhN1/dsg/VgQ=
-github.com/argoproj-labs/argocd-operator v0.14.0-rc1.0.20251104052658-38b9581ce39a/go.mod h1:ABtgKWsvMlUp6Xys8BVi0CHKdT9ZoFP+rYCqRsY0wvg=
+github.com/argoproj-labs/argocd-operator v0.14.0-rc1.0.20251105202113-2a10f87771b9 h1:v/iZr/sGwdHoqIcdSVZKoXaJ/ivv+2u85OFjyNGLDH0=
+github.com/argoproj-labs/argocd-operator v0.14.0-rc1.0.20251105202113-2a10f87771b9/go.mod h1:ABtgKWsvMlUp6Xys8BVi0CHKdT9ZoFP+rYCqRsY0wvg=
 github.com/argoproj/argo-cd/v3 v3.1.8 h1:NkLPiRI5qGkV+q1EN3O7/0Wb9O/MVl62vadKteZqMUw=
 github.com/argoproj/argo-cd/v3 v3.1.8/go.mod h1:ZHb/LOz/hr88VWMJiVTd8DGYL7MheHCAT8S6DgYOBFo=
 github.com/argoproj/gitops-engine v0.7.1-0.20250905160054-e48120133eec h1:rNAwbRQFvRIuW/e2bU+B10mlzghYXsnwZedYeA7Drz4=