diff --git a/aws_xray_sdk/__init__.py b/aws_xray_sdk/__init__.py
index e69de29b..79ee3c82 100644
--- a/aws_xray_sdk/__init__.py
+++ b/aws_xray_sdk/__init__.py
@@ -0,0 +1,3 @@
+from .sdk_config import SDKConfig
+
+global_sdk_config = SDKConfig()
diff --git a/aws_xray_sdk/core/lambda_launcher.py b/aws_xray_sdk/core/lambda_launcher.py
index 0b0558be..79ab8338 100644
--- a/aws_xray_sdk/core/lambda_launcher.py
+++ b/aws_xray_sdk/core/lambda_launcher.py
@@ -2,11 +2,11 @@
 import logging
 import threading
 
+from aws_xray_sdk import global_sdk_config
 from .models.facade_segment import FacadeSegment
 from .models.trace_header import TraceHeader
 from .context import Context
 
-
 log = logging.getLogger(__name__)
 
 
@@ -71,7 +71,8 @@ def put_subsegment(self, subsegment):
         current_entity = self.get_trace_entity()
 
         if not self._is_subsegment(current_entity) and current_entity.initializing:
-            log.warning("Subsegment %s discarded due to Lambda worker still initializing" % subsegment.name)
+            if sdk_config_module.sdk_enabled():
+                log.warning("Subsegment %s discarded due to Lambda worker still initializing" % subsegment.name)
             return
 
         current_entity.add_subsegment(subsegment)
@@ -93,6 +94,9 @@ def _refresh_context(self):
         """
         header_str = os.getenv(LAMBDA_TRACE_HEADER_KEY)
         trace_header = TraceHeader.from_header_str(header_str)
+        if not global_sdk_config.sdk_enabled():
+            trace_header._sampled = False
+
         segment = getattr(self._local, 'segment', None)
 
         if segment:
@@ -124,7 +128,10 @@ def _initialize_context(self, trace_header):
         set by AWS Lambda and initialize storage for subsegments.
         """
         sampled = None
-        if trace_header.sampled == 0:
+        if not global_sdk_config.sdk_enabled():
+            # Force subsequent subsegments to be disabled and turned into DummySegments.
+            sampled = False
+        elif trace_header.sampled == 0:
             sampled = False
         elif trace_header.sampled == 1:
             sampled = True
diff --git a/aws_xray_sdk/core/patcher.py b/aws_xray_sdk/core/patcher.py
index 9d6caff2..622e2e03 100644
--- a/aws_xray_sdk/core/patcher.py
+++ b/aws_xray_sdk/core/patcher.py
@@ -7,6 +7,7 @@
 import sys
 import wrapt
 
+from aws_xray_sdk import global_sdk_config
 from .utils.compat import PY2, is_classmethod, is_instance_method
 
 log = logging.getLogger(__name__)
@@ -62,6 +63,10 @@ def _is_valid_import(module):
 
 
 def patch(modules_to_patch, raise_errors=True, ignore_module_patterns=None):
+    enabled = global_sdk_config.sdk_enabled()
+    if not enabled:
+        log.debug("Skipped patching modules %s because the SDK is currently disabled." % ', '.join(modules_to_patch))
+        return  # Disable module patching if the SDK is disabled.
     modules = set()
     for module_to_patch in modules_to_patch:
         # boto3 depends on botocore and patching botocore is sufficient
diff --git a/aws_xray_sdk/core/recorder.py b/aws_xray_sdk/core/recorder.py
index 4e94b60c..b953cece 100644
--- a/aws_xray_sdk/core/recorder.py
+++ b/aws_xray_sdk/core/recorder.py
@@ -5,6 +5,7 @@
 import platform
 import time
 
+from aws_xray_sdk import global_sdk_config
 from aws_xray_sdk.version import VERSION
 from .models.segment import Segment, SegmentContextManager
 from .models.subsegment import Subsegment, SubsegmentContextManager
@@ -18,7 +19,7 @@
 from .daemon_config import DaemonConfig
 from .plugins.utils import get_plugin_modules
 from .lambda_launcher import check_in_lambda
-from .exceptions.exceptions import SegmentNameMissingException
+from .exceptions.exceptions import SegmentNameMissingException, SegmentNotFoundException
 from .utils.compat import string_types
 from .utils import stacktrace
 
@@ -88,7 +89,6 @@ def configure(self, sampling=None, plugins=None,
 
         Configure needs to run before patching thrid party libraries
         to avoid creating dangling subsegment.
-
         :param bool sampling: If sampling is enabled, every time the recorder
             creates a segment it decides whether to send this segment to
             the X-Ray daemon. This setting is not used if the recorder
@@ -138,6 +138,7 @@ class to have your own implementation of the streaming process.
         and AWS_XRAY_TRACING_NAME respectively overrides arguments
         daemon_address, context_missing and service.
         """
+
         if sampling is not None:
             self.sampling = sampling
         if sampler:
@@ -219,6 +220,12 @@ def begin_segment(self, name=None, traceid=None,
         # depending on if centralized or local sampling rule takes effect.
         decision = True
 
+        # To disable the recorder, we set the sampling decision to always be false.
+        # This way, when segments are generated, they become dummy segments and are ultimately never sent.
+        # The call to self._sampler.should_trace() is never called either so the poller threads are never started.
+        if not global_sdk_config.sdk_enabled():
+            sampling = 0
+
         # we respect the input sampling decision
         # regardless of recorder configuration.
         if sampling == 0:
@@ -273,6 +280,7 @@ def begin_subsegment(self, name, namespace='local'):
         :param str name: the name of the subsegment.
         :param str namespace: currently can only be 'local', 'remote', 'aws'.
         """
+
         segment = self.current_segment()
         if not segment:
             log.warning("No segment found, cannot begin subsegment %s." % name)
@@ -396,6 +404,16 @@ def capture(self, name=None):
     def record_subsegment(self, wrapped, instance, args, kwargs, name,
                           namespace, meta_processor):
 
+        # In the case when the SDK is disabled, we ensure that a parent segment exists, because this is usually
+        # handled by the middleware. We generate a dummy segment as the parent segment if one doesn't exist.
+        # This is to allow potential segment method calls to not throw exceptions in the captured method.
+        if not global_sdk_config.sdk_enabled():
+            try:
+                self.current_segment()
+            except SegmentNotFoundException:
+                segment = DummySegment(name)
+                self.context.put_segment(segment)
+
         subsegment = self.begin_subsegment(name, namespace)
 
         exception = None
@@ -473,6 +491,14 @@ def _is_subsegment(self, entity):
 
         return (hasattr(entity, 'type') and entity.type == 'subsegment')
 
+    @property
+    def enabled(self):
+        return self._enabled
+
+    @enabled.setter
+    def enabled(self, value):
+        self._enabled = value
+
     @property
     def sampling(self):
         return self._sampling
diff --git a/aws_xray_sdk/core/sampling/sampler.py b/aws_xray_sdk/core/sampling/sampler.py
index d5d03818..8c09d59b 100644
--- a/aws_xray_sdk/core/sampling/sampler.py
+++ b/aws_xray_sdk/core/sampling/sampler.py
@@ -9,6 +9,7 @@
 from .target_poller import TargetPoller
 from .connector import ServiceConnector
 from .reservoir import ReservoirDecision
+from aws_xray_sdk import global_sdk_config
 
 log = logging.getLogger(__name__)
 
@@ -37,6 +38,9 @@ def start(self):
         Start rule poller and target poller once X-Ray daemon address
         and context manager is in place.
         """
+        if not global_sdk_config.sdk_enabled():
+            return
+
         with self._lock:
             if not self._started:
                 self._rule_poller.start()
@@ -51,6 +55,9 @@ def should_trace(self, sampling_req=None):
         All optional arguments are extracted from incoming requests by
         X-Ray middleware to perform path based sampling.
         """
+        if not global_sdk_config.sdk_enabled():
+            return False
+
         if not self._started:
             self.start() # only front-end that actually uses the sampler spawns poller threads
 
diff --git a/aws_xray_sdk/sdk_config.py b/aws_xray_sdk/sdk_config.py
new file mode 100644
index 00000000..350ad5fa
--- /dev/null
+++ b/aws_xray_sdk/sdk_config.py
@@ -0,0 +1,58 @@
+import os
+import logging
+
+log = logging.getLogger(__name__)
+
+
+class SDKConfig(object):
+    """
+    Global Configuration Class that defines SDK-level configuration properties.
+
+    Enabling/Disabling the SDK:
+        By default, the SDK is enabled unless if an environment variable AWS_XRAY_SDK_ENABLED
+            is set. If it is set, it needs to be a valid string boolean, otherwise, it will default
+            to true. If the environment variable is set, all calls to set_sdk_enabled() will
+            prioritize the value of the environment variable.
+        Disabling the SDK affects the recorder, patcher, and middlewares in the following ways:
+        For the recorder, disabling automatically generates DummySegments for subsequent segments
+            and DummySubsegments for subsegments created and thus not send any traces to the daemon.
+        For the patcher, module patching will automatically be disabled. The SDK must be disabled
+            before calling patcher.patch() method in order for this to function properly.
+        For the middleware, no modification is made on them, but since the recorder automatically
+            generates DummySegments for all subsequent calls, they will not generate segments/subsegments
+            to be sent.
+
+    Environment variables:
+        "AWS_XRAY_SDK_ENABLED" - If set to 'false' disables the SDK and causes the explained above
+            to occur.
+    """
+    XRAY_ENABLED_KEY = 'AWS_XRAY_SDK_ENABLED'
+    __SDK_ENABLED = str(os.getenv(XRAY_ENABLED_KEY, 'true')).lower() != 'false'
+
+    @classmethod
+    def sdk_enabled(cls):
+        """
+        Returns whether the SDK is enabled or not.
+        """
+        return cls.__SDK_ENABLED
+
+    @classmethod
+    def set_sdk_enabled(cls, value):
+        """
+        Modifies the enabled flag if the "AWS_XRAY_SDK_ENABLED" environment variable is not set,
+        otherwise, set the enabled flag to be equal to the environment variable. If the
+        env variable is an invalid string boolean, it will default to true.
+
+        :param bool value: Flag to set whether the SDK is enabled or disabled.
+
+        Environment variables AWS_XRAY_SDK_ENABLED overrides argument value.
+        """
+        # Environment Variables take precedence over hardcoded configurations.
+        if cls.XRAY_ENABLED_KEY in os.environ:
+            cls.__SDK_ENABLED = str(os.getenv(cls.XRAY_ENABLED_KEY, 'true')).lower() != 'false'
+        else:
+            if type(value) == bool:
+                cls.__SDK_ENABLED = value
+            else:
+                cls.__SDK_ENABLED = True
+                log.warning("Invalid parameter type passed into set_sdk_enabled(). Defaulting to True...")
diff --git a/tests/ext/aiohttp/test_middleware.py b/tests/ext/aiohttp/test_middleware.py
index e58848d8..c8b23335 100644
--- a/tests/ext/aiohttp/test_middleware.py
+++ b/tests/ext/aiohttp/test_middleware.py
@@ -4,6 +4,7 @@
 Expects pytest-aiohttp
 """
 import asyncio
+from aws_xray_sdk import global_sdk_config
 from unittest.mock import patch
 
 from aiohttp import web
@@ -109,6 +110,7 @@ def recorder(loop):
 
     xray_recorder.clear_trace_entities()
     yield xray_recorder
+    global_sdk_config.set_sdk_enabled(True)
     xray_recorder.clear_trace_entities()
     patcher.stop()
 
@@ -283,3 +285,21 @@ async def get_delay():
     # Ensure all ID's are different
     ids = [item.id for item in recorder.emitter.local]
     assert len(ids) == len(set(ids))
+
+
+async def test_disabled_sdk(test_client, loop, recorder):
+    """
+    Test a normal response when the SDK is disabled.
+
+    :param test_client: AioHttp test client fixture
+    :param loop: Eventloop fixture
+    :param recorder: X-Ray recorder fixture
+    """
+    global_sdk_config.set_sdk_enabled(False)
+    client = await test_client(ServerTest.app(loop=loop))
+
+    resp = await client.get('/')
+    assert resp.status == 200
+
+    segment = recorder.emitter.pop()
+    assert not segment
diff --git a/tests/ext/django/test_middleware.py b/tests/ext/django/test_middleware.py
index 66e96488..a0128b7c 100644
--- a/tests/ext/django/test_middleware.py
+++ b/tests/ext/django/test_middleware.py
@@ -1,4 +1,5 @@
 import django
+from aws_xray_sdk import global_sdk_config
 from django.core.urlresolvers import reverse
 from django.test import TestCase
 
@@ -14,6 +15,7 @@ def setUp(self):
         xray_recorder.configure(context=Context(),
                                 context_missing='LOG_ERROR')
         xray_recorder.clear_trace_entities()
+        global_sdk_config.set_sdk_enabled(True)
 
     def tearDown(self):
         xray_recorder.clear_trace_entities()
@@ -102,3 +104,10 @@ def test_response_header(self):
 
         assert 'Sampled=1' in trace_header
         assert segment.trace_id in trace_header
+
+    def test_disabled_sdk(self):
+        global_sdk_config.set_sdk_enabled(False)
+        url = reverse('200ok')
+        self.client.get(url)
+        segment = xray_recorder.emitter.pop()
+        assert not segment
diff --git a/tests/ext/flask/test_flask.py b/tests/ext/flask/test_flask.py
index 3b435028..07c8d42c 100644
--- a/tests/ext/flask/test_flask.py
+++ b/tests/ext/flask/test_flask.py
@@ -1,6 +1,7 @@
 import pytest
 from flask import Flask, render_template_string
 
+from aws_xray_sdk import global_sdk_config
 from aws_xray_sdk.ext.flask.middleware import XRayMiddleware
 from aws_xray_sdk.core.context import Context
 from aws_xray_sdk.core.models import http
@@ -51,6 +52,7 @@ def cleanup():
     recorder.clear_trace_entities()
     yield
     recorder.clear_trace_entities()
+    global_sdk_config.set_sdk_enabled(True)
 
 
 def test_ok():
@@ -143,3 +145,11 @@ def test_sampled_response_header():
     resp_header = resp.headers[http.XRAY_HEADER]
     assert segment.trace_id in resp_header
     assert 'Sampled=1' in resp_header
+
+
+def test_disabled_sdk():
+    global_sdk_config.set_sdk_enabled(False)
+    path = '/ok'
+    app.get(path)
+    segment = recorder.emitter.pop()
+    assert not segment
diff --git a/tests/test_lambda_context.py b/tests/test_lambda_context.py
index 0bfec7b4..90f405e8 100644
--- a/tests/test_lambda_context.py
+++ b/tests/test_lambda_context.py
@@ -1,5 +1,7 @@
 import os
 
+from aws_xray_sdk import global_sdk_config
+import pytest
 from aws_xray_sdk.core import lambda_launcher
 from aws_xray_sdk.core.models.subsegment import Subsegment
 
@@ -12,6 +14,12 @@
 context = lambda_launcher.LambdaContext()
 
 
+@pytest.fixture(autouse=True)
+def setup():
+    yield
+    global_sdk_config.set_sdk_enabled(True)
+
+
 def test_facade_segment_generation():
 
     segment = context.get_trace_entity()
@@ -41,3 +49,14 @@ def test_put_subsegment():
 
     context.end_subsegment()
     assert context.get_trace_entity().id == segment.id
+
+
+def test_disable():
+    context.clear_trace_entities()
+    segment = context.get_trace_entity()
+    assert segment.sampled
+
+    context.clear_trace_entities()
+    global_sdk_config.set_sdk_enabled(False)
+    segment = context.get_trace_entity()
+    assert not segment.sampled
diff --git a/tests/test_patcher.py b/tests/test_patcher.py
index 944d1aad..f9651401 100644
--- a/tests/test_patcher.py
+++ b/tests/test_patcher.py
@@ -13,6 +13,7 @@
         # Python versions < 3 have reload built-in
         pass
 
+from aws_xray_sdk import global_sdk_config
 from aws_xray_sdk.core import patcher, xray_recorder
 from aws_xray_sdk.core.context import Context
 
@@ -40,6 +41,7 @@ def construct_ctx():
     yield
     xray_recorder.end_segment()
     xray_recorder.clear_trace_entities()
+    global_sdk_config.set_sdk_enabled(True)
 
     # Reload wrapt.importer references to modules to start off clean
     reload(wrapt)
@@ -172,3 +174,11 @@ def test_external_submodules_ignores_module():
     assert xray_recorder.current_segment().subsegments[0].name == 'mock_init'
     assert xray_recorder.current_segment().subsegments[1].name == 'mock_func'
     assert xray_recorder.current_segment().subsegments[2].name == 'mock_no_doublepatch'  # It is patched with decorator
+
+
+def test_disable_sdk_disables_patching():
+    global_sdk_config.set_sdk_enabled(False)
+    patcher.patch(['tests.mock_module'])
+    imported_modules = [module for module in TEST_MODULES if module in sys.modules]
+    assert not imported_modules
+    assert len(xray_recorder.current_segment().subsegments) == 0
diff --git a/tests/test_recorder.py b/tests/test_recorder.py
index ebe5a1c9..76c9415c 100644
--- a/tests/test_recorder.py
+++ b/tests/test_recorder.py
@@ -5,6 +5,11 @@
 from aws_xray_sdk.version import VERSION
 from .util import get_new_stubbed_recorder
 
+from aws_xray_sdk import global_sdk_config
+from aws_xray_sdk.core.models.segment import Segment
+from aws_xray_sdk.core.models.subsegment import Subsegment
+from aws_xray_sdk.core.models.dummy_entities import DummySegment, DummySubsegment
+
 xray_recorder = get_new_stubbed_recorder()
 
 
@@ -17,6 +22,7 @@ def construct_ctx():
     xray_recorder.clear_trace_entities()
     yield
     xray_recorder.clear_trace_entities()
+    global_sdk_config.set_sdk_enabled(True)
 
 
 def test_default_runtime_context():
@@ -168,6 +174,22 @@ def test_in_segment_exception():
     assert len(subsegment.cause['exceptions']) == 1
 
 
+def test_default_enabled():
+    assert global_sdk_config.sdk_enabled()
+    segment = xray_recorder.begin_segment('name')
+    subsegment = xray_recorder.begin_subsegment('name')
+    assert type(xray_recorder.current_segment()) is Segment
+    assert type(xray_recorder.current_subsegment()) is Subsegment
+
+
+def test_disable_is_dummy():
+    global_sdk_config.set_sdk_enabled(False)
+    segment = xray_recorder.begin_segment('name')
+    subsegment = xray_recorder.begin_subsegment('name')
+    assert type(xray_recorder.current_segment()) is DummySegment
+    assert type(xray_recorder.current_subsegment()) is DummySubsegment
+
+
 def test_max_stack_trace_zero():
     xray_recorder.configure(max_trace_back=1)
     with pytest.raises(Exception):
diff --git a/tests/test_sdk_config.py b/tests/test_sdk_config.py
new file mode 100644
index 00000000..81569456
--- /dev/null
+++ b/tests/test_sdk_config.py
@@ -0,0 +1,80 @@
+from aws_xray_sdk import global_sdk_config
+import os
+import pytest
+
+
+XRAY_ENABLED_KEY = "AWS_XRAY_SDK_ENABLED"
+
+
+@pytest.fixture(autouse=True)
+def cleanup():
+    """
+    Clean up Environmental Variable for enable before and after tests
+    """
+    if XRAY_ENABLED_KEY in os.environ:
+        del os.environ[XRAY_ENABLED_KEY]
+    yield
+    if XRAY_ENABLED_KEY in os.environ:
+        del os.environ[XRAY_ENABLED_KEY]
+    global_sdk_config.set_sdk_enabled(True)
+
+
+def test_enable_key():
+    assert global_sdk_config.XRAY_ENABLED_KEY == XRAY_ENABLED_KEY
+
+
+def test_default_enabled():
+    assert global_sdk_config.sdk_enabled() is True
+
+
+def test_env_var_precedence():
+    os.environ[XRAY_ENABLED_KEY] = "true"
+    # Env Variable takes precedence. This is called to activate the internal check
+    global_sdk_config.set_sdk_enabled(False)
+    assert global_sdk_config.sdk_enabled() is True
+    os.environ[XRAY_ENABLED_KEY] = "false"
+    global_sdk_config.set_sdk_enabled(False)
+    assert global_sdk_config.sdk_enabled() is False
+    os.environ[XRAY_ENABLED_KEY] = "false"
+    global_sdk_config.set_sdk_enabled(True)
+    assert global_sdk_config.sdk_enabled() is False
+    os.environ[XRAY_ENABLED_KEY] = "true"
+    global_sdk_config.set_sdk_enabled(True)
+    assert global_sdk_config.sdk_enabled() is True
+    os.environ[XRAY_ENABLED_KEY] = "true"
+    global_sdk_config.set_sdk_enabled(None)
+    assert global_sdk_config.sdk_enabled() is True
+
+
+def test_env_enable_case():
+    os.environ[XRAY_ENABLED_KEY] = "TrUE"
+    # Env Variable takes precedence. This is called to activate the internal check
+    global_sdk_config.set_sdk_enabled(True)
+    assert global_sdk_config.sdk_enabled() is True
+
+    os.environ[XRAY_ENABLED_KEY] = "true"
+    global_sdk_config.set_sdk_enabled(True)
+    assert global_sdk_config.sdk_enabled() is True
+
+    os.environ[XRAY_ENABLED_KEY] = "False"
+    global_sdk_config.set_sdk_enabled(True)
+    assert global_sdk_config.sdk_enabled() is False
+
+    os.environ[XRAY_ENABLED_KEY] = "falSE"
+    global_sdk_config.set_sdk_enabled(True)
+    assert global_sdk_config.sdk_enabled() is False
+
+
+def test_invalid_env_string():
+    os.environ[XRAY_ENABLED_KEY] = "INVALID"
+    # Env Variable takes precedence. This is called to activate the internal check
+    global_sdk_config.set_sdk_enabled(True)
+    assert global_sdk_config.sdk_enabled() is True
+
+    os.environ[XRAY_ENABLED_KEY] = "1.0"
+    global_sdk_config.set_sdk_enabled(True)
+    assert global_sdk_config.sdk_enabled() is True
+
+    os.environ[XRAY_ENABLED_KEY] = "1-.0"
+    global_sdk_config.set_sdk_enabled(False)
+    assert global_sdk_config.sdk_enabled() is True