diff --git a/cpp/include/cudf/io/parquet.hpp b/cpp/include/cudf/io/parquet.hpp
index 0406d6e3e4c..8bfcacdb47f 100644
--- a/cpp/include/cudf/io/parquet.hpp
+++ b/cpp/include/cudf/io/parquet.hpp
@@ -564,7 +564,7 @@ class parquet_writer_options {
   // Maximum size of min or max values in column index
   int32_t _column_index_truncate_length = default_column_index_truncate_length;
   // When to use dictionary encoding for data
-  dictionary_policy _dictionary_policy = dictionary_policy::ALWAYS;
+  dictionary_policy _dictionary_policy = dictionary_policy::ADAPTIVE;
   // Maximum size of column chunk dictionary (in bytes)
   size_t _max_dictionary_size = default_max_dictionary_size;
   // Maximum number of rows in a page fragment
@@ -1095,7 +1095,7 @@ class parquet_writer_options_builder {
    * dictionary_policy::ALWAYS will allow the use of dictionary encoding even if it will result in
    * the disabling of compression for columns that would otherwise be compressed.
    *
-   * The default value is dictionary_policy::ALWAYS.
+   * The default value is dictionary_policy::ADAPTIVE.
    *
    * @param val policy for dictionary use
    * @return this for chaining
@@ -1258,7 +1258,7 @@ class chunked_parquet_writer_options {
   // Maximum size of min or max values in column index
   int32_t _column_index_truncate_length = default_column_index_truncate_length;
   // When to use dictionary encoding for data
-  dictionary_policy _dictionary_policy = dictionary_policy::ALWAYS;
+  dictionary_policy _dictionary_policy = dictionary_policy::ADAPTIVE;
   // Maximum size of column chunk dictionary (in bytes)
   size_t _max_dictionary_size = default_max_dictionary_size;
   // Maximum number of rows in a page fragment
@@ -1751,7 +1751,7 @@ class chunked_parquet_writer_options_builder {
    * dictionary_policy::ALWAYS will allow the use of dictionary encoding even if it will result in
    * the disabling of compression for columns that would otherwise be compressed.
    *
-   * The default value is dictionary_policy::ALWAYS.
+   * The default value is dictionary_policy::ADAPTIVE.
    *
    * @param val policy for dictionary use
    * @return this for chaining
diff --git a/python/cudf/cudf/_lib/cpp/io/parquet.pxd b/python/cudf/cudf/_lib/cpp/io/parquet.pxd
index 8de16d06a9d..1680eb43700 100644
--- a/python/cudf/cudf/_lib/cpp/io/parquet.pxd
+++ b/python/cudf/cudf/_lib/cpp/io/parquet.pxd
@@ -74,6 +74,7 @@ cdef extern from "cudf/io/parquet.hpp" namespace "cudf::io" nogil:
         size_type get_row_group_size_rows() except +
         size_t get_max_page_size_bytes() except +
         size_type get_max_page_size_rows() except +
+        size_t get_max_dictionary_size() except +
 
         void set_partitions(
             vector[cudf_io_types.partition_info] partitions
@@ -103,8 +104,9 @@ cdef extern from "cudf/io/parquet.hpp" namespace "cudf::io" nogil:
         void set_row_group_size_rows(size_type val) except +
         void set_max_page_size_bytes(size_t val) except +
         void set_max_page_size_rows(size_type val) except +
+        void set_max_dictionary_size(size_t val) except +
         void enable_write_v2_headers(bool val) except +
-        void set_dictionary_policy(cudf_io_types.dictionary_policy policy)except +
+        void set_dictionary_policy(cudf_io_types.dictionary_policy policy) except +
 
         @staticmethod
         parquet_writer_options_builder builder(
@@ -155,6 +157,9 @@ cdef extern from "cudf/io/parquet.hpp" namespace "cudf::io" nogil:
         parquet_writer_options_builder& max_page_size_rows(
             size_type val
         ) except +
+        parquet_writer_options_builder& max_dictionary_size(
+            size_t val
+        ) except +
         parquet_writer_options_builder& write_v2_headers(
             bool val
         ) except +
@@ -179,6 +184,7 @@ cdef extern from "cudf/io/parquet.hpp" namespace "cudf::io" nogil:
         size_type get_row_group_size_rows() except +
         size_t get_max_page_size_bytes() except +
         size_type get_max_page_size_rows() except +
+        size_t get_max_dictionary_size() except +
 
         void set_metadata(
             cudf_io_types.table_input_metadata m
@@ -202,8 +208,9 @@ cdef extern from "cudf/io/parquet.hpp" namespace "cudf::io" nogil:
         void set_row_group_size_rows(size_type val) except +
         void set_max_page_size_bytes(size_t val) except +
         void set_max_page_size_rows(size_type val) except +
+        void set_max_dictionary_size(size_t val) except +
         void enable_write_v2_headers(bool val) except +
-        void set_dictionary_policy(cudf_io_types.dictionary_policy policy)except +
+        void set_dictionary_policy(cudf_io_types.dictionary_policy policy) except +
 
         @staticmethod
         chunked_parquet_writer_options_builder builder(
@@ -245,6 +252,9 @@ cdef extern from "cudf/io/parquet.hpp" namespace "cudf::io" nogil:
         chunked_parquet_writer_options_builder& max_page_size_rows(
             size_type val
         ) except +
+        chunked_parquet_writer_options_builder& max_dictionary_size(
+            size_t val
+        ) except +
         parquet_writer_options_builder& write_v2_headers(
             bool val
         ) except +
diff --git a/python/cudf/cudf/_lib/parquet.pyx b/python/cudf/cudf/_lib/parquet.pyx
index 9ce9aad18f7..dcfa087a1fa 100644
--- a/python/cudf/cudf/_lib/parquet.pyx
+++ b/python/cudf/cudf/_lib/parquet.pyx
@@ -399,6 +399,7 @@ def write_parquet(
     object row_group_size_rows=None,
     object max_page_size_bytes=None,
     object max_page_size_rows=None,
+    object max_dictionary_size=None,
     object partitions_info=None,
     object force_nullable_schema=False,
     header_version="1.0",
@@ -478,7 +479,7 @@ def write_parquet(
         )
 
     dict_policy = (
-        cudf_io_types.dictionary_policy.ALWAYS
+        cudf_io_types.dictionary_policy.ADAPTIVE
         if use_dictionary
         else cudf_io_types.dictionary_policy.NEVER
     )
@@ -528,6 +529,8 @@ def write_parquet(
         args.set_max_page_size_bytes(max_page_size_bytes)
     if max_page_size_rows is not None:
         args.set_max_page_size_rows(max_page_size_rows)
+    if max_dictionary_size is not None:
+        args.set_max_dictionary_size(max_dictionary_size)
 
     with nogil:
         out_metadata_c = move(parquet_writer(args))
@@ -571,7 +574,14 @@ cdef class ParquetWriter:
     max_page_size_rows: int, default 20000
         Maximum number of rows of each page of the output.
         By default, 20000 will be used.
-
+    max_dictionary_size: int, default 1048576
+        Maximum size of the dictionary page for each output column chunk. Dictionary
+        encoding for column chunks that exceeds this limit will be disabled.
+        By default, 1048576 (1MB) will be used.
+    use_dictionary : bool, default True
+        If ``True``, enable dictionary encoding for Parquet page data
+        subject to ``max_dictionary_size`` constraints.
+        If ``False``, disable dictionary encoding for Parquet page data.
     See Also
     --------
     cudf.io.parquet.write_parquet
@@ -588,13 +598,17 @@ cdef class ParquetWriter:
     cdef size_type row_group_size_rows
     cdef size_t max_page_size_bytes
     cdef size_type max_page_size_rows
+    cdef size_t max_dictionary_size
+    cdef cudf_io_types.dictionary_policy dict_policy
 
     def __cinit__(self, object filepath_or_buffer, object index=None,
                   object compression="snappy", str statistics="ROWGROUP",
                   int row_group_size_bytes=_ROW_GROUP_SIZE_BYTES_DEFAULT,
                   int row_group_size_rows=1000000,
                   int max_page_size_bytes=524288,
-                  int max_page_size_rows=20000):
+                  int max_page_size_rows=20000,
+                  int max_dictionary_size=1048576,
+                  bool use_dictionary=True):
         filepaths_or_buffers = (
             list(filepath_or_buffer)
             if is_list_like(filepath_or_buffer)
@@ -609,6 +623,12 @@ cdef class ParquetWriter:
         self.row_group_size_rows = row_group_size_rows
         self.max_page_size_bytes = max_page_size_bytes
         self.max_page_size_rows = max_page_size_rows
+        self.max_dictionary_size = max_dictionary_size
+        self.dict_policy = (
+            cudf_io_types.dictionary_policy.ADAPTIVE
+            if use_dictionary
+            else cudf_io_types.dictionary_policy.NEVER
+        )
 
     def write_table(self, table, object partitions_info=None):
         """ Writes a single table to the file """
@@ -726,8 +746,10 @@ cdef class ParquetWriter:
                 .row_group_size_rows(self.row_group_size_rows)
                 .max_page_size_bytes(self.max_page_size_bytes)
                 .max_page_size_rows(self.max_page_size_rows)
+                .max_dictionary_size(self.max_dictionary_size)
                 .build()
             )
+            args.set_dictionary_policy(self.dict_policy)
             self.writer.reset(new cpp_parquet_chunked_writer(args))
         self.initialized = True
 
diff --git a/python/cudf/cudf/io/parquet.py b/python/cudf/cudf/io/parquet.py
index dd1e59acaaa..a6c67d22af7 100644
--- a/python/cudf/cudf/io/parquet.py
+++ b/python/cudf/cudf/io/parquet.py
@@ -63,6 +63,7 @@ def _write_parquet(
     row_group_size_rows=None,
     max_page_size_bytes=None,
     max_page_size_rows=None,
+    max_dictionary_size=None,
     partitions_info=None,
     storage_options=None,
     force_nullable_schema=False,
@@ -96,6 +97,7 @@ def _write_parquet(
         "row_group_size_rows": row_group_size_rows,
         "max_page_size_bytes": max_page_size_bytes,
         "max_page_size_rows": max_page_size_rows,
+        "max_dictionary_size": max_dictionary_size,
         "partitions_info": partitions_info,
         "force_nullable_schema": force_nullable_schema,
         "header_version": header_version,
@@ -898,6 +900,7 @@ def to_parquet(
     row_group_size_rows=None,
     max_page_size_bytes=None,
     max_page_size_rows=None,
+    max_dictionary_size=None,
     storage_options=None,
     return_metadata=False,
     force_nullable_schema=False,
@@ -974,6 +977,7 @@ def to_parquet(
             row_group_size_rows=row_group_size_rows,
             max_page_size_bytes=max_page_size_bytes,
             max_page_size_rows=max_page_size_rows,
+            max_dictionary_size=max_dictionary_size,
             partitions_info=partition_info,
             storage_options=storage_options,
             force_nullable_schema=force_nullable_schema,
diff --git a/python/cudf/cudf/tests/test_parquet.py b/python/cudf/cudf/tests/test_parquet.py
index cf3c0e7f7a0..3680c1e0c62 100644
--- a/python/cudf/cudf/tests/test_parquet.py
+++ b/python/cudf/cudf/tests/test_parquet.py
@@ -1890,6 +1890,43 @@ def test_parquet_writer_max_page_size(tmpdir, max_page_size_kwargs):
     assert s1 > s2
 
 
+@pytest.mark.parametrize("use_dict", [False, True])
+@pytest.mark.parametrize("max_dict_size", [0, 1048576])
+def test_parquet_writer_dictionary_setting(use_dict, max_dict_size):
+    # Simple test for checking the validity of dictionary encoding setting
+    # and behavior of ParquetWriter in cudf.
+    # Write a table with repetitive data with varying dictionary settings.
+    # Make sure the written columns are dictionary-encoded accordingly.
+
+    # Table with repetitive data
+    table = cudf.DataFrame(
+        {
+            "int32": cudf.Series([1024] * 1024, dtype="int64"),
+        }
+    )
+
+    # Write to Parquet using ParquetWriter
+    buffer = BytesIO()
+    writer = ParquetWriter(
+        buffer,
+        use_dictionary=use_dict,
+        max_dictionary_size=max_dict_size,
+    )
+    writer.write_table(table)
+    writer.close()
+
+    # Read encodings from parquet file
+    got = pq.ParquetFile(buffer)
+    encodings = got.metadata.row_group(0).column(0).encodings
+
+    # Check for `PLAIN_DICTIONARY` encoding if dictionary encoding enabled
+    # and dictionary page limit > 0
+    if use_dict is True and max_dict_size > 0:
+        assert "PLAIN_DICTIONARY" in encodings
+    else:
+        assert "PLAIN_DICTIONARY" not in encodings
+
+
 @pytest.mark.parametrize("filename", ["myfile.parquet", None])
 @pytest.mark.parametrize("cols", [["b"], ["c", "b"]])
 def test_parquet_partitioned(tmpdir_factory, cols, filename):
diff --git a/python/cudf/cudf/utils/ioutils.py b/python/cudf/cudf/utils/ioutils.py
index 9c7c687a6ed..18e81078587 100644
--- a/python/cudf/cudf/utils/ioutils.py
+++ b/python/cudf/cudf/utils/ioutils.py
@@ -278,6 +278,10 @@
 max_page_size_rows: integer or None, default None
     Maximum number of rows of each page of the output.
     If None, 20000 will be used.
+max_dictionary_size: integer or None, default None
+    Maximum size of the dictionary page for each output column chunk. Dictionary
+    encoding for column chunks that exceeds this limit will be disabled.
+    If None, 1048576 (1MB) will be used.
 storage_options : dict, optional, default None
     Extra options that make sense for a particular storage connection,
     e.g. host, port, username, password, etc. For HTTP(S) URLs the key-value
@@ -292,8 +296,8 @@
     ``return_metadata=True`` instead of specifying ``metadata_file_path``
 use_dictionary : bool, default True
     When ``False``, prevents the use of dictionary encoding for Parquet page
-    data. When ``True``, dictionary encoding is preferred when not disabled due
-    to dictionary size constraints.
+    data. When ``True``, dictionary encoding is preferred subject to
+    ``max_dictionary_size`` constraints.
 header_version : {{'1.0', '2.0'}}, default "1.0"
     Controls whether to use version 1.0 or version 2.0 page headers when
     encoding. Version 1.0 is more portable, but version 2.0 enables the