diff --git a/src/gt4py/next/program_processors/runners/dace/transformations/auto_optimize.py b/src/gt4py/next/program_processors/runners/dace/transformations/auto_optimize.py
index 1d04c21fc3..91aba1ba4c 100644
--- a/src/gt4py/next/program_processors/runners/dace/transformations/auto_optimize.py
+++ b/src/gt4py/next/program_processors/runners/dace/transformations/auto_optimize.py
@@ -15,6 +15,7 @@
 import dace
 from dace import data as dace_data
 from dace.sdfg import nodes as dace_nodes, propagation as dace_propagation, utils as dace_sdutils
+from dace.transformation import dataflow as dace_dataflow
 from dace.transformation.auto import auto_optimize as dace_aoptimize
 from dace.transformation.passes import analysis as dace_analysis
 
@@ -130,6 +131,7 @@ def gt_auto_optimize(
     assume_pointwise: bool = True,
     optimization_hooks: Optional[dict[GT4PyAutoOptHook, GT4PyAutoOptHookFun]] = None,
     demote_fields: Optional[list[str]] = None,
+    fuse_tasklets: bool = False,
     validate: bool = True,
     validate_all: bool = False,
     **kwargs: Any,
@@ -197,6 +199,7 @@ def gt_auto_optimize(
             see `GT4PyAutoOptHook` for more information.
         demote_fields: Consider these fields as transients for the purpose of optimization.
             Use at your own risk. See Notes for all implications.
+        fuse_tasklets: Reduces the number of Tasklets by fusing them.
         validate: Perform validation during the steps.
         validate_all: Perform extensive validation.
 
@@ -324,6 +327,7 @@ def gt_auto_optimize(
             blocking_only_if_independent_nodes=blocking_only_if_independent_nodes,
             scan_loop_unrolling=scan_loop_unrolling,
             scan_loop_unrolling_factor=scan_loop_unrolling_factor,
+            fuse_tasklets=fuse_tasklets,
             validate_all=validate_all,
         )
 
@@ -660,6 +664,7 @@ def _gt_auto_process_dataflow_inside_maps(
     blocking_only_if_independent_nodes: Optional[bool],
     scan_loop_unrolling: bool,
     scan_loop_unrolling_factor: int,
+    fuse_tasklets: bool,
     validate_all: bool,
 ) -> dace.SDFG:
     """Optimizes the dataflow inside the top level Maps of the SDFG inplace.
@@ -674,6 +679,35 @@ def _gt_auto_process_dataflow_inside_maps(
     time, so the compiler will fully unroll them anyway.
     """
 
+    # Separate Tasklets into dependent and independent parts to promote data
+    #  reusability. It is important that this step has to be performed before
+    #  `TaskletFusion` is used.
+    if blocking_dim is not None:
+        sdfg.apply_transformations_once_everywhere(
+            gtx_transformations.LoopBlocking(
+                blocking_size=blocking_size,
+                blocking_parameter=blocking_dim,
+                require_independent_nodes=blocking_only_if_independent_nodes,
+            ),
+            validate=False,
+            validate_all=validate_all,
+        )
+
+    # Merge Tasklets into bigger ones.
+    # NOTE: Empirical observation for Graupel have shown that this leads to an increase
+    #   in performance, however, it has to be run before `GT4PyMoveTaskletIntoMap`
+    #   (not fully clear why though, probably a compiler artefact) and as well as
+    #   `MoveDataflowIntoIfBody` (not fully clear either, it `TaskletFusion` makes
+    #   things simpler or prevent it from doing certain, negative, things).
+    # TODO(phimuell): Investigate more.
+    # TODO(phimuell): Restrict it to Tasklets only inside Maps.
+    if fuse_tasklets:
+        sdfg.apply_transformations_repeated(
+            dace_dataflow.TaskletFusion,
+            validate=False,
+            validate_all=validate_all,
+        )
+
     # Constants (tasklets are needed to write them into a variable) should not be
     #  arguments to a kernel but be present inside the body.
     sdfg.apply_transformations_once_everywhere(
@@ -681,6 +715,8 @@ def _gt_auto_process_dataflow_inside_maps(
         validate=False,
         validate_all=validate_all,
     )
+
+    # TODO(phimuell): figuring out if this is needed?
     gtx_transformations.gt_simplify(
         sdfg,
         skip=gtx_transformations.constants._GT_AUTO_OPT_INNER_DATAFLOW_STAGE_SIMPLIFY_SKIP_LIST,
@@ -688,19 +724,6 @@ def _gt_auto_process_dataflow_inside_maps(
         validate_all=validate_all,
     )
 
-    # Blocking is performed first, because this ensures that as much as possible
-    #  is moved into the k independent part.
-    if blocking_dim is not None:
-        sdfg.apply_transformations_once_everywhere(
-            gtx_transformations.LoopBlocking(
-                blocking_size=blocking_size,
-                blocking_parameter=blocking_dim,
-                require_independent_nodes=blocking_only_if_independent_nodes,
-            ),
-            validate=False,
-            validate_all=validate_all,
-        )
-
     # Move dataflow into the branches of the `if` such that they are only evaluated
     #  if they are needed. Important to call it repeatedly.
     # TODO(phimuell): It is unclear if `MoveDataflowIntoIfBody` should be called
@@ -714,6 +737,8 @@ def _gt_auto_process_dataflow_inside_maps(
         validate=False,
         validate_all=validate_all,
     )
+
+    # TODO(phimuell): figuring out if this is needed?
     gtx_transformations.gt_simplify(
         sdfg,
         skip=gtx_transformations.constants._GT_AUTO_OPT_INNER_DATAFLOW_STAGE_SIMPLIFY_SKIP_LIST,