diff --git a/src/common-utils/devcontainer-feature.json b/src/common-utils/devcontainer-feature.json
index 3fa6487df..715f5a55c 100644
--- a/src/common-utils/devcontainer-feature.json
+++ b/src/common-utils/devcontainer-feature.json
@@ -64,6 +64,31 @@
             "type": "boolean",
             "default": false,
             "description": "Add packages from non-free Debian repository? (Debian only)"
+        },
+        "allowShellHistory": {
+            "type": "boolean",
+            "default": false,
+            "description": "Preserve shell history across dev container instances? (Currently supports bash, zsh, and fish)"
         }
-    }
-}
+    },
+    "containerEnv": {
+        "DOCKER_BUILDKIT": "1"
+    },
+    "postCreateCommand": "export DEVCONTAINER_ID=${devcontainerId} && . /etc/setup_history.sh",
+    "mounts": [{
+        "source": "devcontainers",
+        "target": "/devcontainers",
+        "type": "volume"
+    },
+    {
+        "source": "dind-var-lib-docker-${devcontainerId}",
+        "target": "/var/lib/docker",
+        "type": "volume"
+    },
+    {
+        "source": "/var/run/docker.sock",
+        "target": "/var/run/docker.sock",
+        "type": "bind"
+    }],
+    "entrypoint": "/usr/local/share/docker-init.sh"
+}   
diff --git a/src/common-utils/main.sh b/src/common-utils/main.sh
index b5fe11f57..19f28bade 100644
--- a/src/common-utils/main.sh
+++ b/src/common-utils/main.sh
@@ -18,6 +18,7 @@ USERNAME="${USERNAME:-"automatic"}"
 USER_UID="${USERUID:-"automatic"}"
 USER_GID="${USERGID:-"automatic"}"
 ADD_NON_FREE_PACKAGES="${NONFREEPACKAGES:-"false"}"
+ALLOW_SHELL_HISTORY="${ALLOWSHELLHISTORY:-"false"}"
 
 MARKER_FILE="/usr/local/etc/vscode-dev-containers/common"
 
@@ -567,6 +568,20 @@ if [ "${INSTALL_ZSH}" = "true" ]; then
     fi
 fi
 
+# *********************************
+# ** Enable shell history **
+# *********************************
+
+echo export ALLOW_SHELL_HISTORY="${ALLOW_SHELL_HISTORY}" > /etc/env.sh
+echo export user_home="${user_home}" >> /etc/env.sh
+echo export USERNAME="${USERNAME}" >> /etc/env.sh
+
+chown "$USERNAME":"$USERNAME" "/etc/env.sh"
+chmod u+rx "/etc/env.sh"
+
+cp -f "${FEATURE_DIR}/scripts/setup_history.sh" /etc/setup_history.sh
+chmod +x /etc/setup_history.sh
+
 # *********************************
 # ** Ensure config directory **
 # *********************************
diff --git a/src/common-utils/scripts/setup_history.sh b/src/common-utils/scripts/setup_history.sh
new file mode 100755
index 000000000..8c8c9bf78
--- /dev/null
+++ b/src/common-utils/scripts/setup_history.sh
@@ -0,0 +1,44 @@
+#!/bin/sh
+
+set -e
+
+# Source the environment variables from env.sh
+if [ -f /etc/env.sh ]; then
+    echo "importing values from env.sh.."
+    . /etc/env.sh
+else
+    echo "env.sh not found!"
+fi
+
+if [ "${ALLOW_SHELL_HISTORY}" = "true" ]; then
+    echo "Activating feature 'shell-history'"
+    echo "User: ${USERNAME}     User home: ${user_home}"
+
+    echo "Creating sub-folder with ${DEVCONTAINER_ID}.."
+
+    # Create the shell history directory in the mounted volume
+    BASE_HISTORY_DIR="/devcontainers"
+    HISTORY_DIR="${BASE_HISTORY_DIR}/${DEVCONTAINER_ID}/shellHistory"
+    USER_HISTORY_FILE="${user_home}/.bash_history"
+    VOLUME_HISTORY_FILE="${HISTORY_DIR}/.bash_history"
+
+    # Create the history directory in the volume, if it doesn’t already exist
+    sudo mkdir -p "${HISTORY_DIR}"
+    sudo chown -R "${USERNAME}" "${HISTORY_DIR}"
+    sudo chmod -R u+rwx "${HISTORY_DIR}"
+
+    # Ensure the volume's history file exists and set permissions
+    sudo touch "${VOLUME_HISTORY_FILE}"
+    sudo chown -R "${USERNAME}" "${VOLUME_HISTORY_FILE}"
+    sudo chmod -R u+rwx "${VOLUME_HISTORY_FILE}"
+
+    # Symlink for Bash history
+    sudo ln -sf ${USER_HISTORY_FILE} ${VOLUME_HISTORY_FILE}
+
+    # Configure immediate history saving to the volume
+    if ! grep -q "PROMPT_COMMAND" "${user_home}/.bashrc"; then
+        echo 'PROMPT_COMMAND="history -a; history -r;"' >> "${user_home}/.bashrc"
+    fi
+
+    echo "Shell history setup for history persistence amongst active containers is complete."
+fi
diff --git a/test/common-utils/allow_shell_history.sh b/test/common-utils/allow_shell_history.sh
new file mode 100644
index 000000000..efe4449e6
--- /dev/null
+++ b/test/common-utils/allow_shell_history.sh
@@ -0,0 +1,124 @@
+#!/bin/bash
+
+set -e
+
+# Optional: Import test library
+source dev-container-features-test-lib
+
+# Name of the generated script file
+SCRIPT_NAME="build_and_run.sh"
+
+# Dynamically write the script to a file
+cat > $SCRIPT_NAME <<'EOF'
+#!/bin/bash
+
+# Parameters
+BASE_IMAGE=${1:-"ubuntu:latest"}
+IMAGE_NAME=${2:-"custom-image"}
+
+cat > setup_history.sh <<EOL
+#!/bin/sh
+
+set -e
+
+echo "Activating feature 'shell-history'"
+echo "User: vscode     User home: /home/vscode"
+
+echo "Creating sub-folder with random folder named python-app.."
+
+# Create the shell history directory in the mounted volume
+HISTORY_DIR=/devcontainers/python-app/shellHistory
+USER_HISTORY_FILE=/home/vscode/.bash_history
+VOLUME_HISTORY_FILE=/devcontainers/python-app/shellHistory/.bash_history
+
+# Create the history directory in the volume, if it doesn’t already exist
+sudo mkdir -p /devcontainers/python-app/shellHistory
+sudo chown -R vscode /devcontainers/python-app/shellHistory
+sudo chmod -R u+rwx /devcontainers/python-app/shellHistory
+
+# Ensure the volume's history file exists and set permissions
+sudo touch /devcontainers/python-app/shellHistory/.bash_history
+sudo chown -R vscode /devcontainers/python-app/shellHistory/.bash_history
+sudo chmod -R u+rwx /devcontainers/python-app/shellHistory/.bash_history
+
+# Symlink for Bash history
+sudo ln -sf /home/vscode/.bash_history /devcontainers/python-app/shellHistory/.bash_history
+
+# Configure immediate history saving to the volume
+if ! grep -q "PROMPT_COMMAND" "/home/vscode/.bashrc"; then
+    echo 'PROMPT_COMMAND="history -a; history -r;"' >> "/home/vscode/.bashrc"
+fi
+
+echo "Shell history setup for history persistence amongst active containers is complete."
+EOL
+
+# Create entrypoint script
+cat > entrypoint.sh <<EOL
+#!/bin/bash
+
+# Log entrypoint execution
+echo "Executing entrypoint script..." > /var/log/entrypoint.log
+
+# Execute setup history script
+chmod +x /usr/local/bin/setup_history.sh >> /var/log/entrypoint.log 2>&1
+/usr/local/bin/setup_history.sh >> /var/log/entrypoint.log 2>&1
+
+# Keep the container running
+tail -f /dev/null
+EOL
+
+# Create Dockerfile
+cat > Dockerfile <<EOL
+FROM $BASE_IMAGE
+RUN apt-get update && apt-get install -y curl git sudo
+COPY setup_history.sh /usr/local/bin/setup_history.sh
+COPY entrypoint.sh /usr/local/bin/entrypoint.sh
+RUN chmod +x /usr/local/bin/entrypoint.sh
+ENTRYPOINT ["/usr/local/bin/entrypoint.sh"]
+CMD ["bash"]
+EOL
+
+# Build and tag the image
+sudo docker build -t $IMAGE_NAME .
+
+# Run the container again for attaching volume
+CONTAINER_ID=$(sudo docker run -v devcontainers:/devcontainers -itd $IMAGE_NAME) > /dev/null
+
+# Output the container ID to a file
+echo "CONTAINER_ID=$CONTAINER_ID" > /tmp/container_id.txt
+
+echo "Started container: $CONTAINER_ID"
+EOF
+
+# Make the generated script executable
+chmod +x $SCRIPT_NAME
+./$SCRIPT_NAME "mcr.microsoft.com/devcontainers/python:latest" "python-app"
+
+# Function to add shell history
+add_shell_history() {
+    local container_id=$1
+    local history_message=$2
+    echo -e "\nWriting shell history: $history_message";
+    sudo docker exec -i $container_id /bin/bash -c "echo \"$history_message\" >> ~/.bash_history"
+}
+
+# Function to check shell history
+check_shell_history() {
+    local container_id=$1
+    echo -e "\nChecking shell history from container: ";
+    sudo docker exec -i $container_id /bin/bash -c "cat ~/.bash_history"
+}
+
+source /tmp/container_id.txt
+
+# Start the container and add shell history
+sudo docker start $CONTAINER_ID > /dev/null
+add_shell_history $CONTAINER_ID "Shell History for First Container Created."
+sudo docker stop $CONTAINER_ID > /dev/null
+
+# Start the container and check shell history persistence
+sudo docker start $CONTAINER_ID > /dev/null
+check_shell_history $CONTAINER_ID
+
+# Report result
+reportResults
diff --git a/test/common-utils/scenarios.json b/test/common-utils/scenarios.json
index a929f534a..b500675a5 100644
--- a/test/common-utils/scenarios.json
+++ b/test/common-utils/scenarios.json
@@ -1,4 +1,20 @@
 {
+    "allow_shell_history": {
+        "image": "mcr.microsoft.com/devcontainers/base:ubuntu",
+        "features": {
+            "docker-in-docker": {},
+            "common-utils": {
+                "installZsh": true,
+                "allowShellHistory": true
+            }
+        },
+        "overrideFeatureInstallOrder": [
+            "./common-utils",
+            "./docker-in-docker"
+        ],
+        "remoteUser": "vscode",
+        "containerUser": "vscode"
+    },
     "bionic": {
         "image": "ubuntu:bionic",
         "remoteUser": "devcontainer",