diff --git a/Kconfig b/Kconfig
index 11ea099de2..936181a9cb 100644
--- a/Kconfig
+++ b/Kconfig
@@ -23,6 +23,17 @@ endmenu
 
 source "$COMPONENT_KCONFIGS_PROJBUILD"
 
+choice OPTIMIZATION_LEVEL
+    prompt "Optimization level"
+    default OPTIMIZATION_LEVEL_DEBUG
+    help
+        This option sets compiler optimization level.
+config OPTIMIZATION_LEVEL_DEBUG
+    bool "Debug"
+config OPTIMIZATION_LEVEL_RELEASE
+    bool "Release"
+endchoice
+
 menu "Component config"
 source "$COMPONENT_KCONFIGS"
 endmenu
diff --git a/components/log/log.c b/components/log/log.c
index aae12a7735..a2b41d7e62 100644
--- a/components/log/log.c
+++ b/components/log/log.c
@@ -284,7 +284,7 @@ static inline void heap_swap(int i, int j)
 }
 #endif //BOOTLOADER_BUILD
 
-inline IRAM_ATTR uint32_t esp_log_early_timestamp()
+IRAM_ATTR uint32_t esp_log_early_timestamp()
 {
     return xthal_get_ccount() / (CPU_CLK_FREQ_ROM / 1000);
 }
diff --git a/make/component_common.mk b/make/component_common.mk
index ebad525a76..bf2eace019 100644
--- a/make/component_common.mk
+++ b/make/component_common.mk
@@ -91,15 +91,15 @@ define GenerateCompileTargets
 # $(1) - directory containing source files, relative to $(COMPONENT_PATH)
 $(1)/%.o: $$(COMPONENT_PATH)/$(1)/%.c | $(1)
 	$$(summary) CC $$@
-	$$(Q) $$(CC) $$(CFLAGS) $$(addprefix -I ,$$(COMPONENT_INCLUDES)) $$(addprefix -I ,$$(COMPONENT_EXTRA_INCLUDES)) -I$(1) -c $$< -o $$@
+	$$(Q) $$(CC) $$(CFLAGS) $(CPPFLAGS) $$(addprefix -I ,$$(COMPONENT_INCLUDES)) $$(addprefix -I ,$$(COMPONENT_EXTRA_INCLUDES)) -I$(1) -c $$< -o $$@
 
 $(1)/%.o: $$(COMPONENT_PATH)/$(1)/%.cpp | $(1)
-	$$(summary) CC $$@
-	$$(Q) $$(CXX) $$(CXXFLAGS) $$(addprefix -I,$$(COMPONENT_INCLUDES)) $$(addprefix -I,$$(COMPONENT_EXTRA_INCLUDES)) -I$(1) -c $$< -o $$@
+	$$(summary) CXX $$@
+	$$(Q) $$(CXX) $$(CXXFLAGS) $(CPPFLAGS) $$(addprefix -I,$$(COMPONENT_INCLUDES)) $$(addprefix -I,$$(COMPONENT_EXTRA_INCLUDES)) -I$(1) -c $$< -o $$@
 
 $(1)/%.o: $$(COMPONENT_PATH)/$(1)/%.S | $(1)
-	$$(summary) CC $$@
-	$$(Q) $$(CC) $$(CFLAGS) $$(addprefix -I ,$$(COMPONENT_INCLUDES)) $$(addprefix -I ,$$(COMPONENT_EXTRA_INCLUDES)) -I$(1) -c $$< -o $$@
+	$$(summary) AS $$@
+	$$(Q) $$(CC) $$(CFLAGS) $(CPPFLAGS) $$(addprefix -I ,$$(COMPONENT_INCLUDES)) $$(addprefix -I ,$$(COMPONENT_EXTRA_INCLUDES)) -I$(1) -c $$< -o $$@
 
 # CWD is build dir, create the build subdirectory if it doesn't exist
 $(1):
diff --git a/make/project.mk b/make/project.mk
index d91165cfd7..49c3499467 100644
--- a/make/project.mk
+++ b/make/project.mk
@@ -157,15 +157,36 @@ LDFLAGS ?= -nostdlib \
 # If you need your component to add CFLAGS/etc globally for all source
 # files, set CFLAGS += in your component's Makefile.projbuild
 
-# CPPFLAGS used by an compile pass that uses the C preprocessor
-CPPFLAGS = -DESP_PLATFORM -Og -g3 -Wpointer-arith -Werror -Wno-error=unused-function -Wno-error=unused-but-set-variable \
-		-Wno-error=unused-variable -Wall -ffunction-sections -fdata-sections -mlongcalls -nostdlib -MMD -MP
+# CPPFLAGS used by C preprocessor
+CPPFLAGS = -DESP_PLATFORM
 
-# C flags use by C only
-CFLAGS = $(CPPFLAGS) -std=gnu99 -g3 -fstrict-volatile-bitfields
+# Warnings-related flags relevant both for C and C++
+COMMON_WARNING_FLAGS = -Wall -Werror \
+	-Wno-error=unused-function \
+	-Wno-error=unused-but-set-variable \
+	-Wno-error=unused-variable 
 
-# CXXFLAGS uses by C++ only
-CXXFLAGS = $(CPPFLAGS) -Og -std=gnu++11 -g3 -fno-exceptions -fstrict-volatile-bitfields -fno-rtti
+# Flags which control code generation and dependency generation, both for C and C++
+COMMON_FLAGS = \
+	-ffunction-sections -fdata-sections \
+	-fstrict-volatile-bitfields \
+	-mlongcalls \
+	-nostdlib \
+	-MMD -MP
+
+# Optimization flags are set based on menuconfig choice
+ifneq ("$(CONFIG_OPTIMIZATION_LEVEL_RELEASE)","")
+OPTMIZATION_FLAGS = -Os
+CPPFLAGS += -DNDEBUG
+else
+OPTMIZATION_FLAGS = -O0
+endif
+
+# List of flags to pass to C compiler
+CFLAGS = -ggdb -std=gnu99 $(strip $(OPTMIZATION_FLAGS) $(COMMON_FLAGS) $(COMMON_WARNING_FLAGS))
+
+# List of flags to pass to C++ compiler
+CXXFLAGS = -ggdb -std=gnu++11 -fno-exceptions -fno-rtti $(strip $(OPTMIZATION_FLAGS) $(COMMON_FLAGS) $(COMMON_WARNING_FLAGS))
 
 export CFLAGS CPPFLAGS CXXFLAGS