diff --git a/src/stream-tcp.c b/src/stream-tcp.c
index f25379d0da..32f61b14ff 100644
--- a/src/stream-tcp.c
+++ b/src/stream-tcp.c
@@ -396,8 +396,20 @@ void StreamTcpInitConfig(char quiet)
 
     int inl = 0;
 
-    if (ConfGetBool("stream.inline", &inl) == 1) {
+
+    char *temp_stream_inline_str;
+    if (ConfGet("stream.inline", &temp_stream_inline_str) == 1) {
+        /* checking for "auto" and falling back to boolean to provide
+         * backward compatibility */
+        if (strcmp(temp_stream_inline_str, "auto") == 0) {
+            if (IS_ENGINE_MODE_IPS(engine_mode)) {
+                stream_inline = 1;
+            } else {
+                stream_inline = 0;
+            }
+        } else if (ConfGetBool("stream.inline", &inl) == 1) {
             stream_inline = inl;
+        }
     }
 
     if (!quiet) {
diff --git a/suricata.yaml.in b/suricata.yaml.in
index d68075cd85..57e93e3323 100644
--- a/suricata.yaml.in
+++ b/suricata.yaml.in
@@ -570,7 +570,7 @@ flow-timeouts:
 stream:
   memcap: 32mb
   checksum-validation: yes      # reject wrong csums
-  inline: no                    # no inline mode
+  inline: auto                  # auto will use inline mode in IPS mode, yes or no set it statically
   reassembly:
     memcap: 64mb
     depth: 1mb                  # reassemble 1mb into a stream