diff --git a/contextual.go b/contextual.go
index a90ee7d3e..67492670d 100644
--- a/contextual.go
+++ b/contextual.go
@@ -56,7 +56,7 @@ var (
 // verbosity checks before calling logger.V().Info. logger.Error is always
 // called, regardless of the klog verbosity settings.
 //
-// If set, all log lines will be suppressed from the regular Output, and
+// If set, all log lines will be suppressed from the regular output, and
 // redirected to the logr implementation.
 // Use as:
 //   ...
@@ -68,8 +68,57 @@ var (
 // Modifying the logger is not thread-safe and should be done while no other
 // goroutines invoke log calls, usually during program initialization.
 func SetLogger(logger logr.Logger) {
+	SetLoggerWithOptions(logger)
+}
+
+// SetLoggerWithOptions is a more flexible version of SetLogger. Without
+// additional options, it behaves exactly like SetLogger. By passing
+// ContextualLogger(true) as option, it can be used to set a logger that then
+// will also get called directly by applications which retrieve it via
+// FromContext, Background, or TODO.
+//
+// Supporting direct calls is recommended because it avoids the overhead of
+// routing log entries through klogr into klog and then into the actual Logger
+// backend.
+//
+// Experimental
+//
+// Notice: This function is EXPERIMENTAL and may be changed or removed in a
+// later release.
+func SetLoggerWithOptions(logger logr.Logger, opts ...LoggerOption) {
 	globalLogger = &logger
-	contextualLogger = false
+	var o loggerOptions
+	for _, opt := range opts {
+		opt(&o)
+	}
+	contextualLogger = o.contextualLogger
+}
+
+// ContextualLogger determines whether the logger passed to
+// SetLoggerWithOptions may also get called directly. Such a logger cannot rely
+// on verbosity checking in klog.
+//
+// Experimental
+//
+// Notice: This function is EXPERIMENTAL and may be changed or removed in a
+// later release.
+func ContextualLogger(enabled bool) LoggerOption {
+	return func(o *loggerOptions) {
+		o.contextualLogger = enabled
+	}
+}
+
+// LoggerOption implements the functional parameter paradigm for
+// SetLoggerWithOptions.
+//
+// Experimental
+//
+// Notice: This type is EXPERIMENTAL and may be changed or removed in a
+// later release.
+type LoggerOption func(o *loggerOptions)
+
+type loggerOptions struct {
+	contextualLogger bool
 }
 
 // SetContextualLogger does the same as SetLogger, but in addition the
diff --git a/contextual_test.go b/contextual_test.go
new file mode 100644
index 000000000..fc95f05f8
--- /dev/null
+++ b/contextual_test.go
@@ -0,0 +1,43 @@
+/*
+Copyright 2022 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package klog_test
+
+import (
+	"fmt"
+
+	"github.com/go-logr/logr"
+	"k8s.io/klog/v2"
+)
+
+func ExampleSetLogger() {
+	// Logger is only used as backend, Background() returns klogr.
+	klog.SetLogger(logr.Discard())
+	fmt.Printf("logger after SetLogger: %T\n", klog.Background().GetSink())
+
+	// Logger is only used as backend, Background() returns klogr.
+	klog.SetLoggerWithOptions(logr.Discard(), klog.ContextualLogger(false))
+	fmt.Printf("logger after SetLoggerWithOptions with ContextualLogger(false): %T\n", klog.Background().GetSink())
+
+	// Logger is used as backend and directly.
+	klog.SetLoggerWithOptions(logr.Discard(), klog.ContextualLogger(true))
+	fmt.Printf("logger after SetLoggerWithOptions with ContextualLogger(true): %T\n", klog.Background().GetSink())
+
+	// Output:
+	// logger after SetLogger: *klog.klogger
+	// logger after SetLoggerWithOptions with ContextualLogger(false): *klog.klogger
+	// logger after SetLoggerWithOptions with ContextualLogger(true): logr.discardLogSink
+}