diff --git a/registry/coder/modules/kasmvnc/main.tf b/registry/coder/modules/kasmvnc/main.tf
index ca7315ec..3174e9d0 100644
--- a/registry/coder/modules/kasmvnc/main.tf
+++ b/registry/coder/modules/kasmvnc/main.tf
@@ -54,6 +54,29 @@ variable "subdomain" {
   description = "Is subdomain sharing enabled in your cluster?"
 }
 
+variable "kasm_config" {
+  type        = string
+  default     = ""
+  description = <<-EOT
+    Additional KasmVNC configuration in YAML format. Can be used to set DLP policies and other advanced settings.
+    
+    Example for DLP policies (according to KasmVNC documentation):
+    ```yaml
+    data_loss_prevention:
+      clipboard:
+        server_to_client:
+          enabled: false
+        client_to_server:
+          enabled: false
+      printing: false
+      download: false
+    ```
+    
+    For more advanced configuration options, see the KasmVNC documentation:
+    https://kasmweb.com/docs/latest/how_to/kasmvnc_dlp_policies.html
+  EOT
+}
+
 resource "coder_script" "kasm_vnc" {
   agent_id     = var.agent_id
   display_name = "KasmVNC"
@@ -65,6 +88,7 @@ resource "coder_script" "kasm_vnc" {
     KASM_VERSION        = var.kasm_version
     SUBDOMAIN           = tostring(var.subdomain)
     PATH_VNC_HTML       = var.subdomain ? "" : file("${path.module}/path_vnc.html")
+    KASM_CONFIG         = var.kasm_config
   })
 }
 
diff --git a/registry/coder/modules/kasmvnc/run.sh b/registry/coder/modules/kasmvnc/run.sh
index 67a8a310..0dda839f 100644
--- a/registry/coder/modules/kasmvnc/run.sh
+++ b/registry/coder/modules/kasmvnc/run.sh
@@ -193,19 +193,50 @@ else
   SUDO=""
 
   echo "WARNING: Sudo access not available, using user config dir!"
-
+  
+  # Always ensure the directory exists
+  mkdir -p "$HOME/.vnc"
+  
+  # We'll handle existing configs differently - we'll merge instead of skipping
   if [[ -f "$kasm_config_file" ]]; then
-    echo "WARNING: Custom user KasmVNC config exists, not overwriting!"
-    echo "WARNING: Ensure that you manually configure the appropriate settings."
-    kasm_config_file="/dev/stderr"
-  else
-    echo "WARNING: This may prevent custom user KasmVNC settings from applying!"
-    mkdir -p "$HOME/.vnc"
+    echo "INFO: Custom user KasmVNC config exists, will merge with new settings."
+    # Create a backup of the existing config
+    cp "$kasm_config_file" "$${kasm_config_file}.bak"
   fi
 fi
 
 echo "Writing KasmVNC config to $kasm_config_file"
-$SUDO tee "$kasm_config_file" > /dev/null << EOF
+
+# Create a temporary file for our config
+TEMP_CONFIG_FILE=$(mktemp)
+
+# Check if existing config file exists and preserve its content
+if [[ -f "$kasm_config_file" ]]; then
+  echo "Preserving existing KasmVNC configuration settings."
+  cp "$kasm_config_file" "$TEMP_CONFIG_FILE"
+  
+  # Update only the network section
+  if grep -q "^network:" "$TEMP_CONFIG_FILE"; then
+    # Network section exists, update only the websocket_port
+    sed -i "s/\([ \t]*websocket_port:\).*/\1 ${PORT}/" "$TEMP_CONFIG_FILE"
+  else
+    # Network section doesn't exist, add it
+    cat >> "$TEMP_CONFIG_FILE" << EOF
+network:
+  protocol: http
+  interface: 127.0.0.1
+  websocket_port: ${PORT}
+  ssl:
+    require_ssl: false
+    pem_certificate:
+    pem_key:
+  udp:
+    public_ip: 127.0.0.1
+EOF
+  fi
+else
+  # Start with base network configuration for new config
+  cat > "$TEMP_CONFIG_FILE" << EOF
 network:
   protocol: http
   interface: 127.0.0.1
@@ -217,6 +248,30 @@ network:
   udp:
     public_ip: 127.0.0.1
 EOF
+fi
+
+# Add additional KasmVNC configuration if provided
+if [[ -n "${KASM_CONFIG}" ]]; then
+  echo "Adding custom KasmVNC configuration."
+  
+  # Add a comment to mark the start of custom config
+  echo "" >> "$TEMP_CONFIG_FILE"
+  echo "# ---- START CUSTOM KASMVNC CONFIG ----" >> "$TEMP_CONFIG_FILE"
+  echo "" >> "$TEMP_CONFIG_FILE"
+  
+  # Directly append the YAML configuration
+  echo "${KASM_CONFIG}" >> "$TEMP_CONFIG_FILE"
+  
+  # Add a comment to mark the end of custom config
+  echo "" >> "$TEMP_CONFIG_FILE"
+  echo "# ---- END CUSTOM KASMVNC CONFIG ----" >> "$TEMP_CONFIG_FILE"
+fi
+
+# Apply the configuration
+$SUDO cp "$TEMP_CONFIG_FILE" "$kasm_config_file"
+
+# Clean up
+rm "$TEMP_CONFIG_FILE"
 
 # This password is not used since we start the server without auth.
 # The server is protected via the Coder session token / tunnel