diff --git a/docker/.env.example b/docker/.env.example
index 858e4098b..4213c3ff5 100644
--- a/docker/.env.example
+++ b/docker/.env.example
@@ -54,6 +54,7 @@ GID='1000'
 # Only used if you are using an LLM that does not natively support embedding (openai or Azure)
 # EMBEDDING_ENGINE='openai'
 # OPEN_AI_KEY=sk-xxxx
+# EMBEDDING_MODEL_PREF='text-embedding-ada-002'
 
 # EMBEDDING_ENGINE='azure'
 # AZURE_OPENAI_ENDPOINT=
diff --git a/frontend/src/components/EmbeddingSelection/OpenAiOptions/index.jsx b/frontend/src/components/EmbeddingSelection/OpenAiOptions/index.jsx
index dd00d67ab..15b5d307c 100644
--- a/frontend/src/components/EmbeddingSelection/OpenAiOptions/index.jsx
+++ b/frontend/src/components/EmbeddingSelection/OpenAiOptions/index.jsx
@@ -22,12 +22,27 @@ export default function OpenAiOptions({ settings }) {
             Model Preference
           </label>
           <select
-            disabled={true}
-            className="cursor-not-allowed bg-zinc-900 border border-gray-500 text-white text-sm rounded-lg block w-full p-2.5"
+            name="EmbeddingModelPref"
+            required={true}
+            className="bg-zinc-900 border border-gray-500 text-white text-sm rounded-lg block w-full p-2.5"
           >
-            <option disabled={true} selected={true}>
-              text-embedding-ada-002
-            </option>
+            <optgroup label="Available embedding models">
+              {[
+                "text-embedding-ada-002",
+                "text-embedding-3-small",
+                "text-embedding-3-large",
+              ].map((model) => {
+                return (
+                  <option
+                    key={model}
+                    value={model}
+                    selected={settings?.EmbeddingModelPref === model}
+                  >
+                    {model}
+                  </option>
+                );
+              })}
+            </optgroup>
           </select>
         </div>
       </div>
diff --git a/frontend/src/components/Modals/MangeWorkspace/Documents/index.jsx b/frontend/src/components/Modals/MangeWorkspace/Documents/index.jsx
index ff7f0dd65..c5a66748c 100644
--- a/frontend/src/components/Modals/MangeWorkspace/Documents/index.jsx
+++ b/frontend/src/components/Modals/MangeWorkspace/Documents/index.jsx
@@ -6,9 +6,14 @@ import Directory from "./Directory";
 import showToast from "../../../../utils/toast";
 import WorkspaceDirectory from "./WorkspaceDirectory";
 
-// OpenAI Cost per token for text-ada-embedding
+// OpenAI Cost per token
 // ref: https://openai.com/pricing#:~:text=%C2%A0/%201K%20tokens-,Embedding%20models,-Build%20advanced%20search
-const COST_PER_TOKEN = 0.0000001; // $0.0001 / 1K tokens
+
+const MODEL_COSTS = {
+  "text-embedding-ada-002": 0.0000001, // $0.0001 / 1K tokens
+  "text-embedding-3-small": 0.00000002, // $0.00002 / 1K tokens
+  "text-embedding-3-large": 0.00000013, // $0.00013 / 1K tokens
+};
 
 export default function DocumentSettings({
   workspace,
@@ -142,10 +147,12 @@ export default function DocumentSettings({
     });
 
     // Do not do cost estimation unless the embedding engine is OpenAi.
-    if (
-      !systemSettings?.EmbeddingEngine ||
-      systemSettings.EmbeddingEngine === "openai"
-    ) {
+    if (systemSettings?.EmbeddingEngine === "openai") {
+      const COST_PER_TOKEN =
+        MODEL_COSTS[
+          systemSettings?.EmbeddingModelPref || "text-embedding-ada-002"
+        ];
+
       const dollarAmount = (totalTokenCount / 1000) * COST_PER_TOKEN;
       setEmbeddingsCost(dollarAmount);
     }
diff --git a/server/.env.example b/server/.env.example
index f497fea91..96cbd58ae 100644
--- a/server/.env.example
+++ b/server/.env.example
@@ -51,6 +51,7 @@ JWT_SECRET="my-random-string-for-seeding" # Please generate random string at lea
 # Only used if you are using an LLM that does not natively support embedding (openai or Azure)
 # EMBEDDING_ENGINE='openai'
 # OPEN_AI_KEY=sk-xxxx
+# EMBEDDING_MODEL_PREF='text-embedding-ada-002'
 
 # EMBEDDING_ENGINE='azure'
 # AZURE_OPENAI_ENDPOINT=
diff --git a/server/utils/EmbeddingEngines/openAi/index.js b/server/utils/EmbeddingEngines/openAi/index.js
index 1f9ba432a..b52e78c6f 100644
--- a/server/utils/EmbeddingEngines/openAi/index.js
+++ b/server/utils/EmbeddingEngines/openAi/index.js
@@ -9,6 +9,7 @@ class OpenAiEmbedder {
     });
     const openai = new OpenAIApi(config);
     this.openai = openai;
+    this.model = process.env.EMBEDDING_MODEL_PREF || "text-embedding-ada-002";
 
     // Limit of how many strings we can process in a single pass to stay with resource or network limits
     this.maxConcurrentChunks = 500;
@@ -30,7 +31,7 @@ class OpenAiEmbedder {
         new Promise((resolve) => {
           this.openai
             .createEmbedding({
-              model: "text-embedding-ada-002",
+              model: this.model,
               input: chunk,
             })
             .then((res) => {