diff --git a/docs/apache-airflow/howto/dynamic-dag-generation.rst b/docs/apache-airflow/howto/dynamic-dag-generation.rst
index 74654b6a4f4e2..ddc1588fc8cd5 100644
--- a/docs/apache-airflow/howto/dynamic-dag-generation.rst
+++ b/docs/apache-airflow/howto/dynamic-dag-generation.rst
@@ -140,3 +140,85 @@ Each of them can run separately with related configuration
 
 .. warning::
   Using this practice, pay attention to "late binding" behaviour in Python loops. See `that GitHub discussion <https://github.com/apache/airflow/discussions/21278#discussioncomment-2103559>`_ for more details
+
+
+Optimizing DAG parsing delays during execution
+----------------------------------------------
+
+Sometimes when you generate a lot of Dynamic DAGs from a single DAG file, it might cause unnecessary delays
+when the DAG file is parsed during task execution. The impact is a delay before a task starts.
+
+Why is this happening? You might not be aware but just before your task is executed,
+Airflow parses the Python file the DAG comes from.
+
+The Airflow Scheduler (or DAG Processor) requires loading of a complete DAG file to process all metadata.
+However, task execution requires only a single DAG object to execute a task. Knowing this, we can
+skip the generation of unnecessary DAG objects when a task is executed, shortening the parsing time.
+This optimization is most effective when the number of generated DAGs is high.
+
+There is an experimental approach that you can take to optimize this behaviour. Note that it is not always
+possible to use (for example when generation of subsequent DAGs depends on the previous DAGs) or when
+there are some side-effects of your DAGs generation. Also the code snippet below is pretty complex and while
+we tested it and it works in most circumstances, there might be cases where detection of the currently
+parsed DAG will fail and it will revert to creating all the DAGs or fail. Use this solution with care and
+test it thoroughly.
+
+Upon evaluation of a DAG file, command line arguments are supplied which we can use to determine which
+Airflow component performs parsing:
+
+* Scheduler/DAG Processor args: ``["airflow", "scheduler"]`` or ``["airflow", "dag-processor"]``
+* Task execution args: ``["airflow", "tasks", "run", "dag_id", "task_id", ...]``
+
+However, depending on the executor used and forking model, those args might be available via ``sys.args``
+or via name of the process running. Airflow either executes tasks via running a new Python interpreter or
+sets the name of the process as "airflow task supervisor: {ARGS}" in case of celery forked process or
+"airflow task runner: dag_id task_id" in case of local executor forked process.
+
+Upon iterating over the collection of things to generate DAGs for, you can use these arguments to determine
+whether you need to generate all DAG objects (when parsing in the DAG File processor), or to generate only
+a single DAG object (when executing the task):
+
+.. code-block:: python
+  :emphasize-lines: 7,8,9,19,20,24,25,31,32
+
+  import sys
+  import ast
+  import setproctitle
+  from airflow.models import DAG
+
+  current_dag = None
+  if len(sys.argv) > 3 and sys.argv[1] == "tasks":
+      # task executed by starting a new Python interpreter
+      current_dag = sys.argv[3]
+  else:
+      try:
+          PROCTITLE_SUPERVISOR_PREFIX = "airflow task supervisor: "
+          PROCTITLE_TASK_RUNNER_PREFIX = "airflow task runner: "
+          proctitle = str(setproctitle.getproctitle())
+          if proctitle.startswith(PROCTITLE_SUPERVISOR_PREFIX):
+              # task executed via forked process in celery
+              args_string = proctitle[len(PROCTITLE_SUPERVISOR_PREFIX) :]
+              args = ast.literal_eval(args_string)
+              if len(args) > 3 and args[1] == "tasks":
+                  current_dag = args[3]
+          elif proctitle.startswith(PROCTITLE_TASK_RUNNER_PREFIX):
+              # task executed via forked process in standard_task_runner
+              args = proctitle[len(PROCTITLE_TASK_RUNNER_PREFIX) :].split(" ")
+              if len(args) > 0:
+                  current_dag = args[0]
+      except Exception:
+          pass
+
+  for thing in list_of_things:
+      dag_id = f"generated_dag_{thing}"
+      if current_dag is not None and current_dag != dag_id:
+          continue  # skip generation of non-selected DAG
+
+      dag = DAG(dag_id=dag_id, ...)
+      globals()[dag_id] = dag
+
+This optimization applies to ``airflow tasks run`` and ``airflow tasks test`` commands.
+
+A nice example of performance improvements you can gain is shown in the
+`Airflow's Magic Loop <https://medium.com/apache-airflow/airflows-magic-loop-ec424b05b629>`_ blog post
+that describes how parsing during task execution was reduced from 120 seconds to 200 ms.