diff --git a/.github/CODEOWNERS b/.github/CODEOWNERS
index 6ce517bc57..dfccefe294 100644
--- a/.github/CODEOWNERS
+++ b/.github/CODEOWNERS
@@ -37,6 +37,7 @@
 /tensorflow_addons/callbacks/tqdm_progress_bar*.py @shun-lin
 
 /tensorflow_addons/image/connected_components*.py @sayoojbk
+/tensorflow_addons/image/cutout_ops*.py @fsx950223
 /tensorflow_addons/image/dense_image_warp*.py @windQAQ
 /tensorflow_addons/image/distance_transform*.py @mels630
 /tensorflow_addons/image/distort_image_ops*.py @windqaq
diff --git a/tensorflow_addons/image/BUILD b/tensorflow_addons/image/BUILD
index a1a09d66bf..c8358b372a 100644
--- a/tensorflow_addons/image/BUILD
+++ b/tensorflow_addons/image/BUILD
@@ -18,6 +18,7 @@ py_library(
         "connected_components.py",
         "resampler_ops.py",
         "compose_ops.py",
+        "cutout_ops.py",
     ]),
     data = [
         ":sparse_image_warp_test_data",
@@ -118,6 +119,18 @@ py_test(
     ],
 )
 
+py_test(
+    name = "cutout_ops_test",
+    size = "small",
+    srcs = [
+        "cutout_ops_test.py",
+    ],
+    main = "cutout_ops_test.py",
+    deps = [
+        ":image",
+    ],
+)
+
 py_test(
     name = "sparse_image_warp_test",
     size = "medium",
diff --git a/tensorflow_addons/image/__init__.py b/tensorflow_addons/image/__init__.py
index fbd5cda029..891d9d05f0 100644
--- a/tensorflow_addons/image/__init__.py
+++ b/tensorflow_addons/image/__init__.py
@@ -29,3 +29,4 @@
 from tensorflow_addons.image.transform_ops import transform
 from tensorflow_addons.image.translate_ops import translate
 from tensorflow_addons.image.compose_ops import blend
+from tensorflow_addons.image.cutout_ops import random_cutout, cutout
diff --git a/tensorflow_addons/image/cutout_ops.py b/tensorflow_addons/image/cutout_ops.py
new file mode 100644
index 0000000000..0c4d494be9
--- /dev/null
+++ b/tensorflow_addons/image/cutout_ops.py
@@ -0,0 +1,178 @@
+# Copyright 2019 The TensorFlow Authors. All Rights Reserved.
+#
+# 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.
+# ==============================================================================
+"""Cutout op"""
+
+import tensorflow as tf
+from tensorflow_addons.utils.types import TensorLike, Number
+from tensorflow.python.keras.utils import conv_utils
+
+
+def _get_image_wh(images, data_format):
+    if data_format == "channels_last":
+        image_height, image_width = tf.shape(images)[1], tf.shape(images)[2]
+    else:
+        image_height, image_width = tf.shape(images)[2], tf.shape(images)[3]
+
+    return image_height, image_width
+
+
+def _norm_params(images, mask_size, data_format):
+    mask_size = tf.convert_to_tensor(mask_size)
+    if tf.executing_eagerly():
+        tf.assert_equal(
+            tf.reduce_any(mask_size % 2 != 0),
+            False,
+            "mask_size should be divisible by 2",
+        )
+    if tf.rank(mask_size) == 0:
+        mask_size = tf.stack([mask_size, mask_size])
+    data_format = conv_utils.normalize_data_format(data_format)
+    image_height, image_width = _get_image_wh(images, data_format)
+    return mask_size, data_format, image_height, image_width
+
+
+def random_cutout(
+    images: TensorLike,
+    mask_size: TensorLike,
+    constant_values: Number = 0,
+    seed: Number = None,
+    data_format: str = "channels_last",
+) -> tf.Tensor:
+    """Apply cutout (https://arxiv.org/abs/1708.04552) to images.
+
+    This operation applies a (mask_height x mask_width) mask of zeros to
+    a random location within `img`. The pixel values filled in will be of the
+    value `replace`. The located where the mask will be applied is randomly
+    chosen uniformly over the whole images.
+
+    Args:
+      images: A tensor of shape
+        (batch_size, height, width, channels)
+        (NHWC), (batch_size, channels, height, width)(NCHW).
+      mask_size: Specifies how big the zero mask that will be generated is that
+        is applied to the images. The mask will be of size
+        (mask_height x mask_width). Note: mask_size should be divisible by 2.
+      constant_values: What pixel value to fill in the images in the area that has
+        the cutout mask applied to it.
+      seed: A Python integer. Used in combination with `tf.random.set_seed` to
+        create a reproducible sequence of tensors across multiple calls.
+      data_format: A string, one of `channels_last` (default) or `channels_first`.
+        The ordering of the dimensions in the inputs.
+        `channels_last` corresponds to inputs with shape
+        `(batch_size, ..., channels)` while `channels_first` corresponds to
+        inputs with shape `(batch_size, channels, ...)`.
+    Returns:
+      An image Tensor.
+    Raises:
+      InvalidArgumentError: if mask_size can't be divisible by 2.
+    """
+    batch_size = tf.shape(images)[0]
+    mask_size, data_format, image_height, image_width = _norm_params(
+        images, mask_size, data_format
+    )
+
+    cutout_center_height = tf.random.uniform(
+        shape=[batch_size], minval=0, maxval=image_height, dtype=tf.int32, seed=seed
+    )
+    cutout_center_width = tf.random.uniform(
+        shape=[batch_size], minval=0, maxval=image_width, dtype=tf.int32, seed=seed
+    )
+
+    offset = tf.transpose([cutout_center_height, cutout_center_width], [1, 0])
+    return cutout(images, mask_size, offset, constant_values, data_format,)
+
+
+def cutout(
+    images: TensorLike,
+    mask_size: TensorLike,
+    offset: TensorLike = (0, 0),
+    constant_values: Number = 0,
+    data_format: str = "channels_last",
+) -> tf.Tensor:
+    """Apply cutout (https://arxiv.org/abs/1708.04552) to images.
+
+    This operation applies a (mask_height x mask_width) mask of zeros to
+    a location within `img` specified by the offset. The pixel values filled in will be of the
+    value `replace`. The located where the mask will be applied is randomly
+    chosen uniformly over the whole images.
+
+    Args:
+      images: A tensor of shape (batch_size, height, width, channels)
+        (NHWC), (batch_size, channels, height, width)(NCHW).
+      mask_size: Specifies how big the zero mask that will be generated is that
+        is applied to the images. The mask will be of size
+        (mask_height x mask_width). Note: mask_size should be divisible by 2.
+      offset: A tuple of (height, width) or (batch_size, 2)
+      constant_values: What pixel value to fill in the images in the area that has
+        the cutout mask applied to it.
+      data_format: A string, one of `channels_last` (default) or `channels_first`.
+        The ordering of the dimensions in the inputs.
+        `channels_last` corresponds to inputs with shape
+        `(batch_size, ..., channels)` while `channels_first` corresponds to
+        inputs with shape `(batch_size, channels, ...)`.
+    Returns:
+      An image Tensor.
+    Raises:
+      InvalidArgumentError: if mask_size can't be divisible by 2.
+    """
+    with tf.name_scope("cutout"):
+        offset = tf.convert_to_tensor(offset)
+        mask_size, data_format, image_height, image_width = _norm_params(
+            images, mask_size, data_format
+        )
+        mask_size = mask_size // 2
+
+        if tf.rank(offset) == 1:
+            offset = tf.expand_dims(offset, 0)
+        cutout_center_heights = offset[:, 0]
+        cutout_center_widths = offset[:, 1]
+
+        lower_pads = tf.maximum(0, cutout_center_heights - mask_size[0])
+        upper_pads = tf.maximum(0, image_height - cutout_center_heights - mask_size[0])
+        left_pads = tf.maximum(0, cutout_center_widths - mask_size[1])
+        right_pads = tf.maximum(0, image_width - cutout_center_widths - mask_size[1])
+
+        cutout_shape = tf.transpose(
+            [
+                image_height - (lower_pads + upper_pads),
+                image_width - (left_pads + right_pads),
+            ],
+            [1, 0],
+        )
+        masks = tf.TensorArray(images.dtype, 0, dynamic_size=True)
+        for i in tf.range(tf.shape(cutout_shape)[0]):
+            padding_dims = [
+                [lower_pads[i], upper_pads[i]],
+                [left_pads[i], right_pads[i]],
+            ]
+            mask = tf.pad(
+                tf.zeros(cutout_shape[i], dtype=images.dtype),
+                padding_dims,
+                constant_values=1,
+            )
+            masks = masks.write(i, mask)
+
+        if data_format == "channels_last":
+            mask_4d = tf.expand_dims(masks.stack(), -1)
+            mask = tf.tile(mask_4d, [1, 1, 1, tf.shape(images)[-1]])
+        else:
+            mask_4d = tf.expand_dims(masks.stack(), 1)
+            mask = tf.tile(mask_4d, [1, tf.shape(images)[1], 1, 1])
+        images = tf.where(
+            mask == 0,
+            tf.ones_like(images, dtype=images.dtype) * constant_values,
+            images,
+        )
+        return images
diff --git a/tensorflow_addons/image/cutout_ops_test.py b/tensorflow_addons/image/cutout_ops_test.py
new file mode 100644
index 0000000000..6858c3d143
--- /dev/null
+++ b/tensorflow_addons/image/cutout_ops_test.py
@@ -0,0 +1,86 @@
+# Copyright 2019 The TensorFlow Authors. All Rights Reserved.
+#
+# 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.
+# ==============================================================================
+"""Tests for cutout."""
+
+import sys
+
+import pytest
+import tensorflow as tf
+import numpy as np
+from tensorflow_addons.image.cutout_ops import cutout, random_cutout
+from tensorflow_addons.image.utils import to_4D_image
+
+
+@pytest.mark.parametrize("dtype", [np.float16, np.float32, np.uint8])
+def test_different_dtypes(dtype):
+    test_image = tf.ones([1, 40, 40, 1], dtype=dtype)
+    result_image = cutout(test_image, 4, [2, 2])
+    cutout_area = tf.zeros([4, 4], dtype=dtype)
+    cutout_area = tf.pad(cutout_area, ((0, 36), (0, 36)), constant_values=1)
+    expect_image = to_4D_image(cutout_area)
+    np.testing.assert_allclose(result_image, expect_image)
+    assert result_image.dtype == dtype
+
+
+def test_different_channels():
+    for channel in [0, 1, 3, 4]:
+        test_image = tf.ones([1, 40, 40, channel], dtype=np.uint8)
+        cutout_area = tf.zeros([4, 4], dtype=np.uint8)
+        cutout_area = tf.pad(cutout_area, ((0, 36), (0, 36)), constant_values=1)
+        expect_image = to_4D_image(cutout_area)
+        expect_image = tf.tile(expect_image, [1, 1, 1, channel])
+        result_image = random_cutout(test_image, 20, seed=1234)
+        np.testing.assert_allclose(tf.shape(result_image), tf.shape(expect_image))
+
+
+def test_batch_size():
+    test_image = tf.random.uniform([10, 40, 40, 1], dtype=np.float32, seed=1234)
+    result_image = random_cutout(test_image, 20, seed=1234)
+    np.testing.assert_allclose(tf.shape(result_image), [10, 40, 40, 1])
+    means = np.mean(result_image, axis=(1, 2, 3))
+    np.testing.assert_allclose(len(set(means)), 10)
+
+
+def test_channel_first():
+    test_image = tf.ones([10, 1, 40, 40], dtype=np.uint8)
+    cutout_area = tf.zeros([4, 4], dtype=np.uint8)
+    cutout_area = tf.pad(cutout_area, ((0, 36), (0, 36)), constant_values=1)
+    expect_image = tf.expand_dims(cutout_area, 0)
+    expect_image = tf.expand_dims(expect_image, 0)
+    expect_image = tf.tile(expect_image, [10, 1, 1, 1])
+    result_image = random_cutout(
+        test_image, 20, seed=1234, data_format="channels_first"
+    )
+    np.testing.assert_allclose(tf.shape(result_image), tf.shape(expect_image))
+
+
+@pytest.mark.usefixtures("maybe_run_functions_eagerly")
+def test_with_tf_function():
+    test_image = tf.ones([1, 40, 40, 1], dtype=tf.uint8)
+    result_image = tf.function(
+        random_cutout,
+        input_signature=[
+            tf.TensorSpec(shape=[None, 40, 40, 1], dtype=tf.uint8),
+            tf.TensorSpec(shape=[], dtype=tf.int32),
+        ],
+    )(test_image, 2)
+    cutout_area = tf.zeros([4, 4], dtype=tf.uint8)
+    cutout_area = tf.pad(cutout_area, ((0, 36), (0, 36)), constant_values=1)
+    expect_image = to_4D_image(cutout_area)
+    np.testing.assert_allclose(tf.shape(result_image), tf.shape(expect_image))
+
+
+if __name__ == "__main__":
+    sys.exit(pytest.main([__file__]))