diff --git a/assets/svelte/consumers/types.ts b/assets/svelte/consumers/types.ts
index af1a2fef2..3b19f419a 100644
--- a/assets/svelte/consumers/types.ts
+++ b/assets/svelte/consumers/types.ts
@@ -176,6 +176,7 @@ export type KafkaConsumer = BaseConsumer & {
     tls: boolean;
     topic: string;
     sasl_mechanism: null | "plain" | "scram_sha_256" | "scram_sha_512";
+    compression: "none" | "gzip";
   };
 };
 
diff --git a/assets/svelte/sinks/kafka/KafkaSinkForm.svelte b/assets/svelte/sinks/kafka/KafkaSinkForm.svelte
index f176074eb..4d6ba1f71 100644
--- a/assets/svelte/sinks/kafka/KafkaSinkForm.svelte
+++ b/assets/svelte/sinks/kafka/KafkaSinkForm.svelte
@@ -33,6 +33,12 @@
     { value: "aws_msk_iam", label: "AWS MSK IAM" },
   ];
 
+  // Compression options
+  let compressionOptions = [
+    { value: "none", label: "None" },
+    { value: "gzip", label: "Gzip" },
+  ];
+
   // Add internal state for AWS credentials
   let internalAwsKeyId = form.sink.aws_access_key_id || "";
   let internalAwsSecretKey = form.sink.aws_secret_access_key || "";
@@ -252,6 +258,27 @@
         <p class="text-destructive text-sm">{errors.sink.tls}</p>
       {/if}
     </div>
+
+    <!-- Compression Dropdown -->
+    <div class="space-y-2">
+      <Label for="compression">Compression</Label>
+      <select
+        id="compression"
+        bind:value={form.sink.compression}
+        class="block w-full border border-gray-300 rounded-md p-2"
+      >
+        {#each compressionOptions as option}
+          <option value={option.value}>{option.label}</option>
+        {/each}
+      </select>
+      <p class="text-xs">
+        Compress messages before sending to Kafka using Gzip. This can
+        significantly reduce network bandwidth and storage requirements.
+      </p>
+      {#if errors.sink?.compression}
+        <p class="text-destructive text-sm">{errors.sink.compression}</p>
+      {/if}
+    </div>
   </CardContent>
 </Card>
 
diff --git a/docs/reference/sinks/kafka.mdx b/docs/reference/sinks/kafka.mdx
index c0ce5829c..3b93cb268 100644
--- a/docs/reference/sinks/kafka.mdx
+++ b/docs/reference/sinks/kafka.mdx
@@ -36,6 +36,14 @@ The Kafka sink sends messages to a Kafka topic.
 
     Enable TLS encryption for connections to Kafka. Currently, Sequin only supports TLS with verify none. If you need a different TLS configuration, please [let us know](https://github.com/sequinstream/sequin/issues/592).
 
+- **Compression** (optional)
+
+    Choose a compression algorithm to reduce the size of messages sent to Kafka. Options include:
+    - **None** (default): No compression
+    - **Gzip**: Good compression ratio with wide compatibility, uses Erlang's built-in `:zlib` module
+
+    Compression is applied to batches of messages before sending to Kafka, which can significantly reduce network bandwidth and storage requirements. When using compression, be mindful of the `max_batch_size` setting to ensure compressed batches don't exceed Kafka's `max.message.bytes` limit.
+
 ## Advanced configuration
 
 - **Max Ack Pending**
diff --git a/lib/sequin/consumers/kafka_sink.ex b/lib/sequin/consumers/kafka_sink.ex
index 273218286..4df056612 100644
--- a/lib/sequin/consumers/kafka_sink.ex
+++ b/lib/sequin/consumers/kafka_sink.ex
@@ -25,6 +25,7 @@ defmodule Sequin.Consumers.KafkaSink do
     field :aws_secret_access_key, EncryptedField
     field :connection_id, :string
     field :routing_mode, Ecto.Enum, values: [:dynamic, :static]
+    field :compression, Ecto.Enum, values: [:none, :gzip], default: :none
   end
 
   def changeset(struct, params) do
@@ -39,7 +40,8 @@ defmodule Sequin.Consumers.KafkaSink do
       :aws_region,
       :aws_access_key_id,
       :aws_secret_access_key,
-      :routing_mode
+      :routing_mode,
+      :compression
     ])
     |> validate_required([:hosts, :tls])
     |> validate_routing()
@@ -175,6 +177,7 @@ defmodule Sequin.Consumers.KafkaSink do
     []
     |> maybe_add_sasl(sink)
     |> maybe_add_ssl(sink)
+    |> maybe_add_compression(sink)
     |> Keyword.put(:query_api_versions, true)
     |> Keyword.put(:auto_start_producers, true)
   end
@@ -200,4 +203,12 @@ defmodule Sequin.Consumers.KafkaSink do
   end
 
   defp maybe_add_ssl(config, _), do: config
+
+  # Add compression configuration if not :none
+  defp maybe_add_compression(config, %{compression: :none}), do: config
+  defp maybe_add_compression(config, %{compression: nil}), do: config
+
+  defp maybe_add_compression(config, %{compression: compression}) do
+    Keyword.put(config, :compression, compression)
+  end
 end
diff --git a/test/sequin/kafka_sink_test.exs b/test/sequin/kafka_sink_test.exs
index 72a2de17c..dc09afb2d 100644
--- a/test/sequin/kafka_sink_test.exs
+++ b/test/sequin/kafka_sink_test.exs
@@ -215,6 +215,86 @@ defmodule Sequin.Consumers.KafkaSinkTest do
 
       refute :topic in changeset.changes
     end
+
+    test "accepts valid compression values" do
+      for compression <- [:none, :gzip] do
+        changeset =
+          KafkaSink.changeset(%KafkaSink{}, %{
+            hosts: "localhost:9092",
+            topic: "test-topic",
+            tls: false,
+            routing_mode: :static,
+            compression: compression
+          })
+
+        assert changeset.valid?, "Expected compression #{compression} to be valid"
+      end
+    end
+
+    test "defaults compression to :none" do
+      changeset =
+        KafkaSink.changeset(%KafkaSink{}, %{
+          hosts: "localhost:9092",
+          topic: "test-topic",
+          tls: false,
+          routing_mode: :static
+        })
+
+      assert changeset.valid?
+      sink = Ecto.Changeset.apply_changes(changeset)
+      assert sink.compression == :none
+    end
+  end
+
+  describe "to_brod_config/1" do
+    test "includes compression when set to gzip" do
+      sink = %KafkaSink{
+        hosts: "localhost:9092",
+        topic: "test-topic",
+        tls: false,
+        compression: :gzip
+      }
+
+      config = KafkaSink.to_brod_config(sink)
+      assert Keyword.get(config, :compression) == :gzip
+    end
+
+    test "does not include compression when set to :none" do
+      sink = %KafkaSink{
+        hosts: "localhost:9092",
+        topic: "test-topic",
+        tls: false,
+        compression: :none
+      }
+
+      config = KafkaSink.to_brod_config(sink)
+      refute Keyword.has_key?(config, :compression)
+    end
+
+    test "does not include compression when nil" do
+      sink = %KafkaSink{
+        hosts: "localhost:9092",
+        topic: "test-topic",
+        tls: false,
+        compression: nil
+      }
+
+      config = KafkaSink.to_brod_config(sink)
+      refute Keyword.has_key?(config, :compression)
+    end
+
+    test "includes both compression and ssl when both are set" do
+      sink = %KafkaSink{
+        hosts: "localhost:9092",
+        topic: "test-topic",
+        tls: true,
+        compression: :gzip
+      }
+
+      config = KafkaSink.to_brod_config(sink)
+      assert Keyword.get(config, :compression) == :gzip
+      assert Keyword.get(config, :ssl) == true
+    end
   end
 
   # Helper function to extract error messages