diff --git a/configure b/configure
index 8b52b74..b40cfec 100755
--- a/configure
+++ b/configure
@@ -150,10 +150,18 @@ function define_swap() {
 	fi
 }
 
+function define_zfs_compression() {
+	if [[ $PARTITIONING_ZFS_USE_COMPRESSION != "false" ]]; then
+		echo -n "${PARTITIONING_ZFS_COMPRESSION@Q}"
+	else
+		echo -n "false"
+	fi
+}
+
 function define_disk_layout() {
 	case "$PARTITIONING_SCHEME" in
 		"classic_single_disk") define_disk_configuration_function "create_classic_single_disk_layout swap=$(define_swap) type=${PARTITIONING_BOOT_TYPE@Q} luks=${PARTITIONING_USE_LUKS@Q} root_fs=${PARTITIONING_ROOT_FS@Q}" "${PARTITIONING_DEVICE@Q}" ;;
-		"zfs_centric")         define_disk_configuration_function "create_zfs_centric_layout swap=$(define_swap) type=${PARTITIONING_BOOT_TYPE@Q} encrypt=${PARTITIONING_ZFS_ENCRYPTION@Q} pool_type=${PARTITIONING_ZFS_POOL_TYPE@Q}" "${PARTITIONING_DEVICES[@]@Q}" ;;
+		"zfs_centric")         define_disk_configuration_function "create_zfs_centric_layout swap=$(define_swap) type=${PARTITIONING_BOOT_TYPE@Q} encrypt=${PARTITIONING_ZFS_ENCRYPTION@Q} compress=$(define_zfs_compression) pool_type=${PARTITIONING_ZFS_POOL_TYPE@Q}" "${PARTITIONING_DEVICES[@]@Q}" ;;
 		"btrfs_centric")       define_disk_configuration_function "create_btrfs_centric_layout swap=$(define_swap) type=${PARTITIONING_BOOT_TYPE@Q} raid_type=${PARTITIONING_BTRFS_RAID_TYPE@Q} luks=${PARTITIONING_USE_LUKS@Q}" "${PARTITIONING_DEVICES[@]@Q}" ;;
 		"raid0_luks")          define_disk_configuration_function "create_raid0_luks_layout swap=$(define_swap) type=${PARTITIONING_BOOT_TYPE@Q} root_fs=${PARTITIONING_ROOT_FS@Q}" "${PARTITIONING_DEVICES[@]@Q}" ;;
 		"custom")
@@ -176,6 +184,7 @@ PARTITIONING_BOOT_TYPES=("efi" "bios")
 PARTITIONING_ROOT_FS_TYPES=("ext4" "btrfs")
 PARTITIONING_BTRFS_RAID_TYPES=("raid0" "raid1")
 PARTITIONING_ZFS_POOL_TYPES=("standard" "custom")
+PARTITIONING_ZFS_COMPRESSIONS=("on" "gzip" "lz4" "lzjb" "zle" "zstd" "zstd-fast")
 
 function create_single_disk_layout() {
 	create_classic_single_disk_layout "$@"
@@ -191,6 +200,16 @@ function parse_swap() {
 	fi
 }
 
+function parse_zfs_compression() {
+	if [[ $1 == "false" ]]; then
+		PARTITIONING_ZFS_USE_COMPRESSION=false
+		PARTITIONING_ZFS_COMPRESSION=zstd
+	else
+		PARTITIONING_ZFS_USE_COMPRESSION=true
+		PARTITIONING_ZFS_COMPRESSION="$1"
+	fi
+}
+
 function create_classic_single_disk_layout() {
 	PARTITIONING_SCHEME="classic_single_disk"
 
@@ -221,7 +240,7 @@ function create_raid0_luks_layout() {
 function create_zfs_centric_layout() {
 	PARTITIONING_SCHEME="zfs_centric"
 
-	local known_arguments=('+swap' '?type' '?pool_type' '?encrypt')
+	local known_arguments=('+swap' '?type' '?pool_type' '?encrypt' '?compress')
 	local extra_arguments=()
 	declare -A arguments; parse_arguments "$@"
 
@@ -230,6 +249,7 @@ function create_zfs_centric_layout() {
 	PARTITIONING_BOOT_TYPE="${arguments[type]}"
 	PARTITIONING_ZFS_POOL_TYPE="${arguments[pool_type]:-standard}"
 	PARTITIONING_ZFS_ENCRYPTION="${arguments[encrypt]:-false}"
+	parse_zfs_compression "${arguments[compress]:-false}"
 }
 
 function create_btrfs_raid_layout() {
@@ -327,7 +347,7 @@ function load_default_config() {
 	LOCALE="C.utf8"
 
 	function disk_configuration() {
-		#create_zfs_centric_layout swap=8GiB type=efi encrypt=true pool_type=standard /dev/sdX
+		#create_zfs_centric_layout swap=8GiB type=efi encrypt=true compress=zstd pool_type=standard /dev/sdX
 		create_classic_single_disk_layout swap=8GiB type=efi luks=true root_fs=ext4 /dev/sdX
 	}
 
@@ -713,6 +733,8 @@ MENU_ITEMS=(
 	"PARTITIONING_USE_LUKS"
 	"PARTITIONING_ZFS_POOL_TYPE"
 	"PARTITIONING_ZFS_ENCRYPTION"
+	"PARTITIONING_ZFS_USE_COMPRESSION"
+	"PARTITIONING_ZFS_COMPRESSION"
 	"PARTITIONING_BTRFS_RAID_TYPE"
 	"PARTITIONING_DEVICE"
 	"PARTITIONING_DEVICES"
@@ -756,7 +778,7 @@ function PARTITIONING_SCHEME_menu()  {
 		# Set disk scheme
 		case "$dialog_out" in
 			"classic_single_disk") create_classic_single_disk_layout swap=8GiB type=efi luks=false root_fs=ext4 /dev/sdX ;;
-			"zfs_centric")         create_zfs_centric_layout swap=8GiB type=efi encrypt=true pool_type=standard /dev/sdX ;;
+			"zfs_centric")         create_zfs_centric_layout swap=8GiB type=efi encrypt=true compress=zstd pool_type=standard /dev/sdX ;;
 			"btrfs_centric")       create_btrfs_centric_layout swap=8GiB type=efi raid_type=raid0 luks=false /dev/sdX ;;
 			"raid0_luks")          create_raid0_luks_layout swap=8GiB type=efi root_fs=ext4 /dev/sdX /dev/sdY ;;
 			"custom")              PARTITIONING_SCHEME="$dialog_out" ;;
@@ -848,6 +870,35 @@ function PARTITIONING_ZFS_ENCRYPTION_menu()  {
 	UNSAVED_CHANGES=true
 }
 
+function PARTITIONING_ZFS_USE_COMPRESSION_tag()   { echo " ├ Use ZFS Compression"; }
+function PARTITIONING_ZFS_USE_COMPRESSION_label() { on_off_label "$PARTITIONING_ZFS_USE_COMPRESSION" " ├ "; }
+function PARTITIONING_ZFS_USE_COMPRESSION_show()  { [[ $PARTITIONING_SCHEME != "custom" ]] && one_of "$PARTITIONING_SCHEME" "zfs_centric" && one_of "$PARTITIONING_ZFS_POOL_TYPE" "standard"; }
+function PARTITIONING_ZFS_USE_COMPRESSION_help()  { echo "Determines if compression should be enabled on the ZFS datasets."; }
+function PARTITIONING_ZFS_USE_COMPRESSION_menu()  {
+	on_off_toggle "PARTITIONING_ZFS_USE_COMPRESSION"
+	UNSAVED_CHANGES=true
+}
+
+function PARTITIONING_ZFS_COMPRESSION_tag()   { echo " │  └ Compression algorithm"; }
+function PARTITIONING_ZFS_COMPRESSION_label() { echo " │  └ ($PARTITIONING_ZFS_COMPRESSION)"; }
+function PARTITIONING_ZFS_COMPRESSION_show()  { [[ $PARTITIONING_SCHEME != "custom" ]] && one_of "$PARTITIONING_SCHEME" "zfs_centric" && one_of "$PARTITIONING_ZFS_POOL_TYPE" "standard" && is_on "$PARTITIONING_ZFS_USE_COMPRESSION"; }
+function PARTITIONING_ZFS_COMPRESSION_help()  { echo "Determines the compression algorithm used on the ZFS datasets. 'on' means to use the default compression algorithm determined by ZFS. If you need more granular control over the specific levels such as gzip-N or zstd-N, please use a custom pool."; }
+function PARTITIONING_ZFS_COMPRESSION_menu()  {
+	if menu_radiolist \
+		"Select ZFS compression algorithm" \
+		"Determines the compression algorithm used on the ZFS datasets. The special value 'on' means to use the default compression algorithm as determined by ZFS." \
+		"$PARTITIONING_ZFS_COMPRESSION" \
+		"${PARTITIONING_ZFS_COMPRESSIONS[@]}"
+	then
+		# Set timezone
+		PARTITIONING_ZFS_COMPRESSION="$dialog_out"
+		UNSAVED_CHANGES=true
+	else
+		# Return to menu
+		true
+	fi
+}
+
 function PARTITIONING_ZFS_POOL_TYPE_tag()   { echo " ├ Pool type"; }
 function PARTITIONING_ZFS_POOL_TYPE_label() { echo " ├ ($PARTITIONING_ZFS_POOL_TYPE)"; }
 function PARTITIONING_ZFS_POOL_TYPE_show()  { [[ $PARTITIONING_SCHEME != "custom" ]] && one_of "$PARTITIONING_SCHEME" "zfs_centric"; }
diff --git a/gentoo.conf.example b/gentoo.conf.example
index 9399747..b183a4e 100644
--- a/gentoo.conf.example
+++ b/gentoo.conf.example
@@ -17,8 +17,7 @@
 
 # This function will be called when a custom zfs pool type has been chosen.
 # You do not need to change this, unless you have chosen a custom zfs pool type.
-# $1: either 'true' or 'false' determining if the pool should be encrypted
-# $2: a string describing all device paths (for error messages)
+# $1: a string describing all device paths (for error messages)
 # $@: device paths
 function format_zfs_custom() {
 	# See format_zfs_standard() function in scripts/functions.sh for an example!
diff --git a/scripts/config.sh b/scripts/config.sh
index 0717d8e..b39f0a8 100644
--- a/scripts/config.sh
+++ b/scripts/config.sh
@@ -240,7 +240,7 @@ function format() {
 function format_zfs() {
 	USED_ZFS=true
 
-	local known_arguments=('+ids' '?pool_type' '?encrypt')
+	local known_arguments=('+ids' '?pool_type' '?encrypt' '?compress')
 	local extra_arguments=()
 	declare -A arguments; parse_arguments "$@"
 
diff --git a/scripts/functions.sh b/scripts/functions.sh
index cbd417a..24142a9 100644
--- a/scripts/functions.sh
+++ b/scripts/functions.sh
@@ -409,18 +409,26 @@ function disk_format() {
 }
 
 # This function will be called when a custom zfs pool type has been chosen.
-# $1: either 'true' or 'false' determining if the pool should be encrypted
-# $2: a string describing all device paths (for error messages)
+# $1: either 'true' or 'false' determining if the datasets should be encrypted
+# $2: either 'false' or a value determining the dataset compression algorithm
+# $3: a string describing all device paths (for error messages)
 # $@: device paths
 function format_zfs_standard() {
 	local encrypt="$1"
-	local device_desc="$2"
-	shift 2
+	local compress="$2"
+	local device_desc="$3"
+	shift 3
 	local devices=("$@")
+	local extra_args=()
 
 	einfo "Creating zfs pool on $devices_desc"
 
-	local extra_args=()
+	if [[ "$compress" != false ]]; then
+		extra_args+=(
+			"-O" "compression=$compress"
+			)
+	fi
+
 	if [[ "$encrypt" == true ]]; then
 		extra_args+=(
 			"-O" "encryption=aes-256-gcm"
@@ -440,7 +448,6 @@ function format_zfs_standard() {
 		-O mountpoint=none    \
 		-O canmount=noauto    \
 		-O devices=off        \
-		-O compression=zstd   \
 		"${extra_args[@]}"    \
 		rpool                 \
 		"${devices[@]}"       \
@@ -459,6 +466,7 @@ function disk_format_zfs() {
 	local ids="${arguments[ids]}"
 	local pool_type="${arguments[pool_type]}"
 	local encrypt="${arguments[encrypt]-false}"
+	local compress="${arguments[compress]-false}"
 	if [[ ${disk_action_summarize_only-false} == "true" ]]; then
 		local id
 		# Splitting is intentional here
@@ -487,9 +495,9 @@ function disk_format_zfs() {
 		|| die "Could not erase previous file system signatures from $devices_desc"
 
 	if [[ "$pool_type" == "custom" ]]; then
-		format_zfs_custom "$encrypt" "$devices_desc" "${devices[@]}"
+		format_zfs_custom "$devices_desc" "${devices[@]}"
 	else
-		format_zfs_standard "$encrypt" "$devices_desc" "${devices[@]}"
+		format_zfs_standard "$encrypt" "$compress" "$devices_desc" "${devices[@]}"
 	fi
 }