diff --git a/server/gitea/client.go b/server/gitea/client.go
index 4f7eaa6..bfc56d3 100644
--- a/server/gitea/client.go
+++ b/server/gitea/client.go
@@ -2,6 +2,7 @@ package gitea
 
 import (
 	"bytes"
+	"compress/gzip"
 	"errors"
 	"fmt"
 	"io"
@@ -9,7 +10,6 @@ import (
 	"net/http"
 	"net/url"
 	"path"
-	"strconv"
 	"strings"
 	"time"
 
@@ -101,7 +101,7 @@ func (client *Client) ContentWebLink(targetOwner, targetRepo, branch, resource s
 }
 
 func (client *Client) GiteaRawContent(targetOwner, targetRepo, ref, resource string) ([]byte, error) {
-	reader, _, _, err := client.ServeRawContent(targetOwner, targetRepo, ref, resource)
+	reader, _, _, err := client.ServeRawContent(targetOwner, targetRepo, ref, resource, false)
 	if err != nil {
 		return nil, err
 	}
@@ -109,7 +109,7 @@ func (client *Client) GiteaRawContent(targetOwner, targetRepo, ref, resource str
 	return io.ReadAll(reader)
 }
 
-func (client *Client) ServeRawContent(targetOwner, targetRepo, ref, resource string) (io.ReadCloser, http.Header, int, error) {
+func (client *Client) ServeRawContent(targetOwner, targetRepo, ref, resource string, acceptsGzip bool) (io.ReadCloser, http.Header, int, error) {
 	cacheKey := fmt.Sprintf("%s/%s/%s|%s|%s", rawContentCacheKeyPrefix, targetOwner, targetRepo, ref, resource)
 	log := log.With().Str("cache_key", cacheKey).Logger()
 	log.Trace().Msg("try file in cache")
@@ -123,7 +123,7 @@ func (client *Client) ServeRawContent(targetOwner, targetRepo, ref, resource str
 			if cache.IsSymlink {
 				linkDest := string(cache.Body)
 				log.Debug().Msgf("[cache] follow symlink from %q to %q", resource, linkDest)
-				return client.ServeRawContent(targetOwner, targetRepo, ref, linkDest)
+				return client.ServeRawContent(targetOwner, targetRepo, ref, linkDest, acceptsGzip)
 			} else if !cache.IsEmpty() {
 				log.Debug().Msgf("[cache] return %d bytes", len(cache.Body))
 				return io.NopCloser(bytes.NewReader(cache.Body)), cachedHeader, cachedStatusCode, nil
@@ -168,7 +168,7 @@ func (client *Client) ServeRawContent(targetOwner, targetRepo, ref, resource str
 					}
 
 					log.Debug().Msgf("follow symlink from %q to %q", resource, linkDest)
-					return client.ServeRawContent(targetOwner, targetRepo, ref, linkDest)
+					return client.ServeRawContent(targetOwner, targetRepo, ref, linkDest, acceptsGzip)
 				}
 			}
 
@@ -176,7 +176,22 @@ func (client *Client) ServeRawContent(targetOwner, targetRepo, ref, resource str
 			mimeType := client.getMimeTypeByExtension(resource)
 			resp.Response.Header.Set(ContentTypeHeader, mimeType)
 
-			if !shouldRespBeSavedToCache(resp.Response) {
+			// Compress file response
+			buf := new(bytes.Buffer)
+			gw := gzip.NewWriter(buf)
+			_, err := io.Copy(gw, reader)
+			gw.Close()
+			if err != nil {
+				log.Error().Err(err).Msg("error on response compression")
+			}
+
+			// Check if size of gzipped response is greater than fileCacheSizeLimit and return gzipped
+			// response but uncached or return non-gzip response if not supported
+			len := int64(buf.Len());
+			shouldRespBeSavedToCache := len < fileCacheSizeLimit
+			if !shouldRespBeSavedToCache {
+				return io.NopCloser(buf), resp.Response.Header, resp.StatusCode, err
+			} else if !shouldRespBeSavedToCache && !acceptsGzip {
 				return reader, resp.Response.Header, resp.StatusCode, err
 			}
 
@@ -186,7 +201,7 @@ func (client *Client) ServeRawContent(targetOwner, targetRepo, ref, resource str
 				ETag:     resp.Header.Get(ETagHeader),
 				MimeType: mimeType,
 			}
-			return fileResp.CreateCacheReader(reader, client.responseCache, cacheKey), resp.Response.Header, resp.StatusCode, nil
+			return fileResp.CreateCacheReader(io.NopCloser(buf), client.responseCache, cacheKey), resp.Response.Header, resp.StatusCode, nil
 
 		case http.StatusNotFound:
 			if err := client.responseCache.Set(cacheKey, FileResponse{
@@ -275,22 +290,3 @@ func (client *Client) getMimeTypeByExtension(resource string) string {
 	log.Trace().Msgf("probe mime of %q is %q", resource, mimeType)
 	return mimeType
 }
-
-func shouldRespBeSavedToCache(resp *http.Response) bool {
-	if resp == nil {
-		return false
-	}
-
-	contentLengthRaw := resp.Header.Get(ContentLengthHeader)
-	if contentLengthRaw == "" {
-		return false
-	}
-
-	contentLength, err := strconv.ParseInt(contentLengthRaw, 10, 64)
-	if err != nil {
-		log.Error().Err(err).Msg("could not parse content length")
-	}
-
-	// if content to big or could not be determined we not cache it
-	return contentLength > 0 && contentLength < fileCacheSizeLimit
-}
diff --git a/server/upstream/upstream.go b/server/upstream/upstream.go
index d9c131e..d315397 100644
--- a/server/upstream/upstream.go
+++ b/server/upstream/upstream.go
@@ -1,6 +1,7 @@
 package upstream
 
 import (
+	"compress/gzip"
 	"errors"
 	"fmt"
 	"io"
@@ -97,7 +98,10 @@ func (o *Options) Upstream(ctx *context.Context, giteaClient *gitea.Client, redi
 
 	log.Debug().Msg("Preparing")
 
-	reader, header, statusCode, err := giteaClient.ServeRawContent(o.TargetOwner, o.TargetRepo, o.TargetBranch, o.TargetPath)
+	// Check if gzip is supported
+	acceptsGzip := strings.Contains(ctx.Req.Header.Get("Accept-Encoding"), "gzip")
+
+	reader, header, statusCode, err := giteaClient.ServeRawContent(o.TargetOwner, o.TargetRepo, o.TargetBranch, o.TargetPath, acceptsGzip)
 	if reader != nil {
 		defer reader.Close()
 	}
@@ -197,6 +201,19 @@ func (o *Options) Upstream(ctx *context.Context, giteaClient *gitea.Client, redi
 		return true
 	}
 
+	// Decompress response if gzip is not supported
+	r := reader
+	if !acceptsGzip {
+		r, err = gzip.NewReader(reader)
+		if err != nil {
+			log.Error().Err(err).Msgf("Couldn't decompress for %q", o.TargetPath)
+			html.ReturnErrorPage(ctx, "", http.StatusInternalServerError)
+			return true
+		}
+	} else {
+		ctx.RespWriter.Header().Set("Content-Encoding", "gzip")
+	}
+
 	// Set ETag & MIME
 	o.setHeader(ctx, header)
 
@@ -206,7 +223,7 @@ func (o *Options) Upstream(ctx *context.Context, giteaClient *gitea.Client, redi
 
 	// Write the response body to the original request
 	if reader != nil {
-		_, err := io.Copy(ctx.RespWriter, reader)
+		_, err := io.Copy(ctx.RespWriter, r)
 		if err != nil {
 			log.Error().Err(err).Msgf("Couldn't write body for %q", o.TargetPath)
 			html.ReturnErrorPage(ctx, "", http.StatusInternalServerError)