diff --git a/Makefile b/Makefile
index 5a320c2a4129ae..763a397079b532 100644
--- a/Makefile
+++ b/Makefile
@@ -324,6 +324,9 @@ TARNAME=node-$(FULLVERSION)
 TARBALL=$(TARNAME).tar
 BINARYNAME=$(TARNAME)-$(OSTYPE)-$(ARCH)
 BINARYTAR=$(BINARYNAME).tar
+# OSX doesn't have xz installed by default, http://macpkg.sourceforge.net/
+XZ=$(shell which xz > /dev/null 2>&1; echo $$?)
+XZ_COMPRESSION ?= 9
 PKG=$(TARNAME).pkg
 PACKAGEMAKER ?= /Developer/Applications/Utilities/PackageMaker.app/Contents/MacOS/PackageMaker
 PKGDIR=out/dist-osx
@@ -397,7 +400,11 @@ $(TARBALL): release-only node doc
 	find $(TARNAME)/ -type l | xargs rm # annoying on windows
 	tar -cf $(TARNAME).tar $(TARNAME)
 	rm -rf $(TARNAME)
-	gzip -f -9 $(TARNAME).tar
+	gzip -c -f -9 $(TARNAME).tar > $(TARNAME).tar.gz
+ifeq ($(XZ), 0)
+	xz -c -f -$(XZ_COMPRESSION) $(TARNAME).tar > $(TARNAME).tar.xz
+endif
+	rm $(TARNAME).tar
 
 tar: $(TARBALL)
 
@@ -406,6 +413,11 @@ tar-upload: tar
 	chmod 664 node-$(FULLVERSION).tar.gz
 	scp -p node-$(FULLVERSION).tar.gz $(STAGINGSERVER):nodejs/$(DISTTYPEDIR)/$(FULLVERSION)/node-$(FULLVERSION).tar.gz
 	ssh $(STAGINGSERVER) "touch nodejs/$(DISTTYPEDIR)/$(FULLVERSION)/node-$(FULLVERSION).tar.gz.done"
+ifeq ($(XZ), 0)
+	chmod 664 node-$(FULLVERSION).tar.xz
+	scp -p node-$(FULLVERSION).tar.xz $(STAGINGSERVER):nodejs/$(DISTTYPEDIR)/$(FULLVERSION)/node-$(FULLVERSION).tar.xz
+	ssh $(STAGINGSERVER) "touch nodejs/$(DISTTYPEDIR)/$(FULLVERSION)/node-$(FULLVERSION).tar.xz.done"
+endif
 
 doc-upload: tar
 	ssh $(STAGINGSERVER) "mkdir -p nodejs/$(DISTTYPEDIR)/$(FULLVERSION)"
@@ -424,6 +436,9 @@ $(TARBALL)-headers: config.gypi release-only
 	tar -cf $(TARNAME)-headers.tar $(TARNAME)
 	rm -rf $(TARNAME)
 	gzip -c -f -9 $(TARNAME)-headers.tar > $(TARNAME)-headers.tar.gz
+ifeq ($(XZ), 0)
+	xz -c -f -$(XZ_COMPRESSION) $(TARNAME)-headers.tar > $(TARNAME)-headers.tar.xz
+endif
 	rm $(TARNAME)-headers.tar
 
 tar-headers: $(TARBALL)-headers
@@ -433,6 +448,11 @@ tar-headers-upload: tar-headers
 	chmod 664 $(TARNAME)-headers.tar.gz
 	scp -p $(TARNAME)-headers.tar.gz $(STAGINGSERVER):nodejs/$(DISTTYPEDIR)/$(FULLVERSION)/$(TARNAME)-headers.tar.gz
 	ssh $(STAGINGSERVER) "touch nodejs/$(DISTTYPEDIR)/$(FULLVERSION)/$(TARNAME)-headers.tar.gz.done"
+ifeq ($(XZ), 0)
+	chmod 664 $(TARNAME)-headers.tar.xz
+	scp -p $(TARNAME)-headers.tar.xz $(STAGINGSERVER):nodejs/$(DISTTYPEDIR)/$(FULLVERSION)/$(TARNAME)-headers.tar.xz
+	ssh $(STAGINGSERVER) "touch nodejs/$(DISTTYPEDIR)/$(FULLVERSION)/$(TARNAME)-headers.tar.xz.done"
+endif
 
 $(BINARYTAR): release-only
 	rm -rf $(BINARYNAME)
@@ -445,7 +465,11 @@ $(BINARYTAR): release-only
 	cp ChangeLog $(BINARYNAME)
 	tar -cf $(BINARYNAME).tar $(BINARYNAME)
 	rm -rf $(BINARYNAME)
-	gzip -f -9 $(BINARYNAME).tar
+	gzip -c -f -9 $(BINARYNAME).tar > $(BINARYNAME).tar.gz
+ifeq ($(XZ), 0)
+	xz -c -f -$(XZ_COMPRESSION) $(BINARYNAME).tar > $(BINARYNAME).tar.xz
+endif
+	rm $(BINARYNAME).tar
 
 binary: $(BINARYTAR)
 
@@ -454,6 +478,11 @@ binary-upload-arch: binary
 	chmod 664 node-$(FULLVERSION)-$(OSTYPE)-$(ARCH).tar.gz
 	scp -p node-$(FULLVERSION)-$(OSTYPE)-$(ARCH).tar.gz $(STAGINGSERVER):nodejs/$(DISTTYPEDIR)/$(FULLVERSION)/node-$(FULLVERSION)-$(OSTYPE)-$(ARCH).tar.gz
 	ssh $(STAGINGSERVER) "touch nodejs/$(DISTTYPEDIR)/$(FULLVERSION)/node-$(FULLVERSION)-$(OSTYPE)-$(ARCH).tar.gz.done"
+ifeq ($(XZ), 0)
+	chmod 664 node-$(FULLVERSION)-$(OSTYPE)-$(ARCH).tar.xz
+	scp -p node-$(FULLVERSION)-$(OSTYPE)-$(ARCH).tar.xz $(STAGINGSERVER):nodejs/$(DISTTYPEDIR)/$(FULLVERSION)/node-$(FULLVERSION)-$(OSTYPE)-$(ARCH).tar.xz
+	ssh $(STAGINGSERVER) "touch nodejs/$(DISTTYPEDIR)/$(FULLVERSION)/node-$(FULLVERSION)-$(OSTYPE)-$(ARCH).tar.xz.done"
+endif
 
 ifeq ($(OSTYPE),darwin)
 binary-upload: