diff --git a/router/network.go b/router/network.go
index 89c49090eb..c616b7623e 100644
--- a/router/network.go
+++ b/router/network.go
@@ -3,6 +3,8 @@
 package router
 
 import (
+	"bytes"
+	"compress/gzip"
 	"context"
 	"crypto/tls"
 	"encoding/json"
@@ -90,6 +92,7 @@ func (network *netHandle) SendPost(ctx context.Context, structData integrations.
 		}
 
 		var payload io.Reader
+		headers := map[string]string{"User-Agent": "RudderLabs"}
 		// support for JSON and FORM body type
 		if len(bodyValue) > 0 {
 			switch bodyFormat {
@@ -124,6 +127,34 @@ func (network *netHandle) SendPost(ctx context.Context, structData integrations.
 					formValues.Set(key, fmt.Sprint(val)) // transformer ensures top level string values, still val.(string) would be restrictive
 				}
 				payload = strings.NewReader(formValues.Encode())
+			case "GZIP":
+				strValue, ok := bodyValue["payload"].(string)
+				if !ok {
+					return &utils.SendPostResponse{
+						StatusCode:   400,
+						ResponseBody: []byte("400 Unable to parse json list. Unexpected transformer response"),
+					}
+				}
+				var buf bytes.Buffer
+				zw := gzip.NewWriter(&buf)
+				defer zw.Close()
+
+				if _, err := zw.Write([]byte(strValue)); err != nil {
+					return &utils.SendPostResponse{
+						StatusCode:   400,
+						ResponseBody: []byte("400 Unable to compress data. Unexpected response"),
+					}
+				}
+
+				if err := zw.Close(); err != nil {
+					return &utils.SendPostResponse{
+						StatusCode:   400,
+						ResponseBody: []byte("400 Unable to flush compressed data. Unexpected response"),
+					}
+				}
+
+				headers["Content-Encoding"] = "gzip"
+				payload = &buf
 			default:
 				panic(fmt.Errorf("bodyFormat: %s is not supported", bodyFormat))
 			}
@@ -156,7 +187,9 @@ func (network *netHandle) SendPost(ctx context.Context, structData integrations.
 			req.Header.Add(key, val.(string))
 		}
 
-		req.Header.Add("User-Agent", "RudderLabs")
+		for key, val := range headers {
+			req.Header.Add(key, val)
+		}
 
 		resp, err := client.Do(req)
 		if err != nil {
diff --git a/router/network_test.go b/router/network_test.go
index 752689ccf1..8a966e9a31 100644
--- a/router/network_test.go
+++ b/router/network_test.go
@@ -2,14 +2,18 @@ package router
 
 import (
 	"bytes"
+	"compress/gzip"
 	"context"
 	"fmt"
 	"io"
 	"net/http"
+	"net/http/httptest"
+	"testing"
 
 	"github.com/golang/mock/gomock"
 	. "github.com/onsi/ginkgo/v2"
 	. "github.com/onsi/gomega"
+	"github.com/stretchr/testify/require"
 
 	"github.com/rudderlabs/rudder-go-kit/logger"
 	mocksSysUtils "github.com/rudderlabs/rudder-server/mocks/utils/sysUtils"
@@ -31,6 +35,65 @@ func (c *networkContext) Finish() {
 	c.mockCtrl.Finish()
 }
 
+func TestSendPostWithGzipData(t *testing.T) {
+	t.Run("should send Gzip data when payload is valid", func(r *testing.T) {
+		testServer := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+			if r.Header.Get("Content-Encoding") != "gzip" {
+				w.WriteHeader(http.StatusBadRequest)
+				return
+			}
+			body, err := gzip.NewReader(r.Body)
+			if err != nil {
+				w.WriteHeader(http.StatusBadRequest)
+				return
+			}
+			defer body.Close()
+			buf := new(bytes.Buffer)
+			_, _ = buf.ReadFrom(body)
+			w.WriteHeader(http.StatusOK)
+			_, _ = w.Write(buf.Bytes())
+		}))
+		network := &netHandle{}
+		network.logger = logger.NewLogger().Child("network")
+		network.httpClient = http.DefaultClient
+		eventData := `[{"event":"Signed Up"}]`
+		var structData integrations.PostParametersT
+		structData.RequestMethod = "POST"
+		structData.Type = "REST"
+		structData.URL = testServer.URL
+		structData.UserID = "anon_id"
+		structData.Body = map[string]interface{}{
+			"GZIP": map[string]interface{}{
+				"payload": eventData,
+			},
+		}
+
+		resp := network.SendPost(context.Background(), structData)
+		require.Equal(r, resp.StatusCode, http.StatusOK)
+		require.Equal(r, string(resp.ResponseBody), eventData)
+	})
+
+	t.Run("should fail to send Gzip data when payload is missing", func(r *testing.T) {
+		network := &netHandle{}
+		network.logger = logger.NewLogger().Child("network")
+		network.httpClient = http.DefaultClient
+		eventData := `[{"event":"Signed Up"}]`
+		var structData integrations.PostParametersT
+		structData.RequestMethod = "POST"
+		structData.Type = "REST"
+		structData.UserID = "anon_id"
+		structData.Body = map[string]interface{}{
+			"GZIP": map[string]interface{}{
+				"abc": eventData,
+			},
+		}
+
+		resp := network.SendPost(context.Background(), structData)
+		require.Equal(r, resp.StatusCode, http.StatusBadRequest)
+		require.Equal(r, resp.ResponseBody, []byte("400 Unable to parse json list. Unexpected transformer response"))
+	})
+}
+
 var _ = Describe("Network", func() {
 	var c *networkContext
 
@@ -149,6 +212,7 @@ var _ = Describe("Network", func() {
 				"FORM": map[string]interface{}{},
 				"JSON": map[string]interface{}{},
 				"XML":  map[string]interface{}{},
+				"GZIP": map[string]interface{}{},
 			}
 			requestParams.Files = map[string]interface{}{}