diff --git a/CHANGELOG.md b/CHANGELOG.md
index 139ce6f7..841e4596 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,7 @@
+## 2.1.0 ##
+
+* add compression support to ydb sdk
+
 ## 1.1.16 ##
 
 * alias `kikimr.public.sdk.python.client` is deprecated. use `import ydb` instead.
diff --git a/test-requirements.txt b/test-requirements.txt
index 041f7684..ee7b7f8d 100644
--- a/test-requirements.txt
+++ b/test-requirements.txt
@@ -10,7 +10,7 @@ docker==5.0.0
 docker-compose==1.29.2
 dockerpty==0.4.1
 docopt==0.6.2
-grpcio==1.38.0
+grpcio>=1.38.0
 idna==3.2
 importlib-metadata==4.6.1
 iniconfig==1.1.1
diff --git a/tests/aio/test_connection_pool.py b/tests/aio/test_connection_pool.py
index 534bf31b..221f1e39 100644
--- a/tests/aio/test_connection_pool.py
+++ b/tests/aio/test_connection_pool.py
@@ -21,6 +21,25 @@ async def test_async_call(endpoint, database):
     await driver.stop()
 
 
+@pytest.mark.asyncio
+async def test_gzip_compression(endpoint, database):
+    driver_config = ydb.DriverConfig(
+        endpoint,
+        database,
+        credentials=ydb.construct_credentials_from_environ(),
+        root_certificates=ydb.load_ydb_root_certificate(),
+        compression=ydb.RPCCompression.Gzip,
+    )
+
+    driver = Driver(driver_config=driver_config)
+
+    await driver.scheme_client.make_directory(
+        "/local/lol",
+        settings=ydb.BaseRequestSettings().with_compression(ydb.RPCCompression.Deflate),
+    )
+    await driver.stop()
+
+
 @pytest.mark.asyncio
 async def test_other_credentials(endpoint, database):
     driver = Driver(endpoint=endpoint, database=database)
diff --git a/ydb/connection.py b/ydb/connection.py
index e3af3d5d..1500f4c8 100644
--- a/ydb/connection.py
+++ b/ydb/connection.py
@@ -300,14 +300,22 @@ def channel_factory(
     logger.debug("Channel options: {}".format(options))
 
     if driver_config.root_certificates is None and not driver_config.secure_channel:
-        return channel_provider.insecure_channel(endpoint, options)
+        return channel_provider.insecure_channel(
+            endpoint, options, compression=getattr(driver_config, "compression", None)
+        )
+
     root_certificates = driver_config.root_certificates
     if root_certificates is None:
         root_certificates = default_pem.load_default_pem()
     credentials = grpc.ssl_channel_credentials(
         root_certificates, driver_config.private_key, driver_config.certificate_chain
     )
-    return channel_provider.secure_channel(endpoint, credentials, options)
+    return channel_provider.secure_channel(
+        endpoint,
+        credentials,
+        options,
+        compression=getattr(driver_config, "compression", None),
+    )
 
 
 class Connection(object):
@@ -405,7 +413,12 @@ def future(
         rpc_state, timeout, metadata = self._prepare_call(
             stub, rpc_name, request, settings
         )
-        rendezvous, result_future = rpc_state.future(request, timeout, metadata)
+        rendezvous, result_future = rpc_state.future(
+            request,
+            timeout,
+            metadata,
+            compression=getattr(settings, "compression", None),
+        )
         rendezvous.add_done_callback(
             lambda resp_future: _on_response_callback(
                 rpc_state,
@@ -443,7 +456,12 @@ def __call__(
             stub, rpc_name, request, settings
         )
         try:
-            response = rpc_state(request, timeout, metadata)
+            response = rpc_state(
+                request,
+                timeout,
+                metadata,
+                compression=getattr(settings, "compression", None),
+            )
             _log_response(rpc_state, response)
             return (
                 response
diff --git a/ydb/driver.py b/ydb/driver.py
index f04fb3ad..da300373 100644
--- a/ydb/driver.py
+++ b/ydb/driver.py
@@ -3,6 +3,7 @@
 from . import tracing
 import six
 import os
+import grpc
 
 if six.PY2:
     Any = None
@@ -39,6 +40,14 @@ def parse_connection_string(connection_string):
     return p.scheme + "://" + p.netloc, database[0]
 
 
+class RPCCompression:
+    """Indicates the compression method to be used for an RPC."""
+
+    NoCompression = grpc.Compression.NoCompression
+    Deflate = grpc.Compression.Deflate
+    Gzip = grpc.Compression.Gzip
+
+
 def default_credentials(credentials=None, tracer=None):
     tracer = tracer if tracer is not None else tracing.Tracer(None)
     with tracer.trace("Driver.default_credentials") as ctx:
@@ -94,6 +103,7 @@ class DriverConfig(object):
         "tracer",
         "grpc_lb_policy_name",
         "discovery_request_timeout",
+        "compression",
     )
 
     def __init__(
@@ -115,6 +125,7 @@ def __init__(
         tracer=None,
         grpc_lb_policy_name="round_robin",
         discovery_request_timeout=10,
+        compression=None,
     ):
         """
         A driver config to initialize a driver instance
@@ -159,6 +170,7 @@ def __init__(
         self.tracer = tracer if tracer is not None else tracing.Tracer(None)
         self.grpc_lb_policy_name = grpc_lb_policy_name
         self.discovery_request_timeout = discovery_request_timeout
+        self.compression = compression
 
     def set_database(self, database):
         self.database = database
diff --git a/ydb/settings.py b/ydb/settings.py
index 96094c49..e1e1f0f2 100644
--- a/ydb/settings.py
+++ b/ydb/settings.py
@@ -9,6 +9,7 @@ class BaseRequestSettings(object):
         "cancel_after",
         "operation_timeout",
         "tracer",
+        "compression",
     )
 
     def __init__(self):
@@ -20,6 +21,11 @@ def __init__(self):
         self.timeout = None
         self.cancel_after = None
         self.operation_timeout = None
+        self.compression = None
+
+    def with_compression(self, compression):
+        self.compression = compression
+        return self
 
     def with_trace_id(self, trace_id):
         """