diff --git a/doc/manual/rl-next/http-binary-cache-compression.md b/doc/manual/rl-next/http-binary-cache-compression.md
new file mode 100644
index 000000000..88f1de6d9
--- /dev/null
+++ b/doc/manual/rl-next/http-binary-cache-compression.md
@@ -0,0 +1,19 @@
+---
+synopsis: "HTTP binary caches now support transparent compression for metadata"
+prs: []
+---
+
+HTTP binary cache stores can now compress `.narinfo`, `.ls`, and build log files before uploading them,
+reducing bandwidth usage and storage requirements. The compression is applied transparently using the
+`Content-Encoding` header, allowing compatible clients to automatically decompress the files.
+
+Three new configuration options control this behavior:
+- `narinfo-compression`: Compression method for `.narinfo` files
+- `ls-compression`: Compression method for `.ls` files
+- `log-compression`: Compression method for build logs in `log/` directory
+
+Example usage:
+```
+nix copy --to 'http://cache.example.com?narinfo-compression=gzip&ls-compression=gzip' /nix/store/...
+nix store copy-log --to 'http://cache.example.com?log-compression=br' /nix/store/...
+```
diff --git a/src/libstore/http-binary-cache-store.cc b/src/libstore/http-binary-cache-store.cc
index 6922c0f69..5d4fba163 100644
--- a/src/libstore/http-binary-cache-store.cc
+++ b/src/libstore/http-binary-cache-store.cc
@@ -4,6 +4,7 @@
 #include "nix/store/nar-info-disk-cache.hh"
 #include "nix/util/callback.hh"
 #include "nix/store/store-registration.hh"
+#include "nix/util/compression.hh"
 
 namespace nix {
 
@@ -142,8 +143,27 @@ protected:
         const std::string & mimeType) override
     {
         auto req = makeRequest(path);
-        req.data = StreamToSourceAdapter(istream).drain();
+
+        auto data = StreamToSourceAdapter(istream).drain();
+
+        // Determine compression method based on file type
+        std::string compressionMethod;
+        if (hasSuffix(path, ".narinfo"))
+            compressionMethod = config->narinfoCompression;
+        else if (hasSuffix(path, ".ls"))
+            compressionMethod = config->lsCompression;
+        else if (hasPrefix(path, "log/"))
+            compressionMethod = config->logCompression;
+
+        // Apply compression if configured
+        if (!compressionMethod.empty()) {
+            data = compress(compressionMethod, data);
+            req.headers.emplace_back("Content-Encoding", compressionMethod);
+        }
+
+        req.data = std::move(data);
         req.mimeType = mimeType;
+
         try {
             getFileTransfer()->upload(req);
         } catch (FileTransferError & e) {
diff --git a/src/libstore/include/nix/store/binary-cache-store.hh b/src/libstore/include/nix/store/binary-cache-store.hh
index c316b1199..3a2c90022 100644
--- a/src/libstore/include/nix/store/binary-cache-store.hh
+++ b/src/libstore/include/nix/store/binary-cache-store.hh
@@ -59,6 +59,21 @@ struct BinaryCacheStoreConfig : virtual StoreConfig
           The meaning and accepted values depend on the compression method selected.
           `-1` specifies that the default compression level should be used.
         )"};
+
+    const Setting<std::string> narinfoCompression{
+        this, "", "narinfo-compression", "Compression method for `.narinfo` files."};
+
+    const Setting<std::string> lsCompression{this, "", "ls-compression", "Compression method for `.ls` files."};
+
+    const Setting<std::string> logCompression{
+        this,
+        "",
+        "log-compression",
+        R"(
+          Compression method for `log/*` files. It is recommended to
+          use a compression method supported by most web browsers
+          (e.g. `brotli`).
+        )"};
 };
 
 /**
diff --git a/tests/nixos/content-encoding.nix b/tests/nixos/content-encoding.nix
new file mode 100644
index 000000000..debee377b
--- /dev/null
+++ b/tests/nixos/content-encoding.nix
@@ -0,0 +1,190 @@
+# Test content encoding support in Nix:
+# 1. Fetching compressed files from servers with Content-Encoding headers
+#    (e.g., fetching a zstd archive from a server using gzip Content-Encoding
+#    should preserve the zstd format, not double-decompress)
+# 2. HTTP binary cache store upload/download with compression support
+
+{ lib, config, ... }:
+
+let
+  pkgs = config.nodes.machine.nixpkgs.pkgs;
+
+  ztdCompressedFile = pkgs.stdenv.mkDerivation {
+    name = "dummy-zstd-compressed-archive";
+    dontUnpack = true;
+    nativeBuildInputs = with pkgs; [ zstd ];
+    buildPhase = ''
+      mkdir archive
+      for _ in {1..100}; do echo "lorem" > archive/file1; done
+      for _ in {1..100}; do echo "ipsum" > archive/file2; done
+      tar --zstd -cf archive.tar.zst archive
+    '';
+    installPhase = ''
+      install -Dm 644 -T archive.tar.zst $out/share/archive
+    '';
+  };
+
+  # Bare derivation for testing binary cache with logs
+  testDrv = builtins.toFile "test.nix" ''
+    derivation {
+      name = "test-package";
+      builder = "/bin/sh";
+      args = [ "-c" "echo 'Building test package...' >&2; echo 'hello from test package' > $out; echo 'Build complete!' >&2" ];
+      system = builtins.currentSystem;
+    }
+  '';
+in
+
+{
+  name = "content-encoding";
+
+  nodes = {
+    machine =
+      { pkgs, ... }:
+      {
+        networking.firewall.allowedTCPPorts = [ 80 ];
+
+        services.nginx.enable = true;
+        services.nginx.virtualHosts."localhost" = {
+          root = "${ztdCompressedFile}/share/";
+          # Make sure that nginx really tries to compress the
+          # file on the fly with no regard to size/mime.
+          # http://nginx.org/en/docs/http/ngx_http_gzip_module.html
+          extraConfig = ''
+            gzip on;
+            gzip_types *;
+            gzip_proxied any;
+            gzip_min_length 0;
+          '';
+
+          # Upload endpoint with WebDAV
+          locations."/cache-upload" = {
+            root = "/var/lib/nginx-cache";
+            extraConfig = ''
+              client_body_temp_path /var/lib/nginx-cache/tmp;
+              create_full_put_path on;
+              dav_methods PUT DELETE;
+              dav_access user:rw group:rw all:r;
+
+              # Don't try to compress already compressed files
+              gzip off;
+
+              # Rewrite to remove -upload suffix when writing files
+              rewrite ^/cache-upload/(.*)$ /cache/$1 break;
+            '';
+          };
+
+          # Download endpoint with Content-Encoding headers
+          locations."/cache" = {
+            root = "/var/lib/nginx-cache";
+            extraConfig = ''
+              gzip off;
+
+              # Serve .narinfo files with gzip encoding
+              location ~ \.narinfo$ {
+                add_header Content-Encoding gzip;
+                default_type "text/x-nix-narinfo";
+              }
+
+              # Serve .ls files with gzip encoding
+              location ~ \.ls$ {
+                add_header Content-Encoding gzip;
+                default_type "application/json";
+              }
+
+              # Serve log files with brotli encoding
+              location ~ ^/cache/log/ {
+                add_header Content-Encoding br;
+                default_type "text/plain";
+              }
+            '';
+          };
+        };
+
+        systemd.services.nginx = {
+          serviceConfig = {
+            StateDirectory = "nginx-cache";
+            StateDirectoryMode = "0755";
+          };
+        };
+
+        environment.systemPackages = with pkgs; [
+          file
+          gzip
+          brotli
+          curl
+        ];
+
+        virtualisation.writableStore = true;
+        nix.settings.substituters = lib.mkForce [ ];
+        nix.settings.experimental-features = [
+          "nix-command"
+          "flakes"
+        ];
+      };
+  };
+
+  # Check that when nix-prefetch-url is used with a zst tarball it does not get decompressed.
+  # Also test HTTP binary cache store with compression support.
+  testScript = ''
+    # fmt: off
+    start_all()
+
+    machine.wait_for_unit("nginx.service")
+
+    # Original test: zstd archive with gzip content-encoding
+    # Make sure that the file is properly compressed as the test would be meaningless otherwise
+    curl_output = machine.succeed("curl --compressed -v http://localhost/archive 2>&1")
+    assert "content-encoding: gzip" in curl_output.lower(), f"Expected 'content-encoding: gzip' in curl output, but got: {curl_output}"
+
+    archive_path = machine.succeed("nix-prefetch-url http://localhost/archive --print-path | tail -n1").strip()
+    mime_type = machine.succeed(f"file --brief --mime-type {archive_path}").strip()
+    assert mime_type == "application/zstd", f"Expected archive to be 'application/zstd', but got: {mime_type}"
+    machine.succeed(f"tar --zstd -xf {archive_path}")
+
+    # Test HTTP binary cache store with compression
+    outPath = machine.succeed("""
+      nix build --store /var/lib/build-store -f ${testDrv} --print-out-paths --print-build-logs
+    """).strip()
+
+    drvPath = machine.succeed(f"""
+      nix path-info --store /var/lib/build-store --derivation {outPath}
+    """).strip()
+
+    # Upload to cache with compression (use cache-upload endpoint)
+    machine.succeed(f"""
+      nix copy --store /var/lib/build-store --to 'http://localhost/cache-upload?narinfo-compression=gzip&ls-compression=gzip&write-nar-listing=1' {outPath} -vvvvv 2>&1 | tail -100
+    """)
+    machine.succeed(f"""
+      nix store copy-log --store /var/lib/build-store --to 'http://localhost/cache-upload?log-compression=br' {drvPath} -vvvvv 2>&1 | tail -100
+    """)
+
+    # List cache contents
+    print(machine.succeed("find /var/lib/nginx-cache -type f"))
+
+    narinfoHash = outPath.split('/')[3].split('-')[0]
+    drvName = drvPath.split('/')[3]
+
+    # Verify compression
+    machine.succeed(f"gzip -t /var/lib/nginx-cache/cache/{narinfoHash}.narinfo")
+    machine.succeed(f"gzip -t /var/lib/nginx-cache/cache/{narinfoHash}.ls")
+    machine.succeed(f"brotli -t /var/lib/nginx-cache/cache/log/{drvName}")
+
+    # Check Content-Encoding headers on the download endpoint
+    narinfo_headers = machine.succeed(f"curl -I http://localhost/cache/{narinfoHash}.narinfo 2>&1")
+    assert "content-encoding: gzip" in narinfo_headers.lower(), f"Expected 'content-encoding: gzip' for .narinfo file, but headers were: {narinfo_headers}"
+
+    ls_headers = machine.succeed(f"curl -I http://localhost/cache/{narinfoHash}.ls 2>&1")
+    assert "content-encoding: gzip" in ls_headers.lower(), f"Expected 'content-encoding: gzip' for .ls file, but headers were: {ls_headers}"
+
+    log_headers = machine.succeed(f"curl -I http://localhost/cache/log/{drvName} 2>&1")
+    assert "content-encoding: br" in log_headers.lower(), f"Expected 'content-encoding: br' for log file, but headers were: {log_headers}"
+
+    # Test fetching from cache
+    machine.succeed(f"nix copy --from 'http://localhost/cache' --no-check-sigs {outPath}")
+
+    # Test log retrieval
+    log_output = machine.succeed(f"nix log --store 'http://localhost/cache' {drvPath} 2>&1")
+    assert "Building test package" in log_output, f"Expected 'Building test package' in log output, but got: {log_output}"
+  '';
+}
diff --git a/tests/nixos/default.nix b/tests/nixos/default.nix
index 2031e02a4..5a1e08528 100644
--- a/tests/nixos/default.nix
+++ b/tests/nixos/default.nix
@@ -187,7 +187,7 @@ in
 
   ca-fd-leak = runNixOSTest ./ca-fd-leak;
 
-  gzip-content-encoding = runNixOSTest ./gzip-content-encoding.nix;
+  content-encoding = runNixOSTest ./content-encoding.nix;
 
   functional_user = runNixOSTest ./functional/as-user.nix;
 
diff --git a/tests/nixos/gzip-content-encoding.nix b/tests/nixos/gzip-content-encoding.nix
deleted file mode 100644
index 22d196c61..000000000
--- a/tests/nixos/gzip-content-encoding.nix
+++ /dev/null
@@ -1,74 +0,0 @@
-# Test that compressed files fetched from server with compressed responses
-# do not get excessively decompressed.
-# E.g. fetching a zstd compressed tarball from a server,
-# which compresses the response with `Content-Encoding: gzip`.
-# The expected result is that the fetched file is a zstd archive.
-
-{ lib, config, ... }:
-
-let
-  pkgs = config.nodes.machine.nixpkgs.pkgs;
-
-  ztdCompressedFile = pkgs.stdenv.mkDerivation {
-    name = "dummy-zstd-compressed-archive";
-    dontUnpack = true;
-    nativeBuildInputs = with pkgs; [ zstd ];
-    buildPhase = ''
-      mkdir archive
-      for _ in {1..100}; do echo "lorem" > archive/file1; done
-      for _ in {1..100}; do echo "ipsum" > archive/file2; done
-      tar --zstd -cf archive.tar.zst archive
-    '';
-    installPhase = ''
-      install -Dm 644 -T archive.tar.zst $out/share/archive
-    '';
-  };
-
-  fileCmd = "${pkgs.file}/bin/file";
-in
-
-{
-  name = "gzip-content-encoding";
-
-  nodes = {
-    machine =
-      { config, pkgs, ... }:
-      {
-        networking.firewall.allowedTCPPorts = [ 80 ];
-
-        services.nginx.enable = true;
-        services.nginx.virtualHosts."localhost" = {
-          root = "${ztdCompressedFile}/share/";
-          # Make sure that nginx really tries to compress the
-          # file on the fly with no regard to size/mime.
-          # http://nginx.org/en/docs/http/ngx_http_gzip_module.html
-          extraConfig = ''
-            gzip on;
-            gzip_types *;
-            gzip_proxied any;
-            gzip_min_length 0;
-          '';
-        };
-        virtualisation.writableStore = true;
-        virtualisation.additionalPaths = with pkgs; [ file ];
-        nix.settings.substituters = lib.mkForce [ ];
-      };
-  };
-
-  # Check that when nix-prefetch-url is used with a zst tarball it does not get decompressed.
-  testScript =
-    { nodes }:
-    ''
-      # fmt: off
-      start_all()
-
-      machine.wait_for_unit("nginx.service")
-      machine.succeed("""
-        # Make sure that the file is properly compressed as the test would be meaningless otherwise
-        curl --compressed -v http://localhost/archive |& tr -s ' ' |& grep --ignore-case 'content-encoding: gzip'
-        archive_path=$(nix-prefetch-url http://localhost/archive --print-path | tail -n1)
-        [[ $(${fileCmd} --brief --mime-type $archive_path) == "application/zstd" ]]
-        tar --zstd -xf $archive_path
-      """)
-    '';
-}