diff --git a/headers/os/package/hpkg/HPKGDefs.h b/headers/os/package/hpkg/HPKGDefs.h
index 7cd931b52a..b11a788044 100644
--- a/headers/os/package/hpkg/HPKGDefs.h
+++ b/headers/os/package/hpkg/HPKGDefs.h
@@ -166,6 +166,13 @@ enum {
 };
 
 
+enum {
+	B_HPKG_COMPRESSION_LEVEL_NONE		= 0,
+	B_HPKG_COMPRESSION_LEVEL_FASTEST	= 1,
+	B_HPKG_COMPRESSION_LEVEL_BEST		= 9
+};
+
+
 }	// namespace BHPKG
 
 }	// namespace BPackageKit
diff --git a/headers/os/package/hpkg/PackageWriter.h b/headers/os/package/hpkg/PackageWriter.h
index e3eb30d59b..99c924bfec 100644
--- a/headers/os/package/hpkg/PackageWriter.h
+++ b/headers/os/package/hpkg/PackageWriter.h
@@ -41,13 +41,32 @@ public:
 };
 
 
+class BPackageWriterParameters {
+public:
+								BPackageWriterParameters();
+								~BPackageWriterParameters();
+
+			uint32				Flags() const;
+			void				SetFlags(uint32 flags);
+
+			int32				CompressionLevel() const;
+			void				SetCompressionLevel(int32 compressionLevel);
+
+private:
+			uint32				fFlags;
+			int32				fCompressionLevel;
+};
+
+
 class BPackageWriter {
 public:
 								BPackageWriter(
 									BPackageWriterListener* listener);
 								~BPackageWriter();
 
-			status_t			Init(const char* fileName, uint32 flags = 0);
+			status_t			Init(const char* fileName,
+									const BPackageWriterParameters* parameters
+										= NULL);
 			status_t			SetInstallPath(const char* installPath);
 			void				SetCheckLicenses(bool checkLicenses);
 			status_t			AddEntry(const char* fileName, int fd = -1);
diff --git a/headers/private/package/hpkg/PackageFileHeapWriter.h b/headers/private/package/hpkg/PackageFileHeapWriter.h
index 3b4d24e590..d62f82e1b4 100644
--- a/headers/private/package/hpkg/PackageFileHeapWriter.h
+++ b/headers/private/package/hpkg/PackageFileHeapWriter.h
@@ -35,7 +35,8 @@ class PackageFileHeapWriter : public PackageFileHeapAccessorBase,
 	private AbstractDataWriter {
 public:
 								PackageFileHeapWriter(BErrorOutput* errorOutput,
-									int fd, off_t heapOffset);
+									int fd, off_t heapOffset,
+									int32 compressionLevel);
 								~PackageFileHeapWriter();
 
 			void				Init();
@@ -86,6 +87,7 @@ private:
 			void*				fCompressedDataBuffer;
 			size_t				fPendingDataSize;
 			Array<uint64>		fOffsets;
+			int32				fCompressionLevel;
 };
 
 
diff --git a/headers/private/package/hpkg/PackageWriterImpl.h b/headers/private/package/hpkg/PackageWriterImpl.h
index 306f5ccd26..c9499c8879 100644
--- a/headers/private/package/hpkg/PackageWriterImpl.h
+++ b/headers/private/package/hpkg/PackageWriterImpl.h
@@ -29,6 +29,7 @@ namespace BHPKG {
 
 class BDataReader;
 class BErrorOutput;
+class BPackageWriterParameters;
 
 
 namespace BPrivate {
@@ -46,7 +47,8 @@ public:
 									BPackageWriterListener* listener);
 								~PackageWriterImpl();
 
-			status_t			Init(const char* fileName, uint32 flags);
+			status_t			Init(const char* fileName,
+									const BPackageWriterParameters& parameters);
 			status_t			SetInstallPath(const char* installPath);
 			void				SetCheckLicenses(bool checkLicenses);
 			status_t			AddEntry(const char* fileName, int fd = -1);
@@ -62,7 +64,8 @@ private:
 			typedef DoublyLinkedList<Entry> EntryList;
 
 private:
-			status_t			_Init(const char* fileName, uint32 flags);
+			status_t			_Init(const char* fileName,
+									const BPackageWriterParameters& parameters);
 			status_t			_Finish();
 
 			status_t			_RegisterEntry(const char* fileName, int fd);
diff --git a/headers/private/package/hpkg/WriterImplBase.h b/headers/private/package/hpkg/WriterImplBase.h
index 0965bcf731..c45d850330 100644
--- a/headers/private/package/hpkg/WriterImplBase.h
+++ b/headers/private/package/hpkg/WriterImplBase.h
@@ -12,6 +12,7 @@
 
 #include <package/hpkg/DataOutput.h>
 #include <package/hpkg/DataWriters.h>
+#include <package/hpkg/PackageWriter.h>
 #include <package/hpkg/Strings.h>
 #include <package/hpkg/ZlibCompressor.h>
 
@@ -99,7 +100,8 @@ protected:
 			typedef DoublyLinkedList<PackageAttribute> PackageAttributeList;
 
 protected:
-			status_t			Init(const char* fileName, uint32 flags);
+			status_t			Init(const char* fileName,
+									const BPackageWriterParameters& parameters);
 
 			void				RegisterPackageInfo(
 									PackageAttributeList& attributeList,
@@ -168,7 +170,7 @@ private:
 			const char*			fFileType;
 			BErrorOutput*		fErrorOutput;
 			const char*			fFileName;
-			uint32				fFlags;
+			BPackageWriterParameters fParameters;
 			int					fFD;
 			bool				fFinished;
 
@@ -211,7 +213,7 @@ WriterImplBase::FD() const
 inline uint32
 WriterImplBase::Flags() const
 {
-	return fFlags;
+	return fParameters.Flags();
 }
 
 
diff --git a/src/bin/package/command_add.cpp b/src/bin/package/command_add.cpp
index 601624c8b5..47592446c3 100644
--- a/src/bin/package/command_add.cpp
+++ b/src/bin/package/command_add.cpp
@@ -35,6 +35,7 @@ command_add(int argc, const char* const* argv)
 	bool quiet = false;
 	bool verbose = false;
 	bool force = false;
+	int32 compressionLevel = BPackageKit::BHPKG::B_HPKG_COMPRESSION_LEVEL_BEST;
 
 	while (true) {
 		static struct option sLongOptions[] = {
@@ -45,12 +46,25 @@ command_add(int argc, const char* const* argv)
 		};
 
 		opterr = 0; // don't print errors
-		int c = getopt_long(argc, (char**)argv, "+C:fhi:qv", sLongOptions,
-			NULL);
+		int c = getopt_long(argc, (char**)argv, "+0123456789C:fhi:qv",
+			sLongOptions, NULL);
 		if (c == -1)
 			break;
 
 		switch (c) {
+			case '0':
+			case '1':
+			case '2':
+			case '3':
+			case '4':
+			case '5':
+			case '6':
+			case '7':
+			case '8':
+			case '9':
+				compressionLevel = c - '0';
+				break;
+
 			case 'C':
 				changeToDirectory = optarg;
 				break;
@@ -96,10 +110,14 @@ command_add(int argc, const char* const* argv)
 	int entriesToAddCount = argc - optind;
 
 	// create package
+	BPackageWriterParameters writerParameters;
+	writerParameters.SetFlags(
+		B_HPKG_WRITER_UPDATE_PACKAGE | (force ? B_HPKG_WRITER_FORCE_ADD : 0));
+	writerParameters.SetCompressionLevel(compressionLevel);
+
 	PackageWriterListener listener(verbose, quiet);
 	BPackageWriter packageWriter(&listener);
-	status_t result = packageWriter.Init(packageFileName,
-		B_HPKG_WRITER_UPDATE_PACKAGE | (force ? B_HPKG_WRITER_FORCE_ADD : 0));
+	status_t result = packageWriter.Init(packageFileName, &writerParameters);
 	if (result != B_OK)
 		return 1;
 
diff --git a/src/bin/package/command_create.cpp b/src/bin/package/command_create.cpp
index 2e9d0275eb..b3777dd92b 100644
--- a/src/bin/package/command_create.cpp
+++ b/src/bin/package/command_create.cpp
@@ -24,8 +24,9 @@
 #include "PackageWritingUtils.h"
 
 
-using BPackageKit::BHPKG::BPackageWriterListener;
 using BPackageKit::BHPKG::BPackageWriter;
+using BPackageKit::BHPKG::BPackageWriterListener;
+using BPackageKit::BHPKG::BPackageWriterParameters;
 
 
 int
@@ -37,6 +38,7 @@ command_create(int argc, const char* const* argv)
 	bool isBuildPackage = false;
 	bool quiet = false;
 	bool verbose = false;
+	int32 compressionLevel = BPackageKit::BHPKG::B_HPKG_COMPRESSION_LEVEL_BEST;
 
 	while (true) {
 		static struct option sLongOptions[] = {
@@ -47,12 +49,25 @@ command_create(int argc, const char* const* argv)
 		};
 
 		opterr = 0; // don't print errors
-		int c = getopt_long(argc, (char**)argv, "+bC:hi:I:qv", sLongOptions,
-			NULL);
+		int c = getopt_long(argc, (char**)argv, "+b0123456789C:hi:I:qv",
+			sLongOptions, NULL);
 		if (c == -1)
 			break;
 
 		switch (c) {
+			case '0':
+			case '1':
+			case '2':
+			case '3':
+			case '4':
+			case '5':
+			case '6':
+			case '7':
+			case '8':
+			case '9':
+				compressionLevel = c - '0';
+				break;
+
 			case 'b':
 				isBuildPackage = true;
 				break;
@@ -101,9 +116,12 @@ command_create(int argc, const char* const* argv)
 	}
 
 	// create package
+	BPackageWriterParameters writerParameters;
+	writerParameters.SetCompressionLevel(compressionLevel);
+
 	PackageWriterListener listener(verbose, quiet);
 	BPackageWriter packageWriter(&listener);
-	status_t result = packageWriter.Init(packageFileName);
+	status_t result = packageWriter.Init(packageFileName, &writerParameters);
 	if (result != B_OK)
 		return 1;
 
diff --git a/src/bin/package/package.cpp b/src/bin/package/package.cpp
index d7bbe3a968..240517b3a7 100644
--- a/src/bin/package/package.cpp
+++ b/src/bin/package/package.cpp
@@ -26,6 +26,9 @@ static const char* kUsage =
 	"  add [ <options> ] <package> <entries>...\n"
 	"    Adds the specified entries <entries> to package file <package>.\n"
 	"\n"
+	"    -0 ... -9  - Use compression level 0 ... 9. 0 means no, 9 best "
+		"compression.\n"
+	"                 Defaults to 9.\n"
 	"    -C <dir>   - Change to directory <dir> before adding entries.\n"
 	"    -f         - Force adding, replacing already existing entries. "
 		"Without\n"
@@ -41,6 +44,9 @@ static const char* kUsage =
 	"  create [ <options> ] <package>\n"
 	"    Creates package file <package> from contents of current directory.\n"
 	"\n"
+	"    -0 ... -9  - Use compression level 0 ... 9. 0 means no, 9 best "
+		"compression.\n"
+	"                 Defaults to 9.\n"
 	"    -b         - Create an empty build package. Only the .PackageInfo "
 		"will\n"
 	"                 be added.\n"
diff --git a/src/kits/package/hpkg/PackageFileHeapWriter.cpp b/src/kits/package/hpkg/PackageFileHeapWriter.cpp
index d7fc523c97..1ca2fe747a 100644
--- a/src/kits/package/hpkg/PackageFileHeapWriter.cpp
+++ b/src/kits/package/hpkg/PackageFileHeapWriter.cpp
@@ -210,13 +210,14 @@ private:
 
 
 PackageFileHeapWriter::PackageFileHeapWriter(BErrorOutput* errorOutput, int fd,
-	off_t heapOffset)
+	off_t heapOffset, int32 compressionLevel)
 	:
 	PackageFileHeapAccessorBase(errorOutput, fd, heapOffset),
 	fPendingDataBuffer(NULL),
 	fCompressedDataBuffer(NULL),
 	fPendingDataSize(0),
-	fOffsets()
+	fOffsets(),
+	fCompressionLevel(compressionLevel)
 {
 }
 
@@ -566,9 +567,12 @@ PackageFileHeapWriter::_WriteChunk(const void* data, size_t size,
 status_t
 PackageFileHeapWriter::_WriteDataCompressed(const void* data, size_t size)
 {
+	if (fCompressionLevel == B_HPKG_COMPRESSION_LEVEL_NONE)
+		return B_BUFFER_OVERFLOW;
+
 	size_t compressedSize;
 	status_t error = ZlibCompressor::CompressSingleBuffer(data, size,
-		fCompressedDataBuffer, size, compressedSize);
+		fCompressedDataBuffer, size, compressedSize, fCompressionLevel);
 	if (error != B_OK)
 		return error;
 
diff --git a/src/kits/package/hpkg/PackageWriter.cpp b/src/kits/package/hpkg/PackageWriter.cpp
index 3fcbec8e42..2a5582e378 100644
--- a/src/kits/package/hpkg/PackageWriter.cpp
+++ b/src/kits/package/hpkg/PackageWriter.cpp
@@ -16,6 +16,53 @@ namespace BPackageKit {
 namespace BHPKG {
 
 
+// #pragma mark - BPackageWriterParameters
+
+
+BPackageWriterParameters::BPackageWriterParameters()
+	:
+	fFlags(0),
+	fCompressionLevel(B_HPKG_COMPRESSION_LEVEL_BEST)
+{
+}
+
+
+BPackageWriterParameters::~BPackageWriterParameters()
+{
+}
+
+
+uint32
+BPackageWriterParameters::Flags() const
+{
+	return fFlags;
+}
+
+
+void
+BPackageWriterParameters::SetFlags(uint32 flags)
+{
+	fFlags = flags;
+}
+
+
+int32
+BPackageWriterParameters::CompressionLevel() const
+{
+	return fCompressionLevel;
+}
+
+
+void
+BPackageWriterParameters::SetCompressionLevel(int32 compressionLevel)
+{
+	fCompressionLevel = compressionLevel;
+}
+
+
+// #pragma mark - BPackageWriter
+
+
 BPackageWriter::BPackageWriter(BPackageWriterListener* listener)
 	:
 	fImpl(new (std::nothrow) PackageWriterImpl(listener))
@@ -30,12 +77,16 @@ BPackageWriter::~BPackageWriter()
 
 
 status_t
-BPackageWriter::Init(const char* fileName, uint32 flags)
+BPackageWriter::Init(const char* fileName,
+	const BPackageWriterParameters* parameters)
 {
 	if (fImpl == NULL)
 		return B_NO_MEMORY;
 
-	return fImpl->Init(fileName, flags);
+	BPackageWriterParameters defaultParameters;
+
+	return fImpl->Init(fileName,
+		parameters != NULL ? *parameters : defaultParameters);
 }
 
 
diff --git a/src/kits/package/hpkg/PackageWriterImpl.cpp b/src/kits/package/hpkg/PackageWriterImpl.cpp
index fc407ea7fc..11813db511 100644
--- a/src/kits/package/hpkg/PackageWriterImpl.cpp
+++ b/src/kits/package/hpkg/PackageWriterImpl.cpp
@@ -463,10 +463,11 @@ PackageWriterImpl::~PackageWriterImpl()
 
 
 status_t
-PackageWriterImpl::Init(const char* fileName, uint32 flags)
+PackageWriterImpl::Init(const char* fileName,
+	const BPackageWriterParameters& parameters)
 {
 	try {
-		return _Init(fileName, flags);
+		return _Init(fileName, parameters);
 	} catch (status_t error) {
 		return error;
 	} catch (std::bad_alloc) {
@@ -602,9 +603,10 @@ PackageWriterImpl::Finish()
 
 
 status_t
-PackageWriterImpl::_Init(const char* fileName, uint32 flags)
+PackageWriterImpl::_Init(const char* fileName,
+	const BPackageWriterParameters& parameters)
 {
-	status_t result = inherited::Init(fileName, flags);
+	status_t result = inherited::Init(fileName, parameters);
 	if (result != B_OK)
 		return result;
 
diff --git a/src/kits/package/hpkg/RepositoryWriterImpl.cpp b/src/kits/package/hpkg/RepositoryWriterImpl.cpp
index c8ceb33a6b..ec9cf99ccc 100644
--- a/src/kits/package/hpkg/RepositoryWriterImpl.cpp
+++ b/src/kits/package/hpkg/RepositoryWriterImpl.cpp
@@ -250,7 +250,7 @@ RepositoryWriterImpl::Finish()
 status_t
 RepositoryWriterImpl::_Init(const char* fileName)
 {
-	return inherited::Init(fileName, 0);
+	return inherited::Init(fileName, BPackageWriterParameters());
 }
 
 
diff --git a/src/kits/package/hpkg/WriterImplBase.cpp b/src/kits/package/hpkg/WriterImplBase.cpp
index 88d9d9be52..0e3e6aab6c 100644
--- a/src/kits/package/hpkg/WriterImplBase.cpp
+++ b/src/kits/package/hpkg/WriterImplBase.cpp
@@ -220,7 +220,7 @@ WriterImplBase::WriterImplBase(const char* fileType, BErrorOutput* errorOutput)
 	fFileType(fileType),
 	fErrorOutput(errorOutput),
 	fFileName(NULL),
-	fFlags(0),
+	fParameters(),
 	fFD(-1),
 	fFinished(false),
 	fDataWriter(NULL)
@@ -236,21 +236,24 @@ WriterImplBase::~WriterImplBase()
 		close(fFD);
 
 	if (!fFinished && fFileName != NULL
-		&& (fFlags & B_HPKG_WRITER_UPDATE_PACKAGE) == 0) {
+		&& (Flags() & B_HPKG_WRITER_UPDATE_PACKAGE) == 0) {
 		unlink(fFileName);
 	}
 }
 
 
 status_t
-WriterImplBase::Init(const char* fileName, uint32 flags)
+WriterImplBase::Init(const char* fileName,
+	const BPackageWriterParameters& parameters)
 {
+	fParameters = parameters;
+
 	if (fPackageStringCache.Init() != B_OK)
 		throw std::bad_alloc();
 
 	// open file (don't truncate in update mode)
 	int openMode = O_RDWR;
-	if ((flags & B_HPKG_WRITER_UPDATE_PACKAGE) == 0)
+	if ((Flags() & B_HPKG_WRITER_UPDATE_PACKAGE) == 0)
 		openMode |= O_CREAT | O_TRUNC;
 
 	fFD = open(fileName, openMode, S_IRUSR | S_IWUSR | S_IRGRP | S_IROTH);
@@ -261,11 +264,10 @@ WriterImplBase::Init(const char* fileName, uint32 flags)
 	}
 
 	fFileName = fileName;
-	fFlags = flags;
 
 	// create heap writer
 	fHeapWriter = new PackageFileHeapWriter(fErrorOutput, FD(),
-		sizeof(hpkg_header));
+		sizeof(hpkg_header), fParameters.CompressionLevel());
 	fHeapWriter->Init();
 	fDataWriter = fHeapWriter->DataWriter();