diff --git a/composer.json b/composer.json
index 3dde33f0..5483621f 100644
--- a/composer.json
+++ b/composer.json
@@ -23,6 +23,7 @@
         "ext-brotli": "*",
         "ext-lz4": "*",
         "ext-snappy": "*",
+        "ext-bz2":"*",
         "php": ">=8.0",
         "utopia-php/framework": "0.*.*",
         "utopia-php/system": "0.*.*"
diff --git a/src/Storage/Compression/Algorithms/BZIP2.php b/src/Storage/Compression/Algorithms/BZIP2.php
new file mode 100644
index 00000000..cd125031
--- /dev/null
+++ b/src/Storage/Compression/Algorithms/BZIP2.php
@@ -0,0 +1,42 @@
+<?php
+
+namespace Utopia\Storage\Compression\Algorithms;
+
+use Utopia\Storage\Compression\Compression;
+
+class BZIP2 extends Compression
+{
+    /**
+     * @return string
+     */
+    public function getName(): string
+    {
+        return 'bzip2';
+    }
+
+    /**
+     * Compress.
+     *
+     * @see https://www.php.net/manual/en/function.bzcompress.php
+     *
+     * @param string $data
+     * @return string
+     */
+    public function compress(string $data): string
+    {
+        return \bzcompress($data);
+    }
+
+    /**
+     * Decompress.
+     *
+     * @see https://www.php.net/manual/en/function.bzdecompress.php
+     *
+     * @param string $data
+     * @return string
+     */
+    public function decompress(string $data):string
+    {
+        return \bzdecompress($data);
+    }
+}
\ No newline at end of file
diff --git a/tests/Storage/Compression/Algorithms/BZIP2TEST.php b/tests/Storage/Compression/Algorithms/BZIP2TEST.php
new file mode 100644
index 00000000..382a285f
--- /dev/null
+++ b/tests/Storage/Compression/Algorithms/BZIP2TEST.php
@@ -0,0 +1,73 @@
+<?php
+
+namespace Utopia\Tests\Storage\Compression\Algorithms;
+use Utopia\Storage\Compression\Algorithms\BZIP2;
+use PHPUnit\Framework\TestCase;
+
+class BZIP2Test extends TestCase
+{
+    /** @var BZIP2 */
+    protected BZIP2 $object;
+
+    public function setUp(): void
+    {
+        $this->object = new BZIP2();
+    }
+
+    public function testName()
+    {
+        $this->assertEquals($this->object->getName(), 'bzip2');
+    }
+
+    public function testCompressDecompressWithText()
+    {
+        $demo = 'This is a demo string';
+        $demoSize = mb_strlen($demo, '8bit');
+
+        $data = $this->object->compress($demo);
+        $dataSize = mb_strlen($data, '8bit');
+
+        $this->assertEquals($demoSize, 21);
+        $this->assertEquals($dataSize, 58);
+
+        $this->assertEquals($this->object->decompress($data), $demo);
+    }
+
+    public function testCompressDecompressWithJPGImage()
+    {
+        $demo = \file_get_contents(__DIR__ . '/../../../resources/disk-a/kitten-1.jpg');
+        $demoSize = mb_strlen($demo, '8bit');
+
+        $data = $this->object->compress($demo);
+        $dataSize = mb_strlen($data, '8bit');
+
+        $this->assertEquals($demoSize, 599639);
+        $this->assertEquals($dataSize, 598565);
+
+        $this->assertGreaterThan($dataSize, $demoSize);
+
+        $data = $this->object->decompress($data);
+        $dataSize = mb_strlen($data, '8bit');
+
+        $this->assertEquals($dataSize, 599639);
+    }
+
+    public function testCompressDecompressWithPNGImage()
+    {
+        $demo = \file_get_contents(__DIR__ . '/../../../resources/disk-b/kitten-1.png');
+        $demoSize = mb_strlen($demo, '8bit');
+
+        $data = $this->object->compress($demo);
+        $dataSize = mb_strlen($data, '8bit');
+
+        $this->assertEquals($demoSize, 3038056);
+        $this->assertEquals($dataSize, 2999345);
+
+        $this->assertGreaterThan($dataSize, $demoSize);
+
+        $data = $this->object->decompress($data);
+        $dataSize = mb_strlen($data, '8bit');
+
+        $this->assertEquals($dataSize, 3038056);
+    }
+}
\ No newline at end of file