diff --git a/pkg/common/constants/constants.go b/pkg/common/constants/constants.go
index b9783b7b8..af2b57ae0 100644
--- a/pkg/common/constants/constants.go
+++ b/pkg/common/constants/constants.go
@@ -112,3 +112,6 @@ const AnnotationEnableYuniKorn = "yunikorn.apache.org/namespace.enableYuniKorn"
 // Admission Controller pod label update constants
 const AutoGenAppPrefix = "yunikorn"
 const AutoGenAppSuffix = "autogen"
+
+// Compression Algorithms for schedulerConfig
+const GzipSuffix = "gzip"
diff --git a/pkg/common/utils/utils_test.go b/pkg/common/utils/utils_test.go
index a386a50a6..e921f3806 100644
--- a/pkg/common/utils/utils_test.go
+++ b/pkg/common/utils/utils_test.go
@@ -19,6 +19,9 @@
 package utils
 
 import (
+	"bytes"
+	"compress/gzip"
+	"encoding/base64"
 	"fmt"
 	"testing"
 	"time"
@@ -29,6 +32,7 @@ import (
 	"k8s.io/apimachinery/pkg/api/resource"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 
+	"github.com/apache/yunikorn-core/pkg/common/configs"
 	"github.com/apache/yunikorn-k8shim/pkg/common"
 	"github.com/apache/yunikorn-k8shim/pkg/common/constants"
 	"github.com/apache/yunikorn-k8shim/pkg/conf"
@@ -1137,6 +1141,25 @@ func TestGetCoreSchedulerConfigFromConfigMap(t *testing.T) {
 	assert.Equal(t, "test", GetCoreSchedulerConfigFromConfigMap(cm))
 }
 
+func TestGzipCompressedConfigMap(t *testing.T) {
+	var b bytes.Buffer
+	gzWriter := gzip.NewWriter(&b)
+	if _, err := gzWriter.Write([]byte(configs.DefaultSchedulerConfig)); err != nil {
+		t.Fatal("expected nil, got error while compressing test schedulerConfig")
+	}
+	if err := gzWriter.Close(); err != nil {
+		t.Fatal("expected nil, got error")
+	}
+	encodedConfigString := make([]byte, base64.StdEncoding.EncodedLen(len(b.Bytes())))
+	base64.StdEncoding.Encode(encodedConfigString, b.Bytes())
+	confMap := conf.FlattenConfigMaps([]*v1.ConfigMap{
+		{Data: map[string]string{}},
+		{Data: map[string]string{conf.CMSvcClusterID: "new"}, BinaryData: map[string][]byte{"queues.yaml.gzip": encodedConfigString}},
+	})
+	config := GetCoreSchedulerConfigFromConfigMap(confMap)
+	assert.DeepEqual(t, configs.DefaultSchedulerConfig, config)
+}
+
 func TestGetExtraConfigFromConfigMapNil(t *testing.T) {
 	res := GetExtraConfigFromConfigMap(nil)
 	assert.Equal(t, 0, len(res))
diff --git a/pkg/conf/schedulerconf.go b/pkg/conf/schedulerconf.go
index 7b92cefdd..f156ed165 100644
--- a/pkg/conf/schedulerconf.go
+++ b/pkg/conf/schedulerconf.go
@@ -19,10 +19,14 @@
 package conf
 
 import (
+	"bytes"
+	"compress/gzip"
+	"encoding/base64"
 	"encoding/json"
 	"errors"
 	"flag"
 	"fmt"
+	"io"
 	"os"
 	"strconv"
 	"strings"
@@ -456,6 +460,40 @@ func DumpConfiguration() {
 	}
 }
 
+func Decompress(key string, value []byte) (string, string) {
+	var uncompressedData string
+	decodedValue := make([]byte, base64.StdEncoding.DecodedLen(len(value)))
+	n, err := base64.StdEncoding.Decode(decodedValue, value)
+	if err != nil {
+		log.Log(log.ShimConfig).Error("failed to decode schedulerConfig entry", zap.Error(err))
+		return "", ""
+	}
+	decodedValue = decodedValue[:n]
+	splitKey := strings.Split(key, ".")
+	compressionAlgo := splitKey[len(splitKey)-1]
+	if strings.EqualFold(compressionAlgo, constants.GzipSuffix) {
+		reader := bytes.NewReader(decodedValue)
+		gzReader, err := gzip.NewReader(reader)
+		if err != nil {
+			log.Log(log.ShimConfig).Error("failed to decompress decoded schedulerConfig entry", zap.Error(err))
+			return "", ""
+		}
+		defer func() {
+			if err = gzReader.Close(); err != nil {
+				log.Log(log.ShimConfig).Debug("gzip Reader could not be closed ", zap.Error(err))
+			}
+		}()
+		decompressedBytes, err := io.ReadAll(gzReader)
+		if err != nil {
+			log.Log(log.ShimConfig).Error("failed to decompress decoded schedulerConfig entry", zap.Error(err))
+			return "", ""
+		}
+		uncompressedData = string(decompressedBytes)
+	}
+	strippedKey, _ := strings.CutSuffix(key, "."+compressionAlgo)
+	return strippedKey, uncompressedData
+}
+
 func FlattenConfigMaps(configMaps []*v1.ConfigMap) map[string]string {
 	result := make(map[string]string)
 	for _, configMap := range configMaps {
@@ -463,6 +501,10 @@ func FlattenConfigMaps(configMaps []*v1.ConfigMap) map[string]string {
 			for k, v := range configMap.Data {
 				result[k] = v
 			}
+			for k, v := range configMap.BinaryData {
+				strippedKey, uncompressedData := Decompress(k, v)
+				result[strippedKey] = uncompressedData
+			}
 		}
 	}
 	return result
diff --git a/pkg/conf/schedulerconf_test.go b/pkg/conf/schedulerconf_test.go
index 096e3796d..f79c108a1 100644
--- a/pkg/conf/schedulerconf_test.go
+++ b/pkg/conf/schedulerconf_test.go
@@ -18,14 +18,19 @@ limitations under the License.
 package conf
 
 import (
+	"bytes"
+	"compress/gzip"
+	"encoding/base64"
 	"fmt"
 	"reflect"
+	"strings"
 	"testing"
 	"time"
 
 	"gotest.tools/v3/assert"
 	v1 "k8s.io/api/core/v1"
 
+	"github.com/apache/yunikorn-core/pkg/common/configs"
 	"github.com/apache/yunikorn-k8shim/pkg/common/constants"
 )
 
@@ -72,6 +77,39 @@ func assertDefaults(t *testing.T, conf *SchedulerConf) {
 	assert.Equal(t, conf.UserLabelKey, constants.DefaultUserLabel)
 }
 
+func TestDecompress(t *testing.T) {
+	var b bytes.Buffer
+	gzWriter := gzip.NewWriter(&b)
+	if _, err := gzWriter.Write([]byte(configs.DefaultSchedulerConfig)); err != nil {
+		assert.NilError(t, err, "expected nil, got error while compressing test schedulerConfig")
+	}
+	if err := gzWriter.Close(); err != nil {
+		assert.NilError(t, err, "expected nil, got error")
+		t.Fatal("expected nil, got error")
+	}
+	encodedConfigString := make([]byte, base64.StdEncoding.EncodedLen(len(b.Bytes())))
+	base64.StdEncoding.Encode(encodedConfigString, b.Bytes())
+	key, decodedConfigString := Decompress("queues.yaml."+constants.GzipSuffix, encodedConfigString)
+	assert.Equal(t, "queues.yaml", key)
+	assert.Equal(t, configs.DefaultSchedulerConfig, decodedConfigString)
+}
+
+func TestDecompressUnkownKey(t *testing.T) {
+	encodedConfigString := make([]byte, base64.StdEncoding.EncodedLen(len([]byte(configs.DefaultSchedulerConfig))))
+	base64.StdEncoding.Encode(encodedConfigString, []byte(configs.DefaultSchedulerConfig))
+	key, decodedConfigString := Decompress("queues.yaml.bin", encodedConfigString)
+	assert.Equal(t, "queues.yaml", key)
+	assert.Assert(t, len(decodedConfigString) == 0, "expected decodedConfigString to be nil")
+}
+
+func TestDecompressBadCompression(t *testing.T) {
+	encodedConfigString := make([]byte, base64.StdEncoding.EncodedLen(len([]byte(configs.DefaultSchedulerConfig))))
+	base64.StdEncoding.Encode(encodedConfigString, []byte(configs.DefaultSchedulerConfig))
+	key, decodedConfigString := Decompress("queues.yaml."+constants.GzipSuffix, encodedConfigString)
+	assert.Equal(t, "", key)
+	assert.Assert(t, !strings.EqualFold(configs.DefaultSchedulerConfig, decodedConfigString), "expected decodedConfigString to be nil")
+}
+
 func TestParseConfigMap(t *testing.T) {
 	testCases := []struct {
 		name  string