diff --git a/.gitignore b/.gitignore
index 5dd500c..7ad8c5b 100644
--- a/.gitignore
+++ b/.gitignore
@@ -11,6 +11,7 @@ target/
 
 # Local state files.
 db/
+snapshot_db/
 StateSnapshot.json
 
 # Direnv files.
diff --git a/Cargo.lock b/Cargo.lock
index 1e94ef8..9a3865f 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -38,6 +38,12 @@ version = "1.0.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "f26201604c87b1e01bd3d98f8d5d9a8fcbb815e8cedb41ffccbeb4bf593a35fe"
 
+[[package]]
+name = "adler32"
+version = "1.2.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "aae1277d39aeec15cb388266ecc24b11c80469deae6067e17a1a7aa9e5c1f234"
+
 [[package]]
 name = "aes"
 version = "0.6.0"
@@ -1002,6 +1008,15 @@ dependencies = [
  "libc",
 ]
 
+[[package]]
+name = "crc32fast"
+version = "1.3.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b540bd8bc810d3885c6ea91e2018302f68baba2129ab3e88f32389ee9370880d"
+dependencies = [
+ "cfg-if 1.0.0",
+]
+
 [[package]]
 name = "crossbeam"
 version = "0.7.3"
@@ -1292,6 +1307,16 @@ dependencies = [
  "uuid 1.6.1",
 ]
 
+[[package]]
+name = "deflate"
+version = "1.0.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "c86f7e25f518f4b81808a2cf1c50996a61f5c2eb394b2393bd87f2a4780a432f"
+dependencies = [
+ "adler32",
+ "gzip-header",
+]
+
 [[package]]
 name = "der"
 version = "0.6.1"
@@ -2195,6 +2220,15 @@ dependencies = [
  "subtle",
 ]
 
+[[package]]
+name = "gzip-header"
+version = "1.0.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "95cc527b92e6029a62960ad99aa8a6660faa4555fe5f731aab13aa6a921795a2"
+dependencies = [
+ "crc32fast",
+]
+
 [[package]]
 name = "h2"
 version = "0.3.22"
@@ -5047,6 +5081,7 @@ dependencies = [
  "bytes",
  "chrono",
  "clap 4.4.8",
+ "deflate",
  "ethers",
  "eyre",
  "hex",
diff --git a/Cargo.toml b/Cargo.toml
index 3f0e520..ee275f8 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -29,6 +29,7 @@ tracing = "0.1.40"
 tracing-subscriber = "0.3.17"
 zksync_merkle_tree = { git = "https://github.com/matter-labs/zksync-era.git" }
 zkevm_opcode_defs = { git = "https://github.com/matter-labs/era-zkevm_opcode_defs.git" }
+deflate = { version = "1.0.0", features = ["gzip"] }
 
 [build-dependencies]
 prost-build = "0.12"
diff --git a/src/processor/snapshot/mod.rs b/src/processor/snapshot/mod.rs
index 5d4cc35..12fbbb4 100644
--- a/src/processor/snapshot/mod.rs
+++ b/src/processor/snapshot/mod.rs
@@ -12,6 +12,7 @@ mod types;
 use async_trait::async_trait;
 use blake2::{Blake2s256, Digest};
 use bytes::BytesMut;
+use deflate::deflate_bytes_gzip;
 use ethers::types::{Address, H256, U256, U64};
 use eyre::Result;
 use prost::Message;
@@ -300,7 +301,6 @@ impl SnapshotExporter {
             .into_string()
             .expect("path to string");
 
-        // TODO: Wrap gzip compression around the outfile.
         let mut outfile = std::fs::OpenOptions::new()
             .write(true)
             .create(true)
@@ -308,7 +308,10 @@ impl SnapshotExporter {
 
         // Serialize chunk.
         factory_deps.encode(&mut buf)?;
-        outfile.write_all(&buf)?;
+
+        // Wrap in gzip compression before writing.
+        let compressed_buf = deflate_bytes_gzip(&buf);
+        outfile.write_all(&compressed_buf)?;
         outfile.flush()?;
 
         Ok(())
@@ -359,7 +362,7 @@ impl SnapshotExporter {
             chunk_index += 1;
             let path = PathBuf::new()
                 .join(&self.basedir)
-                .join(format!("{chunk_index}.chunk"));
+                .join(format!("{chunk_index}.gz"));
 
             header
                 .storage_logs_chunks
@@ -372,7 +375,6 @@ impl SnapshotExporter {
                         .expect("path to string"),
                 });
 
-            // TODO: Wrap gzip compression around the outfile.
             let mut outfile = std::fs::OpenOptions::new()
                 .write(true)
                 .create(true)
@@ -380,7 +382,10 @@ impl SnapshotExporter {
 
             // Serialize chunk.
             chunk.encode(&mut buf)?;
-            outfile.write_all(&buf)?;
+
+            // Wrap in gzip compression before writing.
+            let compressed_buf = deflate_bytes_gzip(&buf);
+            outfile.write_all(&compressed_buf)?;
             outfile.flush()?;
 
             // Clear $tmp buffer.