diff --git a/.env.sample b/.env.sample
index b919531..413aa1e 100644
--- a/.env.sample
+++ b/.env.sample
@@ -199,6 +199,14 @@ RETENTION_MAX_LIFETIME=4w
 #WEB_CLIENT_LOCATION=https://element-web.example.com
 
 
+## State compression (reduces database bloat from federation)
+## Runs synapse_auto_compressor daily, built from source on first start
+#COMPOSE_FILE="$COMPOSE_FILE:compose.compress-state.yml"
+#COMPRESS_STATE_ENTRYPOINT_VERSION=v1
+#STATE_COMPRESS_CHUNK_SIZE=500
+#STATE_COMPRESS_CHUNKS=100
+#STATE_COMPRESS_INTERVAL=86400
+
 ## Admin interface at /admin
 #COMPOSE_FILE="$COMPOSE_FILE:compose.admin.yml"
 #ADMIN_INTERFACE_ENABLED=1
diff --git a/compose.compress-state.yml b/compose.compress-state.yml
new file mode 100644
index 0000000..612578e
--- /dev/null
+++ b/compose.compress-state.yml
@@ -0,0 +1,31 @@
+version: "3.8"
+
+services:
+  compress-state:
+    image: rust:1-alpine
+    entrypoint: /compress_state_entrypoint.sh
+    environment:
+      - STATE_COMPRESS_CHUNK_SIZE=${STATE_COMPRESS_CHUNK_SIZE:-500}
+      - STATE_COMPRESS_CHUNKS=${STATE_COMPRESS_CHUNKS:-100}
+      - STATE_COMPRESS_INTERVAL=${STATE_COMPRESS_INTERVAL:-86400}
+    secrets:
+      - db_password
+    configs:
+      - source: compress_entrypoint
+        target: /compress_state_entrypoint.sh
+        mode: 0555
+    volumes:
+      - compress_state_build:/build
+    networks:
+      - internal
+    deploy:
+      restart_policy:
+        condition: on-failure
+
+volumes:
+  compress_state_build:
+
+configs:
+  compress_entrypoint:
+    name: ${STACK_NAME}_compress_ep_${COMPRESS_STATE_ENTRYPOINT_VERSION}
+    file: compress_state_entrypoint.sh
diff --git a/compress_state_entrypoint.sh b/compress_state_entrypoint.sh
new file mode 100644
index 0000000..2ed690f
--- /dev/null
+++ b/compress_state_entrypoint.sh
@@ -0,0 +1,34 @@
+#!/bin/sh
+set -e
+
+BINARY="/build/synapse_auto_compressor"
+REPO_DIR="/build/rust-synapse-compress-state"
+DB_PASS=$(cat /run/secrets/db_password)
+CONN="postgresql://synapse:${DB_PASS}@db:5432/synapse"
+CHUNK_SIZE="${STATE_COMPRESS_CHUNK_SIZE:-500}"
+CHUNKS="${STATE_COMPRESS_CHUNKS:-100}"
+INTERVAL="${STATE_COMPRESS_INTERVAL:-86400}"
+
+# Build from source if binary doesn't exist
+if [ ! -f "$BINARY" ]; then
+  echo "[compress-state] Binary not found, building from source..."
+  apk add --no-cache git openssl-dev openssl-libs-static perl make musl-dev jemalloc-dev
+  rm -rf "$REPO_DIR"
+  git clone https://github.com/matrix-org/rust-synapse-compress-state "$REPO_DIR"
+  cd "$REPO_DIR"
+  cargo build --release -p synapse_auto_compressor
+  cp target/release/synapse_auto_compressor "$BINARY"
+  echo "[compress-state] Build complete"
+  # Clean up source to save space
+  rm -rf "$REPO_DIR"
+else
+  echo "[compress-state] Using cached binary"
+fi
+
+# Run compressor in a loop
+while true; do
+  echo "[compress-state] Running at $(date)"
+  "$BINARY" -p "$CONN" -c "$CHUNK_SIZE" -n "$CHUNKS" || echo "[compress-state] Error: $?"
+  echo "[compress-state] Done. Sleeping ${INTERVAL}s"
+  sleep "$INTERVAL"
+done