diff --git a/Cargo.lock b/Cargo.lock
index caf8fd8ffb5..5f3491fc209 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -173,6 +173,19 @@ dependencies = [
  "serde_json",
 ]
 
+[[package]]
+name = "async-compression"
+version = "0.4.27"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "ddb939d66e4ae03cee6091612804ba446b12878410cfa17f785f4dd67d4014e8"
+dependencies = [
+ "flate2",
+ "futures-core",
+ "memchr",
+ "pin-project-lite",
+ "tokio",
+]
+
 [[package]]
 name = "async-graphql"
 version = "7.0.15"
@@ -4447,6 +4460,7 @@ version = "0.12.15"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "d19c46a6fdd48bc4dab94b6103fccc55d34c67cc0ad04653aad4ea2a07cd7bbb"
 dependencies = [
+ "async-compression",
  "base64 0.22.1",
  "bytes",
  "encoding_rs",
diff --git a/chain/ethereum/src/transport.rs b/chain/ethereum/src/transport.rs
index ef571efacb8..5c58403ac9d 100644
--- a/chain/ethereum/src/transport.rs
+++ b/chain/ethereum/src/transport.rs
@@ -1,5 +1,5 @@
 use graph::components::network_provider::ProviderName;
-use graph::endpoint::{EndpointMetrics, RequestLabels};
+use graph::endpoint::{Compression, EndpointMetrics, RequestLabels};
 use jsonrpc_core::types::Call;
 use jsonrpc_core::Value;
 
@@ -54,12 +54,25 @@ impl Transport {
         headers: graph::http::HeaderMap,
         metrics: Arc<EndpointMetrics>,
         provider: impl AsRef<str>,
+        compression: Compression,
     ) -> Self {
         // Unwrap: This only fails if something is wrong with the system's TLS config.
-        let client = reqwest::Client::builder()
-            .default_headers(headers)
-            .build()
-            .unwrap();
+        let mut client_builder = reqwest::Client::builder().default_headers(headers);
+
+        match compression {
+            Compression::Gzip => {
+                // Enable gzip compression/decompression for requests and responses
+                client_builder = client_builder.gzip(true);
+            }
+            Compression::None => {
+                // No compression
+            } // Future compression methods can be handled here:
+              // Compression::Brotli => {
+              //     client_builder = client_builder.brotli(true);
+              // }
+        }
+
+        let client = client_builder.build().unwrap();
 
         Transport::RPC {
             client: http::Http::with_client(client, rpc),
diff --git a/graph/Cargo.toml b/graph/Cargo.toml
index bb4287b2c31..655adfed97d 100644
--- a/graph/Cargo.toml
+++ b/graph/Cargo.toml
@@ -26,7 +26,7 @@ chrono = "0.4.41"
 envconfig = "0.11.0"
 Inflector = "0.11.3"
 atty = "0.2"
-reqwest = { version = "0.12.15", features = ["json", "stream", "multipart"] }
+reqwest = { version = "0.12.15", features = ["json", "stream", "multipart", "gzip"] }
 ethabi = "17.2"
 hex = "0.4.3"
 http0 = { version = "0", package = "http" }
diff --git a/graph/src/endpoint.rs b/graph/src/endpoint.rs
index bdff8dc8135..9602095da28 100644
--- a/graph/src/endpoint.rs
+++ b/graph/src/endpoint.rs
@@ -7,6 +7,7 @@ use std::{
 };
 
 use prometheus::IntCounterVec;
+use serde::{Deserialize, Serialize};
 use slog::{warn, Logger};
 
 use crate::components::network_provider::ProviderName;
@@ -17,6 +18,26 @@ use crate::{components::metrics::MetricsRegistry, data::value::Word};
 /// avoid locking since we don't need to modify the entire struture.
 type ProviderCount = Arc<HashMap<ProviderName, AtomicU64>>;
 
+/// Compression methods for RPC transports
+#[derive(Copy, Clone, Debug, Deserialize, Serialize, PartialEq)]
+pub enum Compression {
+    #[serde(rename = "none")]
+    None,
+    #[serde(rename = "gzip")]
+    Gzip,
+    // Future compression methods can be added here:
+    // #[serde(rename = "brotli")]
+    // Brotli,
+    // #[serde(rename = "deflate")]
+    // Deflate,
+}
+
+impl Default for Compression {
+    fn default() -> Self {
+        Compression::None
+    }
+}
+
 /// This struct represents all the current labels except for the result
 /// which is added separately. If any new labels are necessary they should
 /// remain in the same order as added in [`EndpointMetrics::new`]
diff --git a/node/resources/tests/full_config.toml b/node/resources/tests/full_config.toml
index 1f907539194..9d1a8e5f835 100644
--- a/node/resources/tests/full_config.toml
+++ b/node/resources/tests/full_config.toml
@@ -48,6 +48,7 @@ shard = "primary"
 provider = [
   { label = "mainnet-0", url = "http://rpc.mainnet.io", features = ["archive", "traces"] },
   { label = "mainnet-1", details = { type = "web3call", url = "http://rpc.mainnet.io", features = ["archive", "traces"] }},
+  { label = "mainnet-2", details = { type = "web3", url = "http://rpc.mainnet.io", features = ["archive"], compression = "gzip" }},
   { label = "firehose", details = { type = "firehose", url = "http://localhost:9000", features = [] }},
   { label = "substreams", details = { type = "substreams", url = "http://localhost:9000", features = [] }},
 ]
diff --git a/node/src/chain.rs b/node/src/chain.rs
index 343b783908f..f3444c436e8 100644
--- a/node/src/chain.rs
+++ b/node/src/chain.rs
@@ -282,7 +282,8 @@ pub async fn create_ethereum_networks_for_chain(
             logger,
             "Creating transport";
             "url" => &web3.url,
-            "capabilities" => capabilities
+            "capabilities" => capabilities,
+            "compression" => ?web3.compression
         );
 
         use crate::config::Transport::*;
@@ -293,6 +294,7 @@ pub async fn create_ethereum_networks_for_chain(
                 web3.headers.clone(),
                 endpoint_metrics.cheap_clone(),
                 &provider.label,
+                web3.compression,
             ),
             Ipc => Transport::new_ipc(&web3.url).await,
             Ws => Transport::new_ws(&web3.url).await,
diff --git a/node/src/config.rs b/node/src/config.rs
index 83ea7bf1cc3..99f7a6f4d44 100644
--- a/node/src/config.rs
+++ b/node/src/config.rs
@@ -2,6 +2,7 @@ use graph::{
     anyhow::Error,
     blockchain::BlockchainKind,
     components::network_provider::ChainName,
+    endpoint::Compression,
     env::ENV_VARS,
     firehose::{SubgraphLimit, SUBGRAPHS_PER_CONN},
     itertools::Itertools,
@@ -502,6 +503,7 @@ impl ChainSection {
                         features,
                         headers: Default::default(),
                         rules: vec![],
+                        compression: Compression::None,
                     }),
                 };
                 let entry = chains.entry(name.to_string()).or_insert_with(|| Chain {
@@ -705,6 +707,10 @@ pub struct Web3Provider {
 
     #[serde(default, rename = "match")]
     rules: Vec<Web3Rule>,
+
+    /// Compression method for RPC requests and responses
+    #[serde(default)]
+    pub compression: Compression,
 }
 
 impl Web3Provider {
@@ -901,6 +907,7 @@ impl<'de> Deserialize<'de> for Provider {
                             .ok_or_else(|| serde::de::Error::missing_field("features"))?,
                         headers: headers.unwrap_or_else(HeaderMap::new),
                         rules: nodes,
+                        compression: Compression::None,
                     }),
                 };
 
@@ -1307,6 +1314,7 @@ mod tests {
                     features: BTreeSet::new(),
                     headers: HeaderMap::new(),
                     rules: Vec::new(),
+                    compression: Compression::None,
                 }),
             },
             actual
@@ -1333,6 +1341,7 @@ mod tests {
                     features: BTreeSet::new(),
                     headers: HeaderMap::new(),
                     rules: Vec::new(),
+                    compression: Compression::None,
                 }),
             },
             actual
@@ -1440,6 +1449,7 @@ mod tests {
                     features,
                     headers,
                     rules: Vec::new(),
+                    compression: Compression::None,
                 }),
             },
             actual
@@ -1465,6 +1475,7 @@ mod tests {
                     features: BTreeSet::new(),
                     headers: HeaderMap::new(),
                     rules: Vec::new(),
+                    compression: Compression::None,
                 }),
             },
             actual
@@ -1834,6 +1845,7 @@ mod tests {
                     features: BTreeSet::new(),
                     headers: HeaderMap::new(),
                     rules: Vec::new(),
+                    compression: Compression::None,
                 }),
             },
             actual
@@ -1846,6 +1858,66 @@ mod tests {
         assert!(SubgraphLimit::Limit(10) > SubgraphLimit::Disabled);
     }
 
+    #[test]
+    fn it_parses_web3_provider_with_compression() {
+        let actual = toml::from_str(
+            r#"
+            label = "compressed"
+            details = { type = "web3", url = "http://localhost:8545", features = ["archive"], compression = "gzip" }
+        "#,
+        )
+        .unwrap();
+
+        assert_eq!(
+            Provider {
+                label: "compressed".to_owned(),
+                details: ProviderDetails::Web3(Web3Provider {
+                    transport: Transport::Rpc,
+                    url: "http://localhost:8545".to_owned(),
+                    features: {
+                        let mut features = BTreeSet::new();
+                        features.insert("archive".to_string());
+                        features
+                    },
+                    headers: HeaderMap::new(),
+                    rules: Vec::new(),
+                    compression: Compression::Gzip,
+                }),
+            },
+            actual
+        );
+    }
+
+    #[test]
+    fn it_parses_web3_provider_with_no_compression() {
+        let actual = toml::from_str(
+            r#"
+            label = "uncompressed"
+            details = { type = "web3", url = "http://localhost:8545", features = ["archive"], compression = "none" }
+        "#,
+        )
+        .unwrap();
+
+        assert_eq!(
+            Provider {
+                label: "uncompressed".to_owned(),
+                details: ProviderDetails::Web3(Web3Provider {
+                    transport: Transport::Rpc,
+                    url: "http://localhost:8545".to_owned(),
+                    features: {
+                        let mut features = BTreeSet::new();
+                        features.insert("archive".to_string());
+                        features
+                    },
+                    headers: HeaderMap::new(),
+                    rules: Vec::new(),
+                    compression: Compression::None,
+                }),
+            },
+            actual
+        );
+    }
+
     #[test]
     fn duplicated_labels_are_not_allowed_within_chain() {
         let mut actual = toml::from_str::<ChainSection>(