diff --git a/internal/udp/middleware/compressor.go b/internal/udp/middleware/compressor.go
new file mode 100644
index 0000000..ec21726
--- /dev/null
+++ b/internal/udp/middleware/compressor.go
@@ -0,0 +1,166 @@
+package middleware
+
+import (
+	"bytes"
+	"compress/flate"
+	"io"
+	"sync"
+)
+
+// CompressorConfig holds configuration for compression
+type CompressorConfig struct {
+	Level             int  // Compression level (1-9, flate.BestSpeed to flate.BestCompression)
+	MinSize           int  // Minimum packet size to compress
+	CompressionMarker byte // Byte marker to identify compressed packets
+}
+
+// DefaultCompressorConfig returns default compressor configuration
+func DefaultCompressorConfig() *CompressorConfig {
+	return &CompressorConfig{
+		Level:             flate.DefaultCompression,
+		MinSize:           128,
+		CompressionMarker: 0x5A, // Same as original EQ2 implementation
+	}
+}
+
+// Compressor implements compression middleware using DEFLATE
+type Compressor struct {
+	config     *CompressorConfig
+	writerPool sync.Pool
+	readerPool sync.Pool
+	bufferPool sync.Pool
+	closeOnce  sync.Once
+}
+
+// NewCompressor creates a new compression middleware
+func NewCompressor(config *CompressorConfig) *Compressor {
+	if config == nil {
+		config = DefaultCompressorConfig()
+	}
+
+	c := &Compressor{
+		config: config,
+	}
+
+	// Initialize writer pool
+	c.writerPool.New = func() interface{} {
+		writer, _ := flate.NewWriter(nil, config.Level)
+		return writer
+	}
+
+	// Initialize reader pool
+	c.readerPool.New = func() interface{} {
+		return flate.NewReader(nil)
+	}
+
+	// Initialize buffer pool
+	c.bufferPool.New = func() interface{} {
+		return &bytes.Buffer{}
+	}
+
+	return c
+}
+
+// ProcessOutbound implements Middleware.ProcessOutbound
+func (c *Compressor) ProcessOutbound(data []byte, next func([]byte) (int, error)) (int, error) {
+	if len(data) < c.config.MinSize {
+		return next(data)
+	}
+
+	compressed, err := c.compress(data)
+	if err != nil || len(compressed) >= len(data) {
+		// Compression failed or didn't help - send original
+		return next(data)
+	}
+
+	return next(compressed)
+}
+
+// ProcessInbound implements Middleware.ProcessInbound
+func (c *Compressor) ProcessInbound(data []byte, next func([]byte) (int, error)) (int, error) {
+	if len(data) < 2 {
+		return next(data)
+	}
+
+	// Check for compression marker
+	if data[0] != c.config.CompressionMarker {
+		return next(data)
+	}
+
+	decompressed, err := c.decompress(data[1:])
+	if err != nil {
+		// Decompression failed - pass through original
+		return next(data)
+	}
+
+	return next(decompressed)
+}
+
+func (c *Compressor) compress(data []byte) ([]byte, error) {
+	// Get buffer from pool
+	buf := c.bufferPool.Get().(*bytes.Buffer)
+	defer c.bufferPool.Put(buf)
+	buf.Reset()
+
+	// Write compression marker
+	buf.WriteByte(c.config.CompressionMarker)
+
+	// Get writer from pool
+	writer := c.writerPool.Get().(*flate.Writer)
+	defer c.writerPool.Put(writer)
+
+	writer.Reset(buf)
+
+	// Compress data
+	if _, err := writer.Write(data); err != nil {
+		return nil, err
+	}
+
+	if err := writer.Close(); err != nil {
+		return nil, err
+	}
+
+	// Return copy of compressed data
+	result := make([]byte, buf.Len())
+	copy(result, buf.Bytes())
+	return result, nil
+}
+
+func (c *Compressor) decompress(data []byte) ([]byte, error) {
+	// Get reader from pool
+	reader := c.readerPool.Get().(io.ReadCloser)
+	defer c.readerPool.Put(reader)
+
+	// Reset reader with new data
+	if resetter, ok := reader.(flate.Resetter); ok {
+		resetter.Reset(bytes.NewReader(data), nil)
+	} else {
+		reader.Close()
+		reader = flate.NewReader(bytes.NewReader(data))
+	}
+	defer reader.Close()
+
+	// Get buffer from pool
+	buf := c.bufferPool.Get().(*bytes.Buffer)
+	defer c.bufferPool.Put(buf)
+	buf.Reset()
+
+	// Decompress data
+	if _, err := io.Copy(buf, reader); err != nil {
+		return nil, err
+	}
+
+	// Return copy of decompressed data
+	result := make([]byte, buf.Len())
+	copy(result, buf.Bytes())
+	return result, nil
+}
+
+// Close implements Middleware.Close
+func (c *Compressor) Close() error {
+	c.closeOnce.Do(func() {
+		// Close any active readers/writers in pools
+		// Note: flate writers/readers don't need explicit cleanup
+	})
+	return nil
+}