diff --git a/snapcraft/internal/project_loader/_extensions/kde_neon.py b/snapcraft/internal/project_loader/_extensions/kde_neon.py
index 65f665868e4..31775c28d65 100644
--- a/snapcraft/internal/project_loader/_extensions/kde_neon.py
+++ b/snapcraft/internal/project_loader/_extensions/kde_neon.py
@@ -77,6 +77,7 @@ def __init__(self, *, extension_name: str, yaml_data: Dict[str, Any]) -> None:
         info = _Info[yaml_data["base"]]
         self.root_snippet = {
             "assumes": ["snapd2.43"],  # for 'snapctl is-connected'
+            "compression": ["lzo"],
             "plugs": {
                 "desktop": {"mount-host-font-cache": False},
                 "icon-themes": {
diff --git a/tests/unit/project_loader/extensions/test_kde_neon.py b/tests/unit/project_loader/extensions/test_kde_neon.py
index 85e1197c81c..b640b65f035 100644
--- a/tests/unit/project_loader/extensions/test_kde_neon.py
+++ b/tests/unit/project_loader/extensions/test_kde_neon.py
@@ -24,6 +24,7 @@ def test_extension_core18():
 
     assert kde_neon_extension.root_snippet == {
         "assumes": ["snapd2.43"],
+        "compression": ["lzo"],
         "plugs": {
             "desktop": {"mount-host-font-cache": False},
             "icon-themes": {
@@ -76,6 +77,7 @@ def test_extension_core20():
 
     assert kde_neon_extension.root_snippet == {
         "assumes": ["snapd2.43"],
+        "compression": ["lzo"],
         "environment": {"SNAP_DESKTOP_RUNTIME": "$SNAP/kf5"},
         "hooks": {
             "configure": {