diff --git a/ee/backup/backup.go b/ee/backup/backup.go
index a27561d3479..b38ba9c5513 100644
--- a/ee/backup/backup.go
+++ b/ee/backup/backup.go
@@ -13,6 +13,7 @@
 package backup
 
 import (
+	"compress/gzip"
 	"context"
 	"encoding/json"
 	"fmt"
@@ -71,7 +72,8 @@ func (pr *Processor) WriteBackup(ctx context.Context) (*pb.BackupResponse, error
 
 	stream := pr.DB.NewStreamAt(pr.Request.ReadTs)
 	stream.LogPrefix = "Dgraph.Backup"
-	newSince, err := stream.Backup(handler, pr.Request.SinceTs)
+	gzWriter := gzip.NewWriter(handler)
+	newSince, err := stream.Backup(gzWriter, pr.Request.SinceTs)
 
 	if err != nil {
 		glog.Errorf("While taking backup: %v", err)
@@ -84,6 +86,10 @@ func (pr *Processor) WriteBackup(ctx context.Context) (*pb.BackupResponse, error
 	}
 
 	glog.V(2).Infof("Backup group %d version: %d", pr.Request.GroupId, pr.Request.ReadTs)
+	if err = gzWriter.Close(); err != nil {
+		glog.Errorf("While closing gzipped writer: %v", err)
+		return &emptyRes, err
+	}
 	if err = handler.Close(); err != nil {
 		glog.Errorf("While closing handler: %v", err)
 		return &emptyRes, err
diff --git a/ee/backup/run.go b/ee/backup/run.go
index 13b635cfea6..3856913ce68 100644
--- a/ee/backup/run.go
+++ b/ee/backup/run.go
@@ -13,6 +13,7 @@
 package backup
 
 import (
+	"compress/gzip"
 	"context"
 	"fmt"
 	"io"
@@ -241,7 +242,11 @@ func RunRestore(pdir, location string) (uint64, error) {
 				fmt.Println("Creating new db:", bo.Dir)
 			}
 		}
-		return db.Load(r, 16)
+		gzReader, err := gzip.NewReader(r)
+		if err != nil {
+			return nil
+		}
+		return db.Load(gzReader, 16)
 	})
 }