diff --git a/java/compression/src/test/java/org/apache/arrow/compression/TestArrowReaderWriterWithCompression.java b/java/compression/src/test/java/org/apache/arrow/compression/TestArrowReaderWriterWithCompression.java
index 6104cb1a132e4..878e1917a2e4a 100644
--- a/java/compression/src/test/java/org/apache/arrow/compression/TestArrowReaderWriterWithCompression.java
+++ b/java/compression/src/test/java/org/apache/arrow/compression/TestArrowReaderWriterWithCompression.java
@@ -19,6 +19,7 @@
 
 import java.io.ByteArrayOutputStream;
 import java.nio.channels.Channels;
+import java.nio.charset.StandardCharsets;
 import java.util.ArrayList;
 import java.util.HashMap;
 import java.util.List;
@@ -26,22 +27,59 @@
 
 import org.apache.arrow.memory.BufferAllocator;
 import org.apache.arrow.memory.RootAllocator;
+import org.apache.arrow.vector.FieldVector;
 import org.apache.arrow.vector.GenerateSampleData;
+import org.apache.arrow.vector.VarCharVector;
 import org.apache.arrow.vector.VectorSchemaRoot;
 import org.apache.arrow.vector.compression.CompressionUtil;
 import org.apache.arrow.vector.compression.NoCompressionCodec;
+import org.apache.arrow.vector.dictionary.Dictionary;
+import org.apache.arrow.vector.dictionary.DictionaryEncoder;
+import org.apache.arrow.vector.dictionary.DictionaryProvider;
 import org.apache.arrow.vector.ipc.ArrowFileReader;
 import org.apache.arrow.vector.ipc.ArrowFileWriter;
+import org.apache.arrow.vector.ipc.ArrowStreamReader;
+import org.apache.arrow.vector.ipc.ArrowStreamWriter;
 import org.apache.arrow.vector.ipc.message.IpcOption;
 import org.apache.arrow.vector.types.pojo.ArrowType;
+import org.apache.arrow.vector.types.pojo.DictionaryEncoding;
 import org.apache.arrow.vector.types.pojo.Field;
 import org.apache.arrow.vector.types.pojo.FieldType;
 import org.apache.arrow.vector.types.pojo.Schema;
 import org.apache.arrow.vector.util.ByteArrayReadableSeekableByteChannel;
+import org.junit.After;
 import org.junit.Assert;
+import org.junit.Before;
 import org.junit.Test;
 
 public class TestArrowReaderWriterWithCompression {
+  private BufferAllocator allocator;
+  private VarCharVector dictionaryVector1;
+  private Dictionary dictionary1;
+
+  @Before
+  public void init() {
+    allocator = new RootAllocator(Long.MAX_VALUE);
+
+    dictionaryVector1 = (VarCharVector)
+        FieldType.nullable(new ArrowType.Utf8()).createNewSingleVector("D1", allocator, null);
+
+    setVector(dictionaryVector1,
+        "foo".getBytes(StandardCharsets.UTF_8),
+        "bar".getBytes(StandardCharsets.UTF_8),
+        "baz".getBytes(StandardCharsets.UTF_8));
+
+    dictionary1 = new Dictionary(dictionaryVector1,
+        new DictionaryEncoding(/*id=*/1L, /*ordered=*/false, /*indexType=*/null));
+  }
+
+  @After
+  public void terminate() throws Exception {
+    dictionaryVector1.close();
+    allocator.close();
+  }
+
+
 
   @Test
   public void testArrowFileZstdRoundTrip() throws Exception {
@@ -86,4 +124,121 @@ public void testArrowFileZstdRoundTrip() throws Exception {
     }
   }
 
+  @Test
+  public void testArrowFileZstdRoundTripWithDictionary() throws Exception {
+    // Prepare sample data
+    DictionaryProvider.MapDictionaryProvider provider = new DictionaryProvider.MapDictionaryProvider();
+    provider.put(dictionary1);
+
+    final BufferAllocator allocator = new RootAllocator(Integer.MAX_VALUE);
+    List<Field> fields = new ArrayList<>();
+    fields.add(new Field("col", FieldType.notNullable(new ArrowType.Utf8()), new ArrayList<>()));
+
+    VarCharVector vector1 = (VarCharVector)
+        FieldType.nullable(new ArrowType.Utf8()).createNewSingleVector("D1", allocator, null);
+    vector1.allocateNewSafe();
+    vector1.set(0, "foo".getBytes(StandardCharsets.UTF_8));
+    vector1.setValueCount(6);
+    FieldVector encodedVector1 = (FieldVector) DictionaryEncoder.encode(vector1, dictionary1);
+    vector1.close();
+    fields.add(encodedVector1.getField());
+
+    VectorSchemaRoot root = VectorSchemaRoot.create(new Schema(fields), allocator);
+    final int rowCount = 10;
+    GenerateSampleData.generateTestData(root.getVector(0), rowCount);
+    root.setRowCount(rowCount);
+
+    ByteArrayOutputStream out = new ByteArrayOutputStream();
+    try (final ArrowFileWriter writer =
+           new ArrowFileWriter(root, provider, Channels.newChannel(out), new HashMap<>(),
+             IpcOption.DEFAULT, CommonsCompressionFactory.INSTANCE, CompressionUtil.CodecType.ZSTD, Optional.of(7))) {
+      writer.start();
+      writer.writeBatch();
+      writer.end();
+    }
+
+    // Read the in-memory compressed arrow file with CommonsCompressionFactory provided
+    try (ArrowFileReader reader =
+           new ArrowFileReader(new ByteArrayReadableSeekableByteChannel(out.toByteArray()),
+             allocator, CommonsCompressionFactory.INSTANCE)) {
+      Assert.assertEquals(1, reader.getRecordBlocks().size());
+      Assert.assertTrue(reader.loadNextBatch());
+      Assert.assertTrue(root.equals(reader.getVectorSchemaRoot()));
+      Assert.assertFalse(reader.loadNextBatch());
+    }
+    // Read the in-memory compressed arrow file without CompressionFactory provided
+    try (ArrowFileReader reader =
+           new ArrowFileReader(new ByteArrayReadableSeekableByteChannel(out.toByteArray()),
+             allocator, NoCompressionCodec.Factory.INSTANCE)) {
+      Assert.assertEquals(1, reader.getRecordBlocks().size());
+      Exception exception = Assert.assertThrows(IllegalArgumentException.class, () -> reader.loadNextBatch());
+      String expectedMessage = "Please add arrow-compression module to use CommonsCompressionFactory for ZSTD";
+      Assert.assertEquals(expectedMessage, exception.getMessage());
+    }
+  }
+
+  @Test
+  public void testArrowStreamZstdRoundTrip() throws Exception {
+    DictionaryProvider.MapDictionaryProvider provider = new DictionaryProvider.MapDictionaryProvider();
+    provider.put(dictionary1);
+
+    final BufferAllocator allocator = new RootAllocator(Integer.MAX_VALUE);
+    List<Field> fields = new ArrayList<>();
+    fields.add(new Field("col", FieldType.notNullable(new ArrowType.Utf8()), new ArrayList<>()));
+
+    VarCharVector vector1 = (VarCharVector)
+        FieldType.nullable(new ArrowType.Utf8()).createNewSingleVector("D1", allocator, null);
+    vector1.allocateNewSafe();
+    vector1.set(0, "foo".getBytes(StandardCharsets.UTF_8));
+    vector1.setValueCount(6);
+    FieldVector encodedVector1 = (FieldVector) DictionaryEncoder.encode(vector1, dictionary1);
+    vector1.close();
+    fields.add(encodedVector1.getField());
+
+    VectorSchemaRoot root = VectorSchemaRoot.create(new Schema(fields), allocator);
+    final int rowCount = 10;
+    GenerateSampleData.generateTestData(root.getVector(0), rowCount);
+    root.setRowCount(rowCount);
+
+    // Write an in-memory compressed arrow file
+    ByteArrayOutputStream out = new ByteArrayOutputStream();
+    try (final ArrowStreamWriter writer =
+             new ArrowStreamWriter(root, provider, Channels.newChannel(out), IpcOption.DEFAULT,
+                 CommonsCompressionFactory.INSTANCE, CompressionUtil.CodecType.ZSTD, Optional.of(7))) {
+      writer.start();
+      writer.writeBatch();
+      writer.end();
+    }
+
+    // Read the in-memory compressed arrow file with CommonsCompressionFactory provided
+    try (ArrowStreamReader reader =
+             new ArrowStreamReader(new ByteArrayReadableSeekableByteChannel(out.toByteArray()),
+                 allocator, CommonsCompressionFactory.INSTANCE)) {
+      Assert.assertTrue(reader.loadNextBatch());
+      Assert.assertTrue(root.equals(reader.getVectorSchemaRoot()));
+      Assert.assertFalse(reader.loadNextBatch());
+    }
+
+    // Read the in-memory compressed arrow file without CompressionFactory provided
+    try (ArrowStreamReader reader =
+             new ArrowStreamReader(new ByteArrayReadableSeekableByteChannel(out.toByteArray()),
+                 allocator, NoCompressionCodec.Factory.INSTANCE)) {
+
+      Exception exception = Assert.assertThrows(IllegalArgumentException.class, () -> reader.loadNextBatch());
+      String expectedMessage = "Please add arrow-compression module to use CommonsCompressionFactory for ZSTD";
+      Assert.assertEquals(expectedMessage, exception.getMessage());
+    }
+  }
+
+  public static void setVector(VarCharVector vector, byte[]... values) {
+    final int length = values.length;
+    vector.allocateNewSafe();
+    for (int i = 0; i < length; i++) {
+      if (values[i] != null) {
+        vector.set(i, values[i]);
+      }
+    }
+    vector.setValueCount(length);
+  }
+
 }