diff --git a/zio-kafka-test/src/test/scala/zio/kafka/producer/ProducerCompressionSpec.scala b/zio-kafka-test/src/test/scala/zio/kafka/producer/ProducerCompressionSpec.scala
new file mode 100644
index 000000000..bf3f52f0a
--- /dev/null
+++ b/zio-kafka-test/src/test/scala/zio/kafka/producer/ProducerCompressionSpec.scala
@@ -0,0 +1,23 @@
+package zio.kafka.producer
+
+import org.apache.kafka.common.record.CompressionType
+import zio._
+import zio.test._
+
+object ProducerCompressionSpec extends ZIOSpecDefault {
+
+  override def spec: Spec[TestEnvironment with Scope, Any] =
+    suite("ProducerCompression")(
+      test("all Kafka supported compression codes have a corresponding ProducerCompression") {
+        val compressions = Seq(
+          ProducerCompression.NoCompression,
+          ProducerCompression.Gzip(),
+          ProducerCompression.Snappy(),
+          ProducerCompression.Lz4(),
+          ProducerCompression.Zstd()
+        )
+        val availableCompressionsCount = CompressionType.values().length
+        assertTrue(availableCompressionsCount == compressions.size)
+      }
+    )
+}
diff --git a/zio-kafka/src/main/scala/zio/kafka/producer/ProducerCompression.scala b/zio-kafka/src/main/scala/zio/kafka/producer/ProducerCompression.scala
new file mode 100644
index 000000000..cb300759a
--- /dev/null
+++ b/zio-kafka/src/main/scala/zio/kafka/producer/ProducerCompression.scala
@@ -0,0 +1,55 @@
+package zio.kafka.producer
+
+import org.apache.kafka.clients.producer.ProducerConfig
+import org.apache.kafka.common.record.CompressionType
+
+abstract sealed class ProducerCompression(name: String, extra: Option[(String, AnyRef)] = None) {
+  def properties: Map[String, AnyRef] =
+    Map(ProducerConfig.COMPRESSION_TYPE_CONFIG -> name) ++ extra
+}
+
+/**
+ * The compression codecs that Kafka supports while producing records.
+ */
+object ProducerCompression {
+
+  /** Produce kafka records without compression. */
+  case object NoCompression extends ProducerCompression(CompressionType.NONE.name)
+
+  /**
+   * Produce kafka records with GZIP compression.
+   * @param level
+   *   a value between 1 and 9 or -1 (defaults to -1)
+   */
+  case class Gzip(level: Int = CompressionType.GZIP.defaultLevel())
+      extends ProducerCompression(
+        CompressionType.GZIP.name,
+        Some(ProducerConfig.COMPRESSION_GZIP_LEVEL_CONFIG -> Int.box(level))
+      )
+
+  /** Produce kafka records with Snappy compression. */
+  case class Snappy() extends ProducerCompression(CompressionType.SNAPPY.name)
+
+  /**
+   * Produce kafka records with Lz4 compression.
+   * @param level
+   *   a value between 1 and 17 (defaults to 9)
+   */
+  case class Lz4(level: Int = CompressionType.LZ4.defaultLevel())
+      extends ProducerCompression(
+        CompressionType.LZ4.name,
+        Some(ProducerConfig.COMPRESSION_LZ4_LEVEL_CONFIG -> Int.box(level))
+      )
+
+  /**
+   * Produce kafka records with Zstd compression.
+   *
+   * @param level
+   *   a value between -131072 and 22 (defaults to 3)
+   */
+  case class Zstd(level: Int = CompressionType.ZSTD.defaultLevel())
+      extends ProducerCompression(
+        CompressionType.ZSTD.name,
+        Some(ProducerConfig.COMPRESSION_ZSTD_LEVEL_CONFIG -> Int.box(level))
+      )
+}
diff --git a/zio-kafka/src/main/scala/zio/kafka/producer/ProducerSettings.scala b/zio-kafka/src/main/scala/zio/kafka/producer/ProducerSettings.scala
index b0d1c27f7..2f5fd1531 100644
--- a/zio-kafka/src/main/scala/zio/kafka/producer/ProducerSettings.scala
+++ b/zio-kafka/src/main/scala/zio/kafka/producer/ProducerSettings.scala
@@ -10,7 +10,8 @@ import zio.kafka.security.KafkaCredentialStore
  * To stay source compatible with future releases, you are recommended to construct the settings as follows:
  * {{{
  *   ProducerSettings(bootstrapServers)
- *     .withCloseTimeout(30.seconds)
+ *     .withLinger(500.millis)
+ *     .withCompression(ProducerCompression.Zstd(3))
  *     .... etc.
  * }}}
  */
@@ -43,6 +44,24 @@ final case class ProducerSettings(
   def withCredentials(credentialsStore: KafkaCredentialStore): ProducerSettings =
     withProperties(credentialsStore.properties)
 
+  /**
+   * @param lingerDuration
+   *   The maximum amount of time a record is allowed to linger in the producer's internal buffer. Higher values allow
+   *   for better batching (especially important when compression is used), lower values reduce latency and memory
+   *   usage.
+   */
+  def withLinger(lingerDuration: Duration): ProducerSettings =
+    withProperty(ProducerConfig.LINGER_MS_CONFIG, lingerDuration.toMillis.toString)
+
+  /**
+   * @param compression
+   *   The compression codec to use when publishing records. Compression is of full batches of data, so the efficacy of
+   *   batching will also impact the compression ratio (more batching means better compression). See also
+   *   [[withLinger]].
+   */
+  def withCompression(compression: ProducerCompression): ProducerSettings =
+    withProperties(compression.properties)
+
   /**
    * @param sendBufferSize
    *   The maximum number of record chunks that can queue up while waiting for the underlying producer to become