diff --git a/syncoid b/syncoid
index b62eee8..18708d2 100755
--- a/syncoid
+++ b/syncoid
@@ -509,6 +509,12 @@ sub compressargset {
 			decomrawcmd => '/usr/bin/zstd',
 			decomargs   => '-dc',
 		},
+		'xz' => {
+			rawcmd      => '/usr/bin/xz',
+			args        => '',
+			decomrawcmd => '/usr/bin/xz',
+			decomargs   => '-d',
+		},
 		'lzo' => {
 			rawcmd      => '/usr/bin/lzop',
 			args        => '',
@@ -519,7 +525,7 @@ sub compressargset {
 
 	if ($value eq 'default') {
 		$value = $DEFAULT_COMPRESSION;
-	} elsif (!(grep $value eq $_, ('gzip', 'pigz-fast', 'pigz-slow', 'zstd-fast', 'zstd-slow', 'lzo', 'default', 'none'))) {
+	} elsif (!(grep $value eq $_, ('gzip', 'pigz-fast', 'pigz-slow', 'zstd-fast', 'zstd-slow', 'lzo', 'xz', 'default', 'none'))) {
 		warn "Unrecognised compression value $value, defaulting to $DEFAULT_COMPRESSION";
 		$value = $DEFAULT_COMPRESSION;
 	}
@@ -1227,7 +1233,7 @@ syncoid - ZFS snapshot replication tool
 
 Options:
 
-  --compress=FORMAT     Compresses data during transfer. Currently accepted options are gzip, pigz-fast, pigz-slow, lzo (default) & none
+  --compress=FORMAT     Compresses data during transfer. Currently accepted options are gzip, pigz-fast, pigz-slow, xz, lzo (default) & none
   --identifier=EXTRA    Extra identifier which is included in the snapshot name. Can be used for replicating to multiple targets.
   --recursive|r         Also transfers child datasets
   --skip-parent         Skips syncing of the parent dataset. Does nothing without '--recursive' option.