diff --git a/src/main/java/com/google/devtools/build/lib/remote/GrpcCacheClient.java b/src/main/java/com/google/devtools/build/lib/remote/GrpcCacheClient.java
index 3b3e1051dce7b0..bee979da2f557b 100644
--- a/src/main/java/com/google/devtools/build/lib/remote/GrpcCacheClient.java
+++ b/src/main/java/com/google/devtools/build/lib/remote/GrpcCacheClient.java
@@ -394,16 +394,14 @@ private ListenableFuture<Long> requestRead(
       CountingOutputStream rawOut,
       @Nullable Supplier<Digest> digestSupplier,
       Channel channel) {
+    boolean compressed = shouldCompress(digest);
     String resourceName =
         getResourceName(
-            options.remoteInstanceName,
-            digest,
-            options.cacheCompression,
-            digestUtil.getDigestFunction());
+            options.remoteInstanceName, digest, compressed, digestUtil.getDigestFunction());
     SettableFuture<Long> future = SettableFuture.create();
     OutputStream out;
     try {
-      out = options.cacheCompression ? new ZstdDecompressingOutputStream(rawOut) : rawOut;
+      out = compressed ? new ZstdDecompressingOutputStream(rawOut) : rawOut;
     } catch (IOException e) {
       return Futures.immediateFailedFuture(e);
     }
@@ -499,7 +497,7 @@ public ListenableFuture<Void> uploadFile(
         digest,
         Chunker.builder()
             .setInput(digest.getSizeBytes(), path)
-            .setCompressed(options.cacheCompression)
+            .setCompressed(shouldCompress(digest))
             .build());
   }
 
@@ -511,7 +509,7 @@ public ListenableFuture<Void> uploadBlob(
         digest,
         Chunker.builder()
             .setInput(data.toByteArray())
-            .setCompressed(options.cacheCompression)
+            .setCompressed(shouldCompress(digest))
             .build());
   }
 
@@ -535,6 +533,10 @@ Retrier getRetrier() {
     return this.retrier;
   }
 
+  private boolean shouldCompress(Digest digest) {
+    return options.cacheCompression && digest.getSizeBytes() >= options.cacheCompressionThreshold;
+  }
+
   public ReferenceCountedChannel getChannel() {
     return channel;
   }
diff --git a/src/main/java/com/google/devtools/build/lib/remote/options/RemoteOptions.java b/src/main/java/com/google/devtools/build/lib/remote/options/RemoteOptions.java
index e87e78509d8353..37e0b643c2dc7c 100644
--- a/src/main/java/com/google/devtools/build/lib/remote/options/RemoteOptions.java
+++ b/src/main/java/com/google/devtools/build/lib/remote/options/RemoteOptions.java
@@ -430,9 +430,21 @@ public RemoteBuildEventUploadModeConverter() {
       defaultValue = "false",
       documentationCategory = OptionDocumentationCategory.REMOTE,
       effectTags = {OptionEffectTag.UNKNOWN},
-      help = "If enabled, compress/decompress cache blobs with zstd.")
+      help =
+          "If enabled, compress/decompress cache blobs with zstd when their size is at least"
+              + " --experimental_remote_cache_compression_threshold.")
   public boolean cacheCompression;
 
+  @Option(
+      name = "experimental_remote_cache_compression_threshold",
+      defaultValue = "0",
+      documentationCategory = OptionDocumentationCategory.REMOTE,
+      effectTags = {OptionEffectTag.UNKNOWN},
+      help =
+          "The minimum blob size required to compress/decompress with zstd. Ineffectual unless"
+              + " --remote_cache_compression is set.")
+  public int cacheCompressionThreshold;
+
   @Option(
       name = "build_event_upload_max_threads",
       defaultValue = "100",
diff --git a/src/test/java/com/google/devtools/build/lib/remote/GrpcCacheClientTest.java b/src/test/java/com/google/devtools/build/lib/remote/GrpcCacheClientTest.java
index bbaad1bd15ac1a..f46a0be51741df 100644
--- a/src/test/java/com/google/devtools/build/lib/remote/GrpcCacheClientTest.java
+++ b/src/test/java/com/google/devtools/build/lib/remote/GrpcCacheClientTest.java
@@ -91,6 +91,8 @@
 import com.google.devtools.common.options.Options;
 import com.google.gson.JsonObject;
 import com.google.protobuf.ByteString;
+import com.google.testing.junit.testparameterinjector.TestParameter;
+import com.google.testing.junit.testparameterinjector.TestParameterInjector;
 import io.grpc.BindableService;
 import io.grpc.CallCredentials;
 import io.grpc.CallOptions;
@@ -129,14 +131,13 @@
 import org.junit.Before;
 import org.junit.Test;
 import org.junit.runner.RunWith;
-import org.junit.runners.JUnit4;
 import org.mockito.ArgumentMatchers;
 import org.mockito.Mockito;
 import org.mockito.invocation.InvocationOnMock;
 import org.mockito.stubbing.Answer;
 
 /** Tests for {@link GrpcCacheClient}. */
-@RunWith(JUnit4.class)
+@RunWith(TestParameterInjector.class)
 public class GrpcCacheClientTest {
   private static final DigestUtil DIGEST_UTIL =
       new DigestUtil(SyscallCache.NO_CACHE, DigestHashFunction.SHA256);
@@ -1271,36 +1272,42 @@ public void read(ReadRequest request, StreamObserver<ReadResponse> responseObser
   }
 
   @Test
-  public void testCompressedDownload() throws IOException, InterruptedException {
+  public void testCompressedDownload(@TestParameter boolean overThreshold)
+      throws IOException, InterruptedException {
     RemoteOptions options = Options.getDefaults(RemoteOptions.class);
     options.cacheCompression = true;
+    options.cacheCompressionThreshold = 100;
     final GrpcCacheClient client = newClient(options);
-    final byte[] data = "abcdefg".getBytes(UTF_8);
+    final byte[] data =
+        overThreshold ? "0123456789".repeat(10).getBytes(UTF_8) : "0123456789".getBytes(UTF_8);
     final Digest digest = DIGEST_UTIL.compute(data);
-    final byte[] compressed = Zstd.compress(data);
+    final byte[] bytes = overThreshold ? Zstd.compress(data) : data;
 
     serviceRegistry.addService(
         new ByteStreamImplBase() {
           @Override
           public void read(ReadRequest request, StreamObserver<ReadResponse> responseObserver) {
             assertThat(request.getResourceName()).contains(digest.getHash());
+            if (overThreshold) {
+              assertThat(request.getResourceName()).contains("compressed-blobs/zstd");
+            } else {
+              assertThat(request.getResourceName()).doesNotContain("compressed-blobs/zstd");
+            }
             responseObserver.onNext(
                 ReadResponse.newBuilder()
-                    .setData(ByteString.copyFrom(Arrays.copyOf(compressed, compressed.length / 3)))
+                    .setData(ByteString.copyFrom(Arrays.copyOf(bytes, bytes.length / 3)))
                     .build());
             responseObserver.onNext(
                 ReadResponse.newBuilder()
                     .setData(
                         ByteString.copyFrom(
-                            Arrays.copyOfRange(
-                                compressed, compressed.length / 3, compressed.length / 3 * 2)))
+                            Arrays.copyOfRange(bytes, bytes.length / 3, bytes.length / 3 * 2)))
                     .build());
             responseObserver.onNext(
                 ReadResponse.newBuilder()
                     .setData(
                         ByteString.copyFrom(
-                            Arrays.copyOfRange(
-                                compressed, compressed.length / 3 * 2, compressed.length)))
+                            Arrays.copyOfRange(bytes, bytes.length / 3 * 2, bytes.length)))
                     .build());
             responseObserver.onCompleted();
           }