diff --git a/flow/connectors/snowflake/qrep_avro_sync.go b/flow/connectors/snowflake/qrep_avro_sync.go
index 7d725fa1bc..8202d769fc 100644
--- a/flow/connectors/snowflake/qrep_avro_sync.go
+++ b/flow/connectors/snowflake/qrep_avro_sync.go
@@ -59,7 +59,8 @@ func (s *SnowflakeAvroSyncMethod) SyncRecords(
 		return 0, err
 	}
 
-	numRecords, localFilePath, err := s.writeToAvroFile(stream, avroSchema, "17", flowJobName)
+	partitionID := util.RandomString(16)
+	numRecords, localFilePath, err := s.writeToAvroFile(stream, avroSchema, partitionID, flowJobName)
 	if err != nil {
 		return 0, err
 	}
@@ -192,14 +193,14 @@ func (s *SnowflakeAvroSyncMethod) writeToAvroFile(
 	flowJobName string,
 ) (int, string, error) {
 	var numRecords int
-	ocfWriter := avro.NewPeerDBOCFWriter(s.connector.ctx, stream, avroSchema)
 	if s.config.StagingPath == "" {
+		ocfWriter := avro.NewPeerDBOCFWriterWithCompression(s.connector.ctx, stream, avroSchema)
 		tmpDir, err := os.MkdirTemp("", "peerdb-avro")
 		if err != nil {
 			return 0, "", fmt.Errorf("failed to create temp dir: %w", err)
 		}
 
-		localFilePath := fmt.Sprintf("%s/%s.avro", tmpDir, partitionID)
+		localFilePath := fmt.Sprintf("%s/%s.avro.zst", tmpDir, partitionID)
 		log.WithFields(log.Fields{
 			"flowName":    flowJobName,
 			"partitionID": partitionID,
@@ -211,6 +212,7 @@ func (s *SnowflakeAvroSyncMethod) writeToAvroFile(
 
 		return numRecords, localFilePath, nil
 	} else if strings.HasPrefix(s.config.StagingPath, "s3://") {
+		ocfWriter := avro.NewPeerDBOCFWriter(s.connector.ctx, stream, avroSchema)
 		s3o, err := utils.NewS3BucketAndPrefix(s.config.StagingPath)
 		if err != nil {
 			return 0, "", fmt.Errorf("failed to parse staging path: %w", err)
diff --git a/flow/connectors/utils/avro/avro_writer.go b/flow/connectors/utils/avro/avro_writer.go
index 29f45e929d..0b4cf09d7e 100644
--- a/flow/connectors/utils/avro/avro_writer.go
+++ b/flow/connectors/utils/avro/avro_writer.go
@@ -13,6 +13,7 @@ import (
 
 	"github.com/aws/aws-sdk-go/aws"
 	"github.com/aws/aws-sdk-go/service/s3/s3manager"
+	"github.com/klauspost/compress/zstd"
 	"github.com/linkedin/goavro/v2"
 	log "github.com/sirupsen/logrus"
 	uber_atomic "go.uber.org/atomic"
@@ -22,6 +23,8 @@ type PeerDBOCFWriter struct {
 	ctx        context.Context
 	stream     *model.QRecordStream
 	avroSchema *model.QRecordAvroSchemaDefinition
+	compress   bool
+	writer     io.WriteCloser
 }
 
 func NewPeerDBOCFWriter(
@@ -33,17 +36,50 @@ func NewPeerDBOCFWriter(
 		ctx:        ctx,
 		stream:     stream,
 		avroSchema: avroSchema,
+		compress:   false,
 	}
 }
 
+func NewPeerDBOCFWriterWithCompression(
+	ctx context.Context,
+	stream *model.QRecordStream,
+	avroSchema *model.QRecordAvroSchemaDefinition,
+) *PeerDBOCFWriter {
+	return &PeerDBOCFWriter{
+		ctx:        ctx,
+		stream:     stream,
+		avroSchema: avroSchema,
+		compress:   true,
+	}
+}
+
+func (p *PeerDBOCFWriter) initWriteCloser(w io.Writer) error {
+	var err error
+	if p.compress {
+		p.writer, err = zstd.NewWriter(w)
+		if err != nil {
+			return fmt.Errorf("error while initializing zstd encoding writer: %w", err)
+		}
+	} else {
+		p.writer = &nopWriteCloser{w}
+	}
+	return nil
+}
+
 func (p *PeerDBOCFWriter) createOCFWriter(w io.Writer) (*goavro.OCFWriter, error) {
+	err := p.initWriteCloser(w)
+	if err != nil {
+		return nil, fmt.Errorf("failed to create compressed writer: %w", err)
+	}
+
 	ocfWriter, err := goavro.NewOCFWriter(goavro.OCFConfig{
-		W:      w,
+		W:      p.writer,
 		Schema: p.avroSchema.Schema,
 	})
 	if err != nil {
 		return nil, fmt.Errorf("failed to create OCF writer: %w", err)
 	}
+
 	return ocfWriter, nil
 }
 
@@ -107,6 +143,9 @@ func (p *PeerDBOCFWriter) WriteOCF(w io.Writer) (int, error) {
 	if err != nil {
 		return 0, fmt.Errorf("failed to create OCF writer: %w", err)
 	}
+	// we have to keep a reference to the underlying writer as goavro doesn't provide any access to it
+	defer p.writer.Close()
+
 	numRows, err := p.writeRecordsToOCFWriter(ocfWriter)
 	if err != nil {
 		return 0, fmt.Errorf("failed to write records to OCF writer: %w", err)
@@ -160,3 +199,14 @@ func (p *PeerDBOCFWriter) WriteRecordsToAvroFile(filePath string) (int, error) {
 	defer file.Close()
 	return p.WriteOCF(file)
 }
+
+type nopWriteCloser struct {
+	io.Writer
+}
+
+func (n *nopWriteCloser) Close() error {
+	if closer, ok := n.Writer.(io.Closer); ok {
+		return closer.Close()
+	}
+	return nil
+}
diff --git a/flow/go.mod b/flow/go.mod
index be495bf428..88150adf52 100644
--- a/flow/go.mod
+++ b/flow/go.mod
@@ -108,7 +108,7 @@ require (
 	github.com/jackc/puddle/v2 v2.2.1 // indirect
 	github.com/jmespath/go-jmespath v0.4.0 // indirect
 	github.com/klauspost/asmfmt v1.3.2 // indirect
-	github.com/klauspost/compress v1.17.0 // indirect
+	github.com/klauspost/compress v1.17.1 // indirect
 	github.com/klauspost/cpuid/v2 v2.2.5 // indirect
 	github.com/kylelemons/godebug v1.1.0 // indirect
 	github.com/matttproud/golang_protobuf_extensions v1.0.4 // indirect
diff --git a/flow/go.sum b/flow/go.sum
index 0da445658a..b6a1ba5b98 100644
--- a/flow/go.sum
+++ b/flow/go.sum
@@ -1230,6 +1230,8 @@ github.com/klauspost/asmfmt v1.3.2/go.mod h1:AG8TuvYojzulgDAMCnYn50l/5QV3Bs/tp6j
 github.com/klauspost/compress v1.15.9/go.mod h1:PhcZ0MbTNciWF3rruxRgKxI5NkcHHrHUDtV4Yw2GlzU=
 github.com/klauspost/compress v1.17.0 h1:Rnbp4K9EjcDuVuHtd0dgA4qNuv9yKDYKK1ulpJwgrqM=
 github.com/klauspost/compress v1.17.0/go.mod h1:ntbaceVETuRiXiv4DpjP66DpAtAGkEQskQzEyD//IeE=
+github.com/klauspost/compress v1.17.1 h1:NE3C767s2ak2bweCZo3+rdP4U/HoyVXLv/X9f2gPS5g=
+github.com/klauspost/compress v1.17.1/go.mod h1:ntbaceVETuRiXiv4DpjP66DpAtAGkEQskQzEyD//IeE=
 github.com/klauspost/cpuid/v2 v2.0.9/go.mod h1:FInQzS24/EEf25PyTYn52gqo7WaD8xa0213Md/qVLRg=
 github.com/klauspost/cpuid/v2 v2.2.5 h1:0E5MSMDEoAulmXNFquVs//DdoomxaoTY1kUhbc/qbZg=
 github.com/klauspost/cpuid/v2 v2.2.5/go.mod h1:Lcz8mBdAVJIBVzewtcLocK12l3Y+JytZYpaMropDUws=