diff --git a/src/deployer/Deployer.ts b/src/deployer/Deployer.ts
index 6ea690f..91897e0 100644
--- a/src/deployer/Deployer.ts
+++ b/src/deployer/Deployer.ts
@@ -69,7 +69,7 @@ export class ContractDeployer {
       this.contractParams.push(this.txParams);
     }
 
-    const contract = deploy(
+    const contract = await deploy(
       this.hre,
       this.contractName,
       this.compress,
diff --git a/src/deployer/ScillaContractDeployer.ts b/src/deployer/ScillaContractDeployer.ts
index 85f3102..4e902d7 100644
--- a/src/deployer/ScillaContractDeployer.ts
+++ b/src/deployer/ScillaContractDeployer.ts
@@ -129,7 +129,7 @@ export type OptionalUserDefinedLibraryList = UserDefinedLibrary[] | null;
 export async function deploy(
   hre: HardhatRuntimeEnvironment,
   contractName: string,
-  compressContract: boolean,
+  compress: boolean,
   userDefinedLibraries: OptionalUserDefinedLibraryList,
   ...args: any[]
 ): Promise<ScillaContract> {
@@ -157,6 +157,7 @@ export async function deploy(
   const [tx, sc] = await deployFromFile(
     contractInfo.path,
     init,
+    compress,
     txParamsForContractDeployment
   );
   sc.deployed_by = tx;
@@ -168,7 +169,8 @@ export async function deploy(
 
 export const deployLibrary = async (
   hre: HardhatRuntimeEnvironment,
-  libraryName: string
+  libraryName: string,
+  compress: boolean
 ): Promise<ScillaContract> => {
   const contractInfo: ContractInfo = hre.scillaContracts[libraryName];
   if (contractInfo === undefined) {
@@ -177,7 +179,7 @@ export const deployLibrary = async (
 
   const init: Init = fillLibraryInit();
 
-  const [tx, sc] = await deployFromFile(contractInfo.path, init, {}); // FIXME: In  #45
+  const [tx, sc] = await deployFromFile(contractInfo.path, init, compress, {}); // FIXME: In  #45
   sc.deployed_by = tx;
 
   return sc;
@@ -262,6 +264,7 @@ const fillInit = (
 export async function deployFromFile(
   path: string,
   init: Init,
+  compress: boolean,
   txParamsForContractDeployment: any
 ): Promise<[Transaction, ScillaContract]> {
   if (setup === null) {
@@ -272,7 +275,10 @@ export async function deployFromFile(
   }
 
   const deployer = setup.zilliqa.wallet.defaultAccount ?? setup.accounts[0];
-  const code = read(path);
+  let code = read(path);
+  if (compress) {
+    code = compressContract(code);
+  }
   const contract = setup.zilliqa.contracts.new(code, init);
   const [tx, sc] = await contract.deploy(
     { ...setup, pubKey: deployer.publicKey, ...txParamsForContractDeployment },
@@ -288,3 +294,8 @@ export async function deployFromFile(
 
   return [tx, sc];
 }
+
+export function compressContract(code: string): string {
+  code = code.replace(/\(\*.*?\*\)/gms, "");
+  return code.replace(/(^[ \t]*\n)/gm, "");
+}
diff --git a/src/index.ts b/src/index.ts
index d40c250..a729c53 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -69,8 +69,11 @@ extendEnvironment((hre) => {
 
   hre.deployScillaLibrary = lazyFunction(
     () =>
-      async (libraryName: string): Promise<ScillaContract> => {
-        return deployLibrary(hre, libraryName);
+      async (
+        libraryName: string,
+        compress: boolean
+      ): Promise<ScillaContract> => {
+        return deployLibrary(hre, libraryName, compress);
       }
   );
 
@@ -78,9 +81,10 @@ extendEnvironment((hre) => {
     () =>
       async (
         contractPath: string,
-        init: Init
+        init: Init,
+        compress: boolean
       ): Promise<[Transaction, ScillaContract]> => {
-        return deployFromFile(contractPath, init, {});
+        return deployFromFile(contractPath, init, compress, {});
       }
   );
 
diff --git a/src/type-extensions.ts b/src/type-extensions.ts
index 1d3d113..97b7bac 100644
--- a/src/type-extensions.ts
+++ b/src/type-extensions.ts
@@ -33,10 +33,14 @@ declare module "hardhat/types/runtime" {
       userDefinedLibraries: UserDefinedLibrary[],
       ...args: any[]
     ) => Promise<ScillaContract>;
-    deployScillaLibrary: (contractName: string) => Promise<ScillaContract>;
+    deployScillaLibrary: (
+      contractName: string,
+      compress: boolean
+    ) => Promise<ScillaContract>;
     deployScillaFile: (
       contractName: string,
-      init: Init
+      init: Init,
+      compress: boolean
     ) => Promise<[Transaction, ScillaContract]>;
     getZilliqaChainId: () => number;
     getNetworkUrl: () => string;
diff --git a/test/deploy.live.test.ts b/test/deploy.live.test.ts
index bec632d..760cd82 100644
--- a/test/deploy.live.test.ts
+++ b/test/deploy.live.test.ts
@@ -37,7 +37,24 @@ describe("", function () {
         .withContractParams("Hello world!")
         .deploy();
 
+      console.log(contract.isDeployed());
       expect(contract.address).not.null;
     });
+
+    it("Should be able to deploy a contract with compression", async function () {
+      const contract = await this.hre.contractDeployer
+        .withName("HelloWorld")
+        .withContractParams("sss")
+        .withContractCompression()
+        .deploy();
+
+      console.log(contract.error);
+
+      const tx = await contract.getHello();
+      await expect(tx).to.have.eventLogWithParams("getHello()", {
+        value: "",
+        vname: "msg",
+      });
+    });
   });
 });
diff --git a/test/fixture-projects/hardhat-project/contracts/scilla/WithComment.scilla b/test/fixture-projects/hardhat-project/contracts/scilla/WithComment.scilla
new file mode 100644
index 0000000..0194a51
--- /dev/null
+++ b/test/fixture-projects/hardhat-project/contracts/scilla/WithComment.scilla
@@ -0,0 +1,31 @@
+
+(***************************************************)
+(*             The contract definition             *)
+(***************************************************)
+scilla_version 0 (*version*)
+ 
+contract WithComment (*contract name*)
+()
+(*fields*)
+field welcome_msg : String = "" (*welcome*)
+
+(*first transition*)
+transition setHello (msg : String)
+    is_owner = builtin eq owner _sender;
+    match is_owner with
+    | False =>
+    e = {_eventname : "setHello()"; code : not_owner_code};
+    event e
+    | True =>
+    welcome_msg := msg;
+    e = {_eventname : "setHello()"; code : set_hello_code};
+    event e
+    end
+end
+
+(*second transition*)
+transition getHello ()
+    r <- welcome_msg; (*dummy comment*)
+    e = {_eventname: "getHello()"; msg: r};
+    event e
+end