diff --git a/synapse/app/homeserver.py b/synapse/app/homeserver.py
index 745e7041414f..d98012adebda 100644
--- a/synapse/app/homeserver.py
+++ b/synapse/app/homeserver.py
@@ -220,7 +220,10 @@ def _configure_named_resource(
             resources.update({"/_matrix/consent": consent_resource})
 
         if name == "federation":
-            resources.update({FEDERATION_PREFIX: TransportLayerServer(self)})
+            federation_resource: Resource = TransportLayerServer(self)
+            if compress:
+                federation_resource = gz_wrap(federation_resource)
+            resources.update({FEDERATION_PREFIX: federation_resource})
 
         if name == "openid":
             resources.update(