diff --git a/examples/compression/Cargo.toml b/examples/compression/Cargo.toml
new file mode 100644
index 00000000..d5fdcf8e
--- /dev/null
+++ b/examples/compression/Cargo.toml
@@ -0,0 +1,22 @@
+[package]
+name = "example-compression"
+version = "0.1.0"
+edition = "2021"
+publish = false
+
+[dependencies]
+axum = { path = "../../axum" }
+axum-extra = { path = "../../axum-extra", features = ["typed-header"] }
+serde_json = "1"
+tokio = { version = "1", features = ["macros", "rt-multi-thread"] }
+tower = "0.4"
+tower-http = { version = "0.5", features = ["compression-full", "decompression-full"] }
+tracing = "0.1"
+tracing-subscriber = { version = "0.3", features = ["env-filter"] }
+
+[dev-dependencies]
+assert-json-diff = "2.0"
+brotli = "3.4"
+flate2 = "1"
+http = "1"
+zstd = "0.13"
diff --git a/examples/compression/README.md b/examples/compression/README.md
new file mode 100644
index 00000000..3f0ed94d
--- /dev/null
+++ b/examples/compression/README.md
@@ -0,0 +1,32 @@
+# compression
+
+This example shows how to:
+- automatically decompress request bodies when necessary
+- compress response bodies based on the `accept` header.
+
+## Running
+
+```
+cargo run -p example-compression
+```
+
+## Sending compressed requests
+
+```
+curl -v -g 'http://localhost:3000/' \
+    -H "Content-Type: application/json" \
+    -H "Content-Encoding: gzip" \
+    --compressed \
+    --data-binary @data/products.json.gz
+```
+
+(Notice the `Content-Encoding: gzip` in the request, and `content-encoding: gzip` in the response.)
+
+## Sending uncompressed requests
+
+```
+curl -v -g 'http://localhost:3000/' \
+    -H "Content-Type: application/json" \
+    --compressed \
+    --data-binary @data/products.json
+```
diff --git a/examples/compression/data/products.json b/examples/compression/data/products.json
new file mode 100644
index 00000000..a234fbdd
--- /dev/null
+++ b/examples/compression/data/products.json
@@ -0,0 +1,12 @@
+{
+    "products": [
+        {
+            "id": 1,
+            "name": "Product 1"
+        },
+        {
+            "id": 2,
+            "name": "Product 2"
+        }
+    ]
+}
diff --git a/examples/compression/data/products.json.gz b/examples/compression/data/products.json.gz
new file mode 100644
index 00000000..91d39895
Binary files /dev/null and b/examples/compression/data/products.json.gz differ
diff --git a/examples/compression/src/main.rs b/examples/compression/src/main.rs
new file mode 100644
index 00000000..1fa1bb49
--- /dev/null
+++ b/examples/compression/src/main.rs
@@ -0,0 +1,39 @@
+use axum::{routing::post, Json, Router};
+use serde_json::Value;
+use tower::ServiceBuilder;
+use tower_http::{compression::CompressionLayer, decompression::RequestDecompressionLayer};
+use tracing_subscriber::{layer::SubscriberExt, util::SubscriberInitExt};
+
+#[cfg(test)]
+mod tests;
+
+#[tokio::main]
+async fn main() {
+    tracing_subscriber::registry()
+        .with(
+            tracing_subscriber::EnvFilter::try_from_default_env()
+                .unwrap_or_else(|_| "example-compression=trace".into()),
+        )
+        .with(tracing_subscriber::fmt::layer())
+        .init();
+
+    let app: Router = app();
+
+    let listener = tokio::net::TcpListener::bind("127.0.0.1:3000")
+        .await
+        .unwrap();
+    tracing::debug!("listening on {}", listener.local_addr().unwrap());
+    axum::serve(listener, app).await.unwrap();
+}
+
+fn app() -> Router {
+    Router::new().route("/", post(root)).layer(
+        ServiceBuilder::new()
+            .layer(RequestDecompressionLayer::new())
+            .layer(CompressionLayer::new()),
+    )
+}
+
+async fn root(Json(value): Json<Value>) -> Json<Value> {
+    Json(value)
+}
diff --git a/examples/compression/src/tests.rs b/examples/compression/src/tests.rs
new file mode 100644
index 00000000..c91ccaa6
--- /dev/null
+++ b/examples/compression/src/tests.rs
@@ -0,0 +1,245 @@
+use assert_json_diff::assert_json_eq;
+use axum::{
+    body::{Body, Bytes},
+    response::Response,
+};
+use brotli::enc::BrotliEncoderParams;
+use flate2::{read::GzDecoder, write::GzEncoder, Compression};
+use http::{header, StatusCode};
+use serde_json::{json, Value};
+use std::io::{Read, Write};
+use tower::ServiceExt;
+
+use super::*;
+
+#[tokio::test]
+async fn handle_uncompressed_request_bodies() {
+    // Given
+
+    let body = json();
+
+    let compressed_request = http::Request::post("/")
+        .header(header::CONTENT_TYPE, "application/json")
+        .body(json_body(&body))
+        .unwrap();
+
+    // When
+
+    let response = app().oneshot(compressed_request).await.unwrap();
+
+    // Then
+
+    assert_eq!(response.status(), StatusCode::OK);
+    assert_json_eq!(json_from_response(response).await, json());
+}
+
+#[tokio::test]
+async fn decompress_gzip_request_bodies() {
+    // Given
+
+    let body = compress_gzip(&json());
+
+    let compressed_request = http::Request::post("/")
+        .header(header::CONTENT_TYPE, "application/json")
+        .header(header::CONTENT_ENCODING, "gzip")
+        .body(Body::from(body))
+        .unwrap();
+
+    // When
+
+    let response = app().oneshot(compressed_request).await.unwrap();
+
+    // Then
+
+    assert_eq!(response.status(), StatusCode::OK);
+    assert_json_eq!(json_from_response(response).await, json());
+}
+
+#[tokio::test]
+async fn decompress_br_request_bodies() {
+    // Given
+
+    let body = compress_br(&json());
+
+    let compressed_request = http::Request::post("/")
+        .header(header::CONTENT_TYPE, "application/json")
+        .header(header::CONTENT_ENCODING, "br")
+        .body(Body::from(body))
+        .unwrap();
+
+    // When
+
+    let response = app().oneshot(compressed_request).await.unwrap();
+
+    // Then
+
+    assert_eq!(response.status(), StatusCode::OK);
+    assert_json_eq!(json_from_response(response).await, json());
+}
+
+#[tokio::test]
+async fn decompress_zstd_request_bodies() {
+    // Given
+
+    let body = compress_zstd(&json());
+
+    let compressed_request = http::Request::post("/")
+        .header(header::CONTENT_TYPE, "application/json")
+        .header(header::CONTENT_ENCODING, "zstd")
+        .body(Body::from(body))
+        .unwrap();
+
+    // When
+
+    let response = app().oneshot(compressed_request).await.unwrap();
+
+    // Then
+
+    assert_eq!(response.status(), StatusCode::OK);
+    assert_json_eq!(json_from_response(response).await, json());
+}
+
+#[tokio::test]
+async fn do_not_compress_response_bodies() {
+    // Given
+    let request = http::Request::post("/")
+        .header(header::CONTENT_TYPE, "application/json")
+        .body(json_body(&json()))
+        .unwrap();
+
+    // When
+
+    let response = app().oneshot(request).await.unwrap();
+
+    // Then
+
+    assert_eq!(response.status(), StatusCode::OK);
+    assert_json_eq!(json_from_response(response).await, json());
+}
+
+#[tokio::test]
+async fn compress_response_bodies_with_gzip() {
+    // Given
+    let request = http::Request::post("/")
+        .header(header::CONTENT_TYPE, "application/json")
+        .header(header::ACCEPT_ENCODING, "gzip")
+        .body(json_body(&json()))
+        .unwrap();
+
+    // When
+
+    let response = app().oneshot(request).await.unwrap();
+
+    // Then
+
+    assert_eq!(response.status(), StatusCode::OK);
+    let response_body = byte_from_response(response).await;
+    let mut decoder = GzDecoder::new(response_body.as_ref());
+    let mut decompress_body = String::new();
+    decoder.read_to_string(&mut decompress_body).unwrap();
+    assert_json_eq!(
+        serde_json::from_str::<serde_json::Value>(&decompress_body).unwrap(),
+        json()
+    );
+}
+
+#[tokio::test]
+async fn compress_response_bodies_with_br() {
+    // Given
+    let request = http::Request::post("/")
+        .header(header::CONTENT_TYPE, "application/json")
+        .header(header::ACCEPT_ENCODING, "br")
+        .body(json_body(&json()))
+        .unwrap();
+
+    // When
+
+    let response = app().oneshot(request).await.unwrap();
+
+    // Then
+
+    assert_eq!(response.status(), StatusCode::OK);
+    let response_body = byte_from_response(response).await;
+    let mut decompress_body = Vec::new();
+    brotli::BrotliDecompress(&mut response_body.as_ref(), &mut decompress_body).unwrap();
+    assert_json_eq!(
+        serde_json::from_slice::<serde_json::Value>(&decompress_body).unwrap(),
+        json()
+    );
+}
+
+#[tokio::test]
+async fn compress_response_bodies_with_zstd() {
+    // Given
+    let request = http::Request::post("/")
+        .header(header::CONTENT_TYPE, "application/json")
+        .header(header::ACCEPT_ENCODING, "zstd")
+        .body(json_body(&json()))
+        .unwrap();
+
+    // When
+
+    let response = app().oneshot(request).await.unwrap();
+
+    // Then
+
+    assert_eq!(response.status(), StatusCode::OK);
+    let response_body = byte_from_response(response).await;
+    let decompress_body = zstd::stream::decode_all(std::io::Cursor::new(response_body)).unwrap();
+    assert_json_eq!(
+        serde_json::from_slice::<serde_json::Value>(&decompress_body).unwrap(),
+        json()
+    );
+}
+
+fn json() -> Value {
+    json!({
+      "name": "foo",
+      "mainProduct": {
+        "typeId": "product",
+        "id": "p1"
+      },
+    })
+}
+
+fn json_body(input: &Value) -> Body {
+    Body::from(serde_json::to_vec(&input).unwrap())
+}
+
+async fn json_from_response(response: Response) -> Value {
+    let body = byte_from_response(response).await;
+    body_as_json(body)
+}
+
+async fn byte_from_response(response: Response) -> Bytes {
+    axum::body::to_bytes(response.into_body(), usize::MAX)
+        .await
+        .unwrap()
+}
+
+fn body_as_json(body: Bytes) -> Value {
+    serde_json::from_slice(body.as_ref()).unwrap()
+}
+
+fn compress_gzip(json: &Value) -> Vec<u8> {
+    let request_body = serde_json::to_vec(&json).unwrap();
+
+    let mut encoder = GzEncoder::new(Vec::new(), Compression::default());
+    encoder.write_all(&request_body).unwrap();
+    encoder.finish().unwrap()
+}
+
+fn compress_br(json: &Value) -> Vec<u8> {
+    let request_body = serde_json::to_vec(&json).unwrap();
+    let mut result = Vec::new();
+
+    let params = BrotliEncoderParams::default();
+    let _ = brotli::enc::BrotliCompress(&mut &request_body[..], &mut result, &params).unwrap();
+
+    result
+}
+
+fn compress_zstd(json: &Value) -> Vec<u8> {
+    let request_body = serde_json::to_vec(&json).unwrap();
+    zstd::stream::encode_all(std::io::Cursor::new(request_body), 4).unwrap()
+}