diff --git a/programs/client/Client.cpp b/programs/client/Client.cpp
index c5e43449557..5b204751ba0 100644
--- a/programs/client/Client.cpp
+++ b/programs/client/Client.cpp
@@ -197,7 +197,7 @@ private:
     std::unique_ptr<ShellCommand> pager_cmd;
 
     /// The user can specify to redirect query output to a file.
-    std::optional<WriteBufferFromFile> out_file_buf;
+    std::unique_ptr<WriteBuffer> out_file_buf;
     BlockOutputStreamPtr block_out_stream;
 
     /// The user could specify special file for server logs (stderr by default)
@@ -2238,8 +2238,11 @@ private:
                     const auto & out_file_node = query_with_output->out_file->as<ASTLiteral &>();
                     const auto & out_file = out_file_node.value.safeGet<std::string>();
 
-                    out_file_buf.emplace(out_file, DBMS_DEFAULT_BUFFER_SIZE, O_WRONLY | O_EXCL | O_CREAT);
-                    out_buf = &*out_file_buf;
+                    out_file_buf = wrapWriteBufferWithCompressionMethod(
+                        std::make_unique<WriteBufferFromFile>(out_file, DBMS_DEFAULT_BUFFER_SIZE, O_WRONLY | O_EXCL | O_CREAT),
+                        chooseCompressionMethod(out_file, ""),
+                        /* compression level = */ 3
+                    );
 
                     // We are writing to file, so default format is the same as in non-interactive mode.
                     if (is_interactive && is_default_format)
@@ -2259,9 +2262,9 @@ private:
 
             /// It is not clear how to write progress with parallel formatting. It may increase code complexity significantly.
             if (!need_render_progress)
-                block_out_stream = context->getOutputStreamParallelIfPossible(current_format, *out_buf, block);
+                block_out_stream = context->getOutputStreamParallelIfPossible(current_format, out_file_buf ? *out_file_buf : *out_buf, block);
             else
-                block_out_stream = context->getOutputStream(current_format, *out_buf, block);
+                block_out_stream = context->getOutputStream(current_format, out_file_buf ? *out_file_buf : *out_buf, block);
 
             block_out_stream->writePrefix();
         }
diff --git a/src/Interpreters/executeQuery.cpp b/src/Interpreters/executeQuery.cpp
index e02ba6ebad7..a6e50f54a9e 100644
--- a/src/Interpreters/executeQuery.cpp
+++ b/src/Interpreters/executeQuery.cpp
@@ -1011,22 +1011,31 @@ void executeQuery(
             const auto * ast_query_with_output = dynamic_cast<const ASTQueryWithOutput *>(ast.get());
 
             WriteBuffer * out_buf = &ostr;
-            std::optional<WriteBufferFromFile> out_file_buf;
+            std::unique_ptr<WriteBuffer> compressed_buffer;
             if (ast_query_with_output && ast_query_with_output->out_file)
             {
                 if (!allow_into_outfile)
                     throw Exception("INTO OUTFILE is not allowed", ErrorCodes::INTO_OUTFILE_NOT_ALLOWED);
 
                 const auto & out_file = ast_query_with_output->out_file->as<ASTLiteral &>().value.safeGet<std::string>();
-                out_file_buf.emplace(out_file, DBMS_DEFAULT_BUFFER_SIZE, O_WRONLY | O_EXCL | O_CREAT);
-                out_buf = &*out_file_buf;
+                compressed_buffer = wrapWriteBufferWithCompressionMethod(
+                    std::make_unique<WriteBufferFromFile>(out_file, DBMS_DEFAULT_BUFFER_SIZE, O_WRONLY | O_EXCL | O_CREAT),
+                    chooseCompressionMethod(out_file, ""),
+                    /* compression level = */ 3
+                );
             }
 
             String format_name = ast_query_with_output && (ast_query_with_output->format != nullptr)
                 ? getIdentifierName(ast_query_with_output->format)
                 : context->getDefaultFormat();
 
-            auto out = FormatFactory::instance().getOutputStreamParallelIfPossible(format_name, *out_buf, streams.in->getHeader(), context, {}, output_format_settings);
+            auto out = FormatFactory::instance().getOutputStreamParallelIfPossible(
+                format_name,
+                compressed_buffer ? *compressed_buffer : *out_buf,
+                streams.in->getHeader(),
+                context,
+                {},
+                output_format_settings);
 
             /// Save previous progress callback if any. TODO Do it more conveniently.
             auto previous_progress_callback = context->getProgressCallback();
@@ -1050,15 +1059,18 @@ void executeQuery(
             const ASTQueryWithOutput * ast_query_with_output = dynamic_cast<const ASTQueryWithOutput *>(ast.get());
 
             WriteBuffer * out_buf = &ostr;
-            std::optional<WriteBufferFromFile> out_file_buf;
+            std::unique_ptr<WriteBuffer> compressed_buffer;
             if (ast_query_with_output && ast_query_with_output->out_file)
             {
                 if (!allow_into_outfile)
                     throw Exception("INTO OUTFILE is not allowed", ErrorCodes::INTO_OUTFILE_NOT_ALLOWED);
 
                 const auto & out_file = typeid_cast<const ASTLiteral &>(*ast_query_with_output->out_file).value.safeGet<std::string>();
-                out_file_buf.emplace(out_file, DBMS_DEFAULT_BUFFER_SIZE, O_WRONLY | O_EXCL | O_CREAT);
-                out_buf = &*out_file_buf;
+                compressed_buffer = wrapWriteBufferWithCompressionMethod(
+                    std::make_unique<WriteBufferFromFile>(out_file, DBMS_DEFAULT_BUFFER_SIZE, O_WRONLY | O_EXCL | O_CREAT),
+                    chooseCompressionMethod(out_file, ""),
+                    /* compression level = */ 3
+                );
             }
 
             String format_name = ast_query_with_output && (ast_query_with_output->format != nullptr)
@@ -1072,7 +1084,14 @@ void executeQuery(
                     return std::make_shared<MaterializingTransform>(header);
                 });
 
-                auto out = FormatFactory::instance().getOutputFormatParallelIfPossible(format_name, *out_buf, pipeline.getHeader(), context, {}, output_format_settings);
+                auto out = FormatFactory::instance().getOutputFormatParallelIfPossible(
+                    format_name,
+                    compressed_buffer ? *compressed_buffer : *out_buf,
+                    pipeline.getHeader(),
+                    context,
+                    {},
+                    output_format_settings);
+
                 out->setAutoFlush();
 
                 /// Save previous progress callback if any. TODO Do it more conveniently.
diff --git a/tests/queries/0_stateless/02001_compress_output_file.reference b/tests/queries/0_stateless/02001_compress_output_file.reference
new file mode 100644
index 00000000000..6f51dfc24e1
--- /dev/null
+++ b/tests/queries/0_stateless/02001_compress_output_file.reference
@@ -0,0 +1,2 @@
+Hello, World! From client.
+Hello, World! From local.
diff --git a/tests/queries/0_stateless/02001_compress_output_file.sh b/tests/queries/0_stateless/02001_compress_output_file.sh
new file mode 100755
index 00000000000..11df227cc14
--- /dev/null
+++ b/tests/queries/0_stateless/02001_compress_output_file.sh
@@ -0,0 +1,23 @@
+#!/usr/bin/env bash
+
+CURDIR=$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)
+# shellcheck source=../shell_config.sh
+. "$CURDIR"/../shell_config.sh
+
+set -e
+
+[ -e "${CLICKHOUSE_TMP}"/test_compression_of_output_file_from_client.gz ] && rm "${CLICKHOUSE_TMP}"/test_compression_of_output_file_from_client.gz
+
+${CLICKHOUSE_CLIENT} --query "SELECT * FROM (SELECT 'Hello, World! From client.') INTO OUTFILE '${CLICKHOUSE_TMP}/test_compression_of_output_file_from_client.gz'"
+gunzip ${CLICKHOUSE_TMP}/test_compression_of_output_file_from_client.gz
+cat ${CLICKHOUSE_TMP}/test_compression_of_output_file_from_client
+
+rm -f "${CLICKHOUSE_TMP}/test_compression_of_output_file_from_client"
+
+[ -e "${CLICKHOUSE_TMP}"/test_compression_of_output_file_from_local.gz ] && rm "${CLICKHOUSE_TMP}"/test_compression_of_output_file_from_local.gz
+
+${CLICKHOUSE_LOCAL} --query "SELECT * FROM (SELECT 'Hello, World! From local.') INTO OUTFILE '${CLICKHOUSE_TMP}/test_compression_of_output_file_from_local.gz'"
+gunzip ${CLICKHOUSE_TMP}/test_compression_of_output_file_from_local.gz
+cat ${CLICKHOUSE_TMP}/test_compression_of_output_file_from_local
+
+rm -f "${CLICKHOUSE_TMP}/test_compression_of_output_file_from_local"