diff --git a/Makefile b/Makefile
index f64fc7804a03..82eeaa2f9e1c 100644
--- a/Makefile
+++ b/Makefile
@@ -842,6 +842,21 @@ mod_strip_cmd = true
 endif # INSTALL_MOD_STRIP
 export mod_strip_cmd
 
+# CONFIG_MODULE_COMPRESS, if defined, will cause module to be compressed
+# after they are installed in agreement with CONFIG_MODULE_COMPRESS_GZIP
+# or CONFIG_MODULE_COMPRESS_XZ.
+
+mod_compress_cmd = true
+ifdef CONFIG_MODULE_COMPRESS
+  ifdef CONFIG_MODULE_COMPRESS_GZIP
+    mod_compress_cmd = gzip -n
+  endif # CONFIG_MODULE_COMPRESS_GZIP
+  ifdef CONFIG_MODULE_COMPRESS_XZ
+    mod_compress_cmd = xz
+  endif # CONFIG_MODULE_COMPRESS_XZ
+endif # CONFIG_MODULE_COMPRESS
+export mod_compress_cmd
+
 # Select initial ramdisk compression format, default is gzip(1).
 # This shall be used by the dracut(8) tool while creating an initramfs image.
 #
diff --git a/init/Kconfig b/init/Kconfig
index e84c6423a2e5..4980925bf348 100644
--- a/init/Kconfig
+++ b/init/Kconfig
@@ -1906,6 +1906,49 @@ config MODULE_SIG_HASH
 	default "sha384" if MODULE_SIG_SHA384
 	default "sha512" if MODULE_SIG_SHA512
 
+config MODULE_COMPRESS
+	bool "Compress modules on installation"
+	depends on MODULES
+	help
+	  This option compresses the kernel modules when 'make
+	  modules_install' is run.
+
+	  The modules will be compressed either using gzip or xz depend on the
+	  choice made in "Compression algorithm".
+
+	  module-init-tools has support for gzip format while kmod handle gzip
+	  and xz compressed modules.
+
+	  When a kernel module is installed from outside of the main kernel
+	  source and uses the Kbuild system for installing modules then that
+	  kernel module will also be compressed when it is installed.
+
+	  This option provides little benefit when the modules are to be used inside
+	  an initrd or initramfs, it generally is more efficient to compress the whole
+	  initrd or initramfs instead.
+
+	  This is fully compatible with signed modules while the signed module is
+	  compressed. module-init-tools or kmod handles decompression and provide to
+	  other layer the uncompressed but signed payload.
+
+choice
+	prompt "Compression algorithm"
+	depends on MODULE_COMPRESS
+	default MODULE_COMPRESS_GZIP
+	help
+	  This determines which sort of compression will be used during
+	  'make modules_install'.
+
+	  GZIP (default) and XZ are supported.
+
+config MODULE_COMPRESS_GZIP
+	bool "GZIP"
+
+config MODULE_COMPRESS_XZ
+	bool "XZ"
+
+endchoice
+
 endif # MODULES
 
 config INIT_ALL_POSSIBLE
diff --git a/scripts/Makefile.modinst b/scripts/Makefile.modinst
index aa911b557bde..e48a4e9d8868 100644
--- a/scripts/Makefile.modinst
+++ b/scripts/Makefile.modinst
@@ -22,7 +22,8 @@ quiet_cmd_modules_install = INSTALL $@
     mkdir -p $(2) ; \
     cp $@ $(2) ; \
     $(mod_strip_cmd) $(2)/$(notdir $@) ; \
-    $(mod_sign_cmd) $(2)/$(notdir $@) $(patsubst %,|| true,$(KBUILD_EXTMOD))
+    $(mod_sign_cmd) $(2)/$(notdir $@) $(patsubst %,|| true,$(KBUILD_EXTMOD)) ; \
+    $(mod_compress_cmd) $(2)/$(notdir $@)
 
 # Modules built outside the kernel source tree go into extra by default
 INSTALL_MOD_DIR ?= extra