diff --git a/charts/pega/README.md b/charts/pega/README.md
index 7e4355b33..f56f6c8d5 100644
--- a/charts/pega/README.md
+++ b/charts/pega/README.md
@@ -652,6 +652,23 @@ tier:
       webXML: |-
         ...
 ```
+### Pega compressed configuration files
+
+To use [Pega configuration files](https://github.com/pegasystems/pega-helm-charts/blob/master/charts/pega/README.md#pega-configuration-files) in compressed format when deploying Pega Platform, replace each file with its compressed format file by completing the following steps:
+
+1) Compress each configuration file using the following command in your local terminal:
+```
+- cat "<path_to_actual_uncompressed_file_in_local>" | gzip -c | base64 
+```
+Example for a prconfig.xml file:
+```
+cat "pega-helm-charts/charts/pega/config/deploy/prconfig.xml" | gzip -c | base64
+```
+2) Provide the file content with the output of the command for each file executed.
+3) Set the `compressedConfigurations` in values.yaml to `true`, as in the following example:
+```yaml
+  compressedConfigurations: true
+```
 
 ### Pega diagnostic user
 
diff --git a/charts/pega/templates/pega-environment-config.yaml b/charts/pega/templates/pega-environment-config.yaml
index 44b2521c1..04e2e9482 100644
--- a/charts/pega/templates/pega-environment-config.yaml
+++ b/charts/pega/templates/pega-environment-config.yaml
@@ -43,6 +43,12 @@ data:
   JDBC_TIMEOUT_PROPERTIES_RO: {{ .Values.global.jdbc.readerConnectionTimeoutProperties }}
 {{- else }}
   JDBC_TIMEOUT_PROPERTIES_RO: ""
+{{- end }}
+  # compression flag to decompress the config files of Pega Installation.
+{{- if .Values.global.compressedConfigurations }}
+  IS_PEGA_CONFIG_COMPRESSED: "{{ .Values.global.compressedConfigurations }}"
+{{- else }}
+  IS_PEGA_CONFIG_COMPRESSED: "false"
 {{- end }}
   # Rules schema of the Pega installation
 {{ if (eq (include "performUpgradeAndDeployment" .) "true") }}
diff --git a/charts/pega/values.yaml b/charts/pega/values.yaml
index e375fc52a..83c9cdf5b 100644
--- a/charts/pega/values.yaml
+++ b/charts/pega/values.yaml
@@ -121,6 +121,10 @@ global:
       serviceHost: "API_SERVICE_ADDRESS"
       httpsServicePort: "SERVICE_PORT_HTTPS"
 
+  # Set the `compressedConfigurations` parameter to `true` when the configuration files under charts/pega/config/deploy are in compressed format.
+  # For more information, see the “Pega compressed configuration files” section in the Pega Helm chart documentation.
+  compressedConfigurations: false
+
   # Specify the Pega tiers to deploy
   tier:
     - name: "web"