diff --git a/Cargo.toml b/Cargo.toml
index 3b2d430..f0826b7 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -9,6 +9,7 @@ edition = "2021"
 
 [dependencies]
 anyhow = "1.0.71"
+bzip2 = "0.4.4"
 clap = { version = "4.2.5", features = ["derive"] }
 directories = "5.0.0"
 flate2 = "1.0.26"
diff --git a/build.rs b/build.rs
index af253ec..ae74075 100644
--- a/build.rs
+++ b/build.rs
@@ -10,7 +10,7 @@ use rand::distributions::{Alphanumeric, DistString};
 use regex::Regex;
 
 const DEFAULT_PYTHON_VERSION: &str = "3.11";
-const KNOWN_DISTRIBUTION_FORMATS: &[&str] = &["tar|gzip", "tar|zstd", "zip"];
+const KNOWN_DISTRIBUTION_FORMATS: &[&str] = &["tar|bzip2", "tar|gzip", "tar|zstd", "zip"];
 
 // Python version in the form MAJOR.MINOR
 // Target OS https://doc.rust-lang.org/reference/conditional-compilation.html#target_os
@@ -442,6 +442,8 @@ fn set_distribution_format(distribution_source: &String) {
         } else {
             panic!("\n\nUnknown distribution format: {distribution_format}\n\n");
         }
+    } else if distribution_source.ends_with(".tar.bz2") || distribution_source.ends_with(".bz2") {
+        set_runtime_variable(variable, "tar|bzip2");
     } else if distribution_source.ends_with(".tar.gz") || distribution_source.ends_with(".tgz") {
         set_runtime_variable(variable, "tar|gzip");
     } else if distribution_source.ends_with(".tar.zst")
diff --git a/docs/changelog.md b/docs/changelog.md
index 5cda52e..9ac2295 100644
--- a/docs/changelog.md
+++ b/docs/changelog.md
@@ -8,6 +8,10 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 
 ## Unreleased
 
+***Added:***
+
+- Add support for distributions with `bzip2` compression
+
 ***Fixed:***
 
 - Properly handle cases where temporary files are on different filesystems
diff --git a/docs/config.md b/docs/config.md
index 10dcd75..a8823ee 100644
--- a/docs/config.md
+++ b/docs/config.md
@@ -80,6 +80,7 @@ The following formats are supported for the `PYAPP_DISTRIBUTION_FORMAT` option,
 
 | Format | Extensions | Description |
 | --- | --- | --- |
+| `tar|bzip2` | <ul><li><code>.tar.bz2</code></li><li><code>.bz2</code></li></ul> | A [tar file](https://en.wikipedia.org/wiki/Tar_(computing)) with [bzip2 compression](https://en.wikipedia.org/wiki/Bzip2) |
 | `tar|gzip` | <ul><li><code>.tar.gz</code></li><li><code>.tgz</code></li></ul> | A [tar file](https://en.wikipedia.org/wiki/Tar_(computing)) with [gzip compression](https://en.wikipedia.org/wiki/Gzip) |
 | `tar|zstd` | <ul><li><code>.tar.zst</code></li><li><code>.tar.zstd</code></li></ul> | A [tar file](https://en.wikipedia.org/wiki/Tar_(computing)) with [Zstandard compression](https://en.wikipedia.org/wiki/Zstd) |
 | `zip` | <ul><li><code>.zip</code></li></ul> | A [ZIP file](https://en.wikipedia.org/wiki/ZIP_(file_format)) with [DEFLATE compression](https://en.wikipedia.org/wiki/Deflate) |
diff --git a/src/compression.rs b/src/compression.rs
index 44536a8..066e396 100644
--- a/src/compression.rs
+++ b/src/compression.rs
@@ -7,6 +7,7 @@ use crate::terminal;
 
 pub fn unpack(format: String, archive: &PathBuf, destination: &PathBuf) -> Result<()> {
     match format.as_ref() {
+        "tar|bzip2" => unpack_tar_bzip2(archive, destination)?,
         "tar|gzip" => unpack_tar_gzip(archive, destination)?,
         "tar|zstd" => unpack_tar_zstd(archive, destination)?,
         "zip" => unpack_zip(archive, destination)?,
@@ -16,6 +17,18 @@ pub fn unpack(format: String, archive: &PathBuf, destination: &PathBuf) -> Resul
     Ok(())
 }
 
+fn unpack_tar_bzip2(path: &PathBuf, destination: &PathBuf) -> Result<()> {
+    let bz = bzip2::read::BzDecoder::new(File::open(path)?);
+    let mut archive = tar::Archive::new(bz);
+
+    let spinner = terminal::spinner("Unpacking distribution (tar|bzip2)".to_string());
+    let result = archive.unpack(destination);
+    spinner.finish_and_clear();
+    result?;
+
+    Ok(())
+}
+
 fn unpack_tar_gzip(path: &PathBuf, destination: &PathBuf) -> Result<()> {
     let gz = flate2::read::GzDecoder::new(File::open(path)?);
     let mut archive = tar::Archive::new(gz);