diff --git a/Cargo.lock b/Cargo.lock
index 95aa65c06ceeb74ef03443b62912b3ee60fceb46..6c4addac4e47161b1a06b5126747c93a50ae7785 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -5353,6 +5353,7 @@ dependencies = [
  "zed_actions",
  "zeta_prompt",
  "zlog",
+ "zstd",
 ]
 
 [[package]]
diff --git a/crates/edit_prediction/Cargo.toml b/crates/edit_prediction/Cargo.toml
index 767fd49a9f7f3fe5d481f93583ef14e17a87e9f3..f1d0d30815273413922e60927059fe3481113577 100644
--- a/crates/edit_prediction/Cargo.toml
+++ b/crates/edit_prediction/Cargo.toml
@@ -65,6 +65,7 @@ workspace.workspace = true
 worktree.workspace = true
 zed_actions.workspace = true
 zeta_prompt.workspace = true
+zstd.workspace = true
 
 [dev-dependencies]
 clock = { workspace = true, features = ["test-support"] }
diff --git a/crates/edit_prediction/src/edit_prediction.rs b/crates/edit_prediction/src/edit_prediction.rs
index 1c2d756f2797a4f68d0e1fad9ab69b367b278bc9..f24a39353e65ed5a99a527d62f1138dc6edf4f2f 100644
--- a/crates/edit_prediction/src/edit_prediction.rs
+++ b/crates/edit_prediction/src/edit_prediction.rs
@@ -1944,11 +1944,15 @@ impl EditPredictionStore {
 
         let request = PredictEditsV3Request { input, trigger };
 
+        let json_bytes = serde_json::to_vec(&request)?;
+        let compressed = zstd::encode_all(&json_bytes[..], 3)?;
+
         Self::send_api_request(
             |builder| {
                 let req = builder
                     .uri(url.as_ref())
-                    .body(serde_json::to_string(&request)?.into());
+                    .header("Content-Encoding", "zstd")
+                    .body(compressed.clone().into());
                 Ok(req?)
             },
             client,
diff --git a/crates/edit_prediction/src/edit_prediction_tests.rs b/crates/edit_prediction/src/edit_prediction_tests.rs
index dad91c7fed96eb8f8abcdcf2ced33029e92f1861..19d2532de094b849952ca16c100cf2c8b4a598dc 100644
--- a/crates/edit_prediction/src/edit_prediction_tests.rs
+++ b/crates/edit_prediction/src/edit_prediction_tests.rs
@@ -1380,7 +1380,8 @@ fn init_test_with_fake_client(
                         "/predict_edits/v3" => {
                             let mut buf = Vec::new();
                             body.read_to_end(&mut buf).await.ok();
-                            let req = serde_json::from_slice(&buf).unwrap();
+                            let decompressed = zstd::decode_all(&buf[..]).unwrap();
+                            let req = serde_json::from_slice(&decompressed).unwrap();
 
                             let (res_tx, res_rx) = oneshot::channel();
                             predict_req_tx.unbounded_send((req, res_tx)).unwrap();