diff --git a/pom.xml b/pom.xml
index 78d5a945..4cab6349 100644
--- a/pom.xml
+++ b/pom.xml
@@ -59,6 +59,7 @@
     <jackson.version>3.0.4</jackson.version>
     <apache.common-compress.version>1.28.0</apache.common-compress.version>
     <zstd-jni.version>1.5.7-7</zstd-jni.version>
+    <xz.version>1.11</xz.version>
     <bcprov-jdk18on.version>1.83</bcprov-jdk18on.version>
 
     <!-- Test dependencies version -->
@@ -170,6 +171,11 @@
         <artifactId>testcontainers-junit-jupiter</artifactId>
         <version>${testcontainer.version}</version>
       </dependency>
+      <dependency>
+        <groupId>org.tukaani</groupId>
+        <artifactId>xz</artifactId>
+        <version>${xz.version}</version>
+      </dependency>
       <dependency>
         <groupId>org.wiremock</groupId>
         <artifactId>wiremock-standalone</artifactId>
@@ -209,6 +215,10 @@
       <groupId>org.slf4j</groupId>
       <artifactId>slf4j-api</artifactId>
     </dependency>
+    <dependency>
+      <groupId>org.tukaani</groupId>
+      <artifactId>xz</artifactId>
+    </dependency>
     <dependency>
       <groupId>tools.jackson.core</groupId>
       <artifactId>jackson-core</artifactId>
diff --git a/src/main/java/land/oras/utils/ArchiveUtils.java b/src/main/java/land/oras/utils/ArchiveUtils.java
index 55b8adf7..0d02f047 100644
--- a/src/main/java/land/oras/utils/ArchiveUtils.java
+++ b/src/main/java/land/oras/utils/ArchiveUtils.java
@@ -40,6 +40,7 @@
 import org.apache.commons.compress.archivers.tar.TarArchiveOutputStream;
 import org.apache.commons.compress.compressors.gzip.GzipCompressorInputStream;
 import org.apache.commons.compress.compressors.gzip.GzipCompressorOutputStream;
+import org.apache.commons.compress.compressors.xz.XZCompressorOutputStream;
 import org.apache.commons.compress.compressors.zstandard.ZstdCompressorInputStream;
 import org.apache.commons.compress.compressors.zstandard.ZstdCompressorOutputStream;
 import org.jspecify.annotations.NullMarked;
@@ -322,6 +323,22 @@ static LocalPath compressZstd(LocalPath tarFile) {
         return LocalPath.of(tarGzFile, Const.BLOB_DIR_ZSTD_MEDIA_TYPE);
     }
 
+    static LocalPath compressXz(LocalPath tarFile) {
+        LOG.trace("Compressing tar file to xz archive");
+        Path tarXzFile = Paths.get(tarFile.toString() + ".xz");
+        try (InputStream fis = Files.newInputStream(tarFile.getPath());
+                BufferedInputStream bis = new BufferedInputStream(fis);
+                OutputStream fos = Files.newOutputStream(tarXzFile);
+                BufferedOutputStream bos = new BufferedOutputStream(fos);
+                XZCompressorOutputStream xzos = new XZCompressorOutputStream(bos)) {
+
+            bis.transferTo(xzos);
+        } catch (IOException e) {
+            throw new OrasException("Failed to compress tar file to xz archive", e);
+        }
+        return LocalPath.of(tarXzFile, Const.BLOB_DIR_XZ_MEDIA_TYPE);
+    }
+
     static LocalPath compressGzip(LocalPath tarFile) {
         LOG.trace("Compressing tar file to gz archive");
         Path tarGzFile = Paths.get(tarFile.toString() + ".gz");
@@ -353,6 +370,20 @@ static LocalPath uncompressGzip(InputStream inputStream) {
         return LocalPath.of(tarFile, Const.DEFAULT_BLOB_MEDIA_TYPE);
     }
 
+    static LocalPath uncompressXz(InputStream inputStream) {
+        LOG.trace("Uncompressing tar.xz file");
+        Path tarFile = createTempTar();
+        try (BufferedInputStream bis = new BufferedInputStream(inputStream);
+                XZCompressorOutputStream xzos =
+                        new XZCompressorOutputStream(new BufferedOutputStream(Files.newOutputStream(tarFile)))) {
+
+            bis.transferTo(xzos);
+        } catch (IOException e) {
+            throw new OrasException("Failed to uncompress tar.xz file", e);
+        }
+        return LocalPath.of(tarFile, Const.DEFAULT_BLOB_MEDIA_TYPE);
+    }
+
     static LocalPath uncompressZstd(InputStream inputStream) {
         LOG.trace("Uncompressing zstd file");
         Path tarFile = createTempTar();
diff --git a/src/main/java/land/oras/utils/Const.java b/src/main/java/land/oras/utils/Const.java
index 9b580f7a..525e894f 100644
--- a/src/main/java/land/oras/utils/Const.java
+++ b/src/main/java/land/oras/utils/Const.java
@@ -133,6 +133,11 @@ private Const() {
      */
     public static final String BLOB_DIR_ZSTD_MEDIA_TYPE = "application/vnd.oci.image.layer.v1.tar+zstd";
 
+    /**
+     * The blob directory media type for xz compression
+     */
+    public static final String BLOB_DIR_XZ_MEDIA_TYPE = "application/vnd.oci.image.layer.v1.tar+xz";
+
     /**
      * The default artifact media type if not specified
      */
diff --git a/src/main/java/land/oras/utils/SupportedCompression.java b/src/main/java/land/oras/utils/SupportedCompression.java
index a6e783f7..3c8e0fc6 100644
--- a/src/main/java/land/oras/utils/SupportedCompression.java
+++ b/src/main/java/land/oras/utils/SupportedCompression.java
@@ -59,7 +59,12 @@ public enum SupportedCompression {
     /**
      * ZSTD
      */
-    ZSTD(Const.BLOB_DIR_ZSTD_MEDIA_TYPE, ArchiveUtils::compressZstd, ArchiveUtils::uncompressZstd);
+    ZSTD(Const.BLOB_DIR_ZSTD_MEDIA_TYPE, ArchiveUtils::compressZstd, ArchiveUtils::uncompressZstd),
+
+    /**
+     * XZ
+     */
+    XZ(Const.BLOB_DIR_XZ_MEDIA_TYPE, ArchiveUtils::compressXz, ArchiveUtils::uncompressXz);
 
     /**
      * The media type
diff --git a/src/test/java/land/oras/utils/ArchiveUtilsTest.java b/src/test/java/land/oras/utils/ArchiveUtilsTest.java
index a3c1c993..8ead0408 100644
--- a/src/test/java/land/oras/utils/ArchiveUtilsTest.java
+++ b/src/test/java/land/oras/utils/ArchiveUtilsTest.java
@@ -64,6 +64,9 @@ class ArchiveUtilsTest {
     @TempDir(cleanup = CleanupMode.ON_SUCCESS)
     private static Path targetGzDir;
 
+    @TempDir(cleanup = CleanupMode.ON_SUCCESS)
+    private static Path targetXzDir;
+
     @TempDir(cleanup = CleanupMode.ON_SUCCESS)
     private static Path targetZstdDir;
 
@@ -208,6 +211,26 @@ void shouldExtractSeveralExistingArchive(String file) {
         ArchiveUtils.uncompressuntar(archive, existingArchiveDir, SupportedCompression.GZIP.getMediaType());
     }
 
+    @Test
+    void shouldCreateTarXzAndExtractIt() throws Exception {
+        LocalPath directory = LocalPath.of(archiveDir, Const.BLOB_DIR_XZ_MEDIA_TYPE);
+        LocalPath archive = ArchiveUtils.tar(directory);
+        LOG.info("Archive created: {}", archive);
+        Path compressedArchive =
+                ArchiveUtils.compress(archive, directory.getMediaType()).getPath();
+
+        assertTrue(Files.exists(compressedArchive), "Archive should exist");
+
+        Path uncompressedArchive = ArchiveUtils.uncompress(
+                        Files.newInputStream(compressedArchive), Const.BLOB_DIR_XZ_MEDIA_TYPE)
+                .getPath();
+        ArchiveUtils.untar(Files.newInputStream(uncompressedArchive), targetXzDir);
+
+        // To temporary
+        Path temp = ArchiveUtils.uncompressuntar(compressedArchive, directory.getMediaType());
+        assertTrue(Files.exists(temp), "Temp should exist");
+    }
+
     @Test
     void shouldCreateTarZstdAndExtractIt() throws Exception {
         LocalPath directory = LocalPath.of(archiveDir, Const.BLOB_DIR_ZSTD_MEDIA_TYPE);