diff --git a/datamodel/openapi/openapi-core-apache/pom.xml b/datamodel/openapi/openapi-core-apache/pom.xml
index da363410d..47287dea5 100644
--- a/datamodel/openapi/openapi-core-apache/pom.xml
+++ b/datamodel/openapi/openapi-core-apache/pom.xml
@@ -94,5 +94,15 @@
             <artifactId>junit-jupiter-params</artifactId>
             <scope>test</scope>
         </dependency>
+        <dependency>
+            <groupId>org.mockito</groupId>
+            <artifactId>mockito-core</artifactId>
+            <scope>test</scope>
+        </dependency>
+        <dependency>
+            <groupId>io.vavr</groupId>
+            <artifactId>vavr</artifactId>
+            <scope>test</scope>
+        </dependency>
     </dependencies>
-</project>
\ No newline at end of file
+</project>
diff --git a/datamodel/openapi/openapi-core-apache/src/main/java/com/sap/cloud/sdk/services/openapi/apache/apiclient/ApiClient.java b/datamodel/openapi/openapi-core-apache/src/main/java/com/sap/cloud/sdk/services/openapi/apache/apiclient/ApiClient.java
index 9c41962c0..ac2b4fad9 100644
--- a/datamodel/openapi/openapi-core-apache/src/main/java/com/sap/cloud/sdk/services/openapi/apache/apiclient/ApiClient.java
+++ b/datamodel/openapi/openapi-core-apache/src/main/java/com/sap/cloud/sdk/services/openapi/apache/apiclient/ApiClient.java
@@ -14,7 +14,9 @@
 
 import static com.sap.cloud.sdk.services.openapi.apache.apiclient.DefaultApiResponseHandler.isJsonMime;
 import static lombok.AccessLevel.PRIVATE;
+import static org.apache.hc.core5.http.HttpHeaders.CONTENT_ENCODING;
 
+import java.io.ByteArrayOutputStream;
 import java.io.File;
 import java.io.IOException;
 import java.net.URLEncoder;
@@ -28,6 +30,7 @@
 import java.util.Map;
 import java.util.Map.Entry;
 import java.util.Set;
+import java.util.zip.GZIPOutputStream;
 
 import javax.annotation.Nonnull;
 import javax.annotation.Nullable;
@@ -68,6 +71,7 @@
 import lombok.Getter;
 import lombok.ToString;
 import lombok.With;
+import lombok.val;
 
 /**
  * API client for executing HTTP requests using Apache HttpClient 5.
@@ -348,77 +352,6 @@ private ContentType getContentType( @Nonnull final String headerValue )
         }
     }
 
-    /**
-     * Serialize the given Java object into string according the given Content-Type (only JSON is supported for now).
-     *
-     * @param obj
-     *            Object
-     * @param contentType
-     *            Content type
-     * @param formParams
-     *            Form parameters
-     * @return Object
-     * @throws OpenApiRequestException
-     *             API exception
-     */
-    @Nonnull
-    private HttpEntity serialize(
-        @Nullable final Object obj,
-        @Nonnull final Map<String, Object> formParams,
-        @Nonnull final ContentType contentType )
-        throws OpenApiRequestException
-    {
-        final String mimeType = contentType.getMimeType();
-        if( isJsonMime(mimeType) ) {
-            try {
-                return new StringEntity(
-                    objectMapper.writeValueAsString(obj),
-                    contentType.withCharset(StandardCharsets.UTF_8));
-            }
-            catch( JsonProcessingException e ) {
-                throw new OpenApiRequestException(e);
-            }
-        } else if( mimeType.equals(ContentType.MULTIPART_FORM_DATA.getMimeType()) ) {
-            final MultipartEntityBuilder multiPartBuilder = MultipartEntityBuilder.create();
-            for( final Entry<String, Object> paramEntry : formParams.entrySet() ) {
-                final Object value = paramEntry.getValue();
-                if( value instanceof File file ) {
-                    multiPartBuilder.addBinaryBody(paramEntry.getKey(), file);
-                } else if( value instanceof byte[] byteArray ) {
-                    multiPartBuilder.addBinaryBody(paramEntry.getKey(), byteArray);
-                } else {
-                    final Charset charset = contentType.getCharset();
-                    if( charset != null ) {
-                        final ContentType customContentType =
-                            ContentType.create(ContentType.TEXT_PLAIN.getMimeType(), charset);
-                        multiPartBuilder
-                            .addTextBody(
-                                paramEntry.getKey(),
-                                parameterToString(paramEntry.getValue()),
-                                customContentType);
-                    } else {
-                        multiPartBuilder.addTextBody(paramEntry.getKey(), parameterToString(paramEntry.getValue()));
-                    }
-                }
-            }
-            return multiPartBuilder.build();
-        } else if( mimeType.equals(ContentType.APPLICATION_FORM_URLENCODED.getMimeType()) ) {
-            final List<NameValuePair> formValues = new ArrayList<>();
-            for( final Entry<String, Object> paramEntry : formParams.entrySet() ) {
-                formValues.add(new BasicNameValuePair(paramEntry.getKey(), parameterToString(paramEntry.getValue())));
-            }
-            return new UrlEncodedFormEntity(formValues, contentType.getCharset());
-        } else {
-            // Handle files with unknown content type
-            if( obj instanceof File file ) {
-                return new FileEntity(file, contentType);
-            } else if( obj instanceof byte[] byteArray ) {
-                return new ByteArrayEntity(byteArray, contentType);
-            }
-            throw new OpenApiRequestException("Serialization for content type '" + contentType + "' not supported");
-        }
-    }
-
     /**
      * Build full URL by concatenating base URL, the given sub path and query parameters.
      *
@@ -560,7 +493,7 @@ public <T> T invokeAPI(
         if( body != null || !formParams.isEmpty() ) {
             if( isBodyAllowed(Method.valueOf(method)) ) {
                 // Add entity if we have content and a valid method
-                builder.setEntity(serialize(body, formParams, contentTypeObj));
+                builder.setEntity(serialize(body, formParams, contentTypeObj, headerParams));
             } else {
                 throw new OpenApiRequestException("method " + method + " does not support a request body");
             }
@@ -578,4 +511,118 @@ public <T> T invokeAPI(
             throw new OpenApiRequestException(e);
         }
     }
+
+    /**
+     * Serialize the given Java object into string according the given Content-Type (only JSON is supported for now).
+     *
+     * @param body
+     *            Object
+     * @param contentType
+     *            Content type
+     * @param formParams
+     *            Form parameters
+     * @param headerParams
+     *            Header parameters, used to check content encoding for JSON serialization
+     * @return Object
+     * @throws OpenApiRequestException
+     *             API exception
+     */
+    @Nonnull
+    private HttpEntity serialize(
+        @Nullable final Object body,
+        @Nonnull final Map<String, Object> formParams,
+        @Nonnull final ContentType contentType,
+        @Nonnull final Map<String, String> headerParams )
+        throws OpenApiRequestException
+    {
+        final String mimeType = contentType.getMimeType();
+        if( isJsonMime(mimeType) ) {
+            return serializeJson(body, contentType, headerParams);
+        } else if( mimeType.equals(ContentType.MULTIPART_FORM_DATA.getMimeType()) ) {
+            return serializeMultipart(formParams, contentType);
+        } else if( mimeType.equals(ContentType.APPLICATION_FORM_URLENCODED.getMimeType()) ) {
+            return serializeFormUrlEncoded(formParams, contentType);
+        } else if( body instanceof File file ) {
+            return new FileEntity(file, contentType);
+        } else if( body instanceof byte[] byteArray ) {
+            return new ByteArrayEntity(byteArray, contentType);
+        }
+        throw new OpenApiRequestException("Serialization for content type '" + contentType + "' not supported");
+    }
+
+    @Nonnull
+    private HttpEntity serializeJson(
+        @Nullable final Object body,
+        @Nonnull final ContentType contentType,
+        @Nonnull final Map<String, String> headerParams )
+        throws OpenApiRequestException
+    {
+        if( "gzip".equalsIgnoreCase(headerParams.get(CONTENT_ENCODING))
+            || "gzip".equalsIgnoreCase(headerParams.get(CONTENT_ENCODING.toLowerCase())) ) {
+            val outputStream = new ByteArrayOutputStream();
+            try( val gzip = new GZIPOutputStream(outputStream) ) {
+                gzip.write(objectMapper.writeValueAsBytes(body));
+            }
+            catch( IOException e ) {
+                throw new OpenApiRequestException("Failed to GZIP compress request body", e);
+            }
+            return new ByteArrayEntity(
+                outputStream.toByteArray(),
+                contentType.withCharset(StandardCharsets.UTF_8),
+                "gzip");
+        }
+        try {
+            return new StringEntity(
+                objectMapper.writeValueAsString(body),
+                contentType.withCharset(StandardCharsets.UTF_8));
+        }
+        catch( JsonProcessingException e ) {
+            throw new OpenApiRequestException(e);
+        }
+    }
+
+    @Nonnull
+    private
+        HttpEntity
+        serializeMultipart( @Nonnull final Map<String, Object> formParams, @Nonnull final ContentType contentType )
+    {
+        final MultipartEntityBuilder builder = MultipartEntityBuilder.create();
+        for( final Entry<String, Object> entry : formParams.entrySet() ) {
+            final Object value = entry.getValue();
+            if( value instanceof File file ) {
+                builder.addBinaryBody(entry.getKey(), file);
+            } else if( value instanceof byte[] byteArray ) {
+                builder.addBinaryBody(entry.getKey(), byteArray);
+            } else {
+                addMultipartTextField(builder, entry, contentType);
+            }
+        }
+        return builder.build();
+    }
+
+    private void addMultipartTextField(
+        @Nonnull final MultipartEntityBuilder builder,
+        @Nonnull final Entry<String, Object> entry,
+        @Nonnull final ContentType contentType )
+    {
+        final Charset charset = contentType.getCharset();
+        if( charset != null ) {
+            final ContentType textContentType = ContentType.create(ContentType.TEXT_PLAIN.getMimeType(), charset);
+            builder.addTextBody(entry.getKey(), parameterToString(entry.getValue()), textContentType);
+        } else {
+            builder.addTextBody(entry.getKey(), parameterToString(entry.getValue()));
+        }
+    }
+
+    @Nonnull
+    private
+        HttpEntity
+        serializeFormUrlEncoded( @Nonnull final Map<String, Object> formParams, @Nonnull final ContentType contentType )
+    {
+        final List<NameValuePair> formValues = new ArrayList<>();
+        for( final Entry<String, Object> entry : formParams.entrySet() ) {
+            formValues.add(new BasicNameValuePair(entry.getKey(), parameterToString(entry.getValue())));
+        }
+        return new UrlEncodedFormEntity(formValues, contentType.getCharset());
+    }
 }
diff --git a/datamodel/openapi/openapi-core-apache/src/test/java/com/sap/cloud/sdk/services/openapi/apache/apiclient/ApacheApiClientResponseHandlingTest.java b/datamodel/openapi/openapi-core-apache/src/test/java/com/sap/cloud/sdk/services/openapi/apache/apiclient/ApacheApiClientResponseHandlingTest.java
index 5c64fdce1..0a3e39464 100644
--- a/datamodel/openapi/openapi-core-apache/src/test/java/com/sap/cloud/sdk/services/openapi/apache/apiclient/ApacheApiClientResponseHandlingTest.java
+++ b/datamodel/openapi/openapi-core-apache/src/test/java/com/sap/cloud/sdk/services/openapi/apache/apiclient/ApacheApiClientResponseHandlingTest.java
@@ -3,33 +3,44 @@
 import static com.github.tomakehurst.wiremock.client.WireMock.aResponse;
 import static com.github.tomakehurst.wiremock.client.WireMock.get;
 import static com.github.tomakehurst.wiremock.client.WireMock.getRequestedFor;
+import static com.github.tomakehurst.wiremock.client.WireMock.post;
+import static com.github.tomakehurst.wiremock.client.WireMock.postRequestedFor;
 import static com.github.tomakehurst.wiremock.client.WireMock.stubFor;
 import static com.github.tomakehurst.wiremock.client.WireMock.urlEqualTo;
 import static com.github.tomakehurst.wiremock.client.WireMock.verify;
 import static org.assertj.core.api.Assertions.assertThat;
 
+import java.nio.charset.StandardCharsets;
 import java.util.ArrayList;
 import java.util.HashMap;
 import java.util.List;
 import java.util.Map;
 import java.util.concurrent.atomic.AtomicReference;
+import java.util.zip.GZIPInputStream;
 
+import org.apache.hc.client5.http.impl.classic.CloseableHttpClient;
+import org.apache.hc.core5.http.protocol.HttpContext;
 import org.junit.jupiter.api.Test;
+import org.mockito.Mockito;
 
 import com.fasterxml.jackson.annotation.JsonProperty;
 import com.fasterxml.jackson.core.type.TypeReference;
 import com.github.tomakehurst.wiremock.junit5.WireMockRuntimeInfo;
 import com.github.tomakehurst.wiremock.junit5.WireMockTest;
+import com.sap.cloud.sdk.cloudplatform.connectivity.ApacheHttpClient5Accessor;
 import com.sap.cloud.sdk.services.openapi.apache.core.OpenApiRequestException;
 import com.sap.cloud.sdk.services.openapi.apache.core.OpenApiResponse;
 
+import io.vavr.control.Try;
 import lombok.Data;
+import lombok.SneakyThrows;
 
 @WireMockTest
 class ApacheApiClientResponseHandlingTest
 {
     private static final String TEST_PATH = "/test";
     private static final String TEST_RESPONSE_BODY = "{\"message\": \"success\"}";
+    private static final String TEST_POST_PATH = "/test-post";
 
     @Test
     void testResponseMetadataListener( final WireMockRuntimeInfo wmInfo )
@@ -84,6 +95,27 @@ void testCaseInsensitiveHeaderLookup( final WireMockRuntimeInfo wmInfo )
         assertThat(headers.get("X-CUSTOM-HEADER")).contains("some-value");
     }
 
+    @Test
+    @SneakyThrows
+    void testGzipEncodedPayload( final WireMockRuntimeInfo wmInfo )
+    {
+        stubFor(post(urlEqualTo(TEST_POST_PATH)).willReturn(aResponse().withStatus(200).withBody(TEST_RESPONSE_BODY)));
+
+        final CloseableHttpClient client = Mockito.spy((CloseableHttpClient) ApacheHttpClient5Accessor.getHttpClient());
+        final ApiClient apiClient = ApiClient.fromHttpClient(client).withBasePath(wmInfo.getHttpBaseUrl());
+        final TestPostApi api = new TestPostApi(apiClient);
+        final TestResponse result = api.executeGzipRequest();
+        Mockito.verify(client, Mockito.times(1)).execute(Mockito.argThat(request -> {
+            final byte[] c = Try.of(() -> new GZIPInputStream(request.getEntity().getContent()).readAllBytes()).get();
+            return new String(c, StandardCharsets.UTF_8).contains("test payload");
+        }), Mockito.any(HttpContext.class), Mockito.any());
+
+        assertThat(result).isNotNull();
+        assertThat(result.getMessage()).isEqualTo("success");
+
+        verify(1, postRequestedFor(urlEqualTo(TEST_POST_PATH)));
+    }
+
     private static class TestApi extends BaseApi
     {
         private final String path;
@@ -113,7 +145,7 @@ TestResponse executeRequest()
             final String[] localVarContentTypes = {};
             final String localVarContentType = ApiClient.selectHeaderContentType(localVarContentTypes);
 
-            final TypeReference<TestResponse> localVarReturnType = new TypeReference<TestResponse>()
+            final TypeReference<TestResponse> localVarReturnType = new TypeReference<>()
             {
             };
 
@@ -133,6 +165,59 @@ TestResponse executeRequest()
         }
     }
 
+    private static class TestPostApi extends BaseApi
+    {
+        private final String path;
+
+        TestPostApi( final ApiClient apiClient )
+        {
+            this(apiClient, TEST_POST_PATH);
+        }
+
+        TestPostApi( final ApiClient apiClient, final String path )
+        {
+            super(apiClient);
+            this.path = path;
+        }
+
+        TestResponse executeGzipRequest()
+            throws OpenApiRequestException
+        {
+            final TestResponse requestBody = new TestResponse();
+            requestBody.setMessage("test payload");
+
+            final List<Pair> localVarQueryParams = new ArrayList<>();
+            final List<Pair> localVarCollectionQueryParams = new ArrayList<>();
+            final Map<String, String> localVarHeaderParams = new HashMap<>();
+            localVarHeaderParams.put("Content-Encoding", "gzip");
+            final Map<String, Object> localVarFormParams = new HashMap<>();
+
+            final String[] localVarAccepts = { "application/json" };
+            final String localVarAccept = ApiClient.selectHeaderAccept(localVarAccepts);
+
+            final String[] localVarContentTypes = { "application/json" };
+            final String localVarContentType = ApiClient.selectHeaderContentType(localVarContentTypes);
+
+            final TypeReference<TestResponse> localVarReturnType = new TypeReference<>()
+            {
+            };
+
+            return apiClient
+                .invokeAPI(
+                    path,
+                    "POST",
+                    localVarQueryParams,
+                    localVarCollectionQueryParams,
+                    null,
+                    requestBody,
+                    localVarHeaderParams,
+                    localVarFormParams,
+                    localVarAccept,
+                    localVarContentType,
+                    localVarReturnType);
+        }
+    }
+
     @Data
     private static class TestResponse
     {