diff --git a/plugins/out_opentelemetry/opentelemetry.c b/plugins/out_opentelemetry/opentelemetry.c
index 91a4c6f513a..98a09eadadc 100644
--- a/plugins/out_opentelemetry/opentelemetry.c
+++ b/plugins/out_opentelemetry/opentelemetry.c
@@ -228,7 +228,7 @@ int opentelemetry_post(struct opentelemetry_context *ctx,
                        const char *http_uri,
                        const char *grpc_uri)
 {
-    const char               *compression_algorithm;
+    char                     *compression_algorithm;
     uint32_t                  wire_message_length;
     size_t                    grpc_body_length;
     cfl_sds_t                 sds_result;
@@ -237,6 +237,10 @@ int opentelemetry_post(struct opentelemetry_context *ctx,
     struct flb_http_request  *request;
     int                       out_ret;
     int                       result;
+    const char               *grpc_status;
+    const char               *grpc_message;
+    size_t                   final_body_len;
+    void                     *final_body;
 
     if (!ctx->enable_http2_flag) {
         return opentelemetry_legacy_post(ctx,
@@ -246,6 +250,9 @@ int opentelemetry_post(struct opentelemetry_context *ctx,
     }
 
     compression_algorithm = NULL;
+    if (ctx->compress_gzip == FLB_TRUE) {
+        compression_algorithm = "gzip";
+    }
 
     request = flb_http_client_request_builder(
                     &ctx->http_client,
@@ -264,7 +271,20 @@ int opentelemetry_post(struct opentelemetry_context *ctx,
 
     if (request->protocol_version == HTTP_PROTOCOL_VERSION_20 &&
         ctx->enable_grpc_flag) {
-        grpc_body = cfl_sds_create_size(body_len + 5);
+        if (ctx->compress_gzip) {
+            result = flb_gzip_compress((void *) body, body_len,
+                                    &final_body, &final_body_len);
+            if (result != 0) {
+                compression_algorithm = NULL;
+                flb_plg_error(ctx->ins, "cannot gzip payload, disabling compression");
+            }
+        }
+        else {
+            final_body = (void *) body;
+            final_body_len = body_len;
+        }
+
+        grpc_body = cfl_sds_create_size(final_body_len + 5);
 
         if (grpc_body == NULL) {
             flb_http_client_request_destroy(request, FLB_TRUE);
@@ -272,8 +292,7 @@ int opentelemetry_post(struct opentelemetry_context *ctx,
             return FLB_RETRY;
         }
 
-        wire_message_length = (uint32_t) body_len;
-
+        wire_message_length = (uint32_t) final_body_len;
         sds_result = cfl_sds_cat(grpc_body, "\x00----", 5);
 
         if (sds_result == NULL) {
@@ -286,12 +305,15 @@ int opentelemetry_post(struct opentelemetry_context *ctx,
 
         grpc_body = sds_result;
 
+        if(compression_algorithm != NULL){
+            ((uint8_t *) grpc_body)[0] = 0x01;
+        }
         ((uint8_t *) grpc_body)[1] = (wire_message_length & 0xFF000000) >> 24;
         ((uint8_t *) grpc_body)[2] = (wire_message_length & 0x00FF0000) >> 16;
         ((uint8_t *) grpc_body)[3] = (wire_message_length & 0x0000FF00) >> 8;
         ((uint8_t *) grpc_body)[4] = (wire_message_length & 0x000000FF) >> 0;
 
-        sds_result = cfl_sds_cat(grpc_body, body, body_len);
+        sds_result = cfl_sds_cat(grpc_body, final_body, final_body_len);
 
         if (sds_result == NULL) {
             flb_http_client_request_destroy(request, FLB_TRUE);
@@ -311,7 +333,21 @@ int opentelemetry_post(struct opentelemetry_context *ctx,
                     "application/grpc"),
                     FLB_HTTP_CLIENT_ARGUMENT_BODY(grpc_body,
                                                   grpc_body_length,
-                                                  compression_algorithm));
+                                                  NULL));
+
+        if(compression_algorithm != NULL) {
+            flb_http_request_set_header(request,
+                                        "grpc-encoding",
+                                        0,
+                                        compression_algorithm,
+                                        0);
+            flb_http_request_set_header(request,
+                                        "grpc-accept-encoding",
+                                        0,
+                                        compression_algorithm,
+                                        0);
+            flb_free(final_body);
+        }
 
         cfl_sds_destroy(grpc_body);
 
@@ -322,10 +358,6 @@ int opentelemetry_post(struct opentelemetry_context *ctx,
         }
     }
     else {
-        if (ctx->compress_gzip == FLB_TRUE) {
-            compression_algorithm = "gzip";
-        }
-
         result = flb_http_request_set_parameters(request,
                         FLB_HTTP_CLIENT_ARGUMENT_URI(http_uri),
                         FLB_HTTP_CLIENT_ARGUMENT_CONTENT_TYPE(