diff --git a/azurerm/internal/services/kusto/kusto_eventhub_data_connection_resource.go b/azurerm/internal/services/kusto/kusto_eventhub_data_connection_resource.go
index 4a2cdeec4ed5..7536a318398f 100644
--- a/azurerm/internal/services/kusto/kusto_eventhub_data_connection_resource.go
+++ b/azurerm/internal/services/kusto/kusto_eventhub_data_connection_resource.go
@@ -55,6 +55,17 @@ func resourceArmKustoEventHubDataConnection() *schema.Resource {
 				ValidateFunc: validateAzureRMKustoClusterName,
 			},
 
+			"compression": {
+				Type:     schema.TypeString,
+				Optional: true,
+				ForceNew: true,
+				Default:  kusto.CompressionNone,
+				ValidateFunc: validation.StringInSlice([]string{
+					string(kusto.CompressionGZip),
+					string(kusto.CompressionNone),
+				}, false),
+			},
+
 			"database_name": {
 				Type:         schema.TypeString,
 				Required:     true,
@@ -218,6 +229,7 @@ func resourceArmKustoEventHubDataConnectionRead(d *schema.ResourceData, meta int
 			d.Set("table_name", props.TableName)
 			d.Set("mapping_rule_name", props.MappingRuleName)
 			d.Set("data_format", props.DataFormat)
+			d.Set("compression", props.Compression)
 		}
 	}
 
@@ -305,5 +317,9 @@ func expandKustoEventHubDataConnectionProperties(d *schema.ResourceData) *kusto.
 		eventHubConnectionProperties.DataFormat = kusto.EventHubDataFormat(df.(string))
 	}
 
+	if compression, ok := d.GetOk("compression"); ok {
+		eventHubConnectionProperties.Compression = kusto.Compression(compression.(string))
+	}
+
 	return eventHubConnectionProperties
 }
diff --git a/website/docs/r/kusto_eventhub_data_connection.html.markdown b/website/docs/r/kusto_eventhub_data_connection.html.markdown
index 71f0747d5426..f5462506615b 100644
--- a/website/docs/r/kusto_eventhub_data_connection.html.markdown
+++ b/website/docs/r/kusto_eventhub_data_connection.html.markdown
@@ -88,8 +88,12 @@ The following arguments are supported:
 
 * `cluster_name` - (Required) Specifies the name of the Kusto Cluster this data connection will be added to. Changing this forces a new resource to be created.
 
+* `compression` - (Optional) Specifies compression type for the connection. Allowed values: `GZip` and `None`. Defaults to `None`. Changing this forces a new resource to be created.
+
 * `database_name` - (Required) Specifies the name of the Kusto Database this data connection will be added to. Changing this forces a new resource to be created.
 
+* `data_format` - (Optional) Specifies the data format of the EventHub messages. Allowed values: `AVRO`, `CSV`, `JSON`, `MULTIJSON`, `PSV`, `RAW`, `SCSV`, `SINGLEJSON`, `SOHSV`, `TSV` and `TXT`
+
 * `eventhub_id` - (Required) Specifies the resource id of the EventHub this data connection will use for ingestion. Changing this forces a new resource to be created.
 
 * `consumer_group` - (Required) Specifies the EventHub consumer group this data connection will use for ingestion. Changing this forces a new resource to be created.
@@ -98,7 +102,6 @@ The following arguments are supported:
 
 * `mapping_rule_name` - (Optional) Specifies the mapping rule used for the message ingestion. Mapping rule must exist before resource is created.
 
-* `data_format` - (Optional) Specifies the data format of the EventHub messages. Allowed values: `AVRO`, `CSV`, `JSON`, `MULTIJSON`, `PSV`, `RAW`, `SCSV`, `SINGLEJSON`, `SOHSV`, `TSV` and `TXT`
 
 ## Attributes Reference