diff --git a/include/grpc++/server.h b/include/grpc++/server.h
index 94ee0b6..07dbd7f 100644
--- a/include/grpc++/server.h
+++ b/include/grpc++/server.h
@@ -43,6 +43,7 @@
 #include <grpc++/impl/grpc_library.h>
 #include <grpc++/impl/sync.h>
 #include <grpc++/status.h>
+#include <grpc/compression.h>
 
 struct grpc_server;
 
@@ -81,7 +82,7 @@
 
   // ServerBuilder use only
   Server(ThreadPoolInterface* thread_pool, bool thread_pool_owned,
-         int max_message_size);
+         int max_message_size, grpc_compression_options compression_options);
   // Register a service. This call does not take ownership of the service.
   // The service must exist for the lifetime of the Server instance.
   bool RegisterService(const grpc::string *host, RpcService* service);
diff --git a/include/grpc++/server_builder.h b/include/grpc++/server_builder.h
index 44ee00e..47efbb7 100644
--- a/include/grpc++/server_builder.h
+++ b/include/grpc++/server_builder.h
@@ -37,6 +37,7 @@
 #include <memory>
 #include <vector>
 
+#include <grpc/compression.h>
 #include <grpc++/config.h>
 
 namespace grpc {
@@ -59,24 +60,24 @@
   // The service must exist for the lifetime of the Server instance returned by
   // BuildAndStart().
   // Matches requests with any :authority
-  void RegisterService(SynchronousService* service);
+  ServerBuilder& RegisterService(SynchronousService* service);
 
   // Register an asynchronous service.
   // This call does not take ownership of the service or completion queue.
   // The service and completion queuemust exist for the lifetime of the Server
   // instance returned by BuildAndStart().
   // Matches requests with any :authority
-  void RegisterAsyncService(AsynchronousService* service);
+  ServerBuilder& RegisterAsyncService(AsynchronousService* service);
 
   // Register a generic service.
   // Matches requests with any :authority
-  void RegisterAsyncGenericService(AsyncGenericService* service);
+  ServerBuilder& RegisterAsyncGenericService(AsyncGenericService* service);
 
   // Register a service. This call does not take ownership of the service.
   // The service must exist for the lifetime of the Server instance returned by
   // BuildAndStart().
   // Only matches requests with :authority \a host
-  void RegisterService(const grpc::string& host, 
+  ServerBuilder& RegisterService(const grpc::string& host,
                        SynchronousService* service);
 
   // Register an asynchronous service.
@@ -84,22 +85,23 @@
   // The service and completion queuemust exist for the lifetime of the Server
   // instance returned by BuildAndStart().
   // Only matches requests with :authority \a host
-  void RegisterAsyncService(const grpc::string& host, 
+  ServerBuilder& RegisterAsyncService(const grpc::string& host,
                             AsynchronousService* service);
 
   // Set max message size in bytes.
-  void SetMaxMessageSize(int max_message_size) {
-    max_message_size_ = max_message_size;
-  }
+  ServerBuilder& SetMaxMessageSize(int max_message_size);
 
   // Add a listening port. Can be called multiple times.
-  void AddListeningPort(const grpc::string& addr,
+  ServerBuilder& AddListeningPort(const grpc::string& addr,
                         std::shared_ptr<ServerCredentials> creds,
                         int* selected_port = nullptr);
 
   // Set the thread pool used for running appliation rpc handlers.
   // Does not take ownership.
-  void SetThreadPool(ThreadPoolInterface* thread_pool);
+  ServerBuilder& SetThreadPool(ThreadPoolInterface* thread_pool);
+
+  // Set the compression options to be used by the server.
+  ServerBuilder& SetCompressionOptions(const grpc_compression_options& options);
 
   // Add a completion queue for handling asynchronous services
   // Caller is required to keep this completion queue live until calling
@@ -126,6 +128,7 @@
   };
 
   int max_message_size_;
+  grpc_compression_options compression_options_;
   std::vector<std::unique_ptr<NamedService<RpcService>>> services_;
   std::vector<std::unique_ptr<NamedService<AsynchronousService>>> async_services_;
   std::vector<Port> ports_;
diff --git a/include/grpc/compression.h b/include/grpc/compression.h
index a1a3236..82e326f 100644
--- a/include/grpc/compression.h
+++ b/include/grpc/compression.h
@@ -36,6 +36,8 @@
 
 #include <stdlib.h>
 
+#include <grpc/support/port_platform.h>
+
 #ifdef __cplusplus
 extern "C" {
 #endif
@@ -61,6 +63,11 @@
   GRPC_COMPRESS_LEVEL_COUNT
 } grpc_compression_level;
 
+typedef struct grpc_compression_options {
+  gpr_uint32 enabled_algorithms_bitset; /**< All algs are enabled by default */
+  grpc_compression_algorithm default_compression_algorithm; /**< for channel */
+} grpc_compression_options;
+
 /** Parses the first \a name_length bytes of \a name as a
  * grpc_compression_algorithm instance, updating \a algorithm. Returns 1 upon
  * success, 0 otherwise. */
@@ -84,6 +91,20 @@
 grpc_compression_algorithm grpc_compression_algorithm_for_level(
     grpc_compression_level level);
 
+void grpc_compression_options_init(grpc_compression_options *opts);
+
+/** Mark \a algorithm as enabled in \a opts. */
+void grpc_compression_options_enable_algorithm(
+     grpc_compression_options *opts, grpc_compression_algorithm algorithm);
+
+/** Mark \a algorithm as disabled in \a opts. */
+void grpc_compression_options_disable_algorithm(
+    grpc_compression_options *opts, grpc_compression_algorithm algorithm);
+
+/** Returns true if \a algorithm is marked as enabled in \a opts. */
+int grpc_compression_options_is_algorithm_enabled(
+    const grpc_compression_options *opts, grpc_compression_algorithm algorithm);
+
 #ifdef __cplusplus
 }
 #endif
diff --git a/src/core/channel/channel_args.c b/src/core/channel/channel_args.c
index 10199f7..7d97b79 100644
--- a/src/core/channel/channel_args.c
+++ b/src/core/channel/channel_args.c
@@ -148,16 +148,19 @@
   return grpc_channel_args_copy_and_add(a, &tmp, 1);
 }
 
+/** Returns the compression algorithm's enabled states bitset from \a a. If not
+ * found, return a biset will all algorithms enabled */
 static gpr_uint32 find_compression_algorithm_states_bitset(
     const grpc_channel_args *a) {
-  size_t i;
-  gpr_uint32 states_bitset = 0;
-  if (a == NULL) return 0;
-  for (i = 0; i < a->num_args; ++i) {
-    if (a->args[i].type == GRPC_ARG_INTEGER &&
-        !strcmp(GRPC_COMPRESSION_ALGORITHM_STATE_ARG, a->args[i].key)) {
-      states_bitset = a->args[i].value.integer;
-      break;
+  gpr_uint32 states_bitset = (1u << GRPC_COMPRESS_ALGORITHMS_COUNT) - 1;
+  if (a != NULL) {
+    size_t i;
+    for (i = 0; i < a->num_args; ++i) {
+      if (a->args[i].type == GRPC_ARG_INTEGER &&
+          !strcmp(GRPC_COMPRESSION_ALGORITHM_STATE_ARG, a->args[i].key)) {
+        states_bitset = a->args[i].value.integer;
+        break;
+      }
     }
   }
   return states_bitset;
@@ -182,9 +185,7 @@
   return grpc_channel_args_copy_and_add(a, &tmp, 1);
 }
 
-int grpc_channel_args_compression_algorithm_get_state(
-    grpc_channel_args *a,
-    grpc_compression_algorithm algorithm) {
-  const gpr_uint32 states_bitset = find_compression_algorithm_states_bitset(a);
-  return GPR_BITGET(states_bitset, algorithm);
+int grpc_channel_args_compression_algorithm_get_states(
+    const grpc_channel_args *a) {
+  return find_compression_algorithm_states_bitset(a);
 }
diff --git a/src/core/channel/channel_args.h b/src/core/channel/channel_args.h
index f1a7511..e557f9a 100644
--- a/src/core/channel/channel_args.h
+++ b/src/core/channel/channel_args.h
@@ -68,17 +68,20 @@
     grpc_channel_args *a, grpc_compression_algorithm algorithm);
 
 /** Sets the support for the given compression algorithm. By default, all
- * compression algorithms are enabled. Disabling an algorithm set by 
- * grpc_channel_args_set_compression_algorithm disables compression altogether
+ * compression algorithms are enabled. It's an error to disable an algorithm set
+ * by grpc_channel_args_set_compression_algorithm.
  * */
 grpc_channel_args *grpc_channel_args_compression_algorithm_set_state(
     grpc_channel_args *a,
     grpc_compression_algorithm algorithm,
     int enabled);
 
-/** Returns the state (true for enabled, false for disabled) for \a algorithm */
-int grpc_channel_args_compression_algorithm_get_state(
-    grpc_channel_args *a,
-    grpc_compression_algorithm algorithm);
+/** Returns the bitset representing the support state (true for enabled, false
+ * for disabled) for compression algorithms.
+ *
+ * The i-th bit of the returned bitset corresponds to the i-th entry in the
+ * grpc_compression_algorithm enum. */
+int grpc_channel_args_compression_algorithm_get_states(
+    const grpc_channel_args *a);
 
 #endif /* GRPC_INTERNAL_CORE_CHANNEL_CHANNEL_ARGS_H */
diff --git a/src/core/channel/compress_filter.c b/src/core/channel/compress_filter.c
index 2fd4c8c..065fe25 100644
--- a/src/core/channel/compress_filter.c
+++ b/src/core/channel/compress_filter.c
@@ -70,6 +70,8 @@
   grpc_mdelem *mdelem_accept_encoding;
   /** The default, channel-level, compression algorithm */
   grpc_compression_algorithm default_compression_algorithm;
+  /** Compression options for the channel */
+  grpc_compression_options compression_options;
 } channel_data;
 
 /** Compress \a slices in place using \a algorithm. Returns 1 if compression did
@@ -102,7 +104,17 @@
     const char *md_c_str = grpc_mdstr_as_c_string(md->value);
     if (!grpc_compression_algorithm_parse(md_c_str, strlen(md_c_str),
                                           &calld->compression_algorithm)) {
-      gpr_log(GPR_ERROR, "Invalid compression algorithm: '%s'. Ignoring.",
+      gpr_log(GPR_ERROR,
+              "Invalid compression algorithm: '%s' (unknown). Ignoring.",
+              md_c_str);
+      calld->compression_algorithm = GRPC_COMPRESS_NONE;
+    }
+    if (grpc_compression_options_is_algorithm_enabled(
+            &channeld->compression_options, calld->compression_algorithm) == 0)
+    {
+      gpr_log(GPR_ERROR,
+              "Invalid compression algorithm: '%s' (previously disabled). "
+              "Ignoring.",
               md_c_str);
       calld->compression_algorithm = GRPC_COMPRESS_NONE;
     }
@@ -297,8 +309,17 @@
   char *accept_encoding_str;
   size_t accept_encoding_str_len;
 
+  grpc_compression_options_init(&channeld->compression_options);
+  channeld->compression_options.enabled_algorithms_bitset =
+      grpc_channel_args_compression_algorithm_get_states(args);
+
   channeld->default_compression_algorithm =
       grpc_channel_args_get_compression_algorithm(args);
+  /* Make sure the default isn't disabled. */
+  GPR_ASSERT(grpc_compression_options_is_algorithm_enabled(
+      &channeld->compression_options, channeld->default_compression_algorithm));
+  channeld->compression_options.default_compression_algorithm =
+      channeld->default_compression_algorithm;
 
   channeld->mdstr_request_compression_algorithm_key =
       grpc_mdstr_from_string(mdctx, GRPC_COMPRESS_REQUEST_ALGORITHM_KEY, 0);
@@ -311,6 +332,11 @@
 
   for (algo_idx = 0; algo_idx < GRPC_COMPRESS_ALGORITHMS_COUNT; ++algo_idx) {
     char *algorithm_name;
+    /* skip disabled algorithms */
+    if (grpc_compression_options_is_algorithm_enabled(
+            &channeld->compression_options, algo_idx) == 0) {
+      continue;
+    }
     GPR_ASSERT(grpc_compression_algorithm_name(algo_idx, &algorithm_name) != 0);
     channeld->mdelem_compression_algorithms[algo_idx] =
         grpc_mdelem_from_metadata_strings(
diff --git a/src/core/compression/algorithm.c b/src/core/compression/algorithm.c
index dbf4721..6514fcd 100644
--- a/src/core/compression/algorithm.c
+++ b/src/core/compression/algorithm.c
@@ -33,7 +33,9 @@
 
 #include <stdlib.h>
 #include <string.h>
+
 #include <grpc/compression.h>
+#include <grpc/support/useful.h>
 
 int grpc_compression_algorithm_parse(const char* name, size_t name_length,
                                      grpc_compression_algorithm *algorithm) {
@@ -102,3 +104,24 @@
   }
   abort();
 }
+
+void grpc_compression_options_init(grpc_compression_options *opts) {
+  opts->enabled_algorithms_bitset = (1u << GRPC_COMPRESS_ALGORITHMS_COUNT)-1;
+  opts->default_compression_algorithm = GRPC_COMPRESS_NONE;
+}
+
+void grpc_compression_options_enable_algorithm(
+    grpc_compression_options *opts, grpc_compression_algorithm algorithm) {
+  GPR_BITSET(&opts->enabled_algorithms_bitset, algorithm);
+}
+
+void grpc_compression_options_disable_algorithm(
+    grpc_compression_options *opts, grpc_compression_algorithm algorithm) {
+  GPR_BITCLEAR(&opts->enabled_algorithms_bitset, algorithm);
+}
+
+int grpc_compression_options_is_algorithm_enabled(
+    const grpc_compression_options *opts,
+    grpc_compression_algorithm algorithm) {
+  return GPR_BITGET(opts->enabled_algorithms_bitset, algorithm);
+}
diff --git a/src/cpp/server/server.cc b/src/cpp/server/server.cc
index ab87b22..6e576ab 100644
--- a/src/cpp/server/server.cc
+++ b/src/cpp/server/server.cc
@@ -163,27 +163,34 @@
   grpc_completion_queue* cq_;
 };
 
-static grpc_server* CreateServer(int max_message_size) {
+static grpc_server* CreateServer(
+    int max_message_size, const grpc_compression_options& compression_options) {
   if (max_message_size > 0) {
-    grpc_arg arg;
-    arg.type = GRPC_ARG_INTEGER;
-    arg.key = const_cast<char*>(GRPC_ARG_MAX_MESSAGE_LENGTH);
-    arg.value.integer = max_message_size;
-    grpc_channel_args args = {1, &arg};
-    return grpc_server_create(&args);
+    grpc_arg args[2];
+    args[0].type = GRPC_ARG_INTEGER;
+    args[0].key = const_cast<char*>(GRPC_ARG_MAX_MESSAGE_LENGTH);
+    args[0].value.integer = max_message_size;
+
+    args[1].type = GRPC_ARG_INTEGER;
+    args[1].key = const_cast<char*>(GRPC_COMPRESSION_ALGORITHM_STATE_ARG);
+    args[1].value.integer = compression_options.enabled_algorithms_bitset;
+
+    grpc_channel_args channel_args = {2, args};
+    return grpc_server_create(&channel_args);
   } else {
     return grpc_server_create(nullptr);
   }
 }
 
 Server::Server(ThreadPoolInterface* thread_pool, bool thread_pool_owned,
-               int max_message_size)
+               int max_message_size,
+               grpc_compression_options compression_options)
     : max_message_size_(max_message_size),
       started_(false),
       shutdown_(false),
       num_running_cb_(0),
       sync_methods_(new std::list<SyncRequest>),
-      server_(CreateServer(max_message_size)),
+      server_(CreateServer(max_message_size, compression_options)),
       thread_pool_(thread_pool),
       thread_pool_owned_(thread_pool_owned) {
   grpc_server_register_completion_queue(server_, cq_.cq());
diff --git a/src/cpp/server/server_builder.cc b/src/cpp/server/server_builder.cc
index f723d46..425b052 100644
--- a/src/cpp/server/server_builder.cc
+++ b/src/cpp/server/server_builder.cc
@@ -42,7 +42,9 @@
 namespace grpc {
 
 ServerBuilder::ServerBuilder()
-    : max_message_size_(-1), generic_service_(nullptr), thread_pool_(nullptr) {}
+    : max_message_size_(-1), generic_service_(nullptr), thread_pool_(nullptr) {
+      grpc_compression_options_init(&compression_options_);
+}
 
 std::unique_ptr<ServerCompletionQueue> ServerBuilder::AddCompletionQueue() {
   ServerCompletionQueue* cq = new ServerCompletionQueue();
@@ -50,44 +52,65 @@
   return std::unique_ptr<ServerCompletionQueue>(cq);
 }
 
-void ServerBuilder::RegisterService(SynchronousService* service) {
+ServerBuilder& ServerBuilder::RegisterService(SynchronousService* service) {
   services_.emplace_back(new NamedService<RpcService>(service->service()));
+  return *this;
 }
 
-void ServerBuilder::RegisterAsyncService(AsynchronousService* service) {
+ServerBuilder& ServerBuilder::RegisterAsyncService(
+    AsynchronousService* service) {
   async_services_.emplace_back(new NamedService<AsynchronousService>(service));
+  return *this;
 }
 
-void ServerBuilder::RegisterService(
+ServerBuilder& ServerBuilder::RegisterService(
     const grpc::string& addr, SynchronousService* service) {
   services_.emplace_back(new NamedService<RpcService>(addr, service->service()));
+  return *this;
 }
 
-void ServerBuilder::RegisterAsyncService(
+ServerBuilder& ServerBuilder::RegisterAsyncService(
     const grpc::string& addr, AsynchronousService* service) {
-  async_services_.emplace_back(new NamedService<AsynchronousService>(addr, service));
+  async_services_.emplace_back(
+      new NamedService<AsynchronousService>(addr, service));
+  return *this;
 }
 
-void ServerBuilder::RegisterAsyncGenericService(AsyncGenericService* service) {
+ServerBuilder& ServerBuilder::RegisterAsyncGenericService(
+    AsyncGenericService* service) {
   if (generic_service_) {
     gpr_log(GPR_ERROR,
             "Adding multiple AsyncGenericService is unsupported for now. "
             "Dropping the service %p",
             service);
-    return;
+  } else {
+    generic_service_ = service;
   }
-  generic_service_ = service;
+  return *this;
 }
 
-void ServerBuilder::AddListeningPort(const grpc::string& addr,
+ServerBuilder& ServerBuilder::SetMaxMessageSize(int max_message_size) {
+  max_message_size_ = max_message_size;
+  return *this;
+}
+
+ServerBuilder& ServerBuilder::AddListeningPort(const grpc::string& addr,
                                      std::shared_ptr<ServerCredentials> creds,
                                      int* selected_port) {
   Port port = {addr, creds, selected_port};
   ports_.push_back(port);
+  return *this;
 }
 
-void ServerBuilder::SetThreadPool(ThreadPoolInterface* thread_pool) {
+ServerBuilder& ServerBuilder::SetThreadPool(ThreadPoolInterface* thread_pool) {
   thread_pool_ = thread_pool;
+  return *this;
+}
+
+ServerBuilder& ServerBuilder::SetCompressionOptions(
+    const grpc_compression_options& options) {
+  compression_options_ = options;
+  return *this;
 }
 
 std::unique_ptr<Server> ServerBuilder::BuildAndStart() {
@@ -100,8 +123,9 @@
     thread_pool_ = CreateDefaultThreadPool();
     thread_pool_owned = true;
   }
-  std::unique_ptr<Server> server(
-      new Server(thread_pool_, thread_pool_owned, max_message_size_));
+  std::unique_ptr<Server> server(new Server(thread_pool_, thread_pool_owned,
+                                            max_message_size_,
+                                            compression_options_));
   for (auto cq = cqs_.begin(); cq != cqs_.end(); ++cq) {
     grpc_server_register_completion_queue(server->server_, (*cq)->cq());
   }
@@ -113,7 +137,8 @@
   }
   for (auto service = async_services_.begin();
        service != async_services_.end(); service++) {
-    if (!server->RegisterAsyncService((*service)->host.get(), (*service)->service)) {
+    if (!server->RegisterAsyncService((*service)->host.get(),
+                                      (*service)->service)) {
       return nullptr;
     }
   }