diff --git a/go.mod b/go.mod
index 0da8eb07..d9d00daa 100644
--- a/go.mod
+++ b/go.mod
@@ -45,6 +45,7 @@ require (
 	dario.cat/mergo v1.0.1 // indirect
 	github.com/Masterminds/goutils v1.1.1 // indirect
 	github.com/Masterminds/semver/v3 v3.3.0 // indirect
+	github.com/andybalholm/brotli v1.2.0 // indirect
 	github.com/beorn7/perks v1.0.1 // indirect
 	github.com/cenkalti/backoff/v5 v5.0.3 // indirect
 	github.com/felixge/httpsnoop v1.0.4 // indirect
@@ -53,6 +54,7 @@ require (
 	github.com/goccy/go-yaml v1.18.0 // indirect
 	github.com/grpc-ecosystem/grpc-gateway/v2 v2.27.2 // indirect
 	github.com/huandu/xstrings v1.5.0 // indirect
+	github.com/klauspost/compress v1.18.4 // indirect
 	github.com/mitchellh/copystructure v1.2.0 // indirect
 	github.com/mitchellh/reflectwalk v1.0.2 // indirect
 	github.com/prometheus/client_model v0.5.0 // indirect
diff --git a/go.sum b/go.sum
index 6e6b2e08..fcd0b569 100644
--- a/go.sum
+++ b/go.sum
@@ -10,6 +10,8 @@ github.com/Masterminds/sprig/v3 v3.3.0 h1:mQh0Yrg1XPo6vjYXgtf5OtijNAKJRNcTdOOGZe
 github.com/Masterminds/sprig/v3 v3.3.0/go.mod h1:Zy1iXRYNqNLUolqCpL4uhk6SHUMAOSCzdgBfDb35Lz0=
 github.com/alicebob/miniredis/v2 v2.35.0 h1:QwLphYqCEAo1eu1TqPRN2jgVMPBweeQcR21jeqDCONI=
 github.com/alicebob/miniredis/v2 v2.35.0/go.mod h1:TcL7YfarKPGDAthEtl5NBeHZfeUQj6OXMm/+iu5cLMM=
+github.com/andybalholm/brotli v1.2.0 h1:ukwgCxwYrmACq68yiUqwIWnGY0cTPox/M94sVwToPjQ=
+github.com/andybalholm/brotli v1.2.0/go.mod h1:rzTDkvFWvIrjDXZHkuS16NPggd91W3kUSvPlQ1pLaKY=
 github.com/beorn7/perks v1.0.1 h1:VlbKKnNfV8bJzeqoa4cOKqO6bYr3WgKZxO8Z16+hsOM=
 github.com/beorn7/perks v1.0.1/go.mod h1:G2ZrVWU2WbWT9wwq4/hrbKbnv/1ERSJQ0ibhJ6rlkpw=
 github.com/bsm/ginkgo/v2 v2.12.0 h1:Ny8MWAHyOepLGlLKYmXG4IEkioBysk6GpaRTLC8zwWs=
@@ -112,6 +114,8 @@ github.com/josharian/intern v1.0.0 h1:vlS4z54oSdjm0bgjRigI+G1HpF+tI+9rE5LLzOg8Hm
 github.com/josharian/intern v1.0.0/go.mod h1:5DoeVV0s6jJacbCEi61lwdGj/aVlrQvzHFFd8Hwg//Y=
 github.com/json-iterator/go v1.1.12 h1:PV8peI4a0ysnczrg+LtxykD8LfKY9ML6u2jnxaEnrnM=
 github.com/json-iterator/go v1.1.12/go.mod h1:e30LSqwooZae/UwlEbR2852Gd8hjQvJoHmT4TnhNGBo=
+github.com/klauspost/compress v1.18.4 h1:RPhnKRAQ4Fh8zU2FY/6ZFDwTVTxgJ/EMydqSTzE9a2c=
+github.com/klauspost/compress v1.18.4/go.mod h1:R0h/fSBs8DE4ENlcrlib3PsXS61voFxhIs2DeRhCvJ4=
 github.com/klauspost/cpuid/v2 v2.3.0 h1:S4CRMLnYUhGeDFDqkGriYKdfoFlDnMtqTiI/sFzhA9Y=
 github.com/klauspost/cpuid/v2 v2.3.0/go.mod h1:hqwkgyIinND0mEev00jJYCxPNVRVXFQeu1XKlok6oO0=
 github.com/kr/pretty v0.3.1 h1:flRD4NNwYAUpkphVc1HcthR4KEIFJ65n8Mw5qdRn3LE=
diff --git a/internal/core/execute_tool_test.go b/internal/core/execute_tool_test.go
index 67166512..928239df 100644
--- a/internal/core/execute_tool_test.go
+++ b/internal/core/execute_tool_test.go
@@ -1,15 +1,22 @@
 package core
 
 import (
+	"bytes"
+	"compress/flate"
+	"compress/gzip"
+	"compress/zlib"
 	"context"
+	"io"
 	"net/http"
 	"net/http/httptest"
 	"testing"
 
+	"github.com/andybalholm/brotli"
 	"github.com/amoylab/unla/internal/common/config"
 	"github.com/amoylab/unla/internal/mcp/session"
 	"github.com/amoylab/unla/pkg/mcp"
 	"github.com/gin-gonic/gin"
+	"github.com/klauspost/compress/zstd"
 	"github.com/stretchr/testify/assert"
 	"go.uber.org/zap"
 )
@@ -74,3 +81,166 @@ func TestExecuteHTTPTool_ForwardHeadersAndRequestError(t *testing.T) {
 	assert.Error(t, err)
 	assert.Nil(t, res)
 }
+
+func TestExecuteHTTPTool_GzipResponse(t *testing.T) {
+	// downstream returns gzip-compressed JSON
+	srv := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		var buf bytes.Buffer
+		gz := gzip.NewWriter(&buf)
+		_, _ = gz.Write([]byte(`{"hello":"gzip"}`))
+		_ = gz.Close()
+
+		w.Header().Set("Content-Type", "application/json")
+		w.Header().Set("Content-Encoding", "gzip")
+		_, _ = w.Write(buf.Bytes())
+	}))
+	defer srv.Close()
+
+	allowlist, _ := parseInternalNetworkAllowlist([]string{"127.0.0.0/8", "::1/128"})
+	s := &Server{logger: zap.NewNop(), toolRespHandler: CreateResponseHandlerChain(), internalNetACL: allowlist}
+	tool := &config.ToolConfig{
+		Name:         "t",
+		Method:       http.MethodGet,
+		Endpoint:     srv.URL,
+		Headers:      map[string]string{"Accept-Encoding": "gzip"},
+		ResponseBody: "{{.Response.Body}}",
+	}
+	req, _ := http.NewRequest(http.MethodGet, srv.URL, nil)
+	conn := &fakeConnExec{meta: &session.Meta{ID: "sid", Request: &session.RequestInfo{Headers: map[string]string{"X-Req": "v"}}}}
+	c, _ := gin.CreateTestContext(nil)
+	c.Request = req
+
+	res, err := s.executeHTTPTool(c, conn, tool, map[string]any{}, map[string]string{})
+	assert.NoError(t, err)
+	if assert.NotNil(t, res) {
+		if tc, ok := res.Content[0].(*mcp.TextContent); ok {
+			assert.Equal(t, `{"hello":"gzip"}`, tc.Text)
+		} else {
+			t.Fatalf("unexpected content type")
+		}
+	}
+}
+
+func TestReadDecodedResponseBody_GzipInvalidData(t *testing.T) {
+	resp := &http.Response{
+		Header: http.Header{"Content-Encoding": []string{"gzip"}},
+		Body:   io.NopCloser(bytes.NewBufferString("not-gzip-data")),
+	}
+
+	_, err := readDecodedResponseBody(resp)
+	assert.Error(t, err)
+}
+
+func TestExecuteHTTPTool_BrotliResponse(t *testing.T) {
+	srv := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		var buf bytes.Buffer
+		br := brotli.NewWriter(&buf)
+		_, _ = br.Write([]byte(`{"hello":"brotli"}`))
+		_ = br.Close()
+
+		w.Header().Set("Content-Type", "application/json")
+		w.Header().Set("Content-Encoding", "br")
+		_, _ = w.Write(buf.Bytes())
+	}))
+	defer srv.Close()
+
+	allowlist, _ := parseInternalNetworkAllowlist([]string{"127.0.0.0/8", "::1/128"})
+	s := &Server{logger: zap.NewNop(), toolRespHandler: CreateResponseHandlerChain(), internalNetACL: allowlist}
+	tool := &config.ToolConfig{Name: "t", Method: http.MethodGet, Endpoint: srv.URL, ResponseBody: "{{.Response.Body}}"}
+	req, _ := http.NewRequest(http.MethodGet, srv.URL, nil)
+	conn := &fakeConnExec{meta: &session.Meta{ID: "sid", Request: &session.RequestInfo{Headers: map[string]string{}}}}
+	c, _ := gin.CreateTestContext(nil)
+	c.Request = req
+
+	res, err := s.executeHTTPTool(c, conn, tool, map[string]any{}, map[string]string{})
+	assert.NoError(t, err)
+	if assert.NotNil(t, res) {
+		tc, ok := res.Content[0].(*mcp.TextContent)
+		if !ok {
+			t.Fatalf("unexpected content type")
+		}
+		assert.Equal(t, `{"hello":"brotli"}`, tc.Text)
+	}
+}
+
+func TestExecuteHTTPTool_ZstdResponse(t *testing.T) {
+	srv := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		var buf bytes.Buffer
+		zw, err := zstd.NewWriter(&buf)
+		assert.NoError(t, err)
+		_, _ = zw.Write([]byte(`{"hello":"zstd"}`))
+		zw.Close()
+
+		w.Header().Set("Content-Type", "application/json")
+		w.Header().Set("Content-Encoding", "zstd")
+		_, _ = w.Write(buf.Bytes())
+	}))
+	defer srv.Close()
+
+	allowlist, _ := parseInternalNetworkAllowlist([]string{"127.0.0.0/8", "::1/128"})
+	s := &Server{logger: zap.NewNop(), toolRespHandler: CreateResponseHandlerChain(), internalNetACL: allowlist}
+	tool := &config.ToolConfig{Name: "t", Method: http.MethodGet, Endpoint: srv.URL, ResponseBody: "{{.Response.Body}}"}
+	req, _ := http.NewRequest(http.MethodGet, srv.URL, nil)
+	conn := &fakeConnExec{meta: &session.Meta{ID: "sid", Request: &session.RequestInfo{Headers: map[string]string{}}}}
+	c, _ := gin.CreateTestContext(nil)
+	c.Request = req
+
+	res, err := s.executeHTTPTool(c, conn, tool, map[string]any{}, map[string]string{})
+	assert.NoError(t, err)
+	if assert.NotNil(t, res) {
+		tc, ok := res.Content[0].(*mcp.TextContent)
+		if !ok {
+			t.Fatalf("unexpected content type")
+		}
+		assert.Equal(t, `{"hello":"zstd"}`, tc.Text)
+	}
+}
+
+func TestExecuteHTTPTool_DeflateResponse(t *testing.T) {
+	srv := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		var buf bytes.Buffer
+		zw := zlib.NewWriter(&buf)
+		_, _ = zw.Write([]byte(`{"hello":"deflate"}`))
+		_ = zw.Close()
+
+		w.Header().Set("Content-Type", "application/json")
+		w.Header().Set("Content-Encoding", "deflate")
+		_, _ = w.Write(buf.Bytes())
+	}))
+	defer srv.Close()
+
+	allowlist, _ := parseInternalNetworkAllowlist([]string{"127.0.0.0/8", "::1/128"})
+	s := &Server{logger: zap.NewNop(), toolRespHandler: CreateResponseHandlerChain(), internalNetACL: allowlist}
+	tool := &config.ToolConfig{Name: "t", Method: http.MethodGet, Endpoint: srv.URL, ResponseBody: "{{.Response.Body}}"}
+	req, _ := http.NewRequest(http.MethodGet, srv.URL, nil)
+	conn := &fakeConnExec{meta: &session.Meta{ID: "sid", Request: &session.RequestInfo{Headers: map[string]string{}}}}
+	c, _ := gin.CreateTestContext(nil)
+	c.Request = req
+
+	res, err := s.executeHTTPTool(c, conn, tool, map[string]any{}, map[string]string{})
+	assert.NoError(t, err)
+	if assert.NotNil(t, res) {
+		tc, ok := res.Content[0].(*mcp.TextContent)
+		if !ok {
+			t.Fatalf("unexpected content type")
+		}
+		assert.Equal(t, `{"hello":"deflate"}`, tc.Text)
+	}
+}
+
+func TestReadDecodedResponseBody_DeflateRaw(t *testing.T) {
+	var buf bytes.Buffer
+	fw, err := flate.NewWriter(&buf, flate.DefaultCompression)
+	assert.NoError(t, err)
+	_, _ = fw.Write([]byte(`{"hello":"raw-deflate"}`))
+	_ = fw.Close()
+
+	resp := &http.Response{
+		Header: http.Header{"Content-Encoding": []string{"deflate"}},
+		Body:   io.NopCloser(bytes.NewReader(buf.Bytes())),
+	}
+
+	body, err := readDecodedResponseBody(resp)
+	assert.NoError(t, err)
+	assert.Equal(t, `{"hello":"raw-deflate"}`, string(body))
+}
diff --git a/internal/core/tool.go b/internal/core/tool.go
index 856cf1e4..018a422a 100644
--- a/internal/core/tool.go
+++ b/internal/core/tool.go
@@ -2,6 +2,9 @@ package core
 
 import (
 	"bytes"
+	"compress/flate"
+	"compress/gzip"
+	"compress/zlib"
 	"context"
 	"encoding/json"
 	"fmt"
@@ -13,6 +16,8 @@ import (
 	"slices"
 	"strings"
 
+	"github.com/andybalholm/brotli"
+	"github.com/klauspost/compress/zstd"
 	"github.com/gin-gonic/gin"
 	"go.uber.org/zap"
 	"golang.org/x/net/proxy"
@@ -30,6 +35,101 @@ import (
 	"github.com/amoylab/unla/pkg/mcp"
 )
 
+func parseContentEncodings(contentEncoding string) []string {
+	parts := strings.Split(contentEncoding, ",")
+	encodings := make([]string, 0, len(parts))
+	for _, part := range parts {
+		encoding := strings.ToLower(strings.TrimSpace(part))
+		if encoding == "" || encoding == "identity" {
+			continue
+		}
+		encodings = append(encodings, encoding)
+	}
+	return encodings
+}
+
+func decodeBodyBytesByEncoding(body []byte, encoding string) ([]byte, error) {
+	var (
+		reader      io.Reader = bytes.NewReader(body)
+		closeFn     func() error
+		decodeError error
+	)
+
+	switch encoding {
+	case "gzip", "x-gzip":
+		gzReader, err := gzip.NewReader(reader)
+		if err != nil {
+			return nil, fmt.Errorf("failed to create gzip reader: %w", err)
+		}
+		reader = gzReader
+		closeFn = gzReader.Close
+	case "br":
+		reader = brotli.NewReader(reader)
+	case "zstd":
+		zstdReader, err := zstd.NewReader(reader)
+		if err != nil {
+			return nil, fmt.Errorf("failed to create zstd reader: %w", err)
+		}
+		reader = zstdReader
+		closeFn = func() error {
+			zstdReader.Close()
+			return nil
+		}
+	case "deflate":
+		zlibReader, err := zlib.NewReader(reader)
+		if err == nil {
+			reader = zlibReader
+			closeFn = zlibReader.Close
+			break
+		}
+		// Some servers send raw deflate stream for deflate token.
+		flateReader := flate.NewReader(bytes.NewReader(body))
+		reader = flateReader
+		closeFn = flateReader.Close
+	default:
+		return nil, fmt.Errorf("unsupported content encoding: %s", encoding)
+	}
+
+	decoded, err := io.ReadAll(reader)
+	if err != nil {
+		decodeError = fmt.Errorf("failed to decode %s body: %w", encoding, err)
+	}
+	if closeFn != nil {
+		closeErr := closeFn()
+		if decodeError != nil {
+			return nil, decodeError
+		}
+		if closeErr != nil {
+			return nil, fmt.Errorf("failed to close %s decoder: %w", encoding, closeErr)
+		}
+	}
+	if decodeError != nil {
+		return nil, decodeError
+	}
+
+	return decoded, nil
+}
+
+func readDecodedResponseBody(resp *http.Response) ([]byte, error) {
+	if resp == nil || resp.Body == nil {
+		return nil, nil
+	}
+
+	body, err := io.ReadAll(resp.Body)
+	if err != nil {
+		return nil, fmt.Errorf("failed to read response body: %w", err)
+	}
+
+	encodings := parseContentEncodings(resp.Header.Get("Content-Encoding"))
+	for i := len(encodings) - 1; i >= 0; i-- {
+		body, err = decodeBodyBytesByEncoding(body, encodings[i])
+		if err != nil {
+			return nil, err
+		}
+	}
+	return body, nil
+}
+
 // shouldIgnoreHeader checks if a header should be ignored based on configuration
 func (s *Server) shouldIgnoreHeader(headerName string) bool {
 	// If forward is disabled, don't ignore any headers (backward compatibility)
@@ -330,8 +430,8 @@ func (s *Server) executeHTTPTool(c *gin.Context, conn session.Connection, tool *
 	}
 	defer resp.Body.Close()
 
-	// Read response body for logging in case of error
-	respBodyBytes, err := io.ReadAll(resp.Body)
+	// Read and decode response body for logging and unified downstream processing.
+	respBodyBytes, err := readDecodedResponseBody(resp)
 	if err != nil {
 		logger.Error("failed to read response body",
 			zap.String("tool", tool.Name),
@@ -341,8 +441,10 @@ func (s *Server) executeHTTPTool(c *gin.Context, conn session.Connection, tool *
 		return nil, fmt.Errorf("failed to read response body: %w", err)
 	}
 
-	// Restore response body for further processing
+	// Restore decoded response body for further processing.
 	resp.Body = io.NopCloser(bytes.NewBuffer(respBodyBytes))
+	resp.Header.Del("Content-Encoding")
+	resp.Header.Del("Content-Length")
 
 	// Log response status
 	logger.Debug("received HTTP response",