diff --git a/fs_mgr/libsnapshot/include/libsnapshot/cow_writer.h b/fs_mgr/libsnapshot/include/libsnapshot/cow_writer.h
index d6194eb..755050f 100644
--- a/fs_mgr/libsnapshot/include/libsnapshot/cow_writer.h
+++ b/fs_mgr/libsnapshot/include/libsnapshot/cow_writer.h
@@ -110,16 +110,17 @@
 
 class CompressWorker {
   public:
-    CompressWorker(CowCompressionAlgorithm compression, uint32_t block_size);
+    CompressWorker(CowCompression compression, uint32_t block_size);
     bool RunThread();
     void EnqueueCompressBlocks(const void* buffer, size_t num_blocks);
     bool GetCompressedBuffers(std::vector<std::basic_string<uint8_t>>* compressed_buf);
     void Finalize();
-    static std::basic_string<uint8_t> Compress(CowCompressionAlgorithm compression,
-                                               const void* data, size_t length);
+    static uint32_t GetDefaultCompressionLevel(CowCompressionAlgorithm compression);
+    static std::basic_string<uint8_t> Compress(CowCompression compression, const void* data,
+                                               size_t length);
 
-    static bool CompressBlocks(CowCompressionAlgorithm compression, size_t block_size,
-                               const void* buffer, size_t num_blocks,
+    static bool CompressBlocks(CowCompression compression, size_t block_size, const void* buffer,
+                               size_t num_blocks,
                                std::vector<std::basic_string<uint8_t>>* compressed_data);
 
   private:
@@ -130,7 +131,7 @@
         std::vector<std::basic_string<uint8_t>> compressed_data;
     };
 
-    CowCompressionAlgorithm compression_;
+    CowCompression compression_;
     uint32_t block_size_;
 
     std::queue<CompressWork> work_queue_;
@@ -139,7 +140,6 @@
     std::condition_variable cv_;
     bool stopped_ = false;
 
-    std::basic_string<uint8_t> Compress(const void* data, size_t length);
     bool CompressBlocks(const void* buffer, size_t num_blocks,
                         std::vector<std::basic_string<uint8_t>>* compressed_data);
 };
diff --git a/fs_mgr/libsnapshot/libsnapshot_cow/cow_compress.cpp b/fs_mgr/libsnapshot/libsnapshot_cow/cow_compress.cpp
index a4a0ad6..96d6016 100644
--- a/fs_mgr/libsnapshot/libsnapshot_cow/cow_compress.cpp
+++ b/fs_mgr/libsnapshot/libsnapshot_cow/cow_compress.cpp
@@ -46,24 +46,47 @@
     } else if (name == "none" || name.empty()) {
         return {kCowCompressNone};
     } else {
+        LOG(ERROR) << "unable to determine default compression algorithm for: " << name;
         return {};
     }
 }
 
-std::basic_string<uint8_t> CompressWorker::Compress(const void* data, size_t length) {
-    return Compress(compression_, data, length);
+// 1. Default compression level is determined by compression algorithm
+// 2. There might be compatibility issues if a value is changed here, as  some older versions of
+// Android will assume a different compression level, causing cow_size estimation differences that
+// will lead to OTA failure. Ensure that the device and OTA package use the same compression level
+// for OTA to succeed.
+uint32_t CompressWorker::GetDefaultCompressionLevel(CowCompressionAlgorithm compression) {
+    switch (compression) {
+        case kCowCompressGz: {
+            return Z_BEST_COMPRESSION;
+        }
+        case kCowCompressBrotli: {
+            return BROTLI_DEFAULT_QUALITY;
+        }
+        case kCowCompressLz4: {
+            break;
+        }
+        case kCowCompressZstd: {
+            return ZSTD_defaultCLevel();
+        }
+        case kCowCompressNone: {
+            break;
+        }
+    }
+    return 0;
 }
 
-std::basic_string<uint8_t> CompressWorker::Compress(CowCompressionAlgorithm compression,
-                                                    const void* data, size_t length) {
-    switch (compression) {
+std::basic_string<uint8_t> CompressWorker::Compress(CowCompression compression, const void* data,
+                                                    size_t length) {
+    switch (compression.algorithm) {
         case kCowCompressGz: {
             const auto bound = compressBound(length);
             std::basic_string<uint8_t> buffer(bound, '\0');
 
             uLongf dest_len = bound;
             auto rv = compress2(buffer.data(), &dest_len, reinterpret_cast<const Bytef*>(data),
-                                length, Z_BEST_COMPRESSION);
+                                length, compression.compression_level);
             if (rv != Z_OK) {
                 LOG(ERROR) << "compress2 returned: " << rv;
                 return {};
@@ -81,8 +104,8 @@
 
             size_t encoded_size = bound;
             auto rv = BrotliEncoderCompress(
-                    BROTLI_DEFAULT_QUALITY, BROTLI_DEFAULT_WINDOW, BROTLI_DEFAULT_MODE, length,
-                    reinterpret_cast<const uint8_t*>(data), &encoded_size, buffer.data());
+                    compression.compression_level, BROTLI_DEFAULT_WINDOW, BROTLI_DEFAULT_MODE,
+                    length, reinterpret_cast<const uint8_t*>(data), &encoded_size, buffer.data());
             if (!rv) {
                 LOG(ERROR) << "BrotliEncoderCompress failed";
                 return {};
@@ -117,8 +140,8 @@
         }
         case kCowCompressZstd: {
             std::basic_string<uint8_t> buffer(ZSTD_compressBound(length), '\0');
-            const auto compressed_size =
-                    ZSTD_compress(buffer.data(), buffer.size(), data, length, 0);
+            const auto compressed_size = ZSTD_compress(buffer.data(), buffer.size(), data, length,
+                                                       compression.compression_level);
             if (compressed_size <= 0) {
                 LOG(ERROR) << "ZSTD compression failed " << compressed_size;
                 return {};
@@ -133,7 +156,7 @@
             return buffer;
         }
         default:
-            LOG(ERROR) << "unhandled compression type: " << compression;
+            LOG(ERROR) << "unhandled compression type: " << compression.algorithm;
             break;
     }
     return {};
@@ -143,7 +166,7 @@
     return CompressBlocks(compression_, block_size_, buffer, num_blocks, compressed_data);
 }
 
-bool CompressWorker::CompressBlocks(CowCompressionAlgorithm compression, size_t block_size,
+bool CompressWorker::CompressBlocks(CowCompression compression, size_t block_size,
                                     const void* buffer, size_t num_blocks,
                                     std::vector<std::basic_string<uint8_t>>* compressed_data) {
     const uint8_t* iter = reinterpret_cast<const uint8_t*>(buffer);
@@ -255,7 +278,7 @@
     cv_.notify_all();
 }
 
-CompressWorker::CompressWorker(CowCompressionAlgorithm compression, uint32_t block_size)
+CompressWorker::CompressWorker(CowCompression compression, uint32_t block_size)
     : compression_(compression), block_size_(block_size) {}
 
 }  // namespace snapshot
diff --git a/fs_mgr/libsnapshot/libsnapshot_cow/test_v2.cpp b/fs_mgr/libsnapshot/libsnapshot_cow/test_v2.cpp
index ab275d4..2258d9f 100644
--- a/fs_mgr/libsnapshot/libsnapshot_cow/test_v2.cpp
+++ b/fs_mgr/libsnapshot/libsnapshot_cow/test_v2.cpp
@@ -480,7 +480,7 @@
     std::string expected = "The quick brown fox jumps over the lazy dog.";
     expected.resize(4096, '\0');
 
-    auto result = CompressWorker::Compress(*algorithm, expected.data(), expected.size());
+    auto result = CompressWorker::Compress(compression, expected.data(), expected.size());
     ASSERT_FALSE(result.empty());
 
     HorribleStream<uint8_t> stream(result);
@@ -1409,6 +1409,18 @@
     ASSERT_TRUE(iter->AtEnd());
 }
 
+TEST_F(CowTest, ParseOptionsTest) {
+    CowOptions options;
+    std::vector<std::pair<std::string, bool>> testcases = {
+            {"gz,4", true},   {"gz,4,4", false}, {"lz4,4", true}, {"brotli,4", true},
+            {"zstd,4", true}, {"zstd,x", false}, {"zs,4", false}, {"zstd.4", false}};
+    for (size_t i = 0; i < testcases.size(); i++) {
+        options.compression = testcases[i].first;
+        CowWriterV2 writer(options, GetCowFd());
+        ASSERT_EQ(writer.Initialize(), testcases[i].second);
+    }
+}
+
 TEST_F(CowTest, LegacyRevMergeOpItrTest) {
     CowOptions options;
     options.cluster_ops = 5;
diff --git a/fs_mgr/libsnapshot/libsnapshot_cow/writer_v2.cpp b/fs_mgr/libsnapshot/libsnapshot_cow/writer_v2.cpp
index cbd7569..4ab5713 100644
--- a/fs_mgr/libsnapshot/libsnapshot_cow/writer_v2.cpp
+++ b/fs_mgr/libsnapshot/libsnapshot_cow/writer_v2.cpp
@@ -39,6 +39,8 @@
 #include <sys/ioctl.h>
 #include <unistd.h>
 
+#include "android-base/parseint.h"
+#include "android-base/strings.h"
 #include "parser_v2.h"
 
 // The info messages here are spammy, but as useful for update_engine. Disable
@@ -119,11 +121,28 @@
 }
 
 bool CowWriterV2::ParseOptions() {
-    auto algorithm = CompressionAlgorithmFromString(options_.compression);
+    auto parts = android::base::Split(options_.compression, ",");
+
+    if (parts.size() > 2) {
+        LOG(ERROR) << "failed to parse compression parameters: invalid argument count: "
+                   << parts.size() << " " << options_.compression;
+        return false;
+    }
+    auto algorithm = CompressionAlgorithmFromString(parts[0]);
     if (!algorithm) {
         LOG(ERROR) << "unrecognized compression: " << options_.compression;
         return false;
     }
+    if (parts.size() > 1) {
+        if (!android::base::ParseUint(parts[1], &compression_.compression_level)) {
+            LOG(ERROR) << "failed to parse compression level invalid type: " << parts[1];
+            return false;
+        }
+    } else {
+        compression_.compression_level =
+                CompressWorker::GetDefaultCompressionLevel(algorithm.value());
+    }
+
     compression_.algorithm = *algorithm;
 
     if (options_.cluster_ops == 1) {
@@ -165,7 +184,7 @@
         return;
     }
     for (int i = 0; i < num_compress_threads_; i++) {
-        auto wt = std::make_unique<CompressWorker>(compression_.algorithm, header_.block_size);
+        auto wt = std::make_unique<CompressWorker>(compression_, header_.block_size);
         threads_.emplace_back(std::async(std::launch::async, &CompressWorker::RunThread, wt.get()));
         compress_threads_.push_back(std::move(wt));
     }
@@ -320,8 +339,8 @@
     const uint8_t* iter = reinterpret_cast<const uint8_t*>(data);
     compressed_buf_.clear();
     if (num_threads <= 1) {
-        return CompressWorker::CompressBlocks(compression_.algorithm, options_.block_size, data,
-                                              num_blocks, &compressed_buf_);
+        return CompressWorker::CompressBlocks(compression_, options_.block_size, data, num_blocks,
+                                              &compressed_buf_);
     }
 
     // Submit the blocks per thread. The retrieval of
@@ -393,8 +412,8 @@
                         buf_iter_++;
                         return data;
                     } else {
-                        auto data = CompressWorker::Compress(compression_.algorithm, iter,
-                                                             header_.block_size);
+                        auto data =
+                                CompressWorker::Compress(compression_, iter, header_.block_size);
                         return data;
                     }
                 }();
@@ -507,8 +526,8 @@
         }
     }
 
-    // Footer should be at the end of a file, so if there is data after the current block, end it
-    // and start a new cluster.
+    // Footer should be at the end of a file, so if there is data after the current block, end
+    // it and start a new cluster.
     if (cluster_size_ && current_data_size_ > 0) {
         EmitCluster();
         extra_cluster = true;