diff --git a/packages/drivers/compcache/build b/packages/drivers/compcache/build
new file mode 100755
index 0000000000..e7375dbe10
--- /dev/null
+++ b/packages/drivers/compcache/build
@@ -0,0 +1,6 @@
+#!/bin/sh
+
+. config/options $1
+
+cd $PKG_BUILD
+  make CC=$CC KERNELDIR=$(kernel_path)
diff --git a/packages/sysutils/busybox/init.d/09_swapfile b/packages/drivers/compcache/init.d/09_swapfile
similarity index 69%
rename from packages/sysutils/busybox/init.d/09_swapfile
rename to packages/drivers/compcache/init.d/09_swapfile
index e5b711c832..25f5b4b47d 100755
--- a/packages/sysutils/busybox/init.d/09_swapfile
+++ b/packages/drivers/compcache/init.d/09_swapfile
@@ -29,26 +29,24 @@
 
 INSTALLED_MEMORY=`cat /proc/meminfo | grep 'MemTotal:' | awk '{print $2}'`
 
-if [ $INSTALLED_MEMORY -le 500000 -a -f $HOME/.config/swapon ]; then
+if [ "$INSTALLED_MEMORY" -le 500000 ]; then
 
-  if [ ! -f $HOME/.cache/swapfile ]; then
-    progress "creating swapfile"
+  progress "creating swapfile"
 
-      mkdir -p $HOME/.cache
-      dd if=/dev/zero of=$HOME/.cache/swapfile bs=1024 count=524288
-      mkswap $HOME/.cache/swapfile
-  fi
+  # load zram module
+    modprobe zram
 
-  progress "enable swapfile"
-    swapon -p 10000 $HOME/.cache/swapfile
+  # setup space for zram
+    echo "$INSTALLED_MEMORY"/2*1024 | bc > /sys/block/zram0/disksize
 
-    [ $INSTALLED_MEMORY -le 260000 ] \
-      && sysctl -w vm.swappiness=100 \
-      || sysctl -w vm.swappiness=60
+  # create swap
+    mkswap /dev/zram0 >/dev/null 2>&1
 
-else
+  progress "activating swapfile"
 
-  sysctl -w vm.swappiness=0
+  # create swap
+    swapon -p 10000 /dev/zram0 >/dev/null 2>&1
+    sysctl -w vm.swappiness=100 >/dev/null 2>&1
 
 fi
 
diff --git a/packages/drivers/compcache/install b/packages/drivers/compcache/install
new file mode 100755
index 0000000000..53d649998c
--- /dev/null
+++ b/packages/drivers/compcache/install
@@ -0,0 +1,19 @@
+#!/bin/sh
+
+. config/options $1
+
+$SCRIPTS/build busybox-hosttools
+
+VER=`ls $BUILD/linux*/modules/lib/modules`
+
+mkdir -p $INSTALL/lib/modules/$VER/zram
+  cp $PKG_BUILD/zram.ko $INSTALL/lib/modules/$VER/zram
+
+  for MOD in `find $INSTALL/lib/modules/$VER/zram -name *.ko`; do
+    $STRIP --strip-debug $MOD
+  done
+
+  $ROOT/$TOOLCHAIN/sbin/depmod -b $INSTALL $VER > /dev/null
+  for i in `ls $INSTALL/lib/modules/*/modules.* | grep -v modules.dep | grep -v modules.alias | grep -v modules.symbols`; do
+    rm -f $i
+  done
diff --git a/packages/drivers/compcache/meta b/packages/drivers/compcache/meta
new file mode 100644
index 0000000000..7c0023fbfa
--- /dev/null
+++ b/packages/drivers/compcache/meta
@@ -0,0 +1,14 @@
+PKG_NAME="compcache"
+PKG_VERSION="20101022"
+PKG_REV="1"
+PKG_ARCH="any"
+PKG_LICENSE="GPL"
+PKG_SITE="http://code.google.com/p/compcache/"
+PKG_URL="http://sources.openelec.tv/svn/$PKG_NAME-$PKG_VERSION.tar.bz2"
+PKG_DEPENDS=""
+PKG_BUILD_DEPENDS="toolchain linux"
+PKG_PRIORITY="optional"
+PKG_SECTION="system"
+PKG_SHORTDESC="compcache: creates RAM based block device (named ramzswap) which acts as swap disk"
+PKG_LONGDESC="compcache creates RAM based block device (named ramzswap) which acts as swap disk. Pages swapped to this disk are compressed and stored in memory itself."
+PKG_IS_ADDON="no"
diff --git a/packages/drivers/compcache/need_unpack b/packages/drivers/compcache/need_unpack
new file mode 100755
index 0000000000..b60fcc137e
--- /dev/null
+++ b/packages/drivers/compcache/need_unpack
@@ -0,0 +1,14 @@
+#!/bin/sh
+
+. config/options $1
+
+STAMP=$STAMPS/$1/unpack
+
+test $PKG_DIR/config/linux.$TARGET_ARCH.conf -nt $STAMP -o \
+     $PKG_DIR/config/linux.$TARGET_PLATFORM.conf -nt $STAMP -o \
+     $PROJECT_DIR/$PROJECT/linux/linux.$TARGET_ARCH.conf -nt $STAMP -o \
+     $PROJECT_DIR/$PROJECT/linux/linux.$TARGET_PLATFORM.conf -nt $STAMP -o \
+     $PKG_DIR/url -nt $STAMP -o \
+     $PKG_DIR/meta -nt $STAMP && rm -f $STAMP
+
+exit 0
diff --git a/packages/drivers/compcache/patches/compcache-linux-2.6.36_comp-0.1.diff b/packages/drivers/compcache/patches/compcache-linux-2.6.36_comp-0.1.diff
new file mode 100644
index 0000000000..41f9a1c501
--- /dev/null
+++ b/packages/drivers/compcache/patches/compcache-linux-2.6.36_comp-0.1.diff
@@ -0,0 +1,12 @@
+diff -Naur compcache-20101022/zram_drv.c compcache-20101022.patch/zram_drv.c
+--- compcache-20101022/zram_drv.c	2010-10-22 04:13:51.000000000 +0200
++++ compcache-20101022.patch/zram_drv.c	2010-10-22 04:31:48.407299221 +0200
+@@ -458,7 +458,7 @@
+ 		return 0;
+ 	}
+ 
+-	if (unlikely(bio_rw_flagged(bio, BIO_RW_DISCARD))) {
++	if (unlikely(bio->bi_rw & REQ_DISCARD)) {
+ 		zram_discard(zram, bio);
+ 		return 0;
+ 	}
diff --git a/packages/drivers/install b/packages/drivers/install
index aa6fa92f87..1fa19c2ee3 100755
--- a/packages/drivers/install
+++ b/packages/drivers/install
@@ -2,6 +2,8 @@
 
 . config/options $1
 
+  [ "$ZRAM_SUPPORT" = "yes" ] && $SCRIPTS/install compcache
+
 for drivers in "$ADDITIONAL_DRIVERS"; do
 
   [ "$drivers" = rtl8192se ] && $SCRIPTS/install rtl8192se
diff --git a/projects/ATV/options b/projects/ATV/options
index c1701a941b..75117f2bc7 100644
--- a/projects/ATV/options
+++ b/projects/ATV/options
@@ -86,6 +86,9 @@
 # e.g. ADDITIONAL_DRIVERS="rtl8192se"
   ADDITIONAL_DRIVERS=""
 
+# build with compressed swap (zram) support (yes / no)
+  ZRAM_SUPPORT="yes"
+
 # build with network support (yes / no)
   NETWORK="yes"
 
diff --git a/projects/ION/options b/projects/ION/options
index b7f0d96446..76ef17c730 100644
--- a/projects/ION/options
+++ b/projects/ION/options
@@ -86,6 +86,9 @@
 # e.g. ADDITIONAL_DRIVERS="rtl8192se"
   ADDITIONAL_DRIVERS="rtl8192se"
 
+# build with compressed swap (zram) support (yes / no)
+  ZRAM_SUPPORT="no"
+
 # build with network support (yes / no)
   NETWORK="yes"
 
diff --git a/projects/generic/options b/projects/generic/options
index 83b272ec07..0ba5730945 100644
--- a/projects/generic/options
+++ b/projects/generic/options
@@ -86,6 +86,9 @@
 # e.g. ADDITIONAL_DRIVERS="rtl8192se"
   ADDITIONAL_DRIVERS="rtl8192se"
 
+# build with compressed swap (zram) support (yes / no)
+  ZRAM_SUPPORT="no"
+
 # build with network support (yes / no)
   NETWORK="yes"
 
diff --git a/projects/intel/options b/projects/intel/options
index ce13c8cf2e..d97977654c 100644
--- a/projects/intel/options
+++ b/projects/intel/options
@@ -86,6 +86,9 @@
 # e.g. ADDITIONAL_DRIVERS="rtl8192se"
   ADDITIONAL_DRIVERS="rtl8192se"
 
+# build with compressed swap (zram) support (yes / no)
+  ZRAM_SUPPORT="no"
+
 # build with network support (yes / no)
   NETWORK="yes"