diff --git a/Modules/NSIS.template.in b/Modules/NSIS.template.in
index 2994c78aa..eea59c3a9 100644
--- a/Modules/NSIS.template.in
+++ b/Modules/NSIS.template.in
@@ -78,6 +78,9 @@ FunctionEnd
   Name "@CPACK_PACKAGE_INSTALL_DIRECTORY@"
   OutFile "@CPACK_TOPLEVEL_DIRECTORY@/@CPACK_OUTPUT_FILE_NAME@"
 
+  ;Set compression
+  SetCompressor @CPACK_NSIS_COMPRESSOR@
+
 ;--------------------------------
 ;Interface Settings
 
diff --git a/Source/CPack/cmCPackNSISGenerator.cxx b/Source/CPack/cmCPackNSISGenerator.cxx
index 8b1c87998..1b547012b 100644
--- a/Source/CPack/cmCPackNSISGenerator.cxx
+++ b/Source/CPack/cmCPackNSISGenerator.cxx
@@ -232,6 +232,7 @@ int cmCPackNSISGenerator::InitializeInternal()
     this->SetOptionIfNotSet("CPACK_NSIS_DELETE_ICONS", 
                             deleteStr.str().c_str());
     }
+  this->SetOptionIfNotSet("CPACK_NSIS_COMPRESSOR", "lzma");
 
   return this->Superclass::InitializeInternal();
 }