diff --git a/openpower/package/openpower-pnor/Config.in b/openpower/package/openpower-pnor/Config.in
index 2234d4e..cc7cc71 100644
--- a/openpower/package/openpower-pnor/Config.in
+++ b/openpower/package/openpower-pnor/Config.in
@@ -33,7 +33,18 @@
         string "Name of skiboot lid name to be used"
         default "skiboot.lid"
         help
-            String used to define sapphire lid filename
+            String used to define skiboot lid filename
+
+config BR2_TARGET_SKIBOOT_XZ
+        boolean "Compress the skiboot image with XZ"
+        default n
+
+config BR2_SKIBOOT_LID_XZ_NAME
+        string "Name of compressed skiboot lid"
+        default "skiboot.lid" if !BR2_TARGET_SKIBOOT_XZ
+        default "skiboot.lid.xz" if BR2_TARGET_SKIBOOT_XZ
+        help
+            String used to define compressed skiboot lid filename
 
 config BR2_HOSTBOOT_BINARY_SBE_FILENAME
         string "Name of sbe hostboot binary"
@@ -60,3 +71,8 @@
         string "Name of openpower binary targeting file"
         help
             String used to define name of openpower targeting binary file, ecc protected
+
+config BR2_OPENPOWER_PNOR_XZ_ENABLED
+        string "False if we are not compressing with XZ anywhere"
+        default "false" if !BR2_TARGET_SKIBOOT_XZ
+        default "true" if BR2_TARGET_SKIBOOT_XZ
diff --git a/openpower/package/openpower-pnor/openpower-pnor.mk b/openpower/package/openpower-pnor/openpower-pnor.mk
index 658a949..b3c4347 100644
--- a/openpower/package/openpower-pnor/openpower-pnor.mk
+++ b/openpower/package/openpower-pnor/openpower-pnor.mk
@@ -24,6 +24,11 @@
 
 endif
 
+ifeq ($(BR2_OPENPOWER_PNOR_XZ_ENABLED),y)
+OPENPOWER_PNOR_DEPENDENCIES += host_xz
+endif
+
+
 OPENPOWER_PNOR_INSTALL_IMAGES = YES
 OPENPOWER_PNOR_INSTALL_TARGET = NO
 
@@ -51,7 +56,9 @@
             -wink_binary_filename $(BR2_HOSTBOOT_BINARY_WINK_FILENAME) \
             -occ_binary_filename $(OCC_STAGING_DIR)/$(BR2_OCC_BIN_FILENAME) \
             -capp_binary_filename $(BINARIES_DIR)/$(BR2_CAPP_UCODE_BIN_FILENAME) \
-            -openpower_version_filename $(OPENPOWER_PNOR_VERSION_FILE)
+            -openpower_version_filename $(OPENPOWER_PNOR_VERSION_FILE) \
+            -payload $(BINARIES_DIR)/$(BR2_SKIBOOT_LID_NAME) \
+            -xz_compression $(BR2_OPENPOWER_PNOR_XZ_ENABLED)
 
         mkdir -p $(STAGING_DIR)/pnor/
         $(TARGET_MAKE_ENV) $(@D)/create_pnor_image.pl \
@@ -60,14 +67,15 @@
             -hb_image_dir $(HOSTBOOT_IMAGE_DIR) \
             -scratch_dir $(OPENPOWER_PNOR_SCRATCH_DIR) \
             -outdir $(STAGING_DIR)/pnor/ \
-            -payload $(BINARIES_DIR)/$(BR2_SKIBOOT_LID_NAME) \
+            -payload $(BINARIES_DIR)/$(BR2_SKIBOOT_LID_XZ_NAME) \
             -bootkernel $(BINARIES_DIR)/$(LINUX_IMAGE_NAME) \
             -sbe_binary_filename $(BR2_HOSTBOOT_BINARY_SBE_FILENAME) \
             -sbec_binary_filename $(BR2_HOSTBOOT_BINARY_SBEC_FILENAME) \
             -wink_binary_filename $(BR2_HOSTBOOT_BINARY_WINK_FILENAME) \
             -occ_binary_filename $(OCC_STAGING_DIR)/$(BR2_OCC_BIN_FILENAME) \
             -targeting_binary_filename $(BR2_OPENPOWER_TARGETING_ECC_FILENAME) \
-            -openpower_version_filename $(OPENPOWER_PNOR_VERSION_FILE)
+            -openpower_version_filename $(OPENPOWER_PNOR_VERSION_FILE) \
+            -xz_compression $(BR2_OPENPOWER_PNOR_XZ_ENABLED)
 
         $(INSTALL) $(STAGING_DIR)/pnor/$(BR2_OPENPOWER_PNOR_FILENAME) $(BINARIES_DIR)