diff --git a/CHANGELOG.md b/CHANGELOG.md
index 23e8fa24..3d4af9a0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,12 @@
 # Changelog
 
+## [1.2.0](https://github.com/googleapis/java-pubsub-group-kafka-connector/compare/v1.1.0...v1.2.0) (2023-05-10)
+
+
+### Features
+
+* Add the ability to set gRPC compression in the CPS sink connector. ([#259](https://github.com/googleapis/java-pubsub-group-kafka-connector/issues/259)) ([ad1e72b](https://github.com/googleapis/java-pubsub-group-kafka-connector/commit/ad1e72b7a09d6034c5ec0009131f39aaef236a50))
+
 ## [1.1.0](https://github.com/googleapis/java-pubsub-group-kafka-connector/compare/v1.0.0...v1.1.0) (2023-03-31)
 
 
diff --git a/README.md b/README.md
index 9dbdf075..b86b9353 100644
--- a/README.md
+++ b/README.md
@@ -210,6 +210,8 @@ configurations:
 | headers.publish            | Boolean                       | false                       | When true, include any headers as attributes when a message is published to Pub/Sub.                                                                                                                                                                                                                                                |
 | orderingKeySource          | String (none, key, partition) | none                        | When set to "none", do not set the ordering key. When set to "key", uses a message's key as the ordering key. If set to "partition", converts the partition number to a String and uses that as the ordering key. Note that using "partition" should only be used for low-throughput topics or topics with thousands of partitions. |
 | messageBodyName            | String                        | "cps_message_body"          | When using a struct or map value schema, this field or key name indicates that the corresponding value will go into the Pub/Sub message body.                                                                                                                                                                                       |
+| enableCompression          | Boolean                       | false                       | When true, enable [publish-side compression](https://cloud.google.com/pubsub/docs/publisher#compressing) in order to save on networking costs between Kafka Connect and  Cloud Pub/Sub.                                                                                                                                             |
+| compressionBytesThreshold  | Long                          | 240                         | When enableCompression is true, the minimum size of publish request (in bytes) to compress.
 
 ### Pub/Sub Lite connector configs
 
diff --git a/pom.xml b/pom.xml
index d17aa38f..b6aacced 100644
--- a/pom.xml
+++ b/pom.xml
@@ -3,7 +3,7 @@
     xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/maven-v4_0_0.xsd">
   <modelVersion>4.0.0</modelVersion>
   <artifactId>pubsub-group-kafka-connector</artifactId>
-  <version>1.1.0</version><!-- {x-version-update:pubsub-group-kafka-connector:current} -->
+  <version>1.2.0</version><!-- {x-version-update:pubsub-group-kafka-connector:current} -->
   <packaging>jar</packaging>
   <name>Pub/Sub Group Kafka Connector</name>
   <url>https://github.com/googleapis/java-pubsub-group-kafka-connector</url>
diff --git a/src/main/java/com/google/pubsub/kafka/sink/CloudPubSubSinkConnector.java b/src/main/java/com/google/pubsub/kafka/sink/CloudPubSubSinkConnector.java
index eb7d681f..e7c56118 100644
--- a/src/main/java/com/google/pubsub/kafka/sink/CloudPubSubSinkConnector.java
+++ b/src/main/java/com/google/pubsub/kafka/sink/CloudPubSubSinkConnector.java
@@ -47,6 +47,8 @@ public class CloudPubSubSinkConnector extends SinkConnector {
   public static final String MAX_REQUEST_TIMEOUT_MS = "maxRequestTimeoutMs";
   public static final String MAX_TOTAL_TIMEOUT_MS = "maxTotalTimeoutMs";
   public static final String MAX_SHUTDOWN_TIMEOUT_MS = "maxShutdownTimeoutMs";
+  public static final String ENABLE_COMPRESSION = "enableCompression";
+  public static final String COMPRESSION_BYTES_THRESHOLD = "compressionBytesThreshold";
   public static final int DEFAULT_MAX_BUFFER_SIZE = 100;
   public static final long DEFAULT_MAX_BUFFER_BYTES = 9500000L;
   public static final int DEFAULT_DELAY_THRESHOLD_MS = 100;
@@ -61,6 +63,8 @@ public class CloudPubSubSinkConnector extends SinkConnector {
   public static final String PUBLISH_KAFKA_HEADERS = "headers.publish";
   public static final String ORDERING_KEY_SOURCE = "orderingKeySource";
   public static final String DEFAULT_ORDERING_KEY_SOURCE = "none";
+  public static final boolean DEFAULT_ENABLE_COMPRESSION = false;
+  public static final long DEFAULT_COMPRESSION_BYTES_THRESHOLD = 240L;
 
   /** Defines the accepted values for the {@link #ORDERING_KEY_SOURCE}. */
   public enum OrderingKeySource {
@@ -250,6 +254,20 @@ public ConfigDef config() {
             Importance.MEDIUM,
             "What to use to populate the Pub/Sub message ordering key. Possible values are "
                 + "\"none\", \"key\", or \"partition\".")
+        .define(
+            ENABLE_COMPRESSION,
+            Type.BOOLEAN,
+            DEFAULT_ENABLE_COMPRESSION,
+            Importance.MEDIUM,
+            "When \"true\", use gRPC Gzip compression on publish requests before sending them "
+                + "to Cloud Pub/Sub.")
+        .define(
+            COMPRESSION_BYTES_THRESHOLD,
+            Type.LONG,
+            DEFAULT_COMPRESSION_BYTES_THRESHOLD,
+            Importance.MEDIUM,
+            "The number of bytes at which to compress a request when publishing to  "
+                + "Cloud Pub/Sub. Only takes effect if \"enableCompression\" is \"true\".")
         .define(
             ConnectorUtils.CPS_ENDPOINT,
             Type.STRING,
diff --git a/src/main/java/com/google/pubsub/kafka/sink/CloudPubSubSinkTask.java b/src/main/java/com/google/pubsub/kafka/sink/CloudPubSubSinkTask.java
index 9faa7910..28c74ce0 100644
--- a/src/main/java/com/google/pubsub/kafka/sink/CloudPubSubSinkTask.java
+++ b/src/main/java/com/google/pubsub/kafka/sink/CloudPubSubSinkTask.java
@@ -81,6 +81,8 @@ public class CloudPubSubSinkTask extends SinkTask {
   private boolean includeMetadata;
   private boolean includeHeaders;
   private OrderingKeySource orderingKeySource;
+  private boolean enableCompression;
+  private long compressionBytesThreshold;
   private ConnectorCredentialsProvider gcpCredentialsProvider;
   private com.google.cloud.pubsub.v1.Publisher publisher;
 
@@ -135,6 +137,9 @@ public void start(Map<String, String> props) {
     orderingKeySource =
         OrderingKeySource.getEnum(
             (String) validatedProps.get(CloudPubSubSinkConnector.ORDERING_KEY_SOURCE));
+    enableCompression = (Boolean) validatedProps.get(CloudPubSubSinkConnector.ENABLE_COMPRESSION);
+    compressionBytesThreshold =
+        (Long) validatedProps.get(CloudPubSubSinkConnector.COMPRESSION_BYTES_THRESHOLD);
     gcpCredentialsProvider = ConnectorCredentialsProvider.fromConfig(validatedProps);
     if (publisher == null) {
       // Only do this if we did not use the constructor.
@@ -413,6 +418,10 @@ private void createPublisher() {
     if (orderingKeySource != OrderingKeySource.NONE) {
       builder.setEnableMessageOrdering(true);
     }
+    if (enableCompression) {
+      builder.setEnableCompression(true);
+      builder.setCompressionBytesThreshold(compressionBytesThreshold);
+    }
     try {
       publisher = builder.build();
     } catch (Exception e) {
diff --git a/versions.txt b/versions.txt
index af274e56..2b77f448 100644
--- a/versions.txt
+++ b/versions.txt
@@ -1,4 +1,4 @@
 # Format:
 # module:released-version:current-version
 
-pubsub-group-kafka-connector:1.1.0:1.1.0
+pubsub-group-kafka-connector:1.2.0:1.2.0