diff --git a/CHANGES.md b/CHANGES.md
index 372f4350a..afa86b7a0 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -2,7 +2,9 @@
 
 ## 0.6.9 (2018-05-22)
 
-* Drop connection if request's payload is not fulle consumed #236
+* Drop connection if request's payload is not fully consumed #236
+
+* Fix streaming response with body compression
 
 
 ## 0.6.8 (2018-05-20)
diff --git a/src/fs.rs b/src/fs.rs
index c01f97b92..779b419a4 100644
--- a/src/fs.rs
+++ b/src/fs.rs
@@ -20,7 +20,7 @@ use mime_guess::{get_mime_type, guess_mime_type};
 use error::Error;
 use handler::{AsyncResult, Handler, Responder, RouteHandler, WrapHandler};
 use header;
-use http::{HttpRange, Method, StatusCode};
+use http::{HttpRange, Method, StatusCode, ContentEncoding};
 use httpmessage::HttpMessage;
 use httprequest::HttpRequest;
 use httpresponse::HttpResponse;
@@ -300,6 +300,7 @@ impl Responder for NamedFile {
                 if let Ok(rangesvec) = HttpRange::parse(rangesheader, length) {
                     length = rangesvec[0].length;
                     offset = rangesvec[0].start;
+                    resp.content_encoding(ContentEncoding::Identity);
                     resp.header(
                         header::CONTENT_RANGE,
                         format!(
@@ -898,6 +899,7 @@ mod tests {
         let request = srv
             .get()
             .uri(srv.url("/t%65st/tests/test.binary"))
+            .no_default_headers()
             .finish()
             .unwrap();
 
@@ -911,6 +913,23 @@ mod tests {
             .unwrap();
 
         assert_eq!(contentlength, "100");
+
+        // chunked
+        let request = srv
+            .get()
+            .uri(srv.url("/t%65st/tests/test.binary"))
+            .finish()
+            .unwrap();
+
+        let response = srv.execute(request.send()).unwrap();
+
+        let te = response
+            .headers()
+            .get(header::TRANSFER_ENCODING)
+            .unwrap()
+            .to_str()
+            .unwrap();
+        assert_eq!(te, "chunked");
     }
 
     #[test]
diff --git a/src/server/encoding.rs b/src/server/encoding.rs
index ea47bf71a..34c589fc8 100644
--- a/src/server/encoding.rs
+++ b/src/server/encoding.rs
@@ -505,6 +505,11 @@ impl ContentEncoder {
                     }
                     TransferEncoding::eof(buf)
                 } else {
+                    if !(encoding == ContentEncoding::Identity
+                         || encoding == ContentEncoding::Auto)
+                    {
+                        resp.headers_mut().remove(CONTENT_LENGTH);
+                    }
                     ContentEncoder::streaming_encoding(buf, version, resp)
                 }
             }