diff --git a/hardware/disk/squashfs-tools/actions.py b/hardware/disk/squashfs-tools/actions.py
index 0f0d939ac3..8465a75354 100644
--- a/hardware/disk/squashfs-tools/actions.py
+++ b/hardware/disk/squashfs-tools/actions.py
@@ -16,8 +16,9 @@ def build():
     cmd1='sed -i -e "s/BUFFER_DEFAULT [0-9]*/BUFFER_DEFAULT 32/" unsquashfs.h'
     cmd2="sed -i 's|^#XZ_SUPPORT = 1|XZ_SUPPORT = 1|' Makefile"
     cmd3="sed -i 's|^#LZO_SUPPORT = 1|LZO_SUPPORT = 1|' Makefile"
-    cmd4="sed -i 's|^COMP_DEFAULT = gzip|COMP_DEFAULT = xz|' Makefile"
-    cmds=[cmd1,cmd2,cmd3,cmd4]
+    cmd4="sed -i 's|^#ZSTD_SUPPORT = 1|ZSTD_SUPPORT = 1|' Makefile"
+    cmd5="sed -i 's|^COMP_DEFAULT = gzip|COMP_DEFAULT = xz|' Makefile"
+    cmds=[cmd1,cmd2,cmd3,cmd4,cmd5]
         
     for cmd in cmds:
         shelltools.system(cmd)
diff --git a/hardware/disk/squashfs-tools/pspec.xml b/hardware/disk/squashfs-tools/pspec.xml
index 6723352bb0..0d711d03f7 100644
--- a/hardware/disk/squashfs-tools/pspec.xml
+++ b/hardware/disk/squashfs-tools/pspec.xml
@@ -15,6 +15,7 @@
         <Archive sha1sum="a42fdedb8a1543274592e317c437cafa54e02705" type="targz">https://sourceforge.net/projects/squashfs/files/squashfs/squashfs4.4/squashfs4.4.tar.gz</Archive>
         <BuildDependencies>
             <Dependency>lzo-devel</Dependency>
+            <Dependency>zstd-devel</Dependency>
             <!--xz-devel is in system.devel-->
             <Dependency>xz-devel</Dependency>
             <Dependency>zlib-devel</Dependency>
@@ -25,6 +26,7 @@
         <Name>squashfs-tools</Name>
         <RuntimeDependencies>
             <Dependency>lzo</Dependency>
+            <Dependency>zstd</Dependency>
             <!--xz is in system.base-->
             <Dependency>zlib</Dependency>
 	    <Dependency>xz</Dependency>