diff --git a/sync/src/local_node.rs b/sync/src/local_node.rs
index 97077c34..d46fe4be 100644
--- a/sync/src/local_node.rs
+++ b/sync/src/local_node.rs
@@ -443,4 +443,36 @@ mod tests {
 			}
 		}
 	}
+
+	#[test]
+	fn local_node_serves_compactblock() {
+		let (_, _, _, server, local_node) = create_local_node();
+
+		let genesis = test_data::genesis();
+		let b1 = test_data::block_builder().header().parent(genesis.hash()).build()
+			.transaction().output().value(10).build().build()
+			.build(); // genesis -> b1
+		let b1_hash = b1.hash();
+
+		// This peer will provide blocks
+		let peer_index1 = local_node.create_sync_session(0, DummyOutboundSyncConnection::new());
+		local_node.on_peer_block(peer_index1, types::Block { block: b1.clone() });
+
+		// This peer will receive compact block
+		let peer_index2 = local_node.create_sync_session(0, DummyOutboundSyncConnection::new());
+		local_node.on_peer_getdata(peer_index2, types::GetData {inventory: vec![
+				InventoryVector { inv_type: InventoryType::MessageCompactBlock, hash: b1_hash.clone() },
+			]});
+		let tasks = server.take_tasks();
+		assert_eq!(tasks.len(), 1);
+		match tasks[0] {
+			(_, ServerTask::ServeGetData(ref gd)) => {
+				assert_eq!(gd.filtered.len(), 0);
+				assert_eq!(gd.unfiltered.len(), 0);
+				assert_eq!(gd.notfound.len(), 0);
+				assert_eq!(gd.compacted.len(), 1);
+			},
+			_ => panic!("unexpected"),
+		}
+	}
 }
diff --git a/sync/src/synchronization_client.rs b/sync/src/synchronization_client.rs
index 017c3fa8..8b4841dc 100644
--- a/sync/src/synchronization_client.rs
+++ b/sync/src/synchronization_client.rs
@@ -238,7 +238,9 @@ pub struct Config {
 pub struct FilteredInventory {
 	/// Merkleblock messages + transactions to send after
 	pub filtered: Vec<(types::MerkleBlock, Vec<(H256, Transaction)>)>,
-	/// Rest of inventory with MessageTx, MessageBlock, MessageCompactBlock inventory types
+	/// Compactblock messages
+	pub compacted: Vec<types::CompactBlock>,
+	/// Rest of inventory with MessageTx, MessageBlock inventory types
 	pub unfiltered: Vec<InventoryVector>,
 	/// Items that were supposed to be filtered, but we know nothing about these
 	pub notfound: Vec<InventoryVector>,
@@ -300,6 +302,7 @@ impl FilteredInventory {
 	pub fn with_unfiltered(unfiltered: Vec<InventoryVector>) -> Self {
 		FilteredInventory {
 			filtered: Vec::new(),
+			compacted: Vec::new(),
 			unfiltered: unfiltered,
 			notfound: Vec::new(),
 		}
@@ -309,6 +312,7 @@ impl FilteredInventory {
 	pub fn with_notfound(notfound: Vec<InventoryVector>) -> Self {
 		FilteredInventory {
 			filtered: Vec::new(),
+			compacted: Vec::new(),
 			unfiltered: Vec::new(),
 			notfound: notfound,
 		}
@@ -460,9 +464,10 @@ impl<T> ClientCore for SynchronizationClientCore<T> where T: TaskExecutor {
 
 	/// Filter inventory from `getdata` message for given peer
 	fn filter_getdata_inventory(&mut self, peer_index: usize, inventory: Vec<InventoryVector>) -> FilteredInventory {
-		let chain = self.chain.read();
+		let storage = {	self.chain.read().storage() };
 		let mut filter = self.peers.filter_mut(peer_index);
 		let mut filtered: Vec<(types::MerkleBlock, Vec<(H256, Transaction)>)> = Vec::new();
+		let mut compacted: Vec<types::CompactBlock> = Vec::new();
 		let mut unfiltered: Vec<InventoryVector> = Vec::new();
 		let mut notfound: Vec<InventoryVector> = Vec::new();
 
@@ -473,12 +478,30 @@ impl<T> ClientCore for SynchronizationClientCore<T> where T: TaskExecutor {
 				// 2) build && send `merkleblock` message for this block
 				// 3) send all matching transactions after this block
 				InventoryType::MessageFilteredBlock => {
-					match chain.storage().block(db::BlockRef::Hash(item.hash.clone())) {
+					match storage.block(db::BlockRef::Hash(item.hash.clone())) {
 						None => notfound.push(item),
 						Some(block) => match filter.build_merkle_block(block) {
 							None => notfound.push(item),
 							Some(merkleblock) => filtered.push((merkleblock.merkleblock, merkleblock.matching_transactions)),
-						}
+						},
+					}
+				},
+				// peer asks for compact block:
+				InventoryType::MessageCompactBlock => {
+					match storage.block(db::BlockRef::Hash(item.hash.clone())) {
+						None => notfound.push(item),
+						Some(block) => {
+							let indexed_block: IndexedBlock = block.into();
+							let prefilled_transactions_indexes = indexed_block.transactions().enumerate()
+								// we do not filter by fee rate here, because it only reasonable for non-mined transactions
+								.filter(|&(_, (h, t))| filter.filter_transaction(h, t, None))
+								.map(|(idx, _)| idx)
+								.collect();
+							let compact_block = types::CompactBlock {
+								header: build_compact_block(indexed_block, prefilled_transactions_indexes),
+							};
+							compacted.push(compact_block);
+						},
 					}
 				},
 				// these will be filtered (found/not found) in sync server
@@ -488,6 +511,7 @@ impl<T> ClientCore for SynchronizationClientCore<T> where T: TaskExecutor {
 
 		FilteredInventory {
 			filtered: filtered,
+			compacted: compacted,
 			unfiltered: unfiltered,
 			notfound: notfound,
 		}
diff --git a/sync/src/synchronization_server.rs b/sync/src/synchronization_server.rs
index f0692d4f..5dd4d218 100644
--- a/sync/src/synchronization_server.rs
+++ b/sync/src/synchronization_server.rs
@@ -104,6 +104,7 @@ pub enum ServerTask {
 	ReturnNotFound(Vec<InventoryVector>),
 	ReturnBlock(H256),
 	ReturnMerkleBlock(types::MerkleBlock),
+	ReturnCompactBlock(types::CompactBlock),
 	ReturnTransaction(Transaction),
 }
 
@@ -168,6 +169,10 @@ impl SynchronizationServer {
 							new_tasks.extend(transactions.into_iter().map(|(_, t)|
 								IndexedServerTask::new(ServerTask::ReturnTransaction(t), ServerTaskIndex::None)));
 						}
+						// process compactblock items
+						for compactblock in inventory.compacted {
+							new_tasks.push(IndexedServerTask::new(ServerTask::ReturnCompactBlock(compactblock), ServerTaskIndex::None));
+						}
 						// extend with unknown merkleitems
 						unknown_items.extend(inventory.notfound);
 						// process unfiltered items
@@ -191,7 +196,11 @@ impl SynchronizationServer {
 										None => unknown_items.push(item),
 									}
 								},
-								_ => (), // TODO: process other inventory types
+								// we have no enough information here => it must be filtered by caller
+								InventoryType::MessageCompactBlock => unreachable!(),
+								// we have no enough information here => it must be filtered by caller
+								InventoryType::MessageFilteredBlock => unreachable!(),
+								_ => (),
 							}
 						}
 					}
@@ -334,6 +343,10 @@ impl SynchronizationServer {
 				ServerTask::ReturnMerkleBlock(merkleblock) => {
 					executor.lock().execute(Task::SendMerkleBlock(peer_index, merkleblock));
 				},
+				// `cmpctblock`
+				ServerTask::ReturnCompactBlock(compactblock) => {
+					executor.lock().execute(Task::SendCompactBlocks(peer_index, vec![compactblock.header]))
+				}
 				// `tx`
 				ServerTask::ReturnTransaction(transaction) => {
 					executor.lock().execute(Task::SendTransaction(peer_index, transaction));