diff --git a/library/src/main/java/com/readystatesoftware/chuck/ChuckInterceptor.java b/library/src/main/java/com/readystatesoftware/chuck/ChuckInterceptor.java
index 2712ad72..f0f973bf 100644
--- a/library/src/main/java/com/readystatesoftware/chuck/ChuckInterceptor.java
+++ b/library/src/main/java/com/readystatesoftware/chuck/ChuckInterceptor.java
@@ -18,6 +18,7 @@
 import android.content.ContentValues;
 import android.content.Context;
 import android.net.Uri;
+import android.util.Log;
 
 import com.readystatesoftware.chuck.internal.data.ChuckContentProvider;
 import com.readystatesoftware.chuck.internal.data.HttpTransaction;
@@ -42,6 +43,8 @@
 import okhttp3.internal.http.HttpHeaders;
 import okio.Buffer;
 import okio.BufferedSource;
+import okio.GzipSource;
+import okio.Okio;
 
 /**
  * An OkHttp Interceptor which persists and displays HTTP activity in your application for later inspection.
@@ -67,6 +70,7 @@ public enum Period {
         FOREVER
     }
 
+    private static final String LOG_TAG = "ChuckInterceptor";
     private static final Period DEFAULT_RETENTION = Period.ONE_WEEK;
     private static final Charset UTF8 = Charset.forName("UTF-8");
 
@@ -143,9 +147,10 @@ public ChuckInterceptor retainDataFor(Period period) {
             }
         }
 
-        transaction.setRequestBodyIsPlainText(!bodyEncoded(request.headers()));
+        transaction.setRequestBodyIsPlainText(!bodyHasUnsupportedEncoding(request.headers()));
         if (hasRequestBody && transaction.requestBodyIsPlainText()) {
-            Buffer buffer = new Buffer();
+            BufferedSource source = getNativeSource(new Buffer(), bodyGzipped(request.headers()));
+            Buffer buffer = source.buffer();
             requestBody.writeTo(buffer);
             Charset charset = UTF8;
             MediaType contentType = requestBody.contentType();
@@ -187,9 +192,9 @@ public ChuckInterceptor retainDataFor(Period period) {
         }
         transaction.setResponseHeaders(response.headers());
 
-        transaction.setResponseBodyIsPlainText(!bodyEncoded(response.headers()));
+        transaction.setResponseBodyIsPlainText(!bodyHasUnsupportedEncoding(response.headers()));
         if (HttpHeaders.hasBody(response) && transaction.responseBodyIsPlainText()) {
-            BufferedSource source = responseBody.source();
+            BufferedSource source = getNativeSource(response);
             source.request(Long.MAX_VALUE);
             Buffer buffer = source.buffer();
             Charset charset = UTF8;
@@ -259,9 +264,16 @@ private boolean isPlaintext(Buffer buffer) {
         }
     }
 
-    private boolean bodyEncoded(Headers headers) {
+    private boolean bodyHasUnsupportedEncoding(Headers headers) {
+        String contentEncoding = headers.get("Content-Encoding");
+        return contentEncoding != null &&
+                !contentEncoding.equalsIgnoreCase("identity") &&
+                !contentEncoding.equalsIgnoreCase("gzip");
+    }
+
+    private boolean bodyGzipped(Headers headers) {
         String contentEncoding = headers.get("Content-Encoding");
-        return contentEncoding != null && !contentEncoding.equalsIgnoreCase("identity");
+        return "gzip".equalsIgnoreCase(contentEncoding);
     }
 
     private String readFromBuffer(Buffer buffer, Charset charset) {
@@ -278,4 +290,25 @@ private String readFromBuffer(Buffer buffer, Charset charset) {
         }
         return body;
     }
+
+    private BufferedSource getNativeSource(BufferedSource input, boolean isGzipped) {
+        if (isGzipped) {
+            GzipSource source = new GzipSource(input);
+            return Okio.buffer(source);
+        } else {
+            return input;
+        }
+    }
+
+    private BufferedSource getNativeSource(Response response) throws IOException {
+        if (bodyGzipped(response.headers())) {
+            BufferedSource source = response.peekBody(maxContentLength).source();
+            if (source.buffer().size() < maxContentLength) {
+                return getNativeSource(source, true);
+            } else {
+                Log.w(LOG_TAG, "gzip encoded response was too long");
+            }
+        }
+        return response.body().source();
+    }
 }
diff --git a/sample/src/main/java/com/readystatesoftware/chuck/sample/MainActivity.java b/sample/src/main/java/com/readystatesoftware/chuck/sample/MainActivity.java
index 5576c430..7e29e5bd 100644
--- a/sample/src/main/java/com/readystatesoftware/chuck/sample/MainActivity.java
+++ b/sample/src/main/java/com/readystatesoftware/chuck/sample/MainActivity.java
@@ -66,7 +66,7 @@ private void doHttpActivity() {
         SampleApiService.HttpbinApi api = SampleApiService.getInstance(getClient(this));
         Callback<Void> cb = new Callback<Void>() {
             @Override public void onResponse(Call call, Response response) {}
-            @Override public void onFailure(Call call, Throwable t) {}
+            @Override public void onFailure(Call call, Throwable t) { t.printStackTrace(); }
         };
         api.get().enqueue(cb);
         api.post(new SampleApiService.Data("posted")).enqueue(cb);