A parallel decompression system and method that decompresses input compressed data in one or more decompression cycles, with a plurality of tokens typically being decompressed in each cycle in parallel. A parallel decompression engine may include an input for receiving compressed data, a history window, and a plurality of decoders for examining and decoding a plurality of tokens from the compressed data in parallel in a series of decompression cycles. Several devices are described that may include the parallel decompression engine, including intelligent devices, network devices, adapters and other network connection devices, consumer devices, set-top boxes, digital-to-analog and analog-to-digital converters, digital data recording, reading and storage devices, optical data recording, reading and storage devices, solid state storage devices, processors, bus bridges, memory modules, and cache controllers.