A method for inline bus data compression and decompression is disclosed. In one embodiment, data is selected for transfer via a data bus, the data is divided into byte sized divisions of the bus width, and each byte is compressed by an individual compression engine. The data is then properly sequenced, aligned and recombined and further transmitted in its compressed state. When required to be decompressed, the compressed data is again divided into bytes of compressed data, each byte being decompressed individually, and then restored to the bus in its uncompressed form, in essence, in the reverse order of the compression process.