A method for compressing a stream of application layer network traffic communicated over a transport layer connection of a virtual private network connection between a client and a server using an appliance. The appliance intercepts one or more transport layer packets of a stream of application network traffic communicated via a transport layer connection of a virtual private network connection between a client and a server. The appliance accumulates data from a payload of the intercepted transport layer packets, determines data accumulated for transmission should be compressed based on one or more compression trigger, and compresses the accumulated data into a self-contained compression block for transmission.