A compressor may include a shell, first and second scrolls, a seal assembly, a modulation control chamber, and a modulation control valve. The first scroll may include a first end plate having a biasing passage extending therethrough. The seal assembly may isolate a discharge pressure region from a suction pressure region. The seal assembly and the first scroll may define an axial biasing chamber therebetween that communicates with the axial biasing chamber and a first pocket between the first and second scrolls. The modulation control chamber may be fluidly coupled with the biasing chamber by a first passage. The modulation control valve may be fluidly coupled with the modulation control chamber by a second passage and movable between a first position allowing communication between the second passage and the suction pressure region and a second position restricting communication between the second passage and the suction pressure region.