A compressor is provided and may include a shell assembly defining a suction pressure region and a discharge pressure region. A first scroll member may include a first discharge port and a first modulation port. A second scroll member may include a first variable volume ratio port. A capacity modulation valve assembly may be in fluid communication with the first modulation port and may be displaceable between open and closed positions to selectively provide communication between a first intermediate compression pocket and the suction pressure region via the first modulation port. A variable volume ratio valve assembly may be in fluid communication with the first variable volume ratio port. The variable volume ratio valve assembly may be displaceable between open and closed positions to selectively provide communication between a second intermediate compression pocket and the discharge pressure region via the first variable volume ratio port.