A mechanism is described for facilitating interpolated minimum-maximum compression/decompression for efficient processing of graphics data at computing devices. A method of embodiments, as described herein, includes detecting a tile having pixels representing graphics contents capable of being processed by a graphics processor of a computing device; computing a minimum color value and a maximum color value of the tile. The method may further include splitting the tile into a plurality of interpolation tiles, where each interpolation tile includes a set of pixels of one or more colors. The method may further include computing a plurality of local minimum color values for the plurality of interpolation tiles, computing, based on the plurality of local minimum values, a plurality of residuals for the plurality of interpolation tiles to reduce spreads from the plurality of interpolation tiles, and compressing the reduced plurality of interpolation tiles based on the plurality of residuals.