diff --git a/README.md b/README.md
index 20b47014ceff5ac4acef01e7ea5cdb2b180be4a1..8bae11754675bfd11d79d2aca2e9accd6620ed86 100644
--- a/README.md
+++ b/README.md
@@ -31,7 +31,7 @@ Install the freedombone commands onto your laptop/desktop:
 
 Then install packages needed for building images:
 
-    sudo apt-get -y install python-docutils mktorrent vmdebootstrap
+    sudo apt-get -y install python-docutils mktorrent vmdebootstrap xz-utils
     sudo apt-get -y install dosfstools btrfs-tools extlinux python-distro-info mbr
     sudo apt-get -y install qemu-user-static binfmt-support u-boot-tools qemu
 
@@ -99,7 +99,7 @@ And the hash with:
 
 If the image is compressed then decompress it with:
 
-    tar -xjvf filename.tar.bz2
+    unxz filename.img.xz
 
 Then copy it to a microSD card. Depending on your system you may need an adaptor to be able to do that.
 
diff --git a/doc/EN/installation.org b/doc/EN/installation.org
index 710e487490a8225c4dba534fd0701f2dee3c1f12..64b37a04e0cba3144a37cbb23d26c07d2c16c516 100644
--- a/doc/EN/installation.org
+++ b/doc/EN/installation.org
@@ -41,7 +41,7 @@ sudo make install
 Then install packages needed for building images:
 
 #+BEGIN_SRC bash
-sudo apt-get -y install python-docutils mktorrent vmdebootstrap
+sudo apt-get -y install python-docutils mktorrent vmdebootstrap xz-utils
 sudo apt-get -y install dosfstools btrfs-tools extlinux python-distro-info mbr
 sudo apt-get -y install qemu-user-static binfmt-support u-boot-tools qemu
 #+END_SRC
@@ -120,7 +120,7 @@ sha256sum filename.img
 If the image is compressed then decompress it with:
 
 #+BEGIN_SRC bash
-tar -xjvf filename.tar.bz2
+unxz filename.img.xz
 #+END_SRC
 
 Then copy it to a microSD card. Depending on your system you may need an adaptor to be able to do that.
diff --git a/man/freedombone-image.1.gz b/man/freedombone-image.1.gz
index 8f6a2e64c0742f13e05646a7cb9d9a5a2fbd5f87..2d32020b5ef3e716511cadfd7b359574a3c0e902 100644
Binary files a/man/freedombone-image.1.gz and b/man/freedombone-image.1.gz differ
diff --git a/man/freedombone.1.gz b/man/freedombone.1.gz
index 8192e349a858df55d75c02dd411c73e210e96965..5bda9d1db95f83cafe69e91822488d8be6858ca4 100644
Binary files a/man/freedombone.1.gz and b/man/freedombone.1.gz differ
diff --git a/src/freedombone-image b/src/freedombone-image
index 8e7030778acdc2bd6f2dab711e6203f37e95623f..620ec6ca2a26c94cda1583e684da15603fac4b08 100755
--- a/src/freedombone-image
+++ b/src/freedombone-image
@@ -231,7 +231,7 @@ if [ ! $PASSWORD ]; then
     PASSWORD="$(openssl rand -base64 10 | cut -c1-8)"
 fi
 
-image_types=( bz2 img sig vdi qcow2 )
+image_types=( xz img sig vdi qcow2 )
 for im in "${image_types[@]}"
 do
     no_of_files=$(ls -afq ${CURR_DIR}/${PROJECT_NAME}*.${im} | wc -l)
@@ -348,7 +348,7 @@ else
 "
     fi
 fi
-ls -lh ${PROJECT_NAME}*.img ${PROJECT_NAME}*.sig ${PROJECT_NAME}*.bz2 ${PROJECT_NAME}*.vdi ${PROJECT_NAME}*.qcow2
+ls -lh ${PROJECT_NAME}*.img ${PROJECT_NAME}*.sig ${PROJECT_NAME}*.xz ${PROJECT_NAME}*.vdi ${PROJECT_NAME}*.qcow2
 
 # Remove the mesh script after use
 if [[ $VARIANT == "mesh"* ]]; then
diff --git a/src/freedombone-image-makefile b/src/freedombone-image-makefile
index 19499b9bc33ce1bca2aec7bcf1cbb8b0adbda838..0a77f08cb56e8d7c47fb316125b5782dd3c80534 100755
--- a/src/freedombone-image-makefile
+++ b/src/freedombone-image-makefile
@@ -40,10 +40,10 @@ BUILD = $(MACHINE)-$(ARCHITECTURE)
 TODAY := $(shell date +%Y-%m-%d)
 NAME = build/$(PROJECT_NAME)-$(IMAGE_NAME)-$(TODAY)_$(BUILD)
 IMAGE = $(NAME).img
-ARCHIVE = $(NAME).tar.bz2
+ARCHIVE = $(IMAGE).xz
 SIGNATURE = $(ARCHIVE).sig
 OWNER = 1000
-TAR = tar --checkpoint=1000 --checkpoint-action=dot -cjvf
+XZ = xz --no-warn --best --verbose
 SIGN = -gpg --output $(SIGNATURE) --detach-sig $(ARCHIVE)
 
 # settings for `make test`
@@ -83,7 +83,8 @@ beaglebone: prep
 	$(eval ARCHITECTURE = armhf)
 	$(eval MACHINE = beaglebone)
 	$(MAKE_IMAGE)
-	$(TAR) $(ARCHIVE) $(IMAGE)
+	@rm -f $(ARCHIVE)
+	$(XZ) $(IMAGE)
 	@echo ""
 	$(SIGN)
 	@echo "Build complete."
@@ -93,7 +94,8 @@ cubieboard2: prep
 	$(eval ARCHITECTURE = armhf)
 	$(eval MACHINE = cubieboard2)
 	$(MAKE_IMAGE)
-	$(TAR) $(ARCHIVE) $(IMAGE)
+	@rm -f $(ARCHIVE)
+	$(XZ) $(IMAGE)
 	@echo ""
 	$(SIGN)
 	@echo "Build complete."
@@ -103,7 +105,8 @@ cubietruck: prep
 	$(eval ARCHITECTURE = armhf)
 	$(eval MACHINE = cubietruck)
 	$(MAKE_IMAGE)
-	$(TAR) $(ARCHIVE) $(IMAGE)
+	@rm -f $(ARCHIVE)
+	$(XZ) $(IMAGE)
 	@echo ""
 	$(SIGN)
 	@echo "Build complete."
@@ -113,7 +116,8 @@ a20-olinuxino-lime2: prep
 	$(eval ARCHITECTURE = armhf)
 	$(eval MACHINE = a20-olinuxino-lime2)
 	$(MAKE_IMAGE)
-	$(TAR) $(ARCHIVE) $(IMAGE)
+	@rm -f $(ARCHIVE)
+	$(XZ) $(IMAGE)
 	@echo ""
 	$(SIGN)
 	@echo "Build complete."
@@ -123,7 +127,8 @@ a20-olinuxino-micro: prep
 	$(eval ARCHITECTURE = armhf)
 	$(eval MACHINE = a20-olinuxino-micro)
 	$(MAKE_IMAGE)
-	$(TAR) $(ARCHIVE) $(IMAGE)
+	@rm -f $(ARCHIVE)
+	$(XZ) $(IMAGE)
 	@echo ""
 	$(SIGN)
 	@echo "Build complete."
@@ -133,7 +138,8 @@ i386: prep
 	$(eval ARCHITECTURE = i386)
 	$(eval MACHINE = all)
 	$(MAKE_IMAGE)
-	$(TAR) $(ARCHIVE) $(IMAGE)
+	@rm -f $(ARCHIVE)
+	$(XZ) $(IMAGE)
 	@echo ""
 	$(SIGN)
 	@echo "Build complete."
@@ -143,7 +149,8 @@ amd64: prep
 	$(eval ARCHITECTURE = amd64)
 	$(eval MACHINE = all)
 	$(MAKE_IMAGE)
-	$(TAR) $(ARCHIVE) $(IMAGE)
+	@rm -f $(ARCHIVE)
+	$(XZ) $(IMAGE)
 	@echo ""
 	$(SIGN)
 	@echo "Build complete."
@@ -157,7 +164,8 @@ virtualbox-i386: prep
 	$(MAKE_IMAGE)
 	# Convert image to vdi hard drive
 	VBoxManage convertdd $(NAME).img $(NAME).vdi
-	$(TAR) $(ARCHIVE) $(NAME).vdi
+	@rm -f $(ARCHIVE)
+	$(XZ) $(IMAGE)
 	@echo ""
 	$(SIGN)
 	@echo "Build complete."
@@ -168,7 +176,8 @@ virtualbox-amd64: prep
 	$(MAKE_IMAGE)
 	# Convert image to vdi hard drive
 	VBoxManage convertdd $(NAME).img $(NAME).vdi
-	$(TAR) $(ARCHIVE) $(NAME).vdi
+	@rm -f $(ARCHIVE)
+	$(XZ) $(IMAGE)
 	@echo ""
 	$(SIGN)
 	@echo "Build complete."
@@ -204,7 +213,8 @@ qemu-i386: prep
 	$(MAKE_IMAGE)
 	# Convert image to qemu format
 	qemu-img convert -O qcow2 $(NAME).img $(NAME).qcow2
-	$(TAR) $(ARCHIVE) $(NAME).qcow2
+	@rm -f $(ARCHIVE)
+	$(XZ) $(IMAGE)
 	@echo ""
 	$(SIGN)
 	@echo "Build complete."
@@ -215,7 +225,8 @@ qemu-x86_64: prep
 	$(MAKE_IMAGE)
 	# Convert image to qemu format
 	qemu-img convert -O qcow2 $(NAME).img $(NAME).qcow2
-	$(TAR) $(ARCHIVE) $(NAME).qcow2
+	@rm -f $(ARCHIVE)
+	$(XZ) $(IMAGE)
 	@echo ""
 	$(SIGN)
 	@echo "Build complete."
diff --git a/website/EN/installation.html b/website/EN/installation.html
index cce9e14c6987e45daf711d5c68c53c490a4940ae..35a293c4dc1967a1d94f614788b872a14a4903cf 100644
--- a/website/EN/installation.html
+++ b/website/EN/installation.html
@@ -3,7 +3,7 @@
 "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">
 <html xmlns="http://www.w3.org/1999/xhtml" lang="en" xml:lang="en">
 <head>
-<!-- 2016-01-08 Fri 14:41 -->
+<!-- 2016-01-14 Thu 11:07 -->
 <meta  http-equiv="Content-Type" content="text/html;charset=utf-8" />
 <meta  name="viewport" content="width=device-width, initial-scale=1" />
 <title></title>
@@ -234,7 +234,7 @@ Then install packages needed for building images:
 
 <div class="org-src-container">
 
-<pre class="src src-bash">sudo apt-get -y install python-docutils mktorrent vmdebootstrap
+<pre class="src src-bash">sudo apt-get -y install python-docutils mktorrent vmdebootstrap xz-utils
 sudo apt-get -y install dosfstools btrfs-tools extlinux python-distro-info mbr
 sudo apt-get -y install qemu-user-static binfmt-support u-boot-tools qemu
 </pre>
@@ -372,7 +372,7 @@ If the image is compressed then decompress it with:
 
 <div class="org-src-container">
 
-<pre class="src src-bash">tar -xjvf filename.tar.bz2
+<pre class="src src-bash">unxz filename.img.xz
 </pre>
 </div>