diff --git a/.changelog/4300.txt b/.changelog/4300.txt
new file mode 100644
index 0000000000..b2f83cf6f2
--- /dev/null
+++ b/.changelog/4300.txt
@@ -0,0 +1,3 @@
+```release-note:enhancement
+resource/cloudflare_ruleset: add support for `zstd` compression in the `compress_response` action
+```
diff --git a/docs/resources/ruleset.md b/docs/resources/ruleset.md
index 46ffbadcfb..52006e56e3 100644
--- a/docs/resources/ruleset.md
+++ b/docs/resources/ruleset.md
@@ -551,7 +551,7 @@ Optional:
 
 Required:
 
-- `name` (String) Name of the compression algorithm to use. Available values: `gzip`, `brotli`, `auto`, `default`, `none`
+- `name` (String) Name of the compression algorithm to use. Available values: `zstd`, `gzip`, `brotli`, `auto`, `default`, `none`
 
 
 <a id="nestedblock--rules--action_parameters--autominify"></a>
diff --git a/internal/framework/service/rulesets/schema.go b/internal/framework/service/rulesets/schema.go
index ffde7c96a3..928813301c 100644
--- a/internal/framework/service/rulesets/schema.go
+++ b/internal/framework/service/rulesets/schema.go
@@ -324,9 +324,9 @@ func (r *RulesetResource) Schema(ctx context.Context, req resource.SchemaRequest
 											Attributes: map[string]schema.Attribute{
 												"name": schema.StringAttribute{
 													Required:            true,
-													MarkdownDescription: fmt.Sprintf("Name of the compression algorithm to use. %s", utils.RenderAvailableDocumentationValuesStringSlice([]string{"gzip", "brotli", "auto", "default", "none"})),
+													MarkdownDescription: fmt.Sprintf("Name of the compression algorithm to use. %s", utils.RenderAvailableDocumentationValuesStringSlice([]string{"zstd", "gzip", "brotli", "auto", "default", "none"})),
 													Validators: []validator.String{
-														stringvalidator.OneOf("gzip", "brotli", "auto", "default", "none"),
+														stringvalidator.OneOf("zstd", "gzip", "brotli", "auto", "default", "none"),
 													},
 												},
 											},