diff --git a/buildSrc/src/main/groovy/Classpaths.groovy b/buildSrc/src/main/groovy/Classpaths.groovy
index fbe8f05c96f..c5b806dd1f6 100644
--- a/buildSrc/src/main/groovy/Classpaths.groovy
+++ b/buildSrc/src/main/groovy/Classpaths.groovy
@@ -46,7 +46,7 @@ class Classpaths {
     static final String COMMONS_GROUP = 'org.apache.commons'
 
     static final String ARROW_GROUP = 'org.apache.arrow'
-    static final String ARROW_VERSION = '11.0.0'
+    static final String ARROW_VERSION = '12.0.1'
 
     static final String SLF4J_GROUP = 'org.slf4j'
     static final String SLF4J_VERSION = '2.0.6'
diff --git a/extensions/arrow/build.gradle b/extensions/arrow/build.gradle
index 453c2456ede..93996ff889a 100644
--- a/extensions/arrow/build.gradle
+++ b/extensions/arrow/build.gradle
@@ -13,6 +13,7 @@ dependencies {
 
     Classpaths.inheritArrow(project, 'arrow-format', 'implementation')
     Classpaths.inheritArrow(project, 'arrow-vector', 'implementation')
+    Classpaths.inheritArrow(project, 'arrow-compression', 'implementation')
 
     testImplementation TestTools.projectDependency(project, 'engine-table'),
             TestTools.projectDependency(project, 'Util')
diff --git a/extensions/arrow/src/main/java/io/deephaven/extensions/arrow/ArrowWrapperTools.java b/extensions/arrow/src/main/java/io/deephaven/extensions/arrow/ArrowWrapperTools.java
index ad9c1c8f957..2c92c8a3410 100644
--- a/extensions/arrow/src/main/java/io/deephaven/extensions/arrow/ArrowWrapperTools.java
+++ b/extensions/arrow/src/main/java/io/deephaven/extensions/arrow/ArrowWrapperTools.java
@@ -52,6 +52,7 @@
 import io.deephaven.util.annotations.TestUseOnly;
 import io.deephaven.util.datastructures.LongSizedDataStructure;
 import io.deephaven.util.datastructures.SizeException;
+import org.apache.arrow.compression.CommonsCompressionFactory;
 import org.apache.arrow.flatbuf.Message;
 import org.apache.arrow.flatbuf.RecordBatch;
 import org.apache.arrow.memory.BufferAllocator;
@@ -403,7 +404,8 @@ private Shareable newShareable() {
             } catch (IOException e) {
                 throw new UncheckedIOException(e);
             }
-            return new Shareable(this, new ArrowFileReader(channel, rootAllocator));
+            return new Shareable(this, new ArrowFileReader(
+                    channel, rootAllocator, CommonsCompressionFactory.INSTANCE));
         }
 
         @NotNull