diff --git a/README.md b/README.md
index 1f5c074c..70d189f7 100644
--- a/README.md
+++ b/README.md
@@ -1,6 +1,6 @@
 # angel_proxy
 
-[![version 1.0.4](https://img.shields.io/badge/version-1.0.4-brightgreen.svg)](https://pub.dartlang.org/packages/angel_proxy)
+[![version 1.0.5](https://img.shields.io/badge/version-1.0.5-brightgreen.svg)](https://pub.dartlang.org/packages/angel_proxy)
 [![build status](https://travis-ci.org/angel-dart/proxy.svg)](https://travis-ci.org/angel-dart/proxy)
 
 Angel middleware to forward requests to another server (i.e. pub serve).
diff --git a/lib/src/proxy_layer.dart b/lib/src/proxy_layer.dart
index c171c19a..a313a39b 100644
--- a/lib/src/proxy_layer.dart
+++ b/lib/src/proxy_layer.dart
@@ -140,11 +140,13 @@ class ProxyLayer {
         ..persistentConnection = from.persistentConnection
         ..port = from.port;
 
-      if (rs.headers[HttpHeaders.CONTENT_ENCODING] != null)
-        res.io.headers.set(HttpHeaders.CONTENT_ENCODING,
-            rs.headers[HttpHeaders.CONTENT_ENCODING]);
+      _printDebug('Outgoing content length: ${res.io.contentLength}');
 
-      await rs.pipe(res.io);
+      if (rs.headers[HttpHeaders.CONTENT_ENCODING]?.contains('gzip') == true) {
+        res.io.headers.set(HttpHeaders.CONTENT_ENCODING, 'gzip');
+        await rs.transform(GZIP.encoder).pipe(res.io);
+      } else
+        await rs.pipe(res.io);
     } else {
       rs.headers.forEach((k, v) {
         if (k != HttpHeaders.CONTENT_ENCODING || !v.contains('gzip'))
diff --git a/pubspec.yaml b/pubspec.yaml
index e34b7941..5f3d05cf 100644
--- a/pubspec.yaml
+++ b/pubspec.yaml
@@ -1,6 +1,6 @@
 name: angel_proxy
 description: Angel middleware to forward requests to another server (i.e. pub serve).
-version: 1.0.4
+version: 1.0.5
 author: Tobe O <thosakwe@gmail.com>
 homepage: https://github.com/angel-dart/proxy
 environment:
diff --git a/test/pub_serve_test.dart b/test/pub_serve_test.dart
index 955b89e5..36fdf5b5 100644
--- a/test/pub_serve_test.dart
+++ b/test/pub_serve_test.dart
@@ -20,7 +20,7 @@ main() {
     app = new Angel();
     app.get('/bar', (req, res) => res.write('normal'));
     var layer = new PubServeLayer(
-        publicPath: '/proxy', host: server.address.address, port: server.port);
+        debug: true, publicPath: '/proxy', host: server.address.address, port: server.port);
     print('streamToIO: ${layer.streamToIO}');
     await app.configure(layer);
 
@@ -49,7 +49,9 @@ main() {
     expect(response, hasHeader('content-encoding', 'gzip'));
 
     // Should have gzipped body
-    expect(response.body, 'pub serve');
+    //
+    // We have to decode it, because `mock_request` does not auto-decode.
+    expect(UTF8.decode(GZIP.decode(response.bodyBytes)), 'pub serve');
   });
 
   test('empty', () async {
@@ -59,7 +61,9 @@ main() {
     expect(response, hasHeader('content-encoding', 'gzip'));
 
     // Should have gzipped body
-    expect(response.bodyBytes, isEmpty);
+    //
+    // We have to decode it, because `mock_request` does not auto-decode.
+    expect(UTF8.decode(GZIP.decode(response.bodyBytes)), isEmpty);
   });
 
   test('normal', () async {