diff --git a/build/Dockerfile.alpine b/build/Dockerfile.alpine
index 1888b70..203b2d7 100644
--- a/build/Dockerfile.alpine
+++ b/build/Dockerfile.alpine
@@ -27,6 +27,7 @@ RUN apk add --no-cache \
     bc \
     perl \
     python3 \
+    upx \
     # Kernel build dependencies
     linux-lts-dev \
     linux-lts \
diff --git a/scripts/compile-components.sh b/scripts/compile-components.sh
index 22d55a0..f8ce172 100755
--- a/scripts/compile-components.sh
+++ b/scripts/compile-components.sh
@@ -70,6 +70,7 @@ build_component() {
         }
     elif [ "$component" = "rfs" ]; then
         # Build RFS with required features
+        echo "    Removing "
         echo "    Running: cargo build --release --target x86_64-unknown-linux-musl --features build-binary"
         CARGO_TARGET_DIR="$WORKSPACE_ROOT/target" cargo build --release --target x86_64-unknown-linux-musl --features build-binary
     else
@@ -82,6 +83,37 @@ build_component() {
     return 0
 }
 
+# Function to optimize binaries (strip + upx)
+optimize_binary() {
+    local binary_path="$1"
+    local binary_name=$(basename "$binary_path")
+    
+    if [ ! -f "$binary_path" ]; then
+        echo "    ⚠ Binary not found for optimization: $binary_path"
+        return 1
+    fi
+    
+    local original_size=$(stat -c%s "$binary_path")
+    
+    # Strip debug symbols and unnecessary sections
+    echo "    Stripping $binary_name..."
+    strip --strip-all "$binary_path" 2>/dev/null || {
+        echo "    ⚠ Failed to strip $binary_name"
+    }
+    
+    local stripped_size=$(stat -c%s "$binary_path")
+    
+    # Compress with UPX (with fallback if UPX fails)
+    echo "    Compressing $binary_name with UPX..."
+    if upx --best --lzma "$binary_path" 2>/dev/null; then
+        local final_size=$(stat -c%s "$binary_path")
+        echo "    ✓ $binary_name optimized: $original_size → $stripped_size → $final_size bytes"
+    else
+        echo "    ⚠ UPX compression failed for $binary_name, keeping stripped version"
+        echo "    ✓ $binary_name stripped: $original_size → $stripped_size bytes"
+    fi
+}
+
 # Function to install workspace binaries
 install_component_binaries() {
     local target_dir="$WORKSPACE_ROOT/target/x86_64-unknown-linux-musl/release"
@@ -106,7 +138,12 @@ install_component_binaries() {
         cp "$target_dir/zinit" "$ALPINE_ROOT/sbin/"
         cp "$target_dir/zinit" "$OUTPUT_DIR/"
         chmod +x "$ALPINE_ROOT/sbin/zinit"
-        echo "    ✓ zinit -> /sbin/zinit"
+        
+        # Optimize binaries
+        optimize_binary "$ALPINE_ROOT/sbin/zinit"
+        optimize_binary "$OUTPUT_DIR/zinit"
+        
+        echo "    ✓ zinit -> /sbin/zinit (optimized)"
         installed=$((installed + 1))
     else
         echo "    ✗ zinit binary not found"
@@ -125,7 +162,12 @@ install_component_binaries() {
         cp "$target_dir/$rfs_binary" "$ALPINE_ROOT/usr/bin/rfs"
         cp "$target_dir/$rfs_binary" "$OUTPUT_DIR/rfs"
         chmod +x "$ALPINE_ROOT/usr/bin/rfs"
-        echo "    ✓ $rfs_binary -> /usr/bin/rfs"
+        
+        # Optimize binaries
+        optimize_binary "$ALPINE_ROOT/usr/bin/rfs"
+        optimize_binary "$OUTPUT_DIR/rfs"
+        
+        echo "    ✓ $rfs_binary -> /usr/bin/rfs (optimized)"
         installed=$((installed + 1))
     else
         echo "    ✗ rfs binary not found (checked: rfs, rfs-server, rfs-bin)"
@@ -144,7 +186,12 @@ install_component_binaries() {
         cp "$target_dir/$mycelium_binary" "$ALPINE_ROOT/usr/bin/mycelium"
         cp "$target_dir/$mycelium_binary" "$OUTPUT_DIR/mycelium"
         chmod +x "$ALPINE_ROOT/usr/bin/mycelium"
-        echo "    ✓ $mycelium_binary -> /usr/bin/mycelium"
+        
+        # Optimize binaries
+        optimize_binary "$ALPINE_ROOT/usr/bin/mycelium"
+        optimize_binary "$OUTPUT_DIR/mycelium"
+        
+        echo "    ✓ $mycelium_binary -> /usr/bin/mycelium (optimized)"
         installed=$((installed + 1))
     else
         echo "    ✗ mycelium binary not found (checked: mycelium, myceliumd, mycelium-cli)"