diff --git a/Cargo.lock b/Cargo.lock
index 1e45b78..f845619 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -190,6 +190,27 @@ version = "1.5.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "a2bd12c1caf447e69cd4528f47f94d203fd2582878ecb9e9465484c4148a8223"
 
+[[package]]
+name = "bzip2"
+version = "0.4.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "bdb116a6ef3f6c3698828873ad02c3014b3c85cadb88496095628e3ef1e347f8"
+dependencies = [
+ "bzip2-sys",
+ "libc",
+]
+
+[[package]]
+name = "bzip2-sys"
+version = "0.1.11+1.0.8"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "736a955f3fa7875102d57c82b8cac37ec45224a07fd32d58f9f7a186b6cd4cdc"
+dependencies = [
+ "cc",
+ "libc",
+ "pkg-config",
+]
+
 [[package]]
 name = "camino"
 version = "1.1.6"
@@ -1726,6 +1747,7 @@ dependencies = [
 name = "obs-service-cargo"
 version = "0.8.15"
 dependencies = [
+ "bzip2",
  "clap",
  "flate2",
  "glob",
diff --git a/cargo/src/cli.rs b/cargo/src/cli.rs
index d61868c..c53573f 100644
--- a/cargo/src/cli.rs
+++ b/cargo/src/cli.rs
@@ -82,6 +82,7 @@ pub enum Compression {
     Xz,
     #[default]
     Zst,
+    Bz2,
 }
 
 #[derive(Debug)]
@@ -121,6 +122,7 @@ impl Display for Compression {
             Compression::Gz => "gz",
             Compression::Xz => "xz",
             Compression::Zst => "zst",
+            Compression::Bz2 => "bz2",
         };
         write!(f, "{}", msg)
     }
@@ -152,6 +154,7 @@ pub fn decompress(comp_type: &Compression, outdir: &Path, src: &Path) -> io::Res
         Compression::Gz => utils::decompress::targz(outdir, src),
         Compression::Xz => utils::decompress::tarxz(outdir, src),
         Compression::Zst => utils::decompress::tarzst(outdir, src),
+        Compression::Bz2 => utils::decompress::tarbz2(outdir, src),
     }
 }
 
diff --git a/cargo/src/utils/compress.rs b/cargo/src/utils/compress.rs
index 4938d51..67cc3e5 100644
--- a/cargo/src/utils/compress.rs
+++ b/cargo/src/utils/compress.rs
@@ -114,10 +114,15 @@ pub fn tarxz(
     tar_builder(&mut builder, prjdir, archive_files)
 }
 
-pub fn tarbz(
+pub fn tarbz2(
     outpath: impl AsRef<Path>,
     prjdir: impl AsRef<Path>,
     archive_files: &[impl AsRef<Path>],
 ) -> io::Result<()> {
-    Ok(())
+    use bzip2::write::BzEncoder;
+    use bzip2::Compression;
+    let outtar = fs::File::create(outpath.as_ref())?;
+    let encoder = BzEncoder::new(outtar, Compression::best());
+    let mut builder = tar::Builder::new(encoder);
+    tar_builder(&mut builder, prjdir, archive_files)
 }
diff --git a/cargo/src/utils/decompress.rs b/cargo/src/utils/decompress.rs
index e81e017..6bfcc7d 100644
--- a/cargo/src/utils/decompress.rs
+++ b/cargo/src/utils/decompress.rs
@@ -15,7 +15,7 @@ use tar;
 #[allow(unused_imports)]
 use tracing::{debug, error, info, warn};
 
-pub fn targz(outdir: impl AsRef<Path>, srcpath: impl AsRef<Path>) -> Result<(), io::Error> {
+pub fn targz(outdir: impl AsRef<Path>, srcpath: impl AsRef<Path>) -> io::Result<()> {
     use flate2::bufread::GzDecoder;
     let mut src = io::BufReader::new(fs::File::open(srcpath.as_ref())?);
     src.seek(io::SeekFrom::Start(0))?;
@@ -31,7 +31,7 @@ pub fn targz(outdir: impl AsRef<Path>, srcpath: impl AsRef<Path>) -> Result<(),
     })
 }
 
-pub fn tarzst(outdir: impl AsRef<Path>, srcpath: impl AsRef<Path>) -> Result<(), io::Error> {
+pub fn tarzst(outdir: impl AsRef<Path>, srcpath: impl AsRef<Path>) -> io::Result<()> {
     use zstd::Decoder;
     let mut src = io::BufReader::new(fs::File::open(srcpath.as_ref())?);
     src.seek(io::SeekFrom::Start(0))?;
@@ -47,7 +47,7 @@ pub fn tarzst(outdir: impl AsRef<Path>, srcpath: impl AsRef<Path>) -> Result<(),
     })
 }
 
-pub fn tarxz(outdir: impl AsRef<Path>, srcpath: impl AsRef<Path>) -> Result<(), io::Error> {
+pub fn tarxz(outdir: impl AsRef<Path>, srcpath: impl AsRef<Path>) -> io::Result<()> {
     use xz2::read::XzDecoder;
     let mut src = io::BufReader::new(fs::File::open(srcpath.as_ref())?);
     src.seek(io::SeekFrom::Start(0))?;
@@ -62,3 +62,20 @@ pub fn tarxz(outdir: impl AsRef<Path>, srcpath: impl AsRef<Path>) -> Result<(),
         );
     })
 }
+
+pub fn tarbz2(outdir: impl AsRef<Path>, srcpath: impl AsRef<Path>) -> io::Result<()> {
+    use bzip2::bufread::MultiBzDecoder;
+
+    let mut src = io::BufReader::new(fs::File::open(srcpath.as_ref())?);
+    src.seek(io::SeekFrom::Start(0))?;
+    let enc = MultiBzDecoder::new(src);
+    let mut ar = tar::Archive::new(enc);
+    Ok({
+        ar.unpack(outdir.as_ref())?;
+        debug!(
+            "Successfully decompressed Bz2 archive from {} to {}",
+            srcpath.as_ref().to_string_lossy(),
+            outdir.as_ref().to_string_lossy(),
+        );
+    })
+}
diff --git a/cargo/src/vendor.rs b/cargo/src/vendor.rs
index 3915bd6..6d71cff 100644
--- a/cargo/src/vendor.rs
+++ b/cargo/src/vendor.rs
@@ -184,6 +184,23 @@ pub fn compress(
                 })?;
                 debug!("Compressed to {}", vendor_out.to_string_lossy());
             }
+            Compression::Bz2 => {
+                vendor_out.set_extension("tar.bz2");
+                if vendor_out.exists() {
+                    warn!(
+                        replacing = ?vendor_out,
+                        "🔦 Compressed tarball for vendor exists AND will be replaced."
+                    );
+                }
+                compress::tarbz2(&vendor_out, &prjdir, paths_to_archive).map_err(|err| {
+                    error!(?err, "bz2 compression failed");
+                    OBSCargoError::new(
+                        OBSCargoErrorKind::VendorCompressionFailed,
+                        "bz2 compression failed".to_string(),
+                    )
+                })?;
+                debug!("Compressed to {}", vendor_out.to_string_lossy());
+            }
         }
         debug!("Finished creating {} compressed tarball", compression);
     })