diff --git a/Dockerfile b/Dockerfile
index a0cdaab..e3ef9e4 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -45,7 +45,10 @@ RUN apt-get update && apt-get install -y \
 # to regenerate the U-Boot boot.scr on platforms that need customization
     u-boot-tools \
 # needed to run pxz
-    libgomp1
+    libgomp1  \
+# zip and unzip archive
+    zip  \
+    unzip
 
 COPY --from=build /root/pxz/pxz /usr/bin/pxz
 
diff --git a/mender-convert b/mender-convert
index 2d438f8..b434cee 100755
--- a/mender-convert
+++ b/mender-convert
@@ -14,6 +14,23 @@
 #  See the License for the specific language governing permissions and
 #  limitations under the License.
 
+source modules/bootstrap.sh
+source modules/cliparser.sh
+source modules/decompressinput.sh
+
+###############################################################################
+#                Declaration of important variables for this file             #
+###############################################################################
+declare override_extraargs="" # Override arguments passed to the sub-scripts
+declare compression_type=""   # Detected input file compression, also applied to the output
+declare ocfile="./work/override_compression_config"
+declare disk_image=""         # Needed in parse_cli_options, and is passed to decompress_image()
+declare -a overlays=()        # [Dummy] Needed in parse_cli_options, not here
+declare -a configs=()        # [Dummy] Needed in parse_cli_options, not here
+###############################################################################
+
+MENDER_CONVERT_VERSION=$(git describe --tags --dirty --exact-match 2>/dev/null || git rev-parse --short HEAD)
+
 function show_help() {
   cat << EOF
 mender-convert
@@ -45,9 +62,10 @@ function trap_exit() {
   EXIT_CODE=$?
   if [[ ${EXIT_CODE} -ne 0 && ${EXIT_CODE} -ne ${FATAL_EXIT_CODE} ]]; then
     log_error "mender-convert failed"
-    tac work/convert.log | sed '/DEBUG/q' | tac | sed 's/Running/When running/'
+    [ -e work/convert.log ] && tac work/convert.log | sed '/DEBUG/q' | tac | sed 's/Running/When running/'
     log_error "mender-convert exit code: ${EXIT_CODE}"
   fi
+  mv work/convert.log convert.log
   sudo rm -rf work
 }
 
@@ -95,15 +113,22 @@ if [ -z "${MENDER_ARTIFACT_NAME}" ]; then
   echo -e "\tMENDER_ARTIFACT_NAME=\"release-1\" ./mender-convert"
   exit 1
 fi
-
-source modules/bootstrap.sh
-
 mkdir -p work
 touch work/convert.log
 
-./mender-convert-extract "$@"
-./mender-convert-modify "$@"
-./mender-convert-package "$@"
+parse_cli_options "$@"
+
+uncompressed_disk_image="${disk_image}"
+compression_type=$(compression_type "${disk_image}")
+if [[ ${compression_type} != "none" ]]; then
+  uncompressed_disk_image=$(decompress_image "${disk_image}" "./work")
+  echo "MENDER_COMPRESS_DISK_IMAGE=${compression_type}" > ${ocfile}
+  override_extraargs="--disk-image ${uncompressed_disk_image} --config ${ocfile}"
+fi
+
+./mender-convert-extract "$@" ${override_extraargs}
+./mender-convert-modify  "$@" ${override_extraargs}
+./mender-convert-package "$@" ${override_extraargs}
 
 echo "Output Artifacts and images can be found in the deploy directory:"
 ls -1 deploy/*
diff --git a/mender-convert-package b/mender-convert-package
index 18aa589..025394b 100755
--- a/mender-convert-package
+++ b/mender-convert-package
@@ -286,6 +286,10 @@ case "${MENDER_COMPRESS_DISK_IMAGE}" in
     log_info "Compressing ${img_path}.gz"
     run_and_log_cmd "pigz --best --force ${img_path}"
     ;;
+  zip)
+    log_info "Compressing ${img_path}.zip"
+    zip -9 "${img_path}.zip" "${img_path}"
+    ;;
   lzma)
     log_info "Compressing ${img_path}.xz"
     run_and_log_cmd "pxz --best --force ${img_path}"
diff --git a/modules/cliparser.sh b/modules/cliparser.sh
new file mode 100644
index 0000000..c31ed22
--- /dev/null
+++ b/modules/cliparser.sh
@@ -0,0 +1,47 @@
+#
+# Copyright 2020 Northern.tech AS
+#
+#  Licensed under the Apache License, Version 2.0 (the "License");
+#  you may not use this file except in compliance with the License.
+#  You may obtain a copy of the License at
+#
+#      http://www.apache.org/licenses/LICENSE-2.0
+#
+#  Unless required by applicable law or agreed to in writing, software
+#  distributed under the License is distributed on an "AS IS" BASIS,
+#  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#  See the License for the specific language governing permissions and
+#  limitations under the License.
+
+function parse_cli_options () {
+  while (( "$#" )); do
+    case "$1" in
+      -o | --overlay)
+        overlays+=("${2}")
+        shift 2
+        ;;
+      -c | --config)
+        configs+=("${2}")
+        shift 2
+        ;;
+      -d | --disk-image)
+        disk_image="${2}"
+        shift 2
+        ;;
+      *)
+        log_fatal "Sorry but the provided option is not supported: $1"
+        ;;
+    esac
+  done
+
+  if [ -z "${disk_image}" ]; then
+    log_warn "Sorry, but '--disk-image' is a mandatory option"
+    log_warn "See ./mender-convert --help for more information"
+    exit 1
+  fi
+
+  if [ ! -e ${disk_image} ]; then
+    log_fatal "File not found: ${disk_image}"
+  fi
+
+}
diff --git a/modules/decompressinput.sh b/modules/decompressinput.sh
new file mode 100644
index 0000000..9cb155e
--- /dev/null
+++ b/modules/decompressinput.sh
@@ -0,0 +1,88 @@
+#
+# Copyright 2020 Northern.tech AS
+#
+#  Licensed under the Apache License, Version 2.0 (the "License");
+#  you may not use this file except in compliance with the License.
+#  You may obtain a copy of the License at
+#
+#      http://www.apache.org/licenses/LICENSE-2.0
+#
+#  Unless required by applicable law or agreed to in writing, software
+#  distributed under the License is distributed on an "AS IS" BASIS,
+#  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#  See the License for the specific language governing permissions and
+#  limitations under the License.
+
+source modules/zip.sh
+source modules/log.sh
+
+# compression_type
+#
+# $1 - Path to the compressed disk image
+#
+# @return - The MENDER_COMPRESS_IMAGE compression type
+#
+function compression_type () {
+  if [[ $# -ne 1 ]]; then
+    log_fatal "compression_type() requires one argument"
+  fi
+  local -r disk_image="${1}"
+  case "${disk_image}" in
+    *.img | *.sdimg)
+      echo "none"
+      ;;
+    *.gz)
+      echo "gzip"
+      ;;
+    *.zip)
+      echo "zip"
+      ;;
+    *.xz )
+      echo "lzma"
+      ;;
+    * )
+      log_fatal "Unsupported compression type: ${disk_image}. Please uncompress the image yourself."
+      ;;
+  esac
+}
+
+# Decompresses the given input image
+#
+#  $1 - Path to the compressed image
+#  $2 - Path to the output directory
+#
+# @return - Name of the uncompressed image
+#
+function decompress_image () {
+  if [[ $# -ne 2 ]]; then
+    log_fatal "decompress_image() requires an image argument and an output directory"
+  fi
+  local -r input_image="${1}"
+  local -r output_dir="${2}"
+  local disk_image="${output_dir}/$(basename ${input_image})"
+  case "$(compression_type ${disk_image})" in
+    none )
+      :
+      ;;
+    gzip )
+      log_info "Decompressing ${disk_image}..."
+      disk_image=${disk_image%.gz}
+      zcat "${input_image}" > "${disk_image}"
+      ;;
+    zip )
+      log_info "Decompressing ${disk_image}..."
+      filename="$(zip_get_imgname ${input_image})"
+      unzip "${input_image}" -d "${output_dir}" &>/dev/null
+      disk_image="$(dirname ${disk_image})/${filename}"
+      ;;
+    lzma )
+      log_info "Decompressing ${disk_image}..."
+      disk_image=${disk_image%.xz}
+      xzcat "${input_image}" > "${disk_image}"
+      ;;
+    * )
+      log_fatal "Unsupported input image type: ${input_image}"
+      ;;
+  esac
+  echo "${disk_image}"
+}
diff --git a/modules/zip.sh b/modules/zip.sh
new file mode 100644
index 0000000..736bdfe
--- /dev/null
+++ b/modules/zip.sh
@@ -0,0 +1,34 @@
+#
+# Copyright 2020 Northern.tech AS
+#
+#  Licensed under the Apache License, Version 2.0 (the "License");
+#  you may not use this file except in compliance with the License.
+#  You may obtain a copy of the License at
+#
+#      http://www.apache.org/licenses/LICENSE-2.0
+#
+#  Unless required by applicable law or agreed to in writing, software
+#  distributed under the License is distributed on an "AS IS" BASIS,
+#  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#  See the License for the specific language governing permissions and
+#  limitations under the License.
+
+#
+# Parse the filename from the zipped output
+#
+# $1 - Zip archive path
+#
+# @return - Name of the img contained in the archive
+#
+function zip_get_imgname () {
+  if [[ $# -ne 1 ]]; then
+    log_fatal "zip_get_imgname requires one argument"
+  fi
+  local -r disk_image="${1}"
+  # Assert that the archive holds only one file
+  nfiles="$(unzip -l ${disk_image} | awk '{nfiles=$2} END {print nfiles}')"
+  [[ "$nfiles" -ne 1 ]] && log_fatal "Zip archive has more than one file. Needs to be unzipped by a human. nfiles: $nfiles"
+  local -r filename="$(unzip -lq ${disk_image} | awk 'NR==3 {filename=$NF} END {print filename}')"
+  [[ ${filename} == *.img ]] || log_fatal "no img file found in the zip archive ${disk_image}."
+  echo "$(basename ${filename})"
+}