diff --git a/RELEASE_NOTES.rst b/RELEASE_NOTES.rst
index 46cd999ab..75b1d3347 100644
--- a/RELEASE_NOTES.rst
+++ b/RELEASE_NOTES.rst
@@ -34,6 +34,9 @@ Highlights:
 * Previously detected RTIO async errors are reported to the host after each kernel terminates and a
   warning is logged. The warning is additional to the one already printed in the core device log upon
   detection of the error.
+* HDF5 options can now be passed when creating datasets with ``set_dataset``. This allows
+  in particular to use transparent compression filters as follows:
+  ``set_dataset(name, value, hdf5_options={"compression": "gzip"})``.
 
 Breaking changes:
 
@@ -46,6 +49,10 @@ Breaking changes:
   calling `ADF5356.init()`.
 * DRTIO: Changed message alignment from 32-bits to 64-bits.
 * The deprecated ``set_dataset(..., save=...)`` is no longer supported.
+* The internal dataset representation was changed to support tracking HDF5 options like e.g.
+  a compression method. This requires changes to code reading the dataset persistence file
+  (``dataset_db.pyon``) and to custom applets.
+
 
 ARTIQ-6
 -------
@@ -117,6 +124,7 @@ Breaking changes:
 * Experiment classes with underscore-prefixed names are now ignored when ``artiq_client``
   determines which experiment to submit (consistent with ``artiq_run``).
 
+
 ARTIQ-5
 -------
 
diff --git a/artiq/applets/big_number.py b/artiq/applets/big_number.py
index 62348c8cf..a0714b734 100755
--- a/artiq/applets/big_number.py
+++ b/artiq/applets/big_number.py
@@ -13,7 +13,7 @@ class NumberWidget(QtWidgets.QLCDNumber):
 
     def data_changed(self, data, mods):
         try:
-            n = float(data[self.dataset_name][1])
+            n = float(data[self.dataset_name]["value"])
         except (KeyError, ValueError, TypeError):
             n = "---"
         self.display(n)
diff --git a/artiq/applets/image.py b/artiq/applets/image.py
index b7d36c1a1..4bc6b5f86 100755
--- a/artiq/applets/image.py
+++ b/artiq/applets/image.py
@@ -13,7 +13,7 @@ class Image(pyqtgraph.ImageView):
 
     def data_changed(self, data, mods):
         try:
-            img = data[self.args.img][1]
+            img = data[self.args.img]["value"]
         except KeyError:
             return
         self.setImage(img)
diff --git a/artiq/applets/plot_hist.py b/artiq/applets/plot_hist.py
index b3493c836..298246a5c 100755
--- a/artiq/applets/plot_hist.py
+++ b/artiq/applets/plot_hist.py
@@ -17,11 +17,11 @@ class HistogramPlot(pyqtgraph.PlotWidget):
 
     def data_changed(self, data, mods, title):
         try:
-            y = data[self.args.y][1]
+            y = data[self.args.y]["value"]
             if self.args.x is None:
                 x = None
             else:
-                x = data[self.args.x][1]
+                x = data[self.args.x]["value"]
         except KeyError:
             return
         if x is None:
diff --git a/artiq/applets/plot_xy.py b/artiq/applets/plot_xy.py
index 8eaf9786a..32bf95b50 100755
--- a/artiq/applets/plot_xy.py
+++ b/artiq/applets/plot_xy.py
@@ -6,6 +6,7 @@ from PyQt5.QtCore import QTimer
 import pyqtgraph
 
 from artiq.applets.simple import TitleApplet
+from artiq.master.databases import make_dataset as empty_dataset
 
 
 class XYPlot(pyqtgraph.PlotWidget):
@@ -21,14 +22,14 @@ class XYPlot(pyqtgraph.PlotWidget):
 
     def data_changed(self, data, mods, title):
         try:
-            y = data[self.args.y][1]
+            y = data[self.args.y]["value"]
         except KeyError:
             return
-        x = data.get(self.args.x, (False, None))[1]
+        x = data.get(self.args.x, empty_dataset())["value"]
         if x is None:
             x = np.arange(len(y))
-        error = data.get(self.args.error, (False, None))[1]
-        fit = data.get(self.args.fit, (False, None))[1]
+        error = data.get(self.args.error, empty_dataset())["value"]
+        fit = data.get(self.args.fit, empty_dataset())["value"]
 
         if not len(y) or len(y) != len(x):
             self.mismatch['X values'] = True
diff --git a/artiq/applets/plot_xy_hist.py b/artiq/applets/plot_xy_hist.py
index 39bd49098..01eab5421 100755
--- a/artiq/applets/plot_xy_hist.py
+++ b/artiq/applets/plot_xy_hist.py
@@ -126,9 +126,9 @@ class XYHistPlot(QtWidgets.QSplitter):
 
     def data_changed(self, data, mods):
         try:
-            xs = data[self.args.xs][1]
-            histogram_bins = data[self.args.histogram_bins][1]
-            histograms_counts = data[self.args.histograms_counts][1]
+            xs = data[self.args.xs]["value"]
+            histogram_bins = data[self.args.histogram_bins]["value"]
+            histograms_counts = data[self.args.histograms_counts]["value"]
         except KeyError:
             return
         if len(xs) != histograms_counts.shape[0]:
diff --git a/artiq/applets/simple.py b/artiq/applets/simple.py
index e5776310a..db6f2334d 100644
--- a/artiq/applets/simple.py
+++ b/artiq/applets/simple.py
@@ -10,6 +10,7 @@ from sipyco.sync_struct import Subscriber, process_mod
 from sipyco import pyon
 from sipyco.pipe_ipc import AsyncioChildComm
 
+from artiq.master.databases import make_dataset as empty_dataset
 
 logger = logging.getLogger(__name__)
 
@@ -251,7 +252,7 @@ class TitleApplet(SimpleApplet):
 
     def emit_data_changed(self, data, mod_buffer):
         if self.args.title is not None:
-            title_values = {k.replace(".", "/"): data.get(k, (False, None))[1]
+            title_values = {k.replace(".", "/"): data.get(k, empty_dataset())["value"]
                             for k in self.dataset_title}
             try:
                 title = self.args.title.format(**title_values)
diff --git a/artiq/browser/datasets.py b/artiq/browser/datasets.py
index b66b18216..d3d8171ac 100644
--- a/artiq/browser/datasets.py
+++ b/artiq/browser/datasets.py
@@ -104,8 +104,8 @@ class DatasetsDock(QtWidgets.QDockWidget):
             idx = self.table_model_filter.mapToSource(idx[0])
             key = self.table_model.index_to_key(idx)
             if key is not None:
-                persist, value = self.table_model.backing_store[key]
-                asyncio.ensure_future(self._upload_dataset(key, value))
+                dataset = self.table_model.backing_store[key]
+                asyncio.ensure_future(self._upload_dataset(key, dataset["value"]))
 
     def save_state(self):
         return bytes(self.table.header().saveState())
diff --git a/artiq/dashboard/datasets.py b/artiq/dashboard/datasets.py
index 10e51e906..23fc995cb 100644
--- a/artiq/dashboard/datasets.py
+++ b/artiq/dashboard/datasets.py
@@ -146,16 +146,16 @@ class Creator(QtWidgets.QDialog):
 
 
 class Model(DictSyncTreeSepModel):
-    def __init__(self,  init):
-        DictSyncTreeSepModel.__init__(self, ".",
-                                      ["Dataset", "Persistent", "Value"],
-                                      init)
+    def __init__(self, init):
+        DictSyncTreeSepModel.__init__(
+            self, ".", ["Dataset", "Persistent", "Value"], init
+        )
 
     def convert(self, k, v, column):
         if column == 1:
-            return "Y" if v[0] else "N"
+            return "Y" if v["persist"] else "N"
         elif column == 2:
-            return short_format(v[1])
+            return short_format(v["value"])
         else:
             raise ValueError
 
@@ -223,8 +223,8 @@ class DatasetsDock(QtWidgets.QDockWidget):
             idx = self.table_model_filter.mapToSource(idx[0])
             key = self.table_model.index_to_key(idx)
             if key is not None:
-                persist, value = self.table_model.backing_store[key]
-                t = type(value)
+                dataset = self.table_model.backing_store[key]
+                t = type(dataset["value"])
                 if np.issubdtype(t, np.number):
                     dialog_cls = NumberEditor
                 elif np.issubdtype(t, np.bool_):
@@ -235,7 +235,7 @@ class DatasetsDock(QtWidgets.QDockWidget):
                     logger.error("Cannot edit dataset %s: "
                                  "type %s is not supported", key, t)
                     return
-                dialog_cls(self, self.dataset_ctl, key, value).open()
+                dialog_cls(self, self.dataset_ctl, key, dataset["value"]).open()
 
     def delete_clicked(self):
         idx = self.table.selectedIndexes()
diff --git a/artiq/language/environment.py b/artiq/language/environment.py
index a1de09e5b..ad7a165cb 100644
--- a/artiq/language/environment.py
+++ b/artiq/language/environment.py
@@ -330,7 +330,8 @@ class HasEnvironment:
 
     @rpc(flags={"async"})
     def set_dataset(self, key, value,
-                    broadcast=False, persist=False, archive=True):
+                    broadcast=False, persist=False, archive=True,
+                    hdf5_options=None):
         """Sets the contents and handling modes of a dataset.
 
         Datasets must be scalars (``bool``, ``int``, ``float`` or NumPy scalar)
@@ -342,8 +343,16 @@ class HasEnvironment:
             broadcast.
         :param archive: the data is saved into the local storage of the current
             run (archived as a HDF5 file).
+        :param hdf5_options: dict of keyword arguments to pass to
+            :meth:`h5py.Group.create_dataset`. For example, pass ``{"compression": "gzip"}``
+            to enable transparent zlib compression of this dataset in the HDF5 archive.
+            See the `h5py documentation <https://docs.h5py.org/en/stable/high/group.html#h5py.Group.create_dataset>`_
+            for a list of valid options.
         """
-        self.__dataset_mgr.set(key, value, broadcast, persist, archive)
+        
+        self.__dataset_mgr.set(
+            key, value, broadcast, persist, archive, hdf5_options
+        )
 
     @rpc(flags={"async"})
     def mutate_dataset(self, key, index, value):
diff --git a/artiq/master/databases.py b/artiq/master/databases.py
index 14cfae4cd..8ef71c6a2 100644
--- a/artiq/master/databases.py
+++ b/artiq/master/databases.py
@@ -35,6 +35,15 @@ class DeviceDB:
         return desc
 
 
+def make_dataset(*, persist=False, value=None, hdf5_options=None):
+    "PYON-serializable representation of a dataset in the DatasetDB"
+    return {
+        "persist": persist,
+        "value": value,
+        "hdf5_options": hdf5_options or {},
+    }
+
+
 class DatasetDB(TaskObject):
     def __init__(self, persist_file, autosave_period=30):
         self.persist_file = persist_file
@@ -44,10 +53,23 @@ class DatasetDB(TaskObject):
             file_data = pyon.load_file(self.persist_file)
         except FileNotFoundError:
             file_data = dict()
-        self.data = Notifier({k: (True, v) for k, v in file_data.items()})
+        self.data = Notifier(
+            {
+                k: make_dataset(
+                    persist=True,
+                    value=v["value"],
+                    hdf5_options=v["hdf5_options"]
+                )
+                for k, v in file_data.items()
+            }
+        )
 
     def save(self):
-        data = {k: v[1] for k, v in self.data.raw_view.items() if v[0]}
+        data = {
+            k: d
+            for k, d in self.data.raw_view.items()
+            if d["persist"]
+        }
         pyon.store_file(self.persist_file, data)
 
     async def _do(self):
@@ -59,20 +81,23 @@ class DatasetDB(TaskObject):
             self.save()
 
     def get(self, key):
-        return self.data.raw_view[key][1]
+        return self.data.raw_view[key]
 
     def update(self, mod):
         process_mod(self.data, mod)
 
     # convenience functions (update() can be used instead)
-    def set(self, key, value, persist=None):
+    def set(self, key, value, persist=None, hdf5_options=None):
         if persist is None:
             if key in self.data.raw_view:
-                persist = self.data.raw_view[key][0]
+                persist = self.data.raw_view[key]["persist"]
             else:
                 persist = False
-        self.data[key] = (persist, value)
+        self.data[key] = make_dataset(
+            persist=persist,
+            value=value,
+            hdf5_options=hdf5_options,
+        )
 
     def delete(self, key):
         del self.data[key]
-    #
diff --git a/artiq/master/worker_db.py b/artiq/master/worker_db.py
index 172846145..8a2200e05 100644
--- a/artiq/master/worker_db.py
+++ b/artiq/master/worker_db.py
@@ -8,9 +8,12 @@ from operator import setitem
 import importlib
 import logging
 
+import numpy as np
+
 from sipyco.sync_struct import Notifier
 from sipyco.pc_rpc import AutoTarget, Client, BestEffortClient
 
+from artiq.master.databases import make_dataset
 
 logger = logging.getLogger(__name__)
 
@@ -115,7 +118,8 @@ class DatasetManager:
         self.ddb = ddb
         self._broadcaster.publish = ddb.update
 
-    def set(self, key, value, broadcast=False, persist=False, archive=True):
+    def set(self, key, value, broadcast=False, persist=False, archive=True,
+            hdf5_options=None):
         if key in self.archive:
             logger.warning("Modifying dataset '%s' which is in archive, "
                            "archive will remain untouched",
@@ -125,12 +129,20 @@ class DatasetManager:
             broadcast = True
 
         if broadcast:
-            self._broadcaster[key] = persist, value
+            self._broadcaster[key] = make_dataset(
+                persist=persist,
+                value=value,
+                hdf5_options=hdf5_options,
+            )
         elif key in self._broadcaster.raw_view:
             del self._broadcaster[key]
 
         if archive:
-            self.local[key] = value
+            self.local[key] = make_dataset(
+                persist=persist,
+                value=value,
+                hdf5_options=hdf5_options,
+            )
         elif key in self.local:
             del self.local[key]
 
@@ -138,11 +150,11 @@ class DatasetManager:
         target = self.local.get(key, None)
         if key in self._broadcaster.raw_view:
             if target is not None:
-                assert target is self._broadcaster.raw_view[key][1]
-            return self._broadcaster[key][1]
+                assert target["value"] is self._broadcaster.raw_view[key]["value"]
+            return self._broadcaster[key]["value"]
         if target is None:
             raise KeyError("Cannot mutate nonexistent dataset '{}'".format(key))
-        return target
+        return target["value"]
 
     def mutate(self, key, index, value):
         target = self._get_mutation_target(key)
@@ -158,15 +170,15 @@ class DatasetManager:
 
     def get(self, key, archive=False):
         if key in self.local:
-            return self.local[key]
-        
-        data = self.ddb.get(key)
+            return self.local[key]["value"]
+
+        dataset = self.ddb.get(key)
         if archive:
             if key in self.archive:
                 logger.warning("Dataset '%s' is already in archive, "
                                "overwriting", key, stack_info=True)
-            self.archive[key] = data
-        return data
+            self.archive[key] = dataset
+        return dataset["value"]
 
     def write_hdf5(self, f):
         datasets_group = f.create_group("datasets")
@@ -182,7 +194,7 @@ def _write(group, k, v):
     # Add context to exception message when the user writes a dataset that is
     # not representable in HDF5.
     try:
-        group[k] = v
+        group.create_dataset(k, data=v["value"], **v["hdf5_options"])
     except TypeError as e:
         raise TypeError("Error writing dataset '{}' of type '{}': {}".format(
-            k, type(v), e))
+            k, type(v["value"]), e))
diff --git a/artiq/test/test_dataset_db.py b/artiq/test/test_dataset_db.py
new file mode 100644
index 000000000..3d087a806
--- /dev/null
+++ b/artiq/test/test_dataset_db.py
@@ -0,0 +1,111 @@
+"""Test internal dataset representation (persistence, applets)"""
+import unittest
+import tempfile
+
+from artiq.master.databases import DatasetDB
+from sipyco import pyon
+
+KEY1 = "key1"
+KEY2 = "key2"
+KEY3 = "key3"
+DATA = list(range(10))
+COMP = "gzip"
+
+
+class TestDatasetDB(unittest.TestCase):
+    def setUp(self):
+        # empty dataset persistance file
+        self.persist_file = tempfile.NamedTemporaryFile(mode="w+")
+        print("{}", file=self.persist_file, flush=True)
+
+        self.ddb = DatasetDB(self.persist_file.name)
+
+        self.ddb.set(KEY1, DATA, persist=True)
+        self.ddb.set(KEY2, DATA, persist=True, hdf5_options=dict(compression=COMP))
+        self.ddb.set(KEY3, DATA, hdf5_options=dict(shuffle=True))
+
+        self.save_ddb_to_disk()
+
+    def save_ddb_to_disk(self):
+        self.ddb.save()
+        self.persist_file.flush()
+
+    def load_ddb_from_disk(self):
+        return pyon.load_file(self.persist_file.name)
+
+    def test_persist_format(self):
+        data = pyon.load_file(self.persist_file.name)
+
+        for key in [KEY1, KEY2]:
+            self.assertTrue(data[key]["persist"])
+            self.assertEqual(data[key]["value"], DATA)
+
+        self.assertEqual(data[KEY2]["hdf5_options"]["compression"], COMP)
+        self.assertEqual(data[KEY1]["hdf5_options"], dict())
+
+    def test_only_persist_marked_datasets(self):
+        data = self.load_ddb_from_disk()
+
+        with self.assertRaises(KeyError):
+            data[KEY3]
+
+    def test_memory_format(self):
+        ds = self.ddb.get(KEY2)
+        self.assertTrue(ds["persist"])
+        self.assertEqual(ds["value"], DATA)
+        self.assertEqual(ds["hdf5_options"]["compression"], COMP)
+
+        ds = self.ddb.get(KEY3)
+        self.assertFalse(ds["persist"])
+        self.assertEqual(ds["value"], DATA)
+        self.assertTrue(ds["hdf5_options"]["shuffle"])
+
+    def test_delete(self):
+        self.ddb.delete(KEY1)
+        self.save_ddb_to_disk()
+
+        data = self.load_ddb_from_disk()
+
+        with self.assertRaises(KeyError):
+            data[KEY1]
+
+        self.assertTrue(data[KEY2]["persist"])
+
+    def test_update(self):
+        self.assertFalse(self.ddb.get(KEY3)["persist"])
+
+        mod = {
+            "action": "setitem",
+            "path": [KEY3],
+            "key": "persist",
+            "value": True,
+        }
+
+        self.ddb.update(mod)
+        self.assertTrue(self.ddb.get(KEY3)["persist"])
+
+    def test_update_hdf5_options(self):
+        with self.assertRaises(KeyError):
+            self.ddb.get(KEY1)["hdf5_options"]["shuffle"]
+
+        mod = {
+            "action": "setitem",
+            "path": [KEY1, "hdf5_options"],
+            "key": "shuffle",
+            "value": False,
+        }
+
+        self.ddb.update(mod)
+        self.assertFalse(self.ddb.get(KEY1)["hdf5_options"]["shuffle"])
+
+    def test_reset_copies_persist(self):
+        self.assertTrue(self.ddb.get(KEY1)["persist"])
+        self.ddb.set(KEY1, DATA)
+        self.assertTrue(self.ddb.get(KEY1)["persist"])
+
+        self.assertFalse(self.ddb.get(KEY3)["persist"])
+        self.ddb.set(KEY3, DATA)
+        self.assertFalse(self.ddb.get(KEY3)["persist"])
+
+        self.ddb.set(KEY3, DATA, persist=True)
+        self.assertTrue(self.ddb.get(KEY3)["persist"])
diff --git a/artiq/test/test_datasets.py b/artiq/test/test_datasets.py
index 871568a2a..3fa6d6bb7 100644
--- a/artiq/test/test_datasets.py
+++ b/artiq/test/test_datasets.py
@@ -3,6 +3,9 @@
 import copy
 import unittest
 
+import h5py
+import numpy as np
+
 from sipyco.sync_struct import process_mod
 
 from artiq.experiment import EnvExperiment
@@ -14,7 +17,7 @@ class MockDatasetDB:
         self.data = dict()
 
     def get(self, key):
-        return self.data[key][1]
+        return self.data[key]["value"]
 
     def update(self, mod):
         # Copy mod before applying to avoid sharing references to objects
@@ -82,9 +85,9 @@ class ExperimentDatasetCase(unittest.TestCase):
     def test_append_broadcast(self):
         self.exp.set(KEY, [], broadcast=True)
         self.exp.append(KEY, 0)
-        self.assertEqual(self.dataset_db.data[KEY][1], [0])
+        self.assertEqual(self.dataset_db.data[KEY]["value"], [0])
         self.exp.append(KEY, 1)
-        self.assertEqual(self.dataset_db.data[KEY][1], [0, 1])
+        self.assertEqual(self.dataset_db.data[KEY]["value"], [0, 1])
 
     def test_append_array(self):
         for broadcast in (True, False):
@@ -103,3 +106,44 @@ class ExperimentDatasetCase(unittest.TestCase):
         with self.assertRaises(KeyError):
             self.exp.append(KEY, 0)
 
+    def test_write_hdf5_options(self):
+        data = np.random.randint(0, 1024, 1024)
+        self.exp.set(
+            KEY,
+            data,
+            hdf5_options=dict(
+                compression="gzip",
+                compression_opts=6,
+                shuffle=True,
+                fletcher32=True
+            ),
+        )
+
+        with h5py.File("test.h5", "a", "core", backing_store=False) as f:
+            self.dataset_mgr.write_hdf5(f)
+
+            self.assertTrue(np.array_equal(f["datasets"][KEY][()], data))
+            self.assertEqual(f["datasets"][KEY].compression, "gzip")
+            self.assertEqual(f["datasets"][KEY].compression_opts, 6)
+            self.assertTrue(f["datasets"][KEY].shuffle)
+            self.assertTrue(f["datasets"][KEY].fletcher32)
+
+    def test_write_hdf5_no_options(self):
+        data = np.random.randint(0, 1024, 1024)
+        self.exp.set(KEY, data)
+
+        with h5py.File("test.h5", "a", "core", backing_store=False) as f:
+            self.dataset_mgr.write_hdf5(f)
+            self.assertTrue(np.array_equal(f["datasets"][KEY][()], data))
+            self.assertIsNone(f["datasets"][KEY].compression)
+
+    def test_write_hdf5_invalid_type(self):
+        class CustomType:
+            def __init__(self, x):
+                self.x = x
+
+        self.exp.set(KEY, CustomType(42))
+
+        with h5py.File("test.h5", "w", "core", backing_store=False) as f:
+            with self.assertRaisesRegex(TypeError, "CustomType"):
+                self.dataset_mgr.write_hdf5(f)
diff --git a/artiq/test/test_scheduler.py b/artiq/test/test_scheduler.py
index ad4f243bd..5a8cdb6bc 100644
--- a/artiq/test/test_scheduler.py
+++ b/artiq/test/test_scheduler.py
@@ -7,6 +7,7 @@ from time import time, sleep
 
 from artiq.experiment import *
 from artiq.master.scheduler import Scheduler
+from artiq.master.databases import make_dataset
 
 
 class EmptyExperiment(EnvExperiment):
@@ -291,8 +292,13 @@ class SchedulerCase(unittest.TestCase):
             nonlocal termination_ok
             self.assertEqual(
                 mod,
-                {"action": "setitem", "key": "termination_ok",
-                 "value": (False, True), "path": []})
+                {
+                    "action": "setitem",
+                    "key": "termination_ok",
+                    "value": make_dataset(value=True),
+                    "path": []
+                }
+            )
             termination_ok = True
         handlers = {
             "update_dataset": check_termination