diff --git a/nixos/modules/installer/cd-dvd/iso-image.nix b/nixos/modules/installer/cd-dvd/iso-image.nix
index 43d20a556f8d11..1418420afcd988 100644
--- a/nixos/modules/installer/cd-dvd/iso-image.nix
+++ b/nixos/modules/installer/cd-dvd/iso-image.nix
@@ -425,7 +425,12 @@ in
     };
 
     isoImage.squashfsCompression = mkOption {
-      default = "xz -Xdict-size 100%";
+      default = with pkgs.stdenv.targetPlatform; "xz -Xdict-size 100% "
+                + lib.optionalString (isx86_32 || isx86_64) "-Xbcj x86"
+                # Untested but should also reduce size for these platforms
+                + lib.optionalString (isAarch32 || isAarch64) "-Xbcj arm"
+                + lib.optionalString (isPowerPC) "-Xbcj powerpc"
+                + lib.optionalString (isSparc) "-Xbcj sparc";
       description = ''
         Compression settings to use for the squashfs nix store.
       '';