diff --git a/apex/apex_test.go b/apex/apex_test.go
index 261d2ce59..cdf16ddce 100644
--- a/apex/apex_test.go
+++ b/apex/apex_test.go
@@ -8993,6 +8993,30 @@ func TestCompressedApex(t *testing.T) {
 	ensureContains(t, androidMk, "LOCAL_MODULE_STEM := myapex.capex\n")
 }
 
+func TestApexSet_ShouldRespectCompressedApexFlag(t *testing.T) {
+	for _, compressionEnabled := range []bool{true, false} {
+		t.Run(fmt.Sprintf("compressionEnabled=%v", compressionEnabled), func(t *testing.T) {
+			ctx := testApex(t, `
+				apex_set {
+					name: "com.company.android.myapex",
+					apex_name: "com.android.myapex",
+					set: "company-myapex.apks",
+				}
+			`, android.FixtureModifyProductVariables(func(variables android.FixtureProductVariables) {
+				variables.CompressedApex = proptools.BoolPtr(compressionEnabled)
+			}),
+			)
+
+			build := ctx.ModuleForTests("com.company.android.myapex", "android_common_com.android.myapex").Output("com.company.android.myapex.apex")
+			if compressionEnabled {
+				ensureEquals(t, build.Rule.String(), "android/soong/android.Cp")
+			} else {
+				ensureEquals(t, build.Rule.String(), "android/apex.decompressApex")
+			}
+		})
+	}
+}
+
 func TestPreferredPrebuiltSharedLibDep(t *testing.T) {
 	ctx := testApex(t, `
 		apex {
diff --git a/apex/prebuilt.go b/apex/prebuilt.go
index b9cc09ba7..5e46bab60 100644
--- a/apex/prebuilt.go
+++ b/apex/prebuilt.go
@@ -42,6 +42,11 @@ var (
 			CommandDeps: []string{"${extract_apks}"},
 		},
 		"abis", "allow-prereleased", "sdk-version", "skip-sdk-check")
+	decompressApex = pctx.StaticRule("decompressApex", blueprint.RuleParams{
+		Command:     `${deapexer} decompress --copy-if-uncompressed --input ${in} --output ${out}`,
+		CommandDeps: []string{"${deapexer}"},
+		Description: "decompress",
+	})
 )
 
 type prebuilt interface {
@@ -1072,8 +1077,14 @@ func (a *ApexSet) GenerateAndroidBuildActions(ctx android.ModuleContext) {
 
 	inputApex := android.OptionalPathForModuleSrc(ctx, a.prebuiltCommonProperties.Selected_apex).Path()
 	a.outputApex = android.PathForModuleOut(ctx, a.installFilename)
+
+	// Build the output APEX. If compression is not enabled, make sure the output is not compressed even if the input is compressed
+	buildRule := android.Cp
+	if !ctx.Config().ApexCompressionEnabled() {
+		buildRule = decompressApex
+	}
 	ctx.Build(pctx, android.BuildParams{
-		Rule:   android.Cp,
+		Rule:   buildRule,
 		Input:  inputApex,
 		Output: a.outputApex,
 	})