diff --git a/net/rsync/Config.in b/net/rsync/Config.in
index ea1c59451..f5e3b67b1 100644
--- a/net/rsync/Config.in
+++ b/net/rsync/Config.in
@@ -12,16 +12,9 @@ if PACKAGE_rsync
 		default y if USE_FS_ACL_ATTR
 		default n
 
-	config RSYNC_zlib
+	config RSYNC_zstd
 		bool
-		prompt "Enable system zlib"
-		help 
-			Use the system's zlib library instead of rsync's internal copy. Enabling
-			this may create compatibility errors when using compression  with older
-			clients, or those using the current default of the bundled zlib.
+		prompt "Enable zstd stream compression"
+		default n
 
-			rsync's upstream default is to use their bundled zlib. OpenWrt uses the
-			system zlib for space reasons. The system zlib will eventually become 
-			default for upstream as well.
-		default y
 endif
diff --git a/net/rsync/Makefile b/net/rsync/Makefile
index ca8205ea7..a207455c6 100644
--- a/net/rsync/Makefile
+++ b/net/rsync/Makefile
@@ -9,7 +9,7 @@ include $(TOPDIR)/rules.mk
 
 PKG_NAME:=rsync
 PKG_VERSION:=3.2.3
-PKG_RELEASE:=1
+PKG_RELEASE:=2
 
 PKG_SOURCE:=$(PKG_NAME)-$(PKG_VERSION).tar.gz
 PKG_SOURCE_URL:=https://download.samba.org/pub/rsync/src
@@ -30,7 +30,7 @@ define Package/rsync
   CATEGORY:=Network
   SUBMENU:=File Transfer
   TITLE:=Fast remote file copy program (like rcp)
-  DEPENDS:=+libpopt +RSYNC_xattr:libattr +RSYNC_acl:libacl +RSYNC_zlib:zlib
+  DEPENDS:=+libpopt +zlib +RSYNC_xattr:libattr +RSYNC_acl:libacl +RSYNC_zstd:libzstd
   URL:=https://rsync.samba.org/
   MENU:=1
 endef
@@ -43,6 +43,7 @@ TARGET_CFLAGS += $(if $(CONFIG_IPV6),-DINET6,)
 
 CONFIGURE_ARGS += \
 	--without-included-popt \
+	--without-included-zlib \
 	--disable-debug \
 	--disable-asm \
 	--disable-iconv \
@@ -53,10 +54,9 @@ CONFIGURE_ARGS += \
 	--disable-openssl \
 	--disable-simd \
 	--disable-xxhash \
-	--disable-zstd \
+	--$(if $(CONFIG_RSYNC_zstd),en,dis)able-zstd \
 	--$(if $(CONFIG_RSYNC_xattr),en,dis)able-xattr-support \
 	--$(if $(CONFIG_RSYNC_acl),en,dis)able-acl-support \
-	--with$(if $(CONFIG_RSYNC_zlib),,out)-included-zlib \
 	$(if $(CONFIG_IPV6),,--disable-ipv6)
 
 define Package/rsyncd