diff --git a/CHANGELOG.md b/CHANGELOG.md
index e1de24fb..7d7a7ae1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -67,6 +67,9 @@ This patch release:
   algorithm name instead of the Java Security Standard Algorithm Name of 
   [`RSASSA-PSS`](https://docs.oracle.com/en/java/javase/11/docs/specs/security/standard-names.html#signature-algorithms).
   This release ensures the standard name is used moving forward.
+  
+* Fixes a backwards-compatibility [bug](https://github.com/jwtk/jjwt/issues/536) when parsing compressed JWTs 
+  created from 0.10.6 or earlier using the `DEFLATE` compression algorithm.  
 
 ### 0.10.7
 
diff --git a/impl/src/main/java/io/jsonwebtoken/impl/compression/DeflateCompressionCodec.java b/impl/src/main/java/io/jsonwebtoken/impl/compression/DeflateCompressionCodec.java
index f31e6c0d..978ced22 100644
--- a/impl/src/main/java/io/jsonwebtoken/impl/compression/DeflateCompressionCodec.java
+++ b/impl/src/main/java/io/jsonwebtoken/impl/compression/DeflateCompressionCodec.java
@@ -15,11 +15,16 @@
  */
 package io.jsonwebtoken.impl.compression;
 
+import io.jsonwebtoken.lang.Objects;
+
 import java.io.ByteArrayInputStream;
+import java.io.ByteArrayOutputStream;
 import java.io.IOException;
+import java.io.InputStream;
 import java.io.OutputStream;
 import java.util.zip.DeflaterOutputStream;
 import java.util.zip.InflaterInputStream;
+import java.util.zip.InflaterOutputStream;
 
 /**
  * Codec implementing the <a href="https://en.wikipedia.org/wiki/DEFLATE">deflate compression algorithm</a>.
@@ -48,7 +53,40 @@ public class DeflateCompressionCodec extends AbstractCompressionCodec {
     }
 
     @Override
-    protected byte[] doDecompress(byte[] compressed) throws IOException {
-        return readAndClose(new InflaterInputStream(new ByteArrayInputStream(compressed)));
+    protected byte[] doDecompress(final byte[] compressed) throws IOException {
+        try {
+            return readAndClose(new InflaterInputStream(new ByteArrayInputStream(compressed)));
+        } catch (IOException e1) {
+            try {
+                return doDecompressBackCompat(compressed);
+            } catch (IOException e2) {
+                throw e1; //retain/report original exception
+            }
+        }
+    }
+
+    /**
+     * This implementation was in 0.10.6 and earlier - it will be used as a fallback for backwards compatibility if
+     * {@link #readAndClose(InputStream)} fails per <a href="https://github.com/jwtk/jjwt/issues/536">Issue 536</a>.
+     *
+     * @param compressed the compressed byte array
+     * @return decompressed bytes
+     * @throws IOException if unable to decompress using the 0.10.6 and earlier logic
+     * @since 0.10.8
+     */
+    // package protected on purpose
+    byte[] doDecompressBackCompat(byte[] compressed) throws IOException {
+        InflaterOutputStream inflaterOutputStream = null;
+        ByteArrayOutputStream decompressedOutputStream = null;
+
+        try {
+            decompressedOutputStream = new ByteArrayOutputStream();
+            inflaterOutputStream = new InflaterOutputStream(decompressedOutputStream);
+            inflaterOutputStream.write(compressed);
+            inflaterOutputStream.flush();
+            return decompressedOutputStream.toByteArray();
+        } finally {
+            Objects.nullSafeClose(decompressedOutputStream, inflaterOutputStream);
+        }
     }
 }
diff --git a/impl/src/test/groovy/io/jsonwebtoken/impl/compression/DeflateCompressionCodecTest.groovy b/impl/src/test/groovy/io/jsonwebtoken/impl/compression/DeflateCompressionCodecTest.groovy
new file mode 100644
index 00000000..52f2b4e1
--- /dev/null
+++ b/impl/src/test/groovy/io/jsonwebtoken/impl/compression/DeflateCompressionCodecTest.groovy
@@ -0,0 +1,49 @@
+package io.jsonwebtoken.impl.compression
+
+import io.jsonwebtoken.CompressionException
+import io.jsonwebtoken.Jwts
+import io.jsonwebtoken.io.Decoders
+import org.junit.Test
+
+import static org.junit.Assert.assertNotSame
+
+/**
+ * @since 0.10.8
+ */
+class DeflateCompressionCodecTest {
+
+    /**
+     * Test case for <a href="https://github.com/jwtk/jjwt/issues/536">Issue 536</a>.
+     */
+    @Test
+    void testBackwardsCompatibility_0_10_6() {
+        final String jwtFrom0106 = 'eyJhbGciOiJub25lIiwiemlwIjoiREVGIn0.eNqqVsosLlayUspNVdJRKi5NAjJLi1OLgJzMxBIlK0sTMzMLEwsDAx2l1IoCJSsTQwMjExOQQC0AAAD__w.'
+        Jwts.parserBuilder().build().parseClaimsJwt(jwtFrom0106) // no exception should be thrown
+    }
+
+    /**
+     * Test to ensure that, even if the backwards-compatibility fallback method throws an exception, that the first
+     * one is retained/re-thrown to reflect the correct/expected implementation.
+     */
+    @Test
+    void testBackwardsCompatibilityRetainsFirstIOException() {
+
+        final String compressedFrom0_10_6 = 'eNqqVsosLlayUspNVdJRKi5NAjJLi1OLgJzMxBIlK0sTMzMLEwsDAx2l1IoCJSsTQwMjExOQQC0AAAD__w'
+        byte[] invalid = Decoders.BASE64URL.decode(compressedFrom0_10_6)
+
+        IOException unexpected = new IOException("foo")
+
+        def codec = new DeflateCompressionCodec() {
+            @Override
+            byte[] doDecompressBackCompat(byte[] compressed) throws IOException {
+                throw unexpected
+            }
+        }
+
+        try {
+            codec.decompress(invalid)
+        } catch (CompressionException ce) {
+            assertNotSame(unexpected, ce.getCause())
+        }
+    }
+}