diff --git a/Config.in b/Config.in
index 3e8475cc30..71a7c7da8a 100644
--- a/Config.in
+++ b/Config.in
@@ -43,6 +43,9 @@ menu "Target Images"
 
 		config TARGET_INITRAMFS_COMPRESSION_LZMA
 			bool "LZMA"
+
+		config TARGET_INITRAMFS_COMPRESSION_LZO
+			bool "LZO"
 	endchoice
 
 	config TARGET_ROOTFS_JFFS2
diff --git a/include/kernel-defaults.mk b/include/kernel-defaults.mk
index f49cbb93a0..300139cab0 100644
--- a/include/kernel-defaults.mk
+++ b/include/kernel-defaults.mk
@@ -76,6 +76,7 @@ ifeq ($(KERNEL),2.6)
 		echo -e "$(if $(CONFIG_TARGET_INITRAMFS_COMPRESSION_GZIP),CONFIG_INITRAMFS_COMPRESSION_GZIP=y\nCONFIG_RD_GZIP=y,# CONFIG_INITRAMFS_COMPRESSION_GZIP is not set\n# CONFIG_RD_GZIP is not set)" >> $(LINUX_DIR)/.config
 		echo -e "$(if $(CONFIG_TARGET_INITRAMFS_COMPRESSION_BZIP2),CONFIG_INITRAMFS_COMPRESSION_BZIP2=y\nCONFIG_RD_BZIP2=y,# CONFIG_INITRAMFS_COMPRESSION_BZIP2 is not set\n# CONFIG_RD_BZIP2 is not set)" >> $(LINUX_DIR)/.config
 		echo -e "$(if $(CONFIG_TARGET_INITRAMFS_COMPRESSION_LZMA),CONFIG_INITRAMFS_COMPRESSION_LZMA=y\nCONFIG_RD_LZMA=y,# CONFIG_INITRAMFS_COMPRESSION_LZMA is not set\n# CONFIG_RD_LZMA is not set)" >> $(LINUX_DIR)/.config
+		echo -e "$(if $(CONFIG_TARGET_INITRAMFS_COMPRESSION_LZO),CONFIG_INITRAMFS_COMPRESSION_LZO=y\nCONFIG_RD_LZO=y,# CONFIG_INITRAMFS_COMPRESSION_LZO is not set\n# CONFIG_RD_LZO is not set)" >> $(LINUX_DIR)/.config
     endef
   else
     define Kernel/SetInitramfs