diff --git a/server/remote_cache/cachetools/cachetools.go b/server/remote_cache/cachetools/cachetools.go
index 793eaf6cd7d..5e2bbba0563 100644
--- a/server/remote_cache/cachetools/cachetools.go
+++ b/server/remote_cache/cachetools/cachetools.go
@@ -248,6 +248,9 @@ func uploadFromReader(ctx context.Context, bsClient bspb.ByteStreamClient, r *di
 	if r.IsEmpty() {
 		return r.GetDigest(), 0, nil
 	}
+	if *enableUploadCompression {
+		r.SetCompressor(repb.Compressor_ZSTD)
+	}
 	resourceName, err := r.UploadString()
 	if err != nil {
 		return nil, 0, err
@@ -443,9 +446,6 @@ func UploadFile(ctx context.Context, bsClient bspb.ByteStreamClient, instanceNam
 	if _, err := f.Seek(0, io.SeekStart); err != nil {
 		return nil, err
 	}
-	if *enableUploadCompression {
-		resourceName.SetCompressor(repb.Compressor_ZSTD)
-	}
 	result, _, err := UploadFromReader(ctx, bsClient, resourceName, f)
 	return result, err
 }