diff --git a/NEWS b/NEWS
index 079647e8..351c7284 100644
--- a/NEWS
+++ b/NEWS
@@ -5,6 +5,7 @@ User visible changes for UPX
 Changes in 2.91 beta (XX XXX 2006):
   * assorted bug fixes
   * arm/pe: fix "missing" icon & version info resource problem for wince 5
+  * pe: --compress-icons=3 option added to compress all icons
 
 Changes in 2.90 beta (08 Oct 2006):
   * LZMA algorithm support for most of the 32-bit and 64-bit file formats;
diff --git a/doc/upx.pod b/doc/upx.pod
index 0d03ffd8..0d725336 100644
--- a/doc/upx.pod
+++ b/doc/upx.pod
@@ -875,6 +875,7 @@ Extra options available for this executable format:
   --compress-icons=1  Compress all but the first icon.
   --compress-icons=2  Compress all icons which are not in the
                       first icon directory. [DEFAULT]
+  --compress-icons=3  Compress all icons.
 
   --compress-resources=0  Don't compress any resources at all.
 
diff --git a/src/main.cpp b/src/main.cpp
index d54e4de2..8d0619ca 100644
--- a/src/main.cpp
+++ b/src/main.cpp
@@ -765,7 +765,7 @@ static int do_option(int optc, const char *arg)
     case 631:
         opt->win32_pe.compress_icons = 1;
         if (mfx_optarg && mfx_optarg[0])
-            getoptvar(&opt->win32_pe.compress_icons, 0, 2, arg);
+            getoptvar(&opt->win32_pe.compress_icons, 0, 3, arg);
         //printf("compress_icons: %d\n", opt->win32_pe.compress_icons);
         break;
     case 632:
diff --git a/src/pefile.cpp b/src/pefile.cpp
index ab7b7a60..7211041f 100644
--- a/src/pefile.cpp
+++ b/src/pefile.cpp
@@ -1399,7 +1399,8 @@ void PeFile::processResources(Resource *res)
             if (res->itype() == RT_GROUP_ICON && iconsin1stdir == 0)
                 iconsin1stdir = get_le16(ibuf + res->offs() + 4);
 
-    bool compress_icon = false, compress_idir = false;
+    bool compress_icon = opt->win32_pe.compress_icons == 3;
+    bool compress_idir = false;
     unsigned iconcnt = 0;
 
     // some statistics