diff --git a/src/Tools/psxcdgen_ex/src/lib.rs b/src/Tools/psxcdgen_ex/src/lib.rs
index d2f93eed..2525acd4 100644
--- a/src/Tools/psxcdgen_ex/src/lib.rs
+++ b/src/Tools/psxcdgen_ex/src/lib.rs
@@ -9,6 +9,7 @@ use config_reader::LZ4State;
 use encoder::{LbaCalculatorFunction, LengthCalculatorFunction};
 use tool_helper::{format_if_error, Output, read_file};
 use types::{layout::Layout, CDDesc, Directory, File, FileType, FileSystemMap, Properties, SharedPtr};
+use std::path::PathBuf;
 
 pub type LBAEmbeddedFiles     = Vec<SharedPtr<File>>;
 
@@ -157,25 +158,31 @@ fn parse_configuration(config: config_reader::Configuration) -> Result<(CDDesc,
                 },
 
                 config_reader::DirMember::File(file)     => {
+                    let lz4_state = file.common.lz4_state;
                     let (mut desc_file, needs_treatment) = {
+                        fn handle_file_load(file_path: &PathBuf, lz4_state: &LZ4State) -> Result<Vec<u8>, Error> {
+                            let file_content = read_file(file_path)?;
+
+                            if matches!(lz4_state, LZ4State::Compress) {
+                                tool_helper::compress::psx_default::lz4(&file_content)
+                            }
+
+                            else {
+                                Ok(file_content)
+                            }
+                        }
+
                         match file.kind {
-                            config_reader::FileKind::Regular             => (types::File::new_regular(file.common.name.as_str(),      read_file(&file.path)?)?, false),
-                            config_reader::FileKind::Main(lba_source)    => (types::overlay::load_for_main(file.common.name.as_str(), read_file(&file.path)?,   lba_source)?, true),
-                            config_reader::FileKind::Overlay(lba_source) => (types::overlay::load_from(file.common.name.as_str(),     &file.path,               lba_source)?, true),
+                            config_reader::FileKind::Regular             => (types::File::new_regular(file.common.name.as_str(),      handle_file_load(&file.path, &lz4_state)?)?,               false),
+                            config_reader::FileKind::Main(lba_source)    => (types::overlay::load_for_main(file.common.name.as_str(), handle_file_load(&file.path, &lz4_state)?,   lba_source)?, true),
+                            config_reader::FileKind::Overlay(lba_source) => (types::overlay::load_from(file.common.name.as_str(),     &file.path,                                  lba_source)?, true),
                         }
                     };
 
                     desc_file.properties.padded_size_bytes = file.common.padded_size;
                     desc_file.properties.is_hidden         = file.common.is_hidden;
+                    desc_file.properties.is_lz4            = !matches!(lz4_state, LZ4State::None);
                     
-                    match file.common.lz4_state {
-                        LZ4State::None              => desc_file.properties.is_lz4 = false,
-                        LZ4State::AlreadyCompressed => desc_file.properties.is_lz4 = true,
-                        LZ4State::Compress          => {
-                            return Err(Error::from_text(format!("LZ4 compression requested for file {} but feature is not supported yet", &file.path.to_string_lossy())));
-                        }
-                    }
-
                     let new_file = dst_dir.add_file(desc_file);
                     if needs_treatment {
                         lba_embedded_files.push(new_file);