Compression algorithms reduce the redundancy in data representation to decrease the storage required for that data. Data compression offers an attractive approach to reducing communication costs by using available bandwidth effectively. Though this scheme has clear benefits, the execution time of compression and decompression is critical to its application in real-time systems. Software compression utilities are often slow, leading to degraded system performance. Hardware-based solutions, on the other hand, often drive large resource requirements and are not amenable to supporting future algorithmic changes. The proposed algorithm suggests a lossless data compression with hash table-dictionary-based scheme.