diff --git a/ui/litellm-dashboard/eslint-suppressions.json b/ui/litellm-dashboard/eslint-suppressions.json
index 6819b2851f5..ffe902474c1 100644
--- a/ui/litellm-dashboard/eslint-suppressions.json
+++ b/ui/litellm-dashboard/eslint-suppressions.json
@@ -212,11 +212,6 @@
       "count": 1
     }
   },
-  "src/app/(dashboard)/cost-optimization/_components/PromptCompressionTab.tsx": {
-    "no-restricted-imports": {
-      "count": 1
-    }
-  },
   "src/app/(dashboard)/cost-tracking/_components/add_margin_form.tsx": {
     "local/filename-pascal-case": {
       "count": 1
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/compression/_components/CompressionView.test.tsx b/ui/litellm-dashboard/src/app/(dashboard)/compression/_components/CompressionView.test.tsx
new file mode 100644
index 00000000000..8a618607543
--- /dev/null
+++ b/ui/litellm-dashboard/src/app/(dashboard)/compression/_components/CompressionView.test.tsx
@@ -0,0 +1,99 @@
+import { fireEvent, render, screen, waitFor } from "@testing-library/react";
+import { beforeEach, describe, expect, it, vi } from "vitest";
+
+const { mockCreateGuardrailCall, mockGetGuardrailsList } = vi.hoisted(() => ({
+  mockCreateGuardrailCall: vi.fn(),
+  mockGetGuardrailsList: vi.fn(),
+}));
+
+vi.mock("@/components/networking", () => ({
+  createGuardrailCall: mockCreateGuardrailCall,
+  getGuardrailsList: mockGetGuardrailsList,
+}));
+
+vi.mock("@/components/molecules/notifications_manager", () => ({
+  default: { success: vi.fn(), fromBackend: vi.fn() },
+}));
+
+import CompressionView from "./CompressionView";
+
+const headroomGuardrail = {
+  guardrail_id: "g-1",
+  guardrail_name: "headroom-prod",
+  litellm_params: { guardrail: "headroom", api_base: "https://headroom.internal", default_on: true },
+};
+
+const piiGuardrail = {
+  guardrail_id: "g-2",
+  guardrail_name: "presidio-pii",
+  litellm_params: { guardrail: "presidio", api_base: "https://presidio.internal", default_on: false },
+};
+
+describe("CompressionView", () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+    mockGetGuardrailsList.mockResolvedValue({ guardrails: [headroomGuardrail, piiGuardrail] });
+    mockCreateGuardrailCall.mockResolvedValue({});
+  });
+
+  it("lists only compression guardrails with their always-on state", async () => {
+    render(<CompressionView accessToken="test-token" />);
+
+    await waitFor(() => expect(screen.getByText("headroom-prod")).toBeInTheDocument());
+    expect(screen.getByText("https://headroom.internal")).toBeInTheDocument();
+    expect(screen.getByText("Always on")).toBeInTheDocument();
+    expect(screen.queryByText("presidio-pii")).not.toBeInTheDocument();
+  });
+
+  it("creates a headroom guardrail from the form and reloads the list", async () => {
+    render(<CompressionView accessToken="test-token" />);
+    await waitFor(() => expect(mockGetGuardrailsList).toHaveBeenCalledTimes(1));
+
+    fireEvent.change(screen.getByPlaceholderText("headroom-compression"), { target: { value: "headroom-new" } });
+    fireEvent.change(screen.getByPlaceholderText("https://your-headroom-endpoint"), {
+      target: { value: "https://new-headroom.internal" },
+    });
+    fireEvent.click(screen.getByRole("button", { name: "Add guardrail" }));
+
+    await waitFor(() =>
+      expect(mockCreateGuardrailCall).toHaveBeenCalledWith("test-token", {
+        guardrail_name: "headroom-new",
+        litellm_params: {
+          guardrail: "headroom",
+          mode: "pre_call",
+          api_base: "https://new-headroom.internal",
+          default_on: true,
+        },
+      }),
+    );
+    await waitFor(() => expect(mockGetGuardrailsList).toHaveBeenCalledTimes(2));
+  });
+
+  it("sends default_on false when 'Apply to all requests' is switched off", async () => {
+    render(<CompressionView accessToken="test-token" />);
+    await waitFor(() => expect(mockGetGuardrailsList).toHaveBeenCalledTimes(1));
+
+    fireEvent.change(screen.getByPlaceholderText("headroom-compression"), { target: { value: "headroom-optin" } });
+    fireEvent.change(screen.getByPlaceholderText("https://your-headroom-endpoint"), {
+      target: { value: "https://optin-headroom.internal" },
+    });
+    fireEvent.click(screen.getByRole("switch"));
+    fireEvent.click(screen.getByRole("button", { name: "Add guardrail" }));
+
+    await waitFor(() =>
+      expect(mockCreateGuardrailCall).toHaveBeenCalledWith(
+        "test-token",
+        expect.objectContaining({
+          litellm_params: expect.objectContaining({ default_on: false }),
+        }),
+      ),
+    );
+  });
+
+  it("does not call the backend without an access token", async () => {
+    render(<CompressionView accessToken={null} />);
+
+    await waitFor(() => expect(screen.getByRole("button", { name: "Add guardrail" })).toBeInTheDocument());
+    expect(mockGetGuardrailsList).not.toHaveBeenCalled();
+  });
+});
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/PromptCompressionTab.tsx b/ui/litellm-dashboard/src/app/(dashboard)/compression/_components/CompressionView.tsx
similarity index 61%
rename from ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/PromptCompressionTab.tsx
rename to ui/litellm-dashboard/src/app/(dashboard)/compression/_components/CompressionView.tsx
index 071ad1d6bd5..2bbc8136567 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/PromptCompressionTab.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/compression/_components/CompressionView.tsx
@@ -1,9 +1,13 @@
 "use client";
 
 import React, { useCallback, useEffect, useState } from "react";
-import { Button, Form, Input, Switch } from "antd";
+import { Shrink } from "lucide-react";
 
+import { Button } from "@/components/ui/button";
 import { Card, CardContent, CardHeader, CardTitle } from "@/components/ui/card";
+import { Input } from "@/components/ui/input";
+import { Label } from "@/components/ui/label";
+import { Switch } from "@/components/ui/switch";
 import { createGuardrailCall, getGuardrailsList } from "@/components/networking";
 import NotificationsManager from "@/components/molecules/notifications_manager";
 import {
@@ -13,7 +17,7 @@ import {
   GuardrailListResponse,
 } from "./helpers";
 
-interface PromptCompressionTabProps {
+interface CompressionViewProps {
   accessToken: string | null;
 }
 
@@ -23,8 +27,10 @@ interface CompressionFormValues {
   defaultOn: boolean;
 }
 
-const PromptCompressionTab: React.FC<PromptCompressionTabProps> = ({ accessToken }) => {
-  const [form] = Form.useForm<CompressionFormValues>();
+const EMPTY_FORM: CompressionFormValues = { name: "", apiBase: "", defaultOn: true };
+
+const CompressionView: React.FC<CompressionViewProps> = ({ accessToken }) => {
+  const [formValues, setFormValues] = useState<CompressionFormValues>(EMPTY_FORM);
   const [guardrails, setGuardrails] = useState<GuardrailListItem[]>([]);
   const [isLoading, setIsLoading] = useState<boolean>(true);
   const [isSaving, setIsSaving] = useState<boolean>(false);
@@ -46,22 +52,16 @@ const PromptCompressionTab: React.FC<PromptCompressionTabProps> = ({ accessToken
     loadGuardrails();
   }, [loadGuardrails]);
 
-  const handleAdd = async (values: CompressionFormValues) => {
+  const handleAdd = async (event: React.FormEvent<HTMLFormElement>) => {
+    event.preventDefault();
     if (!accessToken) {
       return;
     }
     setIsSaving(true);
     try {
-      await createGuardrailCall(
-        accessToken,
-        buildCompressionGuardrailPayload({
-          name: values.name,
-          apiBase: values.apiBase,
-          defaultOn: values.defaultOn ?? true,
-        }),
-      );
+      await createGuardrailCall(accessToken, buildCompressionGuardrailPayload(formValues));
       NotificationsManager.success("Compression guardrail created");
-      form.resetFields();
+      setFormValues(EMPTY_FORM);
       await loadGuardrails();
     } catch (error) {
       console.error("Failed to create compression guardrail:", error);
@@ -72,7 +72,17 @@ const PromptCompressionTab: React.FC<PromptCompressionTabProps> = ({ accessToken
   };
 
   return (
-    <div className="w-full space-y-6">
+    <div className="w-full space-y-6 p-6">
+      <div>
+        <div className="flex items-center gap-2">
+          <Shrink className="size-6 text-emerald-600" strokeWidth={1.75} />
+          <h1 className="text-xl font-semibold text-foreground">Compression</h1>
+        </div>
+        <p className="mt-1 text-sm text-muted-foreground">
+          Configure prompt compression so you pay for fewer input tokens
+        </p>
+      </div>
+
       <Card>
         <CardHeader>
           <CardTitle>Headroom prompt compression</CardTitle>
@@ -80,7 +90,8 @@ const PromptCompressionTab: React.FC<PromptCompressionTabProps> = ({ accessToken
         <CardContent>
           <p className="mb-4 text-sm text-muted-foreground">
             Headroom is a native LiteLLM guardrail that compresses your prompts before they reach the model, so you pay
-            for fewer input tokens. The tokens it removes are priced and shown on the Usage tab as compression savings.{" "}
+            for fewer input tokens. The tokens it removes are priced and shown as compression savings on the Cost
+            Optimization dashboard.{" "}
             <a
               href="https://docs.litellm.ai/docs/proxy/headroom"
               target="_blank"
@@ -125,29 +136,39 @@ const PromptCompressionTab: React.FC<PromptCompressionTabProps> = ({ accessToken
           <CardTitle>Add Headroom compression guardrail</CardTitle>
         </CardHeader>
         <CardContent>
-          <Form
-            form={form}
-            layout="vertical"
-            requiredMark={false}
-            onFinish={handleAdd}
-            initialValues={{ defaultOn: true }}
-          >
-            <Form.Item name="name" label="Name" rules={[{ required: true, message: "Name is required" }]}>
-              <Input placeholder="headroom-compression" />
-            </Form.Item>
-            <Form.Item
-              name="apiBase"
-              label="Headroom API base"
-              tooltip="Base URL of your Headroom compression service (LiteLLM calls its /v1/compress endpoint)"
-              extra="The URL where your Headroom compression service is hosted"
-              rules={[{ required: true, message: "API base is required" }]}
-            >
-              <Input placeholder="https://your-headroom-endpoint" />
-            </Form.Item>
-            <Form.Item name="defaultOn" label="Apply to all requests" valuePropName="checked">
-              <Switch />
-            </Form.Item>
-            <div className="mb-4 rounded-lg border border-yellow-200 bg-yellow-50 p-3">
+          <form onSubmit={handleAdd} className="space-y-4">
+            <div className="space-y-2">
+              <Label htmlFor="compression-name">Name</Label>
+              <Input
+                id="compression-name"
+                required
+                placeholder="headroom-compression"
+                value={formValues.name}
+                onChange={(event) => setFormValues({ ...formValues, name: event.target.value })}
+              />
+            </div>
+            <div className="space-y-2">
+              <Label htmlFor="compression-api-base">Headroom API base</Label>
+              <Input
+                id="compression-api-base"
+                required
+                placeholder="https://your-headroom-endpoint"
+                value={formValues.apiBase}
+                onChange={(event) => setFormValues({ ...formValues, apiBase: event.target.value })}
+              />
+              <p className="text-xs text-muted-foreground">
+                Base URL of your Headroom compression service; LiteLLM calls its /v1/compress endpoint
+              </p>
+            </div>
+            <Label htmlFor="compression-default-on">
+              <Switch
+                id="compression-default-on"
+                checked={formValues.defaultOn}
+                onCheckedChange={(checked) => setFormValues({ ...formValues, defaultOn: checked })}
+              />
+              Apply to all requests
+            </Label>
+            <div className="rounded-lg border border-yellow-200 bg-yellow-50 p-3">
               <p className="text-sm text-yellow-800">
                 Applying compression to all requests is available to all users. Enabling it selectively per key or team
                 is a LiteLLM Enterprise feature. Get a trial key{" "}
@@ -162,15 +183,15 @@ const PromptCompressionTab: React.FC<PromptCompressionTabProps> = ({ accessToken
               </p>
             </div>
             <div className="flex justify-end">
-              <Button type="primary" htmlType="submit" loading={isSaving}>
-                Add guardrail
+              <Button type="submit" disabled={isSaving}>
+                {isSaving ? "Adding..." : "Add guardrail"}
               </Button>
             </div>
-          </Form>
+          </form>
         </CardContent>
       </Card>
     </div>
   );
 };
 
-export default PromptCompressionTab;
+export default CompressionView;
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/helpers.test.ts b/ui/litellm-dashboard/src/app/(dashboard)/compression/_components/helpers.test.ts
similarity index 100%
rename from ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/helpers.test.ts
rename to ui/litellm-dashboard/src/app/(dashboard)/compression/_components/helpers.test.ts
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/helpers.ts b/ui/litellm-dashboard/src/app/(dashboard)/compression/_components/helpers.ts
similarity index 100%
rename from ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/helpers.ts
rename to ui/litellm-dashboard/src/app/(dashboard)/compression/_components/helpers.ts
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/compression/page.tsx b/ui/litellm-dashboard/src/app/(dashboard)/compression/page.tsx
new file mode 100644
index 00000000000..3f4feddf674
--- /dev/null
+++ b/ui/litellm-dashboard/src/app/(dashboard)/compression/page.tsx
@@ -0,0 +1,9 @@
+"use client";
+
+import CompressionView from "./_components/CompressionView";
+import useAuthorized from "@/app/(dashboard)/hooks/useAuthorized";
+
+export default function CompressionPage() {
+  const { accessToken } = useAuthorized();
+  return <CompressionView accessToken={accessToken} />;
+}
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/CostOptimizationView.activity.test.tsx b/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/CostOptimizationView.activity.test.tsx
index ca7adf07941..176ccbd05ea 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/CostOptimizationView.activity.test.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/CostOptimizationView.activity.test.tsx
@@ -26,8 +26,6 @@ vi.mock("@/app/(dashboard)/router-settings/_components/general_settings", () =>
   PromptCachingPanel: () => <div data-testid="caching-settings" />,
 }));
 
-vi.mock("./PromptCompressionTab", () => ({ __esModule: true, default: () => <div /> }));
-
 import CostOptimizationView from "./CostOptimizationView";
 
 const singlePage = {
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/CostOptimizationView.test.tsx b/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/CostOptimizationView.test.tsx
index 42dc7719144..c8d8d6e16f9 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/CostOptimizationView.test.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/CostOptimizationView.test.tsx
@@ -2,7 +2,6 @@ import { fireEvent, render } from "@testing-library/react";
 import { describe, expect, it, vi } from "vitest";
 
 vi.mock("./UsageTab", () => ({ __esModule: true, default: () => <div data-testid="usage-tab" /> }));
-vi.mock("./PromptCompressionTab", () => ({ __esModule: true, default: () => <div data-testid="compression-tab" /> }));
 vi.mock("./PromptCachingTab", () => ({ __esModule: true, default: () => <div data-testid="caching-tab" /> }));
 
 import CostOptimizationView from "./CostOptimizationView";
@@ -10,12 +9,12 @@ import CostOptimizationView from "./CostOptimizationView";
 const renderView = () => render(<CostOptimizationView accessToken="test-token" userId="u1" userRole="proxy_admin" />);
 
 describe("CostOptimizationView", () => {
-  it("renders the three cost-optimization tabs and no autorouter tab", () => {
+  it("renders the reporting tabs, with compression config moved to its own page", () => {
     const { getByText, queryByText } = renderView();
 
     expect(getByText("Usage")).toBeInTheDocument();
-    expect(getByText("Prompt Compression")).toBeInTheDocument();
     expect(getByText("Prompt Caching")).toBeInTheDocument();
+    expect(queryByText("Prompt Compression")).not.toBeInTheDocument();
     expect(queryByText("Autorouter")).not.toBeInTheDocument();
   });
 
@@ -23,11 +22,11 @@ describe("CostOptimizationView", () => {
     const { getByRole } = renderView();
 
     expect(getByRole("tab", { name: "Usage" })).toHaveAttribute("aria-selected", "true");
-    expect(getByRole("tab", { name: "Prompt Compression" })).toHaveAttribute("aria-selected", "false");
+    expect(getByRole("tab", { name: "Prompt Caching" })).toHaveAttribute("aria-selected", "false");
 
-    fireEvent.click(getByRole("tab", { name: "Prompt Compression" }));
+    fireEvent.click(getByRole("tab", { name: "Prompt Caching" }));
 
     expect(getByRole("tab", { name: "Usage" })).toHaveAttribute("aria-selected", "false");
-    expect(getByRole("tab", { name: "Prompt Compression" })).toHaveAttribute("aria-selected", "true");
+    expect(getByRole("tab", { name: "Prompt Caching" })).toHaveAttribute("aria-selected", "true");
   });
 });
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/CostOptimizationView.tsx b/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/CostOptimizationView.tsx
index f6593e80999..8eeee999bfb 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/CostOptimizationView.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/cost-optimization/_components/CostOptimizationView.tsx
@@ -5,7 +5,6 @@ import { PiggyBank } from "lucide-react";
 import { Alert, Tabs } from "antd";
 
 import UsageTab from "./UsageTab";
-import PromptCompressionTab from "./PromptCompressionTab";
 import PromptCachingTab from "./PromptCachingTab";
 import { useDailyActivityRange } from "./useDailyActivityRange";
 
@@ -24,11 +23,6 @@ const CostOptimizationView: React.FC<CostOptimizationViewProps> = ({ accessToken
       label: "Usage",
       children: <UsageTab accessToken={accessToken} activity={activity} />,
     },
-    {
-      key: "compression",
-      label: "Prompt Compression",
-      children: <PromptCompressionTab accessToken={accessToken} />,
-    },
     {
       key: "caching",
       label: "Prompt Caching",
@@ -44,8 +38,8 @@ const CostOptimizationView: React.FC<CostOptimizationViewProps> = ({ accessToken
           <h1 className="text-xl font-semibold text-foreground">Cost Optimization</h1>
         </div>
         <p className="mt-1 text-sm text-muted-foreground">
-          Track and configure the mechanisms that save you money: prompt compression and prompt caching. Auto routers
-          live under Models + Endpoints, on the Auto-Routers tab
+          Track what the money-saving mechanisms are actually saving you. Prompt compression is configured under AI
+          Gateway, on the Compression page; auto routers live under Models + Endpoints, on the Auto-Routers tab
         </p>
       </div>
 
diff --git a/ui/litellm-dashboard/src/components/leftnav.test.tsx b/ui/litellm-dashboard/src/components/leftnav.test.tsx
index dc893643559..c6512f81170 100644
--- a/ui/litellm-dashboard/src/components/leftnav.test.tsx
+++ b/ui/litellm-dashboard/src/components/leftnav.test.tsx
@@ -106,6 +106,7 @@ describe("Sidebar (leftnav)", () => {
       "Agentic",
       "MCP Servers",
       "Guardrails",
+      "Compression",
       "Policies",
       "Tools",
       "Usage",
@@ -286,6 +287,10 @@ describe("getBreadcrumb", () => {
     expect(getBreadcrumb("logs")).toEqual({ section: "Observability", title: "Logs" });
   });
 
+  it("resolves compression as a top-level AI Gateway page", () => {
+    expect(getBreadcrumb("compression")).toEqual({ section: "AI Gateway", title: "Compression" });
+  });
+
   it("resolves a nested child page to its parent section", () => {
     expect(getBreadcrumb("search-tools")).toEqual({ section: "AI Gateway", title: "Search Tools" });
   });
diff --git a/ui/litellm-dashboard/src/components/leftnav.tsx b/ui/litellm-dashboard/src/components/leftnav.tsx
index af76fccf9eb..b91b7d9f133 100644
--- a/ui/litellm-dashboard/src/components/leftnav.tsx
+++ b/ui/litellm-dashboard/src/components/leftnav.tsx
@@ -53,6 +53,7 @@ import {
   Settings as SettingsIcon,
   Shield,
   ShieldCheck,
+  Shrink,
   Tags,
   Terminal,
   User,
@@ -152,6 +153,13 @@ const menuGroups: MenuGroup[] = [
       { key: "mcp-servers", page: "mcp-servers", label: "MCP Servers", icon: <Server {...ICON} /> },
       { key: "skills", page: "skills", label: "Skills", icon: <Blocks {...ICON} />, roles: all_admin_roles },
       { key: "guardrails", page: "guardrails", label: "Guardrails", icon: <Shield {...ICON} /> },
+      {
+        key: "compression",
+        page: "compression",
+        label: "Compression",
+        icon: <Shrink {...ICON} />,
+        roles: all_admin_roles,
+      },
       {
         key: "policies",
         page: "policies",
diff --git a/ui/litellm-dashboard/src/components/page_metadata.ts b/ui/litellm-dashboard/src/components/page_metadata.ts
index 0f2ff639bb3..0c950ca4bab 100644
--- a/ui/litellm-dashboard/src/components/page_metadata.ts
+++ b/ui/litellm-dashboard/src/components/page_metadata.ts
@@ -19,7 +19,8 @@ export const pageDescriptions: Record<string, string> = {
   "tool-policies": "Configure tool use policies and permissions",
   "vector-stores": "Manage vector databases for embeddings",
   new_usage: "View usage analytics and metrics",
-  "cost-optimization": "Track and configure cost-saving features: prompt compression, caching, and auto routing",
+  "cost-optimization": "Track savings from cost-saving features: prompt compression, caching, and auto routing",
+  compression: "Configure prompt compression so requests are billed for fewer input tokens",
   logs: "Access request and response logs",
   "guardrails-monitor": "Monitor guardrail performance and view logs",
   users: "Manage internal user accounts and permissions",
diff --git a/ui/litellm-dashboard/src/utils/migratedPages.ts b/ui/litellm-dashboard/src/utils/migratedPages.ts
index 73ab71ce4ac..4dcc82c77dc 100644
--- a/ui/litellm-dashboard/src/utils/migratedPages.ts
+++ b/ui/litellm-dashboard/src/utils/migratedPages.ts
@@ -45,6 +45,7 @@ export const MIGRATED_PAGES: Record<string, string> = {
   new_usage: "usage",
   usage: "old-usage",
   "cost-optimization": "cost-optimization",
+  compression: "compression",
   agents: "agents",
   "router-settings": "router-settings",
   users: "users",