diff --git a/backupbackingimage/backupbackingimage.go b/backupbackingimage/backupbackingimage.go
index 6e10b0152..672b17ff6 100644
--- a/backupbackingimage/backupbackingimage.go
+++ b/backupbackingimage/backupbackingimage.go
@@ -482,9 +482,11 @@ func restoreBlockToFile(bsDriver backupstore.BackupStoreDriver, backingImageFile
 		return err
 	}
 	defer rc.Close()
-	r, err := util.DecompressAndVerify(decompression, rc, blk.BlockChecksum)
+	r, err := util.DecompressAndVerifyWithFallback(decompression, rc, blk.BlockChecksum)
 	if err != nil {
-		return err
+		if r == nil {
+			return err
+		}
 	}
 
 	if _, err := backingImageFile.Seek(blk.Offset, 0); err != nil {
diff --git a/deltablock.go b/deltablock.go
index 73851e53b..7c2ace7be 100644
--- a/deltablock.go
+++ b/deltablock.go
@@ -252,6 +252,10 @@ func CreateDeltaBlockBackup(backupName string, config *DeltaBackupConfig) (isInc
 		},
 	}
 
+	log = logrus.WithFields(logrus.Fields{
+		"compressionMethod": volume.CompressionMethod,
+	})
+
 	// keep lock alive for async go routine.
 	if err := lock.Lock(); err != nil {
 		deltaOps.CloseSnapshot(snapshot.Name, volume.Name)
@@ -264,6 +268,7 @@ func CreateDeltaBlockBackup(backupName string, config *DeltaBackupConfig) (isInc
 		deltaOps.UpdateBackupStatus(snapshot.Name, volume.Name, string(types.ProgressStateInProgress), 0, "", "")
 
 		log.Info("Performing delta block backup")
+
 		if progress, backup, err := performBackup(bsDriver, config, delta, deltaBackup, backupRequest.lastBackup); err != nil {
 			logrus.WithError(err).Errorf("Failed to perform backup for volume %v snapshot %v", volume.Name, snapshot.Name)
 			deltaOps.UpdateBackupStatus(snapshot.Name, volume.Name, string(types.ProgressStateInProgress), progress, "", err.Error())
@@ -738,18 +743,22 @@ func restoreBlockToFile(bsDriver BackupStoreDriver, volumeName string, volDev *o
 	blkFile := getBlockFilePath(volumeName, blk.BlockChecksum)
 	rc, err := bsDriver.Read(blkFile)
 	if err != nil {
-		return err
+		return errors.Wrapf(err, "failed to read block %v with checksum %v", blkFile, blk.BlockChecksum)
 	}
 	defer rc.Close()
-	r, err := util.DecompressAndVerify(decompression, rc, blk.BlockChecksum)
+
+	r, err := util.DecompressAndVerifyWithFallback(decompression, rc, blk.BlockChecksum)
 	if err != nil {
-		return err
+		if r == nil {
+			return err
+		}
 	}
+
 	if _, err := volDev.Seek(blk.Offset, 0); err != nil {
-		return err
+		return errors.Wrapf(err, "failed to seek to offset %v for decompressed block %v", blk.Offset, blkFile)
 	}
 	_, err = io.CopyN(volDev, r, DEFAULT_BLOCK_SIZE)
-	return err
+	return errors.Wrapf(err, "failed to write decompressed block %v to volume %v", blkFile, volumeName)
 }
 
 func RestoreDeltaBlockBackupIncrementally(ctx context.Context, config *DeltaRestoreConfig) error {
diff --git a/types/types.go b/types/types.go
index bc626cc5f..471460edc 100644
--- a/types/types.go
+++ b/types/types.go
@@ -57,8 +57,8 @@ const (
 	// For lock mechanism, please refer to: https://github.com/longhorn/longhorn/blob/master/enhancements/20200701-backupstore-file-locks.md#proposal
 	// Currently the lock file is stored in each BackupVolume folder.
 	// For BackingImage Lock it is also stored there with the folder name "BACKINGIMAGE" defined here.
-	// To prevent Longhorn from accidently considering it as another normal BackupVolume,
-	// we use upppercase here so it will be filtered out when listing.
+	// To prevent Longhorn from accidentally considering it as another normal BackupVolume,
+	// we use uppercase here so it will be filtered out when listing.
 	BackupBackingImageLockName = "BACKINGIMAGE"
 )
 
diff --git a/util/util.go b/util/util.go
index 7f066f8ed..394050110 100644
--- a/util/util.go
+++ b/util/util.go
@@ -120,12 +120,12 @@ func CompressData(method string, data []byte) (io.ReadSeeker, error) {
 func DecompressAndVerify(method string, src io.Reader, checksum string) (io.Reader, error) {
 	r, err := newDecompressionReader(method, src)
 	if err != nil {
-		return nil, err
+		return nil, errors.Wrap(err, "failed to create decompression reader")
 	}
 	defer r.Close()
 	block, err := io.ReadAll(r)
 	if err != nil {
-		return nil, err
+		return nil, errors.Wrap(err, "failed to read decompressed data")
 	}
 	if GetChecksum(block) != checksum {
 		return nil, fmt.Errorf("checksum verification failed for block")
@@ -133,6 +133,39 @@ func DecompressAndVerify(method string, src io.Reader, checksum string) (io.Read
 	return bytes.NewReader(block), nil
 }
 
+// DecompressAndVerifyWithFallback decompresses the given data and verifies the data integrity.
+// If the decompression fails, it will try to decompress with the fallback method.
+func DecompressAndVerifyWithFallback(decompression string, rc io.ReadCloser, checksum string) (io.Reader, error) {
+	r, err := DecompressAndVerify(decompression, rc, checksum)
+	if err == nil {
+		return r, nil
+	}
+	// Fall back to other decompression method if the current one fails
+	// The mitigation will be removed after identifying https://github.com/longhorn/longhorn/issues/7687
+	// Seek rc to offset 0
+	seeker, ok := rc.(io.Seeker)
+	if !ok {
+		return nil, errors.Wrapf(err, "failed to cast to io.Seeker for block %v", checksum)
+	}
+
+	_, errFallback := seeker.Seek(0, io.SeekStart)
+	if errFallback != nil {
+		// Merge the err1 and err2 and error out
+		return nil, errors.Wrapf(multierr.Append(err, errFallback), "failed to seek to offset 0 for block %v", checksum)
+	}
+
+	if strings.Contains(err.Error(), gzip.ErrHeader.Error()) {
+		r, errFallback = DecompressAndVerify("lz4", rc, checksum)
+	} else if strings.Contains(err.Error(), "lz4: bad magic number") {
+		r, errFallback = DecompressAndVerify("gzip", rc, checksum)
+	}
+	if errFallback != nil {
+		return nil, errors.Wrapf(multierr.Append(err, errFallback), "failed to decompress and verify block %v with fallback", checksum)
+	}
+
+	return r, err
+}
+
 func newCompressionWriter(method string, buffer io.Writer) (io.WriteCloser, error) {
 	switch method {
 	case "gzip":
diff --git a/util/util_test.go b/util/util_test.go
index ac61a49ff..86cbfbc43 100644
--- a/util/util_test.go
+++ b/util/util_test.go
@@ -4,6 +4,7 @@ import (
 	"io"
 	"math/rand"
 	"net/url"
+	"os"
 	"os/exec"
 	"path/filepath"
 	"strconv"
@@ -78,6 +79,93 @@ func (s *TestSuite) TestCompress(c *C) {
 	}
 }
 
+type ReadSeekerCloser struct {
+	seeker io.ReadSeeker
+}
+
+func (r *ReadSeekerCloser) Read(p []byte) (n int, err error) {
+	return r.seeker.Read(p)
+}
+
+func (r *ReadSeekerCloser) Close() error {
+	return nil
+}
+
+func NewReadSeekerCloser(seeker io.ReadSeeker) io.ReadCloser {
+	return &ReadSeekerCloser{seeker: seeker}
+}
+
+func (s *TestSuite) TestCompressFallback(c *C) {
+	testsets := [][]string{
+		{"gzip", "lz4"},
+		{"lz4", "gzip"},
+	}
+
+	for _, testset := range testsets {
+		data := []byte("Some random string")
+		checksum := GetChecksum(data)
+
+		compressedData, err := compressAndSave(testset[0], data)
+		c.Assert(err, IsNil)
+		defer cleanupFile(compressedData.tmpFile, c)
+
+		decompressedData, err := decompressAndVerify(testset[1], compressedData.tmpFile, string(checksum))
+		c.Assert(err, IsNil)
+
+		result, err := io.ReadAll(decompressedData)
+		c.Assert(err, IsNil)
+
+		c.Assert(result, DeepEquals, data)
+	}
+}
+
+// Compresses data and saves it to a temporary file
+func compressAndSave(compressionType string, data []byte) (*compressedData, error) {
+	compressed, err := CompressData(compressionType, data)
+	if err != nil {
+		return nil, err
+	}
+
+	tmpFile := filepath.Join(testRoot, GenerateRandString())
+	f, err := os.Create(tmpFile)
+	if err != nil {
+		return nil, err
+	}
+
+	_, err = io.Copy(f, compressed)
+	if err != nil {
+		f.Close()
+		os.Remove(tmpFile)
+		return nil, err
+	}
+
+	return &compressedData{file: f, tmpFile: tmpFile}, nil
+}
+
+// Decompresses and verifies data from a file
+func decompressAndVerify(decompressionType, file string, checksum string) (io.Reader, error) {
+	f, err := os.Open(file)
+	if err != nil {
+		return nil, err
+	}
+	defer f.Close()
+
+	rc := NewReadSeekerCloser(f)
+	return DecompressAndVerifyWithFallback(decompressionType, rc, string(checksum))
+}
+
+// Struct to hold compressed data and temporary file information
+type compressedData struct {
+	file    *os.File
+	tmpFile string
+}
+
+// Cleans up temporary files
+func cleanupFile(tmpFile string, c *C) {
+	err := os.Remove(tmpFile)
+	c.Assert(err, IsNil)
+}
+
 func GenerateRandString() string {
 	r := make([]rune, nameLength)
 	r[0] = firstLetters[rand.Intn(len(firstLetters))]