diff --git a/factory/.env b/factory/.env
index 0c27268c77..4f1d5d472e 100644
--- a/factory/.env
+++ b/factory/.env
@@ -14,7 +14,7 @@ NODE_VERSION="${FACTORY_DEFAULT_NODE_VERSION}"
 
 # Update the FACTORY_VERSION to deploy cypress/factory if you make changes to
 # BASE_IMAGE, FACTORY_DEFAULT_NODE_VERSION, YARN_VERSION, factory.Dockerfile or installScripts
-FACTORY_VERSION='4.0.6'
+FACTORY_VERSION='4.1.0'
 
 # Chrome versions: https://www.ubuntuupdates.org/package/google_chrome/stable/main/base/google-chrome-stable
 CHROME_VERSION='127.0.6533.119-1'
diff --git a/factory/CHANGELOG.md b/factory/CHANGELOG.md
index 1fcf3bb629..09b693aa09 100644
--- a/factory/CHANGELOG.md
+++ b/factory/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Change log
 
+## 4.1.0
+
+- Adds [zstd](https://packages.debian.org/stable/utils/zstd) (fast lossless compression algorithm -- CLI tool) to images. Addresses [#584](https://github.com/cypress-io/cypress-docker-images/issues/584)
+
 ## 4.0.6
 
 - Reinstates empty directory structure `/usr/share/man` which was previously removed as part of factory build process. Addresses [#1184](https://github.com/cypress-io/cypress-docker-images/issues/1184)
diff --git a/factory/factory.Dockerfile b/factory/factory.Dockerfile
index e01f8caad3..8f9851e9a3 100644
--- a/factory/factory.Dockerfile
+++ b/factory/factory.Dockerfile
@@ -55,7 +55,9 @@ RUN ls -la /root \
     # Needed to make https calls from the docker container
     openssl \
     ca-certificates \
-    # build only dependancies: removed in onbuild step
+    # Fast lossless compression algorithm - preferred by GitHub @actions/cache
+    zstd \
+    # build only dependencies: removed in onbuild step
     bzip2 \
     gnupg \
     dirmngr \