diff --git a/Cargo.lock b/Cargo.lock
index ce20350b60d1..df7737b06b81 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -6837,6 +6837,7 @@ dependencies = [
  "proptest",
  "proptest-arbitrary-interop",
  "reth-codecs-derive",
+ "rstest",
  "serde",
  "serde_json",
  "test-fuzz",
diff --git a/crates/storage/codecs/Cargo.toml b/crates/storage/codecs/Cargo.toml
index 8fbf1632403a..c3210b21ae2c 100644
--- a/crates/storage/codecs/Cargo.toml
+++ b/crates/storage/codecs/Cargo.toml
@@ -48,6 +48,7 @@ serde_json.workspace = true
 arbitrary = { workspace = true, features = ["derive"] }
 proptest.workspace = true
 proptest-arbitrary-interop.workspace = true
+rstest.workspace = true
 
 [features]
 default = ["std", "alloy"]
diff --git a/crates/storage/codecs/src/alloy/transaction/mod.rs b/crates/storage/codecs/src/alloy/transaction/mod.rs
index fe31293cd18f..5c829ddf56bd 100644
--- a/crates/storage/codecs/src/alloy/transaction/mod.rs
+++ b/crates/storage/codecs/src/alloy/transaction/mod.rs
@@ -5,7 +5,8 @@ cond_mod!(
     eip2930,
     eip4844,
     eip7702,
-    legacy
+    legacy,
+    txtype
 );
 
 
diff --git a/crates/storage/codecs/src/alloy/transaction/txtype.rs b/crates/storage/codecs/src/alloy/transaction/txtype.rs
new file mode 100644
index 000000000000..63f80bfaf201
--- /dev/null
+++ b/crates/storage/codecs/src/alloy/transaction/txtype.rs
@@ -0,0 +1,97 @@
+//! Compact implementation for [`TxType`]
+
+use crate::txtype::{COMPACT_EXTENDED_IDENTIFIER_FLAG, COMPACT_IDENTIFIER_EIP1559, COMPACT_IDENTIFIER_EIP2930, COMPACT_IDENTIFIER_LEGACY};
+use alloy_consensus::constants::{EIP4844_TX_TYPE_ID, EIP7702_TX_TYPE_ID};
+use alloy_consensus::TxType;
+
+impl crate::Compact for TxType {
+    fn to_compact<B>(&self, buf: &mut B) -> usize
+    where
+        B: bytes::BufMut + AsMut<[u8]>,
+    {
+        use crate::txtype::*;
+
+        match self {
+            Self::Legacy => COMPACT_IDENTIFIER_LEGACY,
+            Self::Eip2930 => COMPACT_IDENTIFIER_EIP2930,
+            Self::Eip1559 => COMPACT_IDENTIFIER_EIP1559,
+            Self::Eip4844 => {
+                buf.put_u8(EIP4844_TX_TYPE_ID);
+                COMPACT_EXTENDED_IDENTIFIER_FLAG
+            }
+            Self::Eip7702 => {
+                buf.put_u8(EIP7702_TX_TYPE_ID);
+                COMPACT_EXTENDED_IDENTIFIER_FLAG
+            }
+        }
+    }
+
+    // For backwards compatibility purposes only 2 bits of the type are encoded in the identifier
+    // parameter. In the case of a [`COMPACT_EXTENDED_IDENTIFIER_FLAG`], the full transaction type
+    // is read from the buffer as a single byte.
+    fn from_compact(mut buf: &[u8], identifier: usize) -> (Self, &[u8]) {
+        use bytes::Buf;
+        (
+            match identifier {
+                COMPACT_IDENTIFIER_LEGACY => Self::Legacy,
+                COMPACT_IDENTIFIER_EIP2930 => Self::Eip2930,
+                COMPACT_IDENTIFIER_EIP1559 => Self::Eip1559,
+                COMPACT_EXTENDED_IDENTIFIER_FLAG => {
+                    let extended_identifier = buf.get_u8();
+                    match extended_identifier {
+                        EIP4844_TX_TYPE_ID => Self::Eip4844,
+                        EIP7702_TX_TYPE_ID => Self::Eip7702,
+                        _ => panic!("Unsupported TxType identifier: {extended_identifier}"),
+                    }
+                }
+                _ => panic!("Unknown identifier for TxType: {identifier}"),
+            },
+            buf,
+        )
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use rstest::rstest;
+    
+    use alloy_consensus::constants::{EIP4844_TX_TYPE_ID, EIP7702_TX_TYPE_ID};
+    use crate::Compact;
+
+
+    #[rstest]
+    #[case(TxType::Legacy, COMPACT_IDENTIFIER_LEGACY, vec![])]
+    #[case(TxType::Eip2930, COMPACT_IDENTIFIER_EIP2930, vec![])]
+    #[case(TxType::Eip1559, COMPACT_IDENTIFIER_EIP1559, vec![])]
+    #[case(TxType::Eip4844, COMPACT_EXTENDED_IDENTIFIER_FLAG, vec![EIP4844_TX_TYPE_ID])]
+    #[case(TxType::Eip7702, COMPACT_EXTENDED_IDENTIFIER_FLAG, vec![EIP7702_TX_TYPE_ID])]
+    fn test_txtype_to_compact(
+        #[case] tx_type: TxType,
+        #[case] expected_identifier: usize,
+        #[case] expected_buf: Vec<u8>,
+    ) {
+        let mut buf = vec![];
+        let identifier = tx_type.to_compact(&mut buf);
+
+        assert_eq!(identifier, expected_identifier, "Unexpected identifier for TxType {tx_type:?}",);
+        assert_eq!(buf, expected_buf, "Unexpected buffer for TxType {tx_type:?}",);
+    }
+
+    #[rstest]
+    #[case(TxType::Legacy, COMPACT_IDENTIFIER_LEGACY, vec![])]
+    #[case(TxType::Eip2930, COMPACT_IDENTIFIER_EIP2930, vec![])]
+    #[case(TxType::Eip1559, COMPACT_IDENTIFIER_EIP1559, vec![])]
+    #[case(TxType::Eip4844, COMPACT_EXTENDED_IDENTIFIER_FLAG, vec![EIP4844_TX_TYPE_ID])]
+    #[case(TxType::Eip7702, COMPACT_EXTENDED_IDENTIFIER_FLAG, vec![EIP7702_TX_TYPE_ID])]
+    fn test_txtype_from_compact(
+        #[case] expected_type: TxType,
+        #[case] identifier: usize,
+        #[case] buf: Vec<u8>,
+    ) {
+        let (actual_type, remaining_buf) = TxType::from_compact(&buf, identifier);
+
+        assert_eq!(actual_type, expected_type, "Unexpected TxType for identifier {identifier}");
+        assert!(remaining_buf.is_empty(), "Buffer not fully consumed for identifier {identifier}");
+    }
+}
\ No newline at end of file