diff --git a/dask_cuda/device_host_file.py b/dask_cuda/device_host_file.py
index a0fe92e8..e8d8bc08 100644
--- a/dask_cuda/device_host_file.py
+++ b/dask_cuda/device_host_file.py
@@ -1,4 +1,3 @@
-import functools
 import itertools
 import logging
 import os
@@ -8,6 +7,7 @@
 from zict import Buffer, File, Func
 from zict.common import ZictBase
 
+import dask
 from distributed.protocol import (
     dask_deserialize,
     dask_serialize,
@@ -17,13 +17,24 @@
     serialize_bytelist,
 )
 from distributed.sizeof import safe_sizeof
-from distributed.utils import nbytes
+from distributed.utils import has_arg, nbytes
 
 from .is_device_object import is_device_object
 from .is_spillable_object import is_spillable_object
 from .utils import nvtx_annotate
 
 
+def _serialize_bytelist(x, **kwargs):
+    kwargs["on_error"] = "raise"
+
+    if has_arg(serialize_bytelist, "compression"):
+        compression = dask.config.get("distributed.worker.memory.spill-compression")
+        return serialize_bytelist(x, compression=compression, **kwargs)
+    else:
+        # For Distributed < 2023.5.0 compatibility
+        return serialize_bytelist(x, **kwargs)
+
+
 class LoggedBuffer(Buffer):
     """Extends zict.Buffer with logging capabilities
 
@@ -192,7 +203,7 @@ def __init__(
 
         self.host_func = dict()
         self.disk_func = Func(
-            functools.partial(serialize_bytelist, on_error="raise"),
+            _serialize_bytelist,
             deserialize_bytes,
             File(self.disk_func_path),
         )
diff --git a/dask_cuda/tests/test_spill.py b/dask_cuda/tests/test_spill.py
index d795f8f8..cd36cb78 100644
--- a/dask_cuda/tests/test_spill.py
+++ b/dask_cuda/tests/test_spill.py
@@ -220,6 +220,7 @@ async def test_cudf_cluster_device_spill(params):
         {
             "distributed.comm.compression": False,
             "distributed.worker.memory.terminate": False,
+            "distributed.worker.memory.spill-compression": False,
         }
     ):
         async with LocalCUDACluster(