diff --git a/.chloggen/msg_fix-snappy-lazy-read.yaml b/.chloggen/msg_fix-snappy-lazy-read.yaml
new file mode 100644
index 00000000000..3188cfcc8b9
--- /dev/null
+++ b/.chloggen/msg_fix-snappy-lazy-read.yaml
@@ -0,0 +1,25 @@
+# Use this changelog template to create an entry for release notes.
+
+# One of 'breaking', 'deprecation', 'new_component', 'enhancement', 'bug_fix'
+change_type: enhancement
+
+# The name of the component, or a single word describing the area of concern, (e.g. otlpreceiver)
+component: confighttp
+
+# A brief description of the change.  Surround your text with quotes ("") if it needs to start with a backtick (`).
+note: Snappy compression to lazy read for memory efficiency 
+
+# One or more tracking issues or pull requests related to the change
+issues: []
+
+# (Optional) One or more lines of additional information to render under the primary note.
+# These lines will be padded with 2 spaces and then inserted directly into the document.
+# Use pipe (|) for multiline entries.
+subtext:
+
+# Optional: The change log or logs in which this entry should be included.
+# e.g. '[user]' or '[user, api]'
+# Include 'user' if the change is relevant to end users.
+# Include 'api' if there is a change to a library API.
+# Default: '[user]'
+change_logs: [user]
diff --git a/config/confighttp/compression.go b/config/confighttp/compression.go
index 4498fefe864..3c1a494e0c2 100644
--- a/config/confighttp/compression.go
+++ b/config/confighttp/compression.go
@@ -58,17 +58,10 @@ var availableDecoders = map[string]func(body io.ReadCloser) (io.ReadCloser, erro
 		}
 		return zr, nil
 	},
+	//nolint:unparam // ignoring lint since method needs to fit typedef
 	"snappy": func(body io.ReadCloser) (io.ReadCloser, error) {
-		sr := snappy.NewReader(body)
-		sb := new(bytes.Buffer)
-		_, err := io.Copy(sb, sr)
-		if err != nil {
-			return nil, err
-		}
-		if err = body.Close(); err != nil {
-			return nil, err
-		}
-		return io.NopCloser(sb), nil
+		// Lazy Reading content to improve memory efficiency
+		return io.NopCloser(snappy.NewReader(body)), nil
 	},
 }
 
diff --git a/config/confighttp/compression_test.go b/config/confighttp/compression_test.go
index a4fcb013f4f..fe087827418 100644
--- a/config/confighttp/compression_test.go
+++ b/config/confighttp/compression_test.go
@@ -230,7 +230,7 @@ func TestHTTPContentDecompressionHandler(t *testing.T) {
 			encoding: "snappy",
 			reqBody:  bytes.NewBuffer(testBody),
 			respCode: http.StatusBadRequest,
-			respBody: "snappy: corrupt input\n",
+			respBody: "snappy: corrupt input",
 		},
 		{
 			name:     "UnsupportedCompression",