diff --git a/tools/binman/btool/bzip2.py b/tools/binman/btool/bzip2.py
new file mode 100644
index 0000000000..9be87a621f
--- /dev/null
+++ b/tools/binman/btool/bzip2.py
@@ -0,0 +1,30 @@
+# SPDX-License-Identifier: GPL-2.0+
+# Copyright (C) 2022 Weidmüller Interface GmbH & Co. KG
+# Stefan Herbrechtsmeier <stefan.herbrechtsmeier@weidmueller.com>
+#
+"""Bintool implementation for bzip2
+
+bzip2 allows compression and decompression of files.
+
+Documentation is available via::
+
+   man bzip2
+"""
+
+from binman import bintool
+
+# pylint: disable=C0103
+class Bintoolbzip2(bintool.BintoolPacker):
+    """Compression/decompression using the bzip2 algorithm
+
+    This bintool supports running `bzip2` to compress and decompress data, as
+    used by binman.
+
+    It is also possible to fetch the tool, which uses `apt` to install it.
+
+    Documentation is available via::
+
+        man bzip2
+    """
+    def __init__(self, name):
+        super().__init__(name, version_regex=r'bzip2.*Version ([0-9.]+)')
diff --git a/tools/binman/entry.py b/tools/binman/entry.py
index 88f228682a..0cd5b8b9f1 100644
--- a/tools/binman/entry.py
+++ b/tools/binman/entry.py
@@ -1191,7 +1191,7 @@ features to produce new behaviours.
         """
         algo = self.compress
         if algo != 'none':
-            algos = ['lz4', 'lzma']
+            algos = ['bzip2', 'lz4', 'lzma']
             if algo not in algos:
                 raise ValueError("Unknown algorithm '%s'" % algo)
             names = {'lzma': 'lzma_alone'}
diff --git a/tools/binman/ftest.py b/tools/binman/ftest.py
index 47763c8d2c..8bd3968157 100644
--- a/tools/binman/ftest.py
+++ b/tools/binman/ftest.py
@@ -107,7 +107,7 @@ BASE_DTB_PROPS = ['offset', 'size', 'image-pos']
 REPACK_DTB_PROPS = ['orig-offset', 'orig-size']
 
 # Supported compression bintools
-COMP_BINTOOLS = ['lz4', 'lzma_alone']
+COMP_BINTOOLS = ['bzip2', 'lz4', 'lzma_alone']
 
 class TestFunctional(unittest.TestCase):
     """Functional tests for binman