diff --git a/fe/fe-core/src/main/java/org/apache/doris/nereids/processor/post/CompressedMaterialization.java b/fe/fe-core/src/main/java/org/apache/doris/nereids/processor/post/CompressedMaterialization.java
new file mode 100644
index 00000000000000..e7557e9d562f57
--- /dev/null
+++ b/fe/fe-core/src/main/java/org/apache/doris/nereids/processor/post/CompressedMaterialization.java
@@ -0,0 +1,66 @@
+package org.apache.doris.nereids.processor.post;
+
+import org.apache.doris.nereids.CascadesContext;
+import org.apache.doris.nereids.trees.expressions.Alias;
+import org.apache.doris.nereids.trees.expressions.Any;
+import org.apache.doris.nereids.trees.expressions.Expression;
+import org.apache.doris.nereids.trees.expressions.NamedExpression;
+import org.apache.doris.nereids.trees.expressions.SlotReference;
+import org.apache.doris.nereids.trees.expressions.functions.agg.AnyValue;
+import org.apache.doris.nereids.trees.expressions.functions.scalar.DecodeAsVarchar;
+import org.apache.doris.nereids.trees.expressions.functions.scalar.EncodeAsInt;
+import org.apache.doris.nereids.trees.plans.Plan;
+import org.apache.doris.nereids.trees.plans.physical.PhysicalHashAggregate;
+import org.apache.doris.nereids.types.DataType;
+import org.apache.doris.nereids.types.VarcharType;
+import org.apache.doris.nereids.types.coercion.CharacterType;
+
+import com.google.common.collect.Lists;
+
+import java.util.List;
+
+public class CompressedMaterialization extends PlanPostProcessor{
+    @Override
+    public PhysicalHashAggregate visitPhysicalHashAggregate(PhysicalHashAggregate<? extends Plan> aggregate,
+            CascadesContext context) {
+        List<Expression> newGroupByExpressions = Lists.newArrayList();
+        List<Expression> encodedExpressions = Lists.newArrayList();
+        for (Expression gp : aggregate.getGroupByExpressions()) {
+            if (gp instanceof SlotReference && canCompress(gp)) {
+                newGroupByExpressions.add(new Alias(new EncodeAsInt(gp), ((SlotReference) gp).getName()));
+                encodedExpressions.add(gp);
+            } else {
+                newGroupByExpressions.add(gp);
+            }
+        }
+        if (!encodedExpressions.isEmpty()) {
+            aggregate = aggregate.withGroupByExpressions(newGroupByExpressions);
+            boolean hasNewOutput = false;
+            List<NamedExpression> newOutput = Lists.newArrayList();
+            List<NamedExpression> output = aggregate.getOutputExpressions();
+            for (NamedExpression ne : output) {
+                if (ne instanceof SlotReference && encodedExpressions.contains(ne)) {
+                        newOutput.add(new Alias(ne.getExprId(), new AnyValue(ne), ne.getName()));
+                        hasNewOutput = true;
+                } else {
+                    newOutput.add(ne);
+                }
+            }
+            if (hasNewOutput) {
+                aggregate = aggregate.withAggOutput(newOutput);
+            }
+        }
+        return aggregate;
+    }
+
+    private boolean canCompress(Expression expression) {
+        DataType type = expression.getDataType();
+        if (type instanceof CharacterType) {
+            CharacterType ct = (CharacterType) type;
+            if (ct.getLen() < 7) {
+                return true;
+            }
+        }
+        return false;
+    }
+}
diff --git a/fe/fe-core/src/main/java/org/apache/doris/nereids/processor/post/PlanPostProcessors.java b/fe/fe-core/src/main/java/org/apache/doris/nereids/processor/post/PlanPostProcessors.java
index 11a4b73d8a31c5..d94db928ab1218 100644
--- a/fe/fe-core/src/main/java/org/apache/doris/nereids/processor/post/PlanPostProcessors.java
+++ b/fe/fe-core/src/main/java/org/apache/doris/nereids/processor/post/PlanPostProcessors.java
@@ -66,6 +66,7 @@ public List<PlanPostProcessor> getProcessors() {
         if (cascadesContext.getConnectContext().getSessionVariable().enableAggregateCse) {
             builder.add(new ProjectAggregateExpressionsForCse());
         }
+        builder.add(new CompressedMaterialization());
         builder.add(new CommonSubExpressionOpt());
         // DO NOT replace PLAN NODE from here
         if (cascadesContext.getConnectContext().getSessionVariable().pushTopnToAgg) {
diff --git a/fe/fe-core/src/main/java/org/apache/doris/nereids/trees/plans/physical/PhysicalHashAggregate.java b/fe/fe-core/src/main/java/org/apache/doris/nereids/trees/plans/physical/PhysicalHashAggregate.java
index 3212cb170f052c..0c53de5e1b4fca 100644
--- a/fe/fe-core/src/main/java/org/apache/doris/nereids/trees/plans/physical/PhysicalHashAggregate.java
+++ b/fe/fe-core/src/main/java/org/apache/doris/nereids/trees/plans/physical/PhysicalHashAggregate.java
@@ -234,6 +234,13 @@ public int hashCode() {
                 aggregateParam, maybeUsingStream, requireProperties);
     }
 
+    public PhysicalHashAggregate<Plan> withGroupByExpressions(List<Expression> newGroupByExpressions) {
+        return new PhysicalHashAggregate<>(newGroupByExpressions, outputExpressions, partitionExpressions,
+                aggregateParam, maybeUsingStream, groupExpression, getLogicalProperties(),
+                requireProperties, physicalProperties, statistics,
+                child());
+    }
+
     @Override
     public PhysicalHashAggregate<Plan> withChildren(List<Plan> children) {
         Preconditions.checkArgument(children.size() == 1);