diff --git a/app/Http/Controllers/Api/Client/Servers/FileController.php b/app/Http/Controllers/Api/Client/Servers/FileController.php
index c4e4a035f..77f672f44 100644
--- a/app/Http/Controllers/Api/Client/Servers/FileController.php
+++ b/app/Http/Controllers/Api/Client/Servers/FileController.php
@@ -231,6 +231,24 @@ class FileController extends ClientApiController
             ->toArray();
     }
 
+    /**
+     * @param \Pterodactyl\Http\Requests\Api\Client\Servers\Files\DecompressFilesRequest $request
+     * @param \Pterodactyl\Models\Server $server
+     * @return \Illuminate\Http\JsonResponse
+     *
+     * @throws \Pterodactyl\Exceptions\Http\Connection\DaemonConnectionException
+     */
+    public function decompress(DecompressFilesRequest $request, Server $server): JsonResponse
+    {
+        // Allow up to five minutes for this request to process before timing out.
+        set_time_limit(300);
+
+        $this->fileRepository->setServer($server)
+            ->decompressFile($request->input('root'), $request->input('file'));
+
+        return new JsonResponse([], JsonResponse::HTTP_NO_CONTENT);
+    }
+
     /**
      * Deletes files or folders for the server in the given root directory.
      *
diff --git a/app/Http/Requests/Api/Client/Servers/Files/DecompressFilesRequest.php b/app/Http/Requests/Api/Client/Servers/Files/DecompressFilesRequest.php
new file mode 100644
index 000000000..f8493ec4a
--- /dev/null
+++ b/app/Http/Requests/Api/Client/Servers/Files/DecompressFilesRequest.php
@@ -0,0 +1,32 @@
+<?php
+
+namespace Pterodactyl\Http\Requests\Api\Client\Servers\Files;
+
+use Pterodactyl\Models\Permission;
+use Pterodactyl\Http\Requests\Api\Client\ClientApiRequest;
+
+class DecompressFilesRequest extends ClientApiRequest
+{
+    /**
+     * Checks that the authenticated user is allowed to create new files for the server. We don't
+     * rely on the archive permission here as it makes more sense to make sure the user can create
+     * additional files rather than make an archive.
+     *
+     * @return string
+     */
+    public function permission(): string
+    {
+        return Permission::ACTION_FILE_CREATE;
+    }
+
+    /**
+     * @return array
+     */
+    public function rules(): array
+    {
+        return [
+            'root' => 'sometimes|nullable|string',
+            'file' => 'required|string',
+        ];
+    }
+}
diff --git a/resources/scripts/api/server/files/decompressFiles.ts b/resources/scripts/api/server/files/decompressFiles.ts
new file mode 100644
index 000000000..d674eadb0
--- /dev/null
+++ b/resources/scripts/api/server/files/decompressFiles.ts
@@ -0,0 +1,8 @@
+import http from '@/api/http';
+
+export default async (uuid: string, directory: string, file: string): Promise<void> => {
+    await http.post(`/api/client/servers/${uuid}/files/decompress`, { root: directory, file }, {
+        timeout: 300000,
+        timeoutErrorMessage: 'It looks like this archive is taking a long time to be unarchived. Once completed the unarchived files will appear.',
+    });
+};
diff --git a/resources/scripts/api/server/files/loadDirectory.ts b/resources/scripts/api/server/files/loadDirectory.ts
index 85f290689..7899d2216 100644
--- a/resources/scripts/api/server/files/loadDirectory.ts
+++ b/resources/scripts/api/server/files/loadDirectory.ts
@@ -12,6 +12,7 @@ export interface FileObject {
     mimetype: string;
     createdAt: Date;
     modifiedAt: Date;
+    isArchiveType: () => boolean;
 }
 
 export default async (uuid: string, directory?: string): Promise<FileObject[]> => {
diff --git a/resources/scripts/api/transformers.ts b/resources/scripts/api/transformers.ts
index bd59a7e84..c8676bdac 100644
--- a/resources/scripts/api/transformers.ts
+++ b/resources/scripts/api/transformers.ts
@@ -23,4 +23,12 @@ export const rawDataToFileObject = (data: FractalResponseData): FileObject => ({
     mimetype: data.attributes.mimetype,
     createdAt: new Date(data.attributes.created_at),
     modifiedAt: new Date(data.attributes.modified_at),
+
+    isArchiveType: function () {
+        return this.isFile && [
+            'application/zip',
+            'application/gzip',
+            'application/x-tar',
+        ].indexOf(this.mimetype) >= 0;
+    },
 });
diff --git a/resources/scripts/components/server/files/FileDropdownMenu.tsx b/resources/scripts/components/server/files/FileDropdownMenu.tsx
index e75f8e16b..19fbe522a 100644
--- a/resources/scripts/components/server/files/FileDropdownMenu.tsx
+++ b/resources/scripts/components/server/files/FileDropdownMenu.tsx
@@ -1,6 +1,7 @@
 import React, { useRef, useState } from 'react';
 import { FontAwesomeIcon } from '@fortawesome/react-fontawesome';
 import {
+    faBoxOpen,
     faCopy,
     faEllipsisH,
     faFileArchive,
@@ -27,6 +28,7 @@ import DropdownMenu from '@/components/elements/DropdownMenu';
 import styled from 'styled-components/macro';
 import useEventListener from '@/plugins/useEventListener';
 import compressFiles from '@/api/server/files/compressFiles';
+import decompressFiles from '@/api/server/files/decompressFiles';
 
 type ModalType = 'rename' | 'move';
 
@@ -43,7 +45,7 @@ interface RowProps extends React.HTMLAttributes<HTMLDivElement> {
 
 const Row = ({ icon, title, ...props }: RowProps) => (
     <StyledRow {...props}>
-        <FontAwesomeIcon icon={icon} css={tw`text-xs`}/>
+        <FontAwesomeIcon icon={icon} css={tw`text-xs`} fixedWidth/>
         <span css={tw`ml-2`}>{title}</span>
     </StyledRow>
 );
@@ -110,6 +112,16 @@ export default ({ file }: { file: FileObject }) => {
             .then(() => setShowSpinner(false));
     };
 
+    const doUnarchive = () => {
+        setShowSpinner(true);
+        clearFlashes('files');
+
+        decompressFiles(uuid, directory, file.name)
+            .then(() => mutate())
+            .catch(error => clearAndAddHttpError({ key: 'files', error }))
+            .then(() => setShowSpinner(false));
+    };
+
     return (
         <DropdownMenu
             ref={onClickRef}
@@ -138,9 +150,15 @@ export default ({ file }: { file: FileObject }) => {
                 <Row onClick={doCopy} icon={faCopy} title={'Copy'}/>
             </Can>
             }
-            <Can action={'file.archive'}>
-                <Row onClick={doArchive} icon={faFileArchive} title={'Archive'}/>
-            </Can>
+            {file.isArchiveType() ?
+                <Can action={'file.create'}>
+                    <Row onClick={doUnarchive} icon={faBoxOpen} title={'Unarchive'}/>
+                </Can>
+                :
+                <Can action={'file.archive'}>
+                    <Row onClick={doArchive} icon={faFileArchive} title={'Archive'}/>
+                </Can>
+            }
             <Row onClick={doDownload} icon={faFileDownload} title={'Download'}/>
             <Can action={'file.delete'}>
                 <Row onClick={doDeletion} icon={faTrashAlt} title={'Delete'} $danger/>
diff --git a/resources/scripts/components/server/files/NewDirectoryButton.tsx b/resources/scripts/components/server/files/NewDirectoryButton.tsx
index d1f23c022..9adbf57dd 100644
--- a/resources/scripts/components/server/files/NewDirectoryButton.tsx
+++ b/resources/scripts/components/server/files/NewDirectoryButton.tsx
@@ -34,6 +34,7 @@ const generateDirectoryData = (name: string): FileObject => ({
     mimetype: '',
     createdAt: new Date(),
     modifiedAt: new Date(),
+    isArchiveType: () => false,
 });
 
 export default () => {
diff --git a/routes/api-client.php b/routes/api-client.php
index 9b57cf0c4..f92ba6ed9 100644
--- a/routes/api-client.php
+++ b/routes/api-client.php
@@ -60,6 +60,7 @@ Route::group(['prefix' => '/servers/{server}', 'middleware' => [AuthenticateServ
         Route::post('/copy', 'Servers\FileController@copy');
         Route::post('/write', 'Servers\FileController@write');
         Route::post('/compress', 'Servers\FileController@compress');
+        Route::post('/decompress', 'Servers\FileController@decompress');
         Route::post('/delete', 'Servers\FileController@delete');
         Route::post('/create-folder', 'Servers\FileController@create');
     });