diff --git a/lib/logstash/outputs/file.rb b/lib/logstash/outputs/file.rb
index c644ad3..0a2a68e 100644
--- a/lib/logstash/outputs/file.rb
+++ b/lib/logstash/outputs/file.rb
@@ -121,13 +121,37 @@ def multi_receive_encoded(events_and_encoded)
           # append to the file
           chunks.each {|chunk| fd.write(chunk) }
         end
-        fd.flush unless @flusher && @flusher.alive?
+        on_flush(fd, path) unless @flusher && @flusher.alive?
       end
 
       close_stale_files
     end
   end
 
+  def on_flush(fd, path)
+    fd.flush
+    if fd.is_temp
+      copy_to_gzip(fd, path)
+    end
+  end
+
+  def copy_to_gzip(fd, path)
+    zipfd = get_file(path)
+    zipfd = Zlib::GzipWriter.new(zipfd)
+    fd.seek(0, IO::SEEK_SET)
+    data = fd.read
+    fd.truncate(0)
+    fd.seek(0, IO::SEEK_SET)
+    if @write_behavior == "overwrite"
+      zipfd.to_io.truncate(0)
+      zipfd.to_io.seek(0, IO::SEEK_SET)
+    end
+    zipfd.write(data)
+    zipfd.flush
+    zipfd.to_io.flush
+    zipfd.close
+  end
+
   def close
     @flusher.stop unless @flusher.nil?
     @io_mutex.synchronize do
@@ -135,8 +159,15 @@ def close
 
       @files.each do |path, fd|
         begin
+          if fd.is_temp
+             copy_to_gzip(fd, path)
+          end
           fd.close
-          @logger.debug("Closed file #{path}", :fd => fd)
+          if fd.is_temp && File.exist?(fd.path)
+             File.delete(fd.path)
+             @logger.debug("Deleted temp file ", :path => fd.path)
+          end
+          @logger.debug("Closed file #{fd}", :fd => fd)
         rescue Exception => e
           @logger.error("Exception while flushing and closing files.", :exception => e)
         end
@@ -202,6 +233,9 @@ def flush_pending_files
       @files.each do |path, fd|
         @logger.debug("Flushing file", :path => path, :fd => fd)
         fd.flush
+        if fd.is_temp
+          copy_to_gzip(fd, path)
+        end
       end
     end
   rescue => e
@@ -220,6 +254,9 @@ def close_stale_files
     inactive_files.each do |path, fd|
       @logger.info("Closing file %s" % path)
       fd.close
+      if fd.is_temp && File.exist?(fd.path)
+        File.delete(fd.path)
+      end
       @files.delete(path)
     end
     # mark all files as inactive, a call to write will mark them as active again
@@ -236,6 +273,7 @@ def deleted?(path)
   end
 
   def open(path)
+    originalPath = path
     if !deleted?(path) && cached?(path)
       return @files[path]
     end
@@ -249,8 +287,27 @@ def open(path)
       end
     end
 
+    #Fix for broken gzip issue.
+    if gzip
+      tmpfile = java.io.File.createTempFile("outfile-", "-temp");
+      path = tmpfile.path
+      #create file at original path also, so that temp file is not created again
+      make_dir(originalPath)
+      gzFile = get_file(originalPath)
+      #if gzFile is fifo type, file writer object is returned that needs to closed.
+      if gzFile.class == Java::JavaIo::FileWriter
+        gzFile.close
+      end
+    end
+
     @logger.info("Opening file", :path => path)
+    make_dir(path)
+    fd = get_file(path)
+    @files[originalPath] = IOWriter.new(fd, gzip)
+    return @files[originalPath]
+  end
 
+  def make_dir(path)
     dir = File.dirname(path)
     if !Dir.exist?(dir)
       @logger.info("Creating directory", :directory => dir)
@@ -260,7 +317,9 @@ def open(path)
         FileUtils.mkdir_p(dir)
       end
     end
+  end
 
+  def get_file(path)
     # work around a bug opening fifos (bug JRUBY-6280)
     stat = File.stat(path) rescue nil
     if stat && stat.ftype == "fifo"
@@ -272,10 +331,7 @@ def open(path)
         fd = File.new(path, "a+")
       end
     end
-    if gzip
-      fd = Zlib::GzipWriter.new(fd)
-    end
-    @files[path] = IOWriter.new(fd)
+    return fd
   end
 
   ##
@@ -356,8 +412,9 @@ def run
 class IOWriter
   attr_accessor :active
 
-  def initialize(io)
+  def initialize(io, is_temp)
     @io = io
+    @is_temp = is_temp
   end
 
   def write(*args)
@@ -372,6 +429,10 @@ def flush
     end
   end
 
+  def is_temp
+    return @is_temp
+  end
+
   def method_missing(method_name, *args, &block)
     if @io.respond_to?(method_name)
 
diff --git a/spec/outputs/file_spec.rb b/spec/outputs/file_spec.rb
index e1342b1..72fcf92 100644
--- a/spec/outputs/file_spec.rb
+++ b/spec/outputs/file_spec.rb
@@ -69,9 +69,21 @@
 
       agent do
         line_num = 0
+        global_events = []
         # Now check all events for order and correctness.
-        events = Zlib::GzipReader.open(tmp_file.path).map {|line| LogStash::Event.new(LogStash::Json.load(line)) }
-        sorted = events.sort_by {|e| e.get("sequence")}
+        File.open(tmp_file.path) do |file|
+          zio = file
+          loop do
+            io = Zlib::GzipReader.new(zio)
+            events = io.map {|line| LogStash::Event.new(LogStash::Json.load(line)) }
+            global_events = global_events + events
+            unused = io.unused
+            io.finish
+            break if unused.nil?
+            zio.pos -= unused.length
+          end
+        end
+        sorted = global_events.sort_by {|e| e.get("sequence")}
         sorted.each do |event|
           insist {event.get("message")} == "hello world"
           insist {event.get("sequence")} == line_num