diff --git a/lfs/cdrom b/lfs/cdrom
index 58e754f87..7a7fff166 100644
--- a/lfs/cdrom
+++ b/lfs/cdrom
@@ -32,9 +32,12 @@ TARGET     = $(DIR_INFO)/$(THISAPP)
 ifeq "$(BUILD_PLATFORM)" "arm"
 	TAR_OPTIONS =
 else
-	TAR_OPTIONS = --lzma
+	TAR_OPTIONS = --xz
 endif
 
+# Enable multi-threaded compression for LZMA
+export XZ_OPT = --threads=0
+
 ###############################################################################
 # Top-level Rules
 ###############################################################################
diff --git a/lfs/flash-images b/lfs/flash-images
index 8ed7f6375..a75d71169 100644
--- a/lfs/flash-images
+++ b/lfs/flash-images
@@ -137,7 +137,7 @@ endif
 
 	# Install IPFire
 ifneq "$(BUILD_PLATFORM)" "arm"
-	tar -x --lzma -C $(MNThdd)/ -f /install/cdrom/distro.img
+	tar -x --xz -C $(MNThdd)/ -f /install/cdrom/distro.img
 else
 	tar -x -C $(MNThdd)/ -f /install/cdrom/distro.img
 endif
diff --git a/src/installer/main.c b/src/installer/main.c
index e9517e220..a3642551d 100644
--- a/src/installer/main.c
+++ b/src/installer/main.c
@@ -778,7 +778,7 @@ int main(int argc, char *argv[]) {
 
 	// Extract files...
 	snprintf(commandstring, STRING_SIZE,
-		"/bin/tar -C /harddisk  -xvf /cdrom/distro.img --lzma 2>/dev/null");
+		"/bin/tar -C /harddisk -xvf /cdrom/distro.img --xz 2>/dev/null");
 
 	if (runcommandwithprogress(60, 4, title, commandstring, INST_FILECOUNT,
 			_("Installing the system..."), logfile)) {