diff --git oak-segment-tar/src/test/java/org/apache/jackrabbit/oak/segment/tool/CompactTest.java oak-segment-tar/src/test/java/org/apache/jackrabbit/oak/segment/tool/CompactTest.java
new file mode 100644
index 0000000..9509447
--- /dev/null
+++ oak-segment-tar/src/test/java/org/apache/jackrabbit/oak/segment/tool/CompactTest.java
@@ -0,0 +1,126 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements.  See the NOTICE file distributed with
+ * this work for additional information regarding copyright ownership.
+ * The ASF licenses this file to You under the Apache License, Version 2.0
+ * (the "License"); you may not use this file except in compliance with
+ * the License.  You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.apache.jackrabbit.oak.segment.tool;
+
+import static org.junit.Assert.assertEquals;
+import static org.junit.Assert.assertNotNull;
+import static org.junit.Assert.assertTrue;
+
+import java.io.ByteArrayInputStream;
+import java.io.File;
+import java.io.IOException;
+import java.util.Random;
+import java.util.concurrent.Executors;
+import java.util.concurrent.ScheduledExecutorService;
+
+import org.apache.jackrabbit.oak.api.Blob;
+import org.apache.jackrabbit.oak.segment.RecordId;
+import org.apache.jackrabbit.oak.segment.SegmentIdProvider;
+import org.apache.jackrabbit.oak.segment.SegmentNodeStore;
+import org.apache.jackrabbit.oak.segment.SegmentNodeStoreBuilders;
+import org.apache.jackrabbit.oak.segment.file.FileStore;
+import org.apache.jackrabbit.oak.segment.file.FileStoreBuilder;
+import org.apache.jackrabbit.oak.segment.file.InvalidFileStoreVersionException;
+import org.apache.jackrabbit.oak.segment.file.JournalEntry;
+import org.apache.jackrabbit.oak.segment.file.JournalReader;
+import org.apache.jackrabbit.oak.spi.commit.CommitInfo;
+import org.apache.jackrabbit.oak.spi.commit.EmptyHook;
+import org.apache.jackrabbit.oak.spi.state.NodeBuilder;
+import org.apache.jackrabbit.oak.spi.state.NodeStore;
+import org.apache.jackrabbit.oak.stats.DefaultStatisticsProvider;
+import org.junit.Before;
+import org.junit.Rule;
+import org.junit.Test;
+import org.junit.rules.TemporaryFolder;
+
+public class CompactTest {
+
+    @Rule
+    public final TemporaryFolder temporaryFolder = new TemporaryFolder(new File("target"));
+
+    @Before
+    public void setup() throws Exception {
+        addTestData();
+    }
+
+    @Test
+    public void testOfflineCompaction() throws IOException, InvalidFileStoreVersionException {
+        ScheduledExecutorService executor = Executors.newSingleThreadScheduledExecutor();
+        long beforeCompactionSize = 0;
+        
+        try (FileStore fileStore = FileStoreBuilder.fileStoreBuilder(temporaryFolder.getRoot()).withMaxFileSize(256)
+                .withSegmentCacheSize(64).withStatisticsProvider(new DefaultStatisticsProvider(executor)).build()) {
+            beforeCompactionSize = fileStore.getStats().getApproximateSize();
+        }
+        
+        Runnable offlineCompaction = Compact.builder().withPath(temporaryFolder.getRoot()).build();
+        offlineCompaction.run();
+
+        File journal = new File(temporaryFolder.getRoot(), "journal.log");
+        JournalEntry entry = null;
+
+        try (JournalReader journalReader = new JournalReader(journal)) {
+            int count = 0;
+            while (journalReader.hasNext()) {
+                entry = journalReader.next();
+                count++;
+            }
+
+            assertEquals(1, count);
+        }
+
+        assertNotNull(entry);
+
+        try (FileStore fileStore = FileStoreBuilder.fileStoreBuilder(temporaryFolder.getRoot()).withMaxFileSize(256)
+                .withSegmentCacheSize(64).withStatisticsProvider(new DefaultStatisticsProvider(executor)).build()) {
+            SegmentIdProvider idProvider = fileStore.getSegmentIdProvider();
+            RecordId head = RecordId.fromString(idProvider, entry.getRevision());
+            assertNotNull(head);
+            
+            long afterCompactionSize = fileStore.getStats().getApproximateSize();
+            
+            assertTrue(afterCompactionSize < beforeCompactionSize);
+        }
+    }
+
+    private void addTestData() throws Exception {
+        try (FileStore fileStore = FileStoreBuilder.fileStoreBuilder(temporaryFolder.getRoot()).withMaxFileSize(256)
+                .withSegmentCacheSize(64).build()) {
+
+            SegmentNodeStore nodeStore = SegmentNodeStoreBuilders.builder(fileStore).build();
+
+            // 1MB blob
+            int blobSize = 1 * 1024 * 1024;
+            
+            NodeBuilder builder = nodeStore.getRoot().builder();
+            builder.setProperty("blob1", createBlob(nodeStore, blobSize));
+            nodeStore.merge(builder, EmptyHook.INSTANCE, CommitInfo.EMPTY);
+            fileStore.flush();
+
+            builder = nodeStore.getRoot().builder();
+            builder.removeProperty("blob1");
+            nodeStore.merge(builder, EmptyHook.INSTANCE, CommitInfo.EMPTY);
+            fileStore.flush();
+        }
+    }
+
+    private static Blob createBlob(NodeStore nodeStore, int size) throws IOException {
+        byte[] data = new byte[size];
+        new Random().nextBytes(data);
+        return nodeStore.createBlob(new ByteArrayInputStream(data));
+    }
+}