diff --git a/docs/wal_compact.md b/docs/wal_compact.md
new file mode 100644
index 0000000..5b63215
--- /dev/null
+++ b/docs/wal_compact.md
@@ -0,0 +1,43 @@
+### compaction approach
+
+- wal file exists
+
+- every operation runs through wal
+
+- check wal file size on regular basis
+
+- have a default size configured
+
+- if current size exceeds configured size
+
+- start compaction
+
+- create a new wal file 
+
+- redirect operations to newly created file
+
+- create a tar file
+
+- add wal file with data to tar
+
+- remove the old file
+
+#### considerations
+
+- how to handle operations to wal file during compaction?
+  
+  create a new wal file, redirect operations to new file
+
+- how to handle any error or failure during compaction?
+  
+  remove the tar file created
+  
+  raise a warn level message to indicate failure
+
+**Todo**
+
+- [ ]  find a way to recover from failure and deal with multiple wal files during recovery cycle
+
+- [ ]  what happens when drive used to store archive is full
+
+- [ ]  dependency on `.local` folder in `home` location 
diff --git a/wal/compact.go b/wal/compact.go
new file mode 100644
index 0000000..005802a
--- /dev/null
+++ b/wal/compact.go
@@ -0,0 +1,139 @@
+// compact check file size
+// when size exceeds configured value
+// it creates archive and uses a new file
+package wal
+
+import (
+	"archive/tar"
+	"compress/gzip"
+	"fmt"
+	"io"
+	"io/fs"
+	"os"
+	"path/filepath"
+	"strconv"
+	"time"
+)
+
+var defaultMaxFileSize int64
+
+const DEFAULT_SIZE = "DEFAULT_SIZE"
+
+// getDefaultFileSize gets the configured
+// allowed file size for wal, when none defined
+// it uses default `3*4096` as size
+func getDefaultFileSize() {
+	ev := os.Getenv(DEFAULT_SIZE)
+	if ev == "" {
+		ev = getDefaultSize()
+	}
+	fs, err := strconv.Atoi(ev)
+	if err != nil {
+		fmt.Fprintf(os.Stderr, "%v\n", "error getting wal file size from env var")
+		os.Exit(1)
+	}
+	defaultMaxFileSize = int64(fs)
+}
+
+func getDefaultSize() string {
+	dsize := strconv.Itoa(3 * 4096)
+	return dsize
+}
+
+// compact checks the wal file size
+// when size exceeds predefined size `4*4096`
+// it triggers the compact routine
+// creates a new archive file and save it disk
+func (w *Wal) compact() {
+	// check existing wal file size
+	walInfo, err := w.getWalFileInfo()
+	if err != nil {
+		fmt.Fprintf(os.Stderr, "error:[%v] getting wal file size", err)
+	}
+	if walInfo.Size() > defaultMaxFileSize {
+		fmt.Fprintf(os.Stdout, "[info]: start compacting:%s\n", walInfo.Name())
+		archive, err := createArchive(archiveFileName())
+		if err != nil {
+			fmt.Fprintf(os.Stderr,
+				"error:[%v] creating archive with name-%s\n", err, archiveFileName())
+		}
+		if err := w.writeToArchive(archive, walInfo, archiveFileName()); err != nil {
+			fmt.Fprintf(os.Stderr, "error:[%v] writing file to archive", err)
+		}
+	}
+}
+
+func (w *Wal) writeToArchive(archiveFile io.ReadWriter,
+	walInfo fs.FileInfo, archiveFileName string) error {
+	gzr := gzip.NewWriter(archiveFile)
+	defer gzr.Flush()
+	defer gzr.Close()
+	twr := tar.NewWriter(gzr)
+	defer twr.Close()
+	tarHeader, err := tar.FileInfoHeader(walInfo, walInfo.Name())
+	if err != nil {
+		fmt.Fprintf(os.Stderr,
+			"error:[%v] generating tar file header for %q",
+			err, walInfo.Name())
+	}
+	tarHeader.Name = walInfo.Name()
+	if err := twr.WriteHeader(tarHeader); err != nil {
+		fmt.Fprintf(os.Stderr,
+			"error:[%v] writing header to tar archive-%s",
+			err, archiveFileName)
+	}
+	f, err := os.OpenFile(w.fileName, os.O_RDONLY, fs.FileMode(os.O_RDONLY))
+	if err != nil {
+		fmt.Fprintf(os.Stderr,
+			"error:[%v] opening wal file-%s to copy into archive",
+			err, walInfo.Name())
+	}
+	if _, err := io.Copy(twr, f); err != nil {
+		fmt.Fprintf(os.Stderr,
+			"error:[%v] writing file-%s to archive-%s",
+			err, walInfo.Name(), archiveFile)
+	}
+	return f.Close()
+}
+
+func (w *Wal) getWalFileInfo() (fs.FileInfo, error) {
+	f, err := os.Open(w.fileName)
+	defer func() {
+		if err := f.Close(); err != nil {
+			fmt.Fprintf(os.Stderr,
+				"error:[%v] closing wal file-%s\n", err, w.WalFile())
+		}
+	}()
+	if err != nil {
+		fmt.Fprintf(os.Stderr, "error:[%v] opening file\n", err)
+		return nil, err
+	}
+	info, err := f.Stat()
+	if err != nil {
+		fmt.Fprintf(os.Stderr, "error:[%v] getting file stats\n", err)
+		return nil, err
+	}
+	return info, nil
+}
+
+// createArchive creates new archive file
+func createArchive(fname string) (*os.File, error) {
+	archiveFile, err := os.Create(fname)
+	if err != nil {
+		fmt.Fprintf(os.Stderr, "error:[%v] creating archive file with name-%s", err, fname)
+		return archiveFile, err
+	}
+	return archiveFile, err
+}
+
+// archiveFileName generates file name to be used for archive
+// with timestamp numeric in unix micro format
+// ex - archive-17188751512222238.tar
+func archiveFileName() string {
+	now := time.Now().UnixMicro()
+	fname := fmt.Sprintf("archive-%d.tar", now)
+	local := ".local"
+	home := os.Getenv("HOME")
+	fileName := filepath.Join(home, local, fname)
+	return fileName
+}
diff --git a/wal/compact_test.go b/wal/compact_test.go
new file mode 100644
index 0000000..9254fa5
--- /dev/null
+++ b/wal/compact_test.go
@@ -0,0 +1,42 @@
+package wal
+
+import (
+	"fmt"
+	"io/fs"
+	"os"
+	"testing"
+)
+
+func Test_compact(t *testing.T) {
+	// create a sample wal file locally
+	w := new()
+	if err := w.createFile(); err != nil {
+		t.Fatalf("error-[%v] creating wal file-%q\n", err, w.WalFile())
+	}
+	// insert some dummy data
+	f, err := os.OpenFile(w.WalFile(), os.O_APPEND|os.O_WRONLY, fs.FileMode(os.O_APPEND))
+	if err != nil {
+		t.Fatalf("error-[%v] opening wal file-%q", err, w.WalFile())
+	}
+	for i := 1; i <= 3; i++ {
+		if _, err := fmt.Fprintf(f, "some test data-%d\n", i); err != nil {
+			t.Fatalf("error-[%v] writing data to wal file %q", err, w.WalFile())
+		}
+	}
+	fInfo, err := w.getWalFileInfo()
+	if err != nil {
+		t.Fatalf("error-[%v] getting wal file info", err)
+	}
+	// set a default file size
+	defaultMaxFileSize = int64(fInfo.Size() - 1)
+	t.Logf("file size:%d\n", defaultMaxFileSize)
+	if _, err := fmt.Fprintf(f, "some more data to increase size of exisiting file\n"); err != nil {
+		t.Fatalf("error-[%v] adding data to trigger compact action", err)
+	}
+	// test if condition to compact is triggered
+	t.Logf("new file size:%d\n", int64(fInfo.Size()))
+	if err := f.Close(); err != nil {
+		t.Fatalf("error-[%v] closing file %q", err, w.WalFile())
+	}
+	w.compact()
+}
diff --git a/wal/sync_test.go b/wal/sync_test.go
index a0f9640..346444d 100644
--- a/wal/sync_test.go
+++ b/wal/sync_test.go
@@ -14,9 +14,9 @@ func Test_compare_file_size(t *testing.T) {
 	// create test file and write some data
 	// for testing
 	testWal := new()
-	fileName := fileName()
+	fileName := testWal.WalFile()
 	// test file operations
-	if err := createFile(); err != nil {
+	if err := testWal.createFile(); err != nil {
 		t.Fatal(err)
 	}
 	// open file to add some data
@@ -52,9 +52,9 @@ func Test_upd_in_memory_cache(t *testing.T) {
 	// create test file and write some data
 	// for testing
 	testWal := new()
-	fileName := fileName()
+	fileName := testWal.WalFile()
 	// test file operations
-	if err := createFile(); err != nil {
+	if err := testWal.createFile(); err != nil {
 		t.Fatal(err)
 	}
 	// open file to add some data
diff --git a/wal/wal.go b/wal/wal.go
index e651892..6acca66 100644
--- a/wal/wal.go
+++ b/wal/wal.go
@@ -8,28 +8,25 @@ import (
 	"io"
 	"os"
 	"path/filepath"
+	"time"
 )
 
 // receive data and persist in file
 // keep track of pointer up to where the data is being loaded in to cache
 
 type Wal struct {
-	filePointer int
-	size        int
-	fileName    string
-}
-
-func fileName() string {
-	home := os.Getenv("HOME")
-	fileName := filepath.Join(home, ".local", "wal.txt")
-	return fileName
+	filePointer   int
+	size          int
+	stamp         int64
+	fileName      string
+	defaultWalDir string
 }
 
 // createFile checks if file exist
 // and create new file when not found
-func createFile() error {
-	if !exists() {
-		_, err := os.Create(fileName())
+func (w *Wal) createFile() error {
+	if !w.exists() {
+		_, err := os.Create(w.fileName)
 		if err != nil {
 			return err
 		}
@@ -39,10 +36,15 @@ func createFile() error {
 
 // creates file if one does not exist
 func new() *Wal {
+	now := time.Now().UnixMicro()
+	home := os.Getenv("HOME")
+	local := ".local"
 	return &Wal{
-		filePointer: 0,
-		size:        4096,
-		fileName:    fileName(),
+		filePointer:   0,
+		size:          4096,
+		stamp:         now,
+		defaultWalDir: filepath.Join(home, local),
+		fileName:      filepath.Join(home, local, fmt.Sprintf("wal-%d.txt", now)),
 	}
 }
 
@@ -50,12 +52,15 @@ func (w *Wal) WalFile() string {
 	return w.fileName
 }
 
-func exists() bool {
-	f, err := os.Open(fileName())
+func (w *Wal) exists() bool {
+	f, err := os.Open(w.fileName)
 	if err != nil && errors.Is(err, os.ErrNotExist) {
 		return false
 	}
-	f.Close()
+	if err := f.Close(); err != nil {
+		fmt.Fprintf(os.Stderr, "error:[%v] closing-%s file\n", err, w.WalFile())
+		os.Exit(1)
+	}
 	return true
 }
 
diff --git a/wal/wal_test.go b/wal/wal_test.go
index 34ce321..9d4b791 100644
--- a/wal/wal_test.go
+++ b/wal/wal_test.go
@@ -11,9 +11,9 @@ import (
 
 func Test_encode_decode(t *testing.T) {
 	testWal := new()
-	fileName := fileName()
+	fileName := testWal.WalFile()
 	b := &bytes.Buffer{}
-	if err := createFile(); err != nil {
+	if err := testWal.createFile(); err != nil {
 		t.Fatal(err)
 	}
 	d := &datastructure.Data{
@@ -40,9 +40,9 @@ func Test_encode_decode(t *testing.T) {
 
 func Test_encode_read_at(t *testing.T) {
 	testWal := new()
-	fileName:=fileName()
+	fileName := testWal.WalFile()
 	b := &bytes.Buffer{}
-	if err := createFile(); err != nil {
+	if err := testWal.createFile(); err != nil {
 		t.Fatal(err)
 	}
 	d := &datastructure.Data{