diff --git a/src/datasets/config.py b/src/datasets/config.py
index 5a4dde161c2..5894b2d1832 100644
--- a/src/datasets/config.py
+++ b/src/datasets/config.py
@@ -134,6 +134,9 @@
     logger.info("Disabling rarfile because USE_RAR is set to False")
 
 
+ZSTANDARD_AVAILABLE = importlib.util.find_spec("zstandard") is not None
+
+
 # Cache location
 DEFAULT_XDG_CACHE_HOME = "~/.cache"
 XDG_CACHE_HOME = os.getenv("XDG_CACHE_HOME", DEFAULT_XDG_CACHE_HOME)
diff --git a/src/datasets/utils/file_utils.py b/src/datasets/utils/file_utils.py
index 63eb2b6a328..1855bfb459e 100644
--- a/src/datasets/utils/file_utils.py
+++ b/src/datasets/utils/file_utils.py
@@ -11,6 +11,7 @@
 import os
 import re
 import shutil
+import struct
 import sys
 import tarfile
 import tempfile
@@ -307,6 +308,7 @@ def cached_path(
             and not is_gzip(output_path)
             and not is_xz(output_path)
             and not is_rarfile(output_path)
+            and not ZstdExtractor.is_extractable(output_path)
         ):
             return output_path
 
@@ -360,6 +362,9 @@ def cached_path(
                     rf.close()
                 else:
                     raise EnvironmentError("Please pip install rarfile")
+            elif ZstdExtractor.is_extractable(output_path):
+                os.rmdir(output_path_extracted)
+                ZstdExtractor.extract(output_path, output_path_extracted)
             else:
                 raise EnvironmentError("Archive format of {} could not be identified".format(output_path))
 
@@ -724,6 +729,31 @@ def is_rarfile(path: str) -> bool:
         return False
 
 
+class ZstdExtractor:
+    @staticmethod
+    def is_extractable(path: str) -> bool:
+        """https://datatracker.ietf.org/doc/html/rfc8878
+
+        Magic_Number:  4 bytes, little-endian format.  Value: 0xFD2FB528.
+        """
+        with open(path, "rb") as f:
+            try:
+                magic_number = f.read(4)
+            except OSError:
+                return False
+        return True if magic_number == struct.pack("<I", 0xFD2FB528) else False
+
+    @staticmethod
+    def extract(input_path: str, output_path: str):
+        if not config.ZSTANDARD_AVAILABLE:
+            raise EnvironmentError("Please pip install zstandard")
+        import zstandard as zstd
+
+        dctx = zstd.ZstdDecompressor()
+        with open(input_path, "rb") as ifh, open(output_path, "wb") as ofh:
+            dctx.copy_stream(ifh, ofh)
+
+
 def add_start_docstrings(*docstr):
     def docstring_decorator(fn):
         fn.__doc__ = "".join(docstr) + (fn.__doc__ if fn.__doc__ is not None else "")
diff --git a/tests/test_file_utils.py b/tests/test_file_utils.py
index 38052eea26b..a16dea810e1 100644
--- a/tests/test_file_utils.py
+++ b/tests/test_file_utils.py
@@ -5,10 +5,12 @@
 
 import numpy as np
 import pytest
+import zstandard as zstd
 
 from datasets.utils.file_utils import (
     DownloadConfig,
     OfflineModeIsEnabled,
+    ZstdExtractor,
     cached_path,
     ftp_get,
     ftp_head,
@@ -20,6 +22,20 @@
 from .utils import require_tf, require_torch
 
 
+FILE_CONTENT = """\
+    Text data.
+    Second line of data."""
+
+
+@pytest.fixture(scope="session")
+def zstd_path(tmp_path_factory):
+    path = tmp_path_factory.mktemp("data") / "file.zstd"
+    data = bytes(FILE_CONTENT, "utf-8")
+    with zstd.open(path, "wb") as f:
+        f.write(data)
+    return path
+
+
 class TempSeedTest(TestCase):
     @require_tf
     def test_tensorflow(self):
@@ -72,12 +88,26 @@ def gen_random_output():
         self.assertGreater(np.abs(out1 - out3).sum(), 0)
 
 
-def test_cached_path_extract(xz_file, tmp_path, text_file):
-    filename = xz_file
+def test_zstd_extractor(zstd_path, tmp_path, text_file):
+    input_path = zstd_path
+    assert ZstdExtractor.is_extractable(input_path)
+    output_path = str(tmp_path / "extracted.txt")
+    ZstdExtractor.extract(input_path, output_path)
+    with open(output_path) as f:
+        extracted_file_content = f.read()
+    with open(text_file) as f:
+        expected_file_content = f.read()
+    assert extracted_file_content == expected_file_content
+
+
+@pytest.mark.parametrize("compression_format", ["xz", "zstd"])
+def test_cached_path_extract(compression_format, xz_file, zstd_path, tmp_path, text_file):
+    path = {"xz": xz_file, "zstd": zstd_path}
+    input_path = path[compression_format]
     cache_dir = tmp_path / "cache"
     download_config = DownloadConfig(cache_dir=cache_dir, extract_compressed_file=True)
-    extracted_filename = cached_path(filename, download_config=download_config)
-    with open(extracted_filename) as f:
+    extracted_path = cached_path(input_path, download_config=download_config)
+    with open(extracted_path) as f:
         extracted_file_content = f.read()
     with open(text_file) as f:
         expected_file_content = f.read()