diff --git a/docs/resources/virtual_environment_download_file.md b/docs/resources/virtual_environment_download_file.md
index e95f1ca6..6586a459 100644
--- a/docs/resources/virtual_environment_download_file.md
+++ b/docs/resources/virtual_environment_download_file.md
@@ -82,7 +82,7 @@ resource "proxmox_virtual_environment_download_file" "latest_ubuntu_22_jammy_lxc
 
 - `checksum` (String) The expected checksum of the file.
 - `checksum_algorithm` (String) The algorithm to calculate the checksum of the file. Must be `md5` | `sha1` | `sha224` | `sha256` | `sha384` | `sha512`.
-- `decompression_algorithm` (String) Decompress the downloaded file using the specified compression algorithm. Must be one of `gz` | `lzo` | `zst`.
+- `decompression_algorithm` (String) Decompress the downloaded file using the specified compression algorithm. Must be one of `gz` | `lzo` | `zst` | `bz2`.
 - `file_name` (String) The file name. If not provided, it is calculated using `url`. PVE will raise 'wrong file extension' error for some popular extensions file `.raw` or `.qcow2`. Workaround is to use e.g. `.img` instead.
 - `overwrite` (Boolean) If `true` and size of uploaded file is different, than size from `url` Content-Length header, file will be downloaded again. If `false`, there will be no checks.
 - `overwrite_unmanaged` (Boolean) If `true` and a file with the same name already exists in the datastore, it will be deleted and the new file will be downloaded. If `false` and the file already exists, an error will be returned.
diff --git a/fwprovider/resource_download_file.go b/fwprovider/resource_download_file.go
index 9ed8214a..f08fb3c2 100644
--- a/fwprovider/resource_download_file.go
+++ b/fwprovider/resource_download_file.go
@@ -268,7 +268,7 @@ func (r *downloadFileResource) Schema(
 			},
 			"decompression_algorithm": schema.StringAttribute{
 				Description: "Decompress the downloaded file using the " +
-					"specified compression algorithm. Must be one of `gz` | `lzo` | `zst`.",
+					"specified compression algorithm. Must be one of `gz` | `lzo` | `zst` | `bz2`.",
 				Optional: true,
 				Default:  nil,
 				Validators: []validator.String{
@@ -276,6 +276,7 @@ func (r *downloadFileResource) Schema(
 						"gz",
 						"lzo",
 						"zst",
+						"bz2",
 					}...),
 				},
 			},