diff --git a/server/serverimpl.go b/server/serverimpl.go
index 12048199..f303df14 100644
--- a/server/serverimpl.go
+++ b/server/serverimpl.go
@@ -249,7 +249,7 @@ func (s *server) handleWSConnection(reqCtx context.Context, wsConn *websocket.Co
 
 	// Loop until fail to read from the WebSocket connection.
 	for {
-		msgContext := context.Background()
+		msgContext := context.Background() // reqContext is cancelled when the ServerHTTP method is returned, for WebSockets connections this happens before this loop even starts.
 		request := protobufs.AgentToServer{}
 
 		// Block until the next message can be read.
@@ -311,8 +311,8 @@ func (s *server) handleWSConnection(reqCtx context.Context, wsConn *websocket.Co
 	}
 }
 
-func decompressGzip(data []byte) ([]byte, error) {
-	r, err := gzip.NewReader(bytes.NewBuffer(data))
+func decompressGzip(data io.Reader) ([]byte, error) {
+	r, err := gzip.NewReader(data)
 	if err != nil {
 		return nil, err
 	}
@@ -321,15 +321,16 @@ func decompressGzip(data []byte) ([]byte, error) {
 }
 
 func (s *server) readReqBody(req *http.Request) ([]byte, error) {
-	data, err := io.ReadAll(req.Body)
-	if err != nil {
-		return nil, err
-	}
 	if req.Header.Get(headerContentEncoding) == contentEncodingGzip {
-		data, err = decompressGzip(data)
+		data, err := decompressGzip(req.Body)
 		if err != nil {
 			return nil, err
 		}
+		return data, nil
+	}
+	data, err := io.ReadAll(req.Body)
+	if err != nil {
+		return nil, err
 	}
 	return data, nil
 }
@@ -391,6 +392,7 @@ func (s *server) handlePlainHTTPRequest(req *http.Request, w http.ResponseWriter
 	}
 
 	// Return the CustomCapabilities
+	// Note that unlike a WebSocket response, this is included in all HTTP responses.
 	response.CustomCapabilities = &protobufs.CustomCapabilities{
 		Capabilities: s.settings.CustomCapabilities,
 	}
diff --git a/server/serverimpl_test.go b/server/serverimpl_test.go
index 74b1f1cc..62f48e75 100644
--- a/server/serverimpl_test.go
+++ b/server/serverimpl_test.go
@@ -964,11 +964,8 @@ func TestServerHonoursAcceptEncoding(t *testing.T) {
 	// Verify the received message is what was sent.
 	assert.True(t, proto.Equal(rcvMsg.Load().(proto.Message), &sendMsg))
 
-	// Read Server's response.
-	b, err = io.ReadAll(resp.Body)
-	require.NoError(t, err)
 	// Decompress the gzip response
-	b, err = decompressGzip(b)
+	b, err = decompressGzip(resp.Body)
 	require.NoError(t, err)
 
 	assert.EqualValues(t, http.StatusOK, resp.StatusCode)