diff --git a/test-files/extensionless_precompressed b/test-files/extensionless_precompressed
new file mode 100644
index 00000000..fffc22b4
--- /dev/null
+++ b/test-files/extensionless_precompressed
@@ -0,0 +1 @@
+Content.
\ No newline at end of file
diff --git a/test-files/extensionless_precompressed.gz b/test-files/extensionless_precompressed.gz
new file mode 100644
index 00000000..0dcede22
Binary files /dev/null and b/test-files/extensionless_precompressed.gz differ
diff --git a/test-files/extensionless_precompressed_missing b/test-files/extensionless_precompressed_missing
new file mode 100644
index 00000000..fffc22b4
--- /dev/null
+++ b/test-files/extensionless_precompressed_missing
@@ -0,0 +1 @@
+Content.
\ No newline at end of file
diff --git a/tower-http/CHANGELOG.md b/tower-http/CHANGELOG.md
index e4da30fe..542f07b5 100644
--- a/tower-http/CHANGELOG.md
+++ b/tower-http/CHANGELOG.md
@@ -12,8 +12,13 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - `body` module is disabled except for `catch-panic`, `decompression-*`, `fs`, or `limit` features (BREAKING) ([#477])
 - Update to `tower` 0.5 ([#503])
 
+## Fixed
+
+- **fs:** Precompression of static files now supports files without a file extension ([#507])
+
 [#477]: https://github.com/tower-rs/tower-http/pull/477
 [#503]: https://github.com/tower-rs/tower-http/pull/503
+[#507]: https://github.com/tower-rs/tower-http/pull/507
 
 # 0.5.2
 
diff --git a/tower-http/src/content_encoding.rs b/tower-http/src/content_encoding.rs
index a0e60a3c..91c21d45 100644
--- a/tower-http/src/content_encoding.rs
+++ b/tower-http/src/content_encoding.rs
@@ -142,7 +142,7 @@ pub(crate) struct QValue(u16);
 ))]
 impl QValue {
     #[inline]
-    fn one() -> Self {
+    pub(crate) fn one() -> Self {
         Self(1000)
     }
 
diff --git a/tower-http/src/services/fs/serve_dir/open_file.rs b/tower-http/src/services/fs/serve_dir/open_file.rs
index 01c1e2f9..f182d422 100644
--- a/tower-http/src/services/fs/serve_dir/open_file.rs
+++ b/tower-http/src/services/fs/serve_dir/open_file.rs
@@ -181,16 +181,16 @@ fn preferred_encoding(
     if let Some(file_extension) =
         preferred_encoding.and_then(|encoding| encoding.to_file_extension())
     {
-        let new_extension = path
-            .extension()
-            .map(|extension| {
-                let mut os_string = extension.to_os_string();
+        let new_file_name = path
+            .file_name()
+            .map(|file_name| {
+                let mut os_string = file_name.to_os_string();
                 os_string.push(file_extension);
                 os_string
             })
             .unwrap_or_else(|| file_extension.to_os_string());
 
-        path.set_extension(new_extension);
+        path.set_file_name(new_file_name);
     }
 
     preferred_encoding
@@ -319,3 +319,17 @@ fn append_slash_on_path(uri: Uri) -> Uri {
 
     uri_builder.build().unwrap()
 }
+
+#[test]
+fn preferred_encoding_with_extension() {
+    let mut path = PathBuf::from("hello.txt");
+    preferred_encoding(&mut path, &[(Encoding::Gzip, QValue::one())]);
+    assert_eq!(path, PathBuf::from("hello.txt.gz"));
+}
+
+#[test]
+fn preferred_encoding_without_extension() {
+    let mut path = PathBuf::from("hello");
+    preferred_encoding(&mut path, &[(Encoding::Gzip, QValue::one())]);
+    assert_eq!(path, PathBuf::from("hello.gz"));
+}
diff --git a/tower-http/src/services/fs/serve_dir/tests.rs b/tower-http/src/services/fs/serve_dir/tests.rs
index d0d3952c..1fd768c2 100644
--- a/tower-http/src/services/fs/serve_dir/tests.rs
+++ b/tower-http/src/services/fs/serve_dir/tests.rs
@@ -9,6 +9,7 @@ use http::{Request, StatusCode};
 use http_body::Body as HttpBody;
 use http_body_util::BodyExt;
 use std::convert::Infallible;
+use std::fs;
 use std::io::Read;
 use tower::{service_fn, ServiceExt};
 
@@ -252,6 +253,54 @@ async fn missing_precompressed_variant_fallbacks_to_uncompressed_for_head_reques
     assert!(res.into_body().frame().await.is_none());
 }
 
+#[tokio::test]
+async fn precompressed_without_extension() {
+    let svc = ServeDir::new("../test-files").precompressed_gzip();
+
+    let request = Request::builder()
+        .uri("/extensionless_precompressed")
+        .header("Accept-Encoding", "gzip")
+        .body(Body::empty())
+        .unwrap();
+    let res = svc.oneshot(request).await.unwrap();
+
+    assert_eq!(res.status(), StatusCode::OK);
+
+    assert_eq!(res.headers()["content-type"], "application/octet-stream");
+    assert_eq!(res.headers()["content-encoding"], "gzip");
+
+    let body = res.into_body().collect().await.unwrap().to_bytes();
+    let mut decoder = GzDecoder::new(&body[..]);
+    let mut decompressed = String::new();
+    decoder.read_to_string(&mut decompressed).unwrap();
+
+    let correct = fs::read_to_string("../test-files/extensionless_precompressed").unwrap();
+    assert_eq!(decompressed, correct);
+}
+
+#[tokio::test]
+async fn missing_precompressed_without_extension_fallbacks_to_uncompressed() {
+    let svc = ServeDir::new("../test-files").precompressed_gzip();
+
+    let request = Request::builder()
+        .uri("/extensionless_precompressed_missing")
+        .header("Accept-Encoding", "gzip")
+        .body(Body::empty())
+        .unwrap();
+    let res = svc.oneshot(request).await.unwrap();
+
+    assert_eq!(res.status(), StatusCode::OK);
+
+    assert_eq!(res.headers()["content-type"], "application/octet-stream");
+    assert!(res.headers().get("content-encoding").is_none());
+
+    let body = res.into_body().collect().await.unwrap().to_bytes();
+    let body = String::from_utf8(body.to_vec()).unwrap();
+
+    let correct = fs::read_to_string("../test-files/extensionless_precompressed_missing").unwrap();
+    assert_eq!(body, correct);
+}
+
 #[tokio::test]
 async fn access_to_sub_dirs() {
     let svc = ServeDir::new("..");