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Compression algorithms reduce the redundancy in data representation to decrease the storage required for that data. Lossless compression researchers have developed highly sophisticated approaches, such as Huffman encoding, arithmetic encoding, the Lempel-Ziv (LZ) family, Dynamic Markov Compression (DMC), Prediction by Partial Matching (PPM), and Burrows-Wheeler Transform (BWT) based algorithms. Decompression is also required to retrieve the original data by lossless means. A compression scheme for text files coupled with the principle of dynamic decompression, which decompresses only the section of the compressed text file required by the user instead of decompressing the entire text file. Dynamic decompressed files offer better disk space utilization due to higher compression ratios compared to most of the currently available text file formats.