Compression is referred to as the process of reducing the number of bits to represent data. Compression reduces the time taken to transfer the data, decreases the cost for storage space and network bandwidth. Compression algorithms are two types namely lossless and lossy. Lossless compression algorithms are mainly used to compress text whereas lossy compression algorithms are used in the compression of audio, video. Due to the advent of the internet worldwide, the usage and storage of audio, video and text files has largely increased. The storage of these multimedia files takes more space compared to traditional files. Hence there is a need for an efficient compression algorithm. With today’s machines equipped with multicore processors, there is a considerable improvement in the computing performances of these machines. Nevertheless, this multicore architecture offered by present time machines is not been utilized by compression algorithms. This paper is aimed at making the lossless compression algorithms namely LZMA, BZ2 and ZLIB more efficient by taking advantage of the concept of multithreading.