An image sensor compresses image data prior to transmitting the image data to a DSP. The image sensor captures light representing an image, for instance via a camera's aperture. A focal plane array converts the captured light into pixel data. The pixel data is sorted into categories, and is compressed in parallel by a compression engine. The compressed pixel data is then sent to a DSP, which may be located off-chip. The DSP then decompresses the compressed pixel data, performs image signal processing operations on the compressed pixel data, and then compresses the processed pixel data into a digital image format. The image sensor may buffer the pixel data for one or more images to accommodate for slowdown by the compression engine. The pixel data may be sorted by row and column of a pixel array. Alternatively, the pixel data may be sorted by color from a Bayer color filter.