diff --git a/great_tables/_formats.py b/great_tables/_formats.py
index 66833e4b1..68886bf75 100644
--- a/great_tables/_formats.py
+++ b/great_tables/_formats.py
@@ -1116,6 +1116,7 @@ def fmt_currency(
     use_seps: bool = True,
     accounting: bool = False,
     scale_by: float = 1,
+    compact: bool = False,
     pattern: str = "{x}",
     sep_mark: str = ",",
     dec_mark: str = ".",
@@ -1181,6 +1182,10 @@ def fmt_currency(
         All numeric values will be multiplied by the `scale_by` value before undergoing formatting.
         Since the `default` value is `1`, no values will be changed unless a different multiplier
         value is supplied.
+    compact
+        Whether to use compact formatting. This is a boolean value that, when set to `True`, will
+        format large numbers in a more compact form (e.g., `1,000,000` becomes `1M`). This is
+        `False` by default.
     pattern
         A formatting pattern that allows for decoration of the formatted value. The formatted value
         is represented by the `{x}` (which can be used multiple times, if needed) and all other
@@ -1282,6 +1287,7 @@ def fmt_currency(
         use_seps=use_seps,
         accounting=accounting,
         scale_by=scale_by,
+        compact=compact,
         sep_mark=sep_mark,
         dec_mark=dec_mark,
         force_sign=force_sign,
@@ -1302,6 +1308,7 @@ def fmt_currency_context(
     use_seps: bool,
     accounting: bool,
     scale_by: float,
+    compact: bool,
     sep_mark: str,
     dec_mark: str,
     force_sign: bool,
@@ -1326,9 +1333,14 @@ def fmt_currency_context(
     if currency_symbol == "$":
         currency_symbol = _context_dollar_mark(context=context)
 
-    # Format the value to decimal notation; this is done before the currency symbol is
-    # affixed to the value
-    x_formatted = _value_to_decimal_notation(
+    # Choose the appropriate formatting function based on the `compact=` option
+    if compact:
+        f_formatter = _format_number_compactly
+    else:
+        f_formatter = _value_to_decimal_notation
+
+    # Perform formatting to decimal notation
+    x_formatted = f_formatter(
         value=x,
         decimals=decimals,
         n_sigfig=None,
diff --git a/great_tables/_formats_vals.py b/great_tables/_formats_vals.py
index 4d16f6b29..076c41ac0 100644
--- a/great_tables/_formats_vals.py
+++ b/great_tables/_formats_vals.py
@@ -1,13 +1,13 @@
 from __future__ import annotations
 
-from typing import TYPE_CHECKING, Any
 from pathlib import Path
+from typing import TYPE_CHECKING, Any
 
 from typing_extensions import TypeAlias
 
-from .gt import GT, _get_column_of_values
 from ._gt_data import GTData
 from ._tbl_data import SeriesLike, to_frame
+from .gt import GT, _get_column_of_values
 
 if TYPE_CHECKING:
     from ._formats import DateStyle, TimeStyle
@@ -541,6 +541,7 @@ def val_fmt_currency(
     accounting: bool = False,
     use_seps: bool = True,
     scale_by: float = 1,
+    compact: bool = False,
     pattern: str = "{x}",
     sep_mark: str = ",",
     dec_mark: str = ".",
@@ -601,6 +602,10 @@ def val_fmt_currency(
         All numeric values will be multiplied by the `scale_by` value before undergoing formatting.
         Since the `default` value is `1`, no values will be changed unless a different multiplier
         value is supplied.
+    compact
+        Whether to use compact formatting. This is a boolean value that, when set to `True`, will
+        format large numbers in a more compact form (e.g., `1,000,000` becomes `1M`). This is
+        `False` by default.
     pattern
         A formatting pattern that allows for decoration of the formatted value. The formatted value
         is represented by the `{x}` (which can be used multiple times, if needed) and all other
@@ -652,6 +657,7 @@ def val_fmt_currency(
         accounting=accounting,
         use_seps=use_seps,
         scale_by=scale_by,
+        compact=compact,
         pattern=pattern,
         sep_mark=sep_mark,
         dec_mark=dec_mark,
diff --git a/tests/test_formats.py b/tests/test_formats.py
index 12e5fcf7b..4a33b09c4 100644
--- a/tests/test_formats.py
+++ b/tests/test_formats.py
@@ -1172,6 +1172,7 @@ def test_fmt_scientific_case(
     (dict(placement="right"), ["1,234,567.00$", "−5,432.37$"]),
     (dict(placement="right", incl_space=True), ["1,234,567.00 $", "−5,432.37 $"]),
     (dict(incl_space=True), ["$ 1,234,567.00", "−$ 5,432.37"]),
+    (dict(compact=True), ["$1.23M", "−$5.43K"]),
 ]