diff --git a/docs/guide/assets.md b/docs/guide/assets.md
index 44dc29f..da3c8b3 100644
--- a/docs/guide/assets.md
+++ b/docs/guide/assets.md
@@ -114,4 +114,157 @@ return [
 ```
 
 There are two main benefits in enabling it. First it is faster since no copying is required and second is that assets
-will always be up to date with source files.
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+will always be up to date with source files.
+
+Compressing and combining assets
+--------------------------------
+
+To improve application performance you can compress and then combine several CSS or JS files into lesser number of files
+therefore reducing number of HTTP requests and overall download size needed to load a web page.  Yii provides a console
+command that allows you to do both.
+
+### Preparing configuration
+
+In order to use `asset` command you should prepare a configuration first. A template for it can be generated using
+
+```
+yii asset/template /path/to/myapp/config.php
+```
+
+The template itself looks like the following:
+
+```php
+<?php
+/**
+ * Configuration file for the "yii asset" console command.
+ * Note that in the console environment, some path aliases like '@webroot' and '@web' may not exist.
+ * Please define these missing path aliases.
+ */
+return [
+	// The list of asset bundles to compress:
+	'bundles' => [
+		// 'yii\web\YiiAsset',
+		// 'yii\web\JqueryAsset',
+	],
+	// Asset bundle for compression output:
+	'targets' => [
+		'app\config\AllAsset' => [
+			'basePath' => 'path/to/web',
+			'baseUrl' => '',
+			'js' => 'js/all-{ts}.js',
+			'css' => 'css/all-{ts}.css',
+		],
+	],
+	// Asset manager configuration:
+	'assetManager' => [
+		'basePath' => __DIR__,
+		'baseUrl' => '',
+	],
+];
+```
+
+In the above keys are `properties` of `AssetController`. `bundles` list contains bundles that should be compressed. These are typically what's used by application.
+`targets` contains a list of bundles that define how resulting files will be written. In our case we're writing
+everything to `path/to/web` that can be accessed like `http://example.com/` i.e. it is website root directory.
+
+> Note: in the console environment some path aliases like '@webroot' and '@web' may not exist,
+  so corresponding paths inside the configuration should be specified directly.
+
+JavaScript files are combined, compressed and written to `js/all-{ts}.js` where {ts} is replaced with current UNIX
+timestamp.
+
+### Providing compression tools
+
+The command relies on external compression tools that are not bundled with Yii so you need to provide CSS and JS
+compressors which are correspondingly specified via `cssCompressor` and `jsCompression` properties. If compressor is
+specified as a string it is treated as a shell command template which should contain two placeholders: `{from}` that
+is replaced by source file name and `{to}` that is replaced by output file name. Another way to specify compressor is
+to use any valid PHP callback.
+
+By default for JavaScript compression Yii tries to use
+[Google Closure compiler](https://developers.google.com/closure/compiler/) that is expected to be in a file named
+`compiler.jar`.
+
+For CSS compression Yii assumes that [YUI Compressor](https://github.com/yui/yuicompressor/) is looked up in a file
+named `yuicompressor.jar`.
+
+In order to compress resources with these two you need to download both and place where your `yii` console bootstrap
+file is using named mentioned above. Since both are Java tools you need JRE installed.
+
+### Performing compression
+
+After configuration is adjusted you can run the `compress` action, using created config:
+
+```
+yii asset /path/to/myapp/config.php /path/to/myapp/config/assets_compressed.php
+```
+
+Now processing takes some time and finally finished. You need to adjust your web application config to use compressed
+assets file like the following:
+
+```php
+'components' => [
+	// ...
+	'assetManager' => [
+		'bundles' => require /path/to/myapp/config/assets_compressed.php,
+	],
+],
+```
+
+Using asset converter
+---------------------
+
+Instead of using CSS and JavaScript directly often developers are using their improved versions such as LESS or SCSS
+for CSS or Microsoft TypeScript for JavaScript. Using these with Yii is easy.
+
+First of all, corresponding compression tools should be installed and should be availabe from where `yii` console
+bootstrap file is. The following lists file extensions and their corresponding conversion tool names that Yii converter
+recognizes:
+
+- LESS: `less` - `lessc`
+- SCSS: `scss`, `sass` - `sass`
+- Stylus: `styl` - `stylus`
+- CoffeeScript: `coffee` - `coffee`
+- TypeScript: `ts` - `tsc`
+
+So if the corresponding tool is installed you can specify any of these in asset bundle:
+
+```php
+class AppAsset extends AssetBundle
+{
+	public $basePath = '@webroot';
+	public $baseUrl = '@web';
+	public $css = [
+		'css/site.less',
+	];
+	public $js = [
+		'js/site.ts',
+	];
+	public $depends = [
+		'yii\web\YiiAsset',
+		'yii\bootstrap\BootstrapAsset',
+	];
+}
+```
+
+In order to adjust conversion tool call parameters or add new ones you can use application config:
+
+```php
+// ...
+'components' => [
+	'assetManager' => [
+		'converter' => [
+			'class' => 'yii\web\AssetConverter',
+			'commands' => [
+				'less' => ['css', 'lessc {from} {to} --no-color'],
+				'ts' => ['js', 'tsc --out {to} {from}'],
+			],
+		],
+	],
+],
+```
+
+In the above we've left two types of extra file extensions. First one is `less` that can be specified in `css` part
+of an asset bundle. Conversion is performed via running `lessc {from} {to} --no-color` where `{from}` is replaced with
+LESS file path while `{to}` is replaced with target CSS file path. Second one is `ts` that can be specified in `js` part
+of an asset bundle. The command that is run during conversion is in the same format that is used for `less`.
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