diff --git a/README.md b/README.md
index 101d58c..4079fa9 100644
--- a/README.md
+++ b/README.md
@@ -135,7 +135,7 @@ There are three options available to provide a grammar:
 
 - The inline grammar option expects a grammar passed inline as a string.
 - The grammar URI option expects a URI, either pointing to a built-in grammar or to a grammar that is being hosted externally.
-- The compiled grammar expects a filename of the compiled grammar binary.
+- The compiled grammar expects a filename (a .tar.xz file) of the previously compiled grammar.
 
 > **THIS FEATURE IS STILL IN DEVELOPMENT, PLEASE ONLY USE THE GRAMMAR URI OPTION WITH BUILTIN GRAMMARS, OR AN ERROR WILL BE GIVEN.**
 
diff --git a/cli-client/helpers/common.py b/cli-client/helpers/common.py
index f909600..73490f0 100644
--- a/cli-client/helpers/common.py
+++ b/cli-client/helpers/common.py
@@ -133,13 +133,15 @@ def parse_csr_commandline() -> RecognizerOptions:
     options = RecognizerOptions()
     parser = argparse.ArgumentParser(description='Perform speech recognition on an audio file')
     parser.add_argument('--audio-file', '-a', help='Path to a .wav audio in 8kHz and PCM16 encoding', required=True)
-    parser.add_argument('--convert-audio', '-c', help='Convert audio file to from A-LAW to PCM using sox software. Used for internal testing.',
+    parser.add_argument('--convert-audio', '-c', help='Convert audio file to from A-LAW to PCM using sox software. '
+                                                      'Used for internal testing.',
                         required=False, default=False, dest='convert_audio', action='store_true')
-    topicGroup = parser.add_mutually_exclusive_group(required=True)
-    topicGroup.add_argument('--topic', '-T', choices=['GENERIC', 'TELCO', 'BANKING', 'INSURANCE'], help='A valid topic')
-    topicGroup.add_argument('--inline-grammar', '-I', help='Grammar inline as a string')
-    topicGroup.add_argument('--grammar-uri', '-G', help='Grammar URI for the recognition (builtin or served externally)')
-    topicGroup.add_argument('--compiled-grammar', '-C', help='Compiled grammar binary for the recognition')
+    topic_group = parser.add_mutually_exclusive_group(required=True)
+    topic_group.add_argument('--topic', '-T', choices=['GENERIC', 'TELCO', 'BANKING', 'INSURANCE'],
+                             help='A valid topic.')
+    topic_group.add_argument('--inline-grammar', '-I', help='Grammar inline as a string.')
+    topic_group.add_argument('--grammar-uri', '-G', help='Builtin grammar URI for the recognition.')
+    topic_group.add_argument('--compiled-grammar', '-C', help='The compiled grammar file path (an .tar.xz) for the recognition.')
     parser.add_argument(
         '--language',
         '-l',
@@ -160,21 +162,25 @@ def parse_csr_commandline() -> RecognizerOptions:
         help='A Language ID (default: ' + options.language + ')',
         default=options.language)
     parser.add_argument('--token', '-t', help='File with the authentication token', required=True)
-    parser.add_argument('--host', '-H', help='The URL of the host trying to reach (default: ' + options.host + ')', required=True)
+    parser.add_argument('--host', '-H', help='The URL of the host trying to reach (default: ' + options.host + ')',
+                        required=True)
     parser.add_argument('--not-secure', '-S', help='Do not use a secure channel. Used for internal testing.',
                         required=False, default=True, dest='secure', action='store_false')
     parser.add_argument('--diarization', '-d', help='', required=False, default=False, action='store_true')
     parser.add_argument('--formatting', '-f', help='', required=False, default=False, action='store_true')
-    parser.add_argument('--inactivity-timeout', '-i', help='Time for stream inactivity after the first valid response', required=False, default=5.0)
+    parser.add_argument('--inactivity-timeout', '-i', help='Time for stream inactivity after the first valid response',
+                        required=False, default=5.0)
     parser.add_argument('--asr-version', choices=['V1', 'V2'], help='Selectable asr version', required=True)
     parser.add_argument('--label', help='Label for the request', required=False, default="")
 
-    credentialGroup = parser.add_argument_group(
+    credential_group = parser.add_argument_group(
         'credentials',
         '''[OPTIONAL] Client authentication credentials used to refresh the token.
         You can find your credentials on the dashboard at https://dashboard.speechcenter.verbio.com/access-token''')
-    credentialGroup.add_argument('--client-id', help='Client id for authentication. MUST be written as --client-id=CLIENT_ID')
-    credentialGroup.add_argument('--client-secret', help='Client secret for authentication. MUST be written as --client-secret=CLIENT_SECRET')
+    credential_group.add_argument('--client-id',
+                                  help='Client id for authentication. MUST be written as --client-id=CLIENT_ID')
+    credential_group.add_argument('--client-secret',
+                                  help='Client secret for authentication. MUST be written as --client-secret=CLIENT_SECRET')
 
     args = parser.parse_args()
     parse_credential_args(args, options)
diff --git a/cli-client/helpers/compiled_grammar_processing.py b/cli-client/helpers/compiled_grammar_processing.py
new file mode 100644
index 0000000..ef9847e
--- /dev/null
+++ b/cli-client/helpers/compiled_grammar_processing.py
@@ -0,0 +1,22 @@
+import os
+
+COMPILED_GRAMMAR_FORMAT = '.tar'
+COMPILED_GRAMMAR_SUB_FORMAT = '.xz'
+
+
+def check_format(compiled_grammar: str):
+    first_split = os.path.splitext(compiled_grammar)
+    second_split = os.path.splitext(first_split[0])
+    return first_split[1] == COMPILED_GRAMMAR_SUB_FORMAT and second_split[1] == COMPILED_GRAMMAR_FORMAT
+
+
+def get_compiled_grammar(compiled_grammar: str):
+    if not os.path.exists(compiled_grammar):
+        raise ValueError(f"{compiled_grammar} file does not exist.")
+    if not check_format(compiled_grammar):
+        raise ValueError(f"{compiled_grammar} file specified is not {COMPILED_GRAMMAR_FORMAT}"
+                         f"{COMPILED_GRAMMAR_SUB_FORMAT}.")
+
+    with open(compiled_grammar, mode="rb") as f:
+        data = f.read()
+    return data
diff --git a/cli-client/helpers/csr_client.py b/cli-client/helpers/csr_client.py
index 3b664c3..ee157db 100644
--- a/cli-client/helpers/csr_client.py
+++ b/cli-client/helpers/csr_client.py
@@ -5,6 +5,7 @@
 import threading
 from threading import Timer
 from helpers.common import VerbioGrammar, RecognizerOptions
+from helpers.compiled_grammar_processing import get_compiled_grammar
 from concurrent.futures import ThreadPoolExecutor
 from google.protobuf.json_format import MessageToJson
 from helpers.common import split_audio
@@ -101,9 +102,8 @@ def __generate_grammar_resource(self, grammar):
         elif grammar.type == VerbioGrammar.URI:
             return recognition_streaming_request_pb2.GrammarResource(grammar_uri=grammar.content)
         elif grammar.type == VerbioGrammar.COMPILED:
-            with open(grammar.content, "rb") as grammar_file:
-                compiled_grammar = grammar_file.read()
-                return recognition_streaming_request_pb2.GrammarResource(compiled_grammar=compiled_grammar)
+                return recognition_streaming_request_pb2.GrammarResource(
+                    compiled_grammar=get_compiled_grammar(grammar.content))
 
         raise Exception("Type of grammar not recognized.")