First, the colors are partitioned within a tile into distinct groups, such that the variation of color within each group is lowered. Second, each group can be encoded in an efficient manner. The algorithm described herein may give a higher compression ratio than previous algorithms, and therefore may further reduce memory bandwidth at a very low increase in computational cost in some embodiments. The algorithm may be added to a system with existing buffer compression algorithms, handling additional tiles that the existing algorithm fails to compress, thereby increasing the overall compression rate.