A system and method for extracting data from a compressed and encrypted data stream employing lossless compression and a codeword-to-byte mapping enables selective random extraction from compressed and encrypted data. Initially, data is compressed to reduce its size without information loss. A codeword-to-byte mapping table is created, associating codewords with specific positions in the compressed data. When a request for a specific byte range is received, the system uses the mapping to identify the codewords linked to that range within the compressed data. The system then selectively decompresses the identified codewords and subsequently decrypts the decompressed data. This process ensures that only the relevant data is processed, eliminating the need to decompress and decrypt the entire dataset. This approach provides efficient and secure random access to specific data segments within the compressed and encrypted dataset, making it ideal for scenarios requiring selective data retrieval while maintaining data integrity and confidentiality.