diff --git a/frontend/dockerfile/dockerfile2llb/convert.go b/frontend/dockerfile/dockerfile2llb/convert.go
index c35e2d7cd..5d6cc8b3e 100644
--- a/frontend/dockerfile/dockerfile2llb/convert.go
+++ b/frontend/dockerfile/dockerfile2llb/convert.go
@@ -332,14 +332,17 @@ func dispatchWorkdir(d *dispatchState, c *instructions.WorkdirCommand) error {
 }
 
 func dispatchCopy(d *dispatchState, c instructions.SourcesAndDest, sourceState llb.State, isAddCommand bool) error {
-	// TODO: this should use CopyOp instead. Current implementation is inefficient and doesn't match Dockerfile path suffixes rules
-	img := llb.Image("tonistiigi/copy@sha256:260a4355be76e0609518ebd7c0e026831c80b8908d4afd3f8e8c942645b1e5cf")
+	// TODO: this should use CopyOp instead. Current implementation is inefficient
+	img := llb.Image("tonistiigi/copy@sha256:ca6620946b2db7ad92f80cc5834f5d0724e6ede1f00004c965f6ded61592553a")
 
 	dest := path.Join("/dest", pathRelativeToWorkingDir(d.state, c.Dest()))
 	if c.Dest() == "." || c.Dest()[len(c.Dest())-1] == filepath.Separator {
 		dest += string(filepath.Separator)
 	}
 	args := []string{"copy"}
+	if isAddCommand {
+		args = append(args, "--unpack")
+	}
 	mounts := make([]llb.RunOption, 0, len(c.Sources()))
 	for i, src := range c.Sources() {
 		if isAddCommand && urlutil.IsURL(src) {
diff --git a/frontend/dockerfile/dockerfile_test.go b/frontend/dockerfile/dockerfile_test.go
index 63343105e..e1f95f1e3 100644
--- a/frontend/dockerfile/dockerfile_test.go
+++ b/frontend/dockerfile/dockerfile_test.go
@@ -1,7 +1,9 @@
 package dockerfile
 
 import (
+	"archive/tar"
 	"bytes"
+	"compress/gzip"
 	"fmt"
 	"io/ioutil"
 	"net/http"
@@ -22,6 +24,7 @@ func TestIntegration(t *testing.T) {
 		testDockerfileDirs,
 		testDockerfileInvalidCommand,
 		testDockerfileADDFromURL,
+		testDockerfileAddArchive,
 	})
 }
 
@@ -197,6 +200,148 @@ ADD %s /dest/
 	require.Equal(t, fi.ModTime().Format(http.TimeFormat), modTime.Format(http.TimeFormat))
 }
 
+func testDockerfileAddArchive(t *testing.T, sb integration.Sandbox) {
+	t.Parallel()
+
+	buf := bytes.NewBuffer(nil)
+	tw := tar.NewWriter(buf)
+	expectedContent := []byte("content0")
+	err := tw.WriteHeader(&tar.Header{
+		Name:     "foo",
+		Typeflag: tar.TypeReg,
+		Size:     int64(len(expectedContent)),
+		Mode:     0644,
+	})
+	require.NoError(t, err)
+	_, err = tw.Write(expectedContent)
+	require.NoError(t, err)
+	err = tw.Close()
+	require.NoError(t, err)
+
+	dockerfile := []byte(`
+FROM scratch
+ADD t.tar /
+`)
+
+	dir, err := tmpdir(
+		fstest.CreateFile("Dockerfile", dockerfile, 0600),
+		fstest.CreateFile("t.tar", buf.Bytes(), 0600),
+	)
+	require.NoError(t, err)
+	defer os.RemoveAll(dir)
+
+	args, trace := dfCmdArgs(dir, dir)
+	defer os.RemoveAll(trace)
+
+	destDir, err := tmpdir()
+	require.NoError(t, err)
+	defer os.RemoveAll(destDir)
+
+	cmd := sb.Cmd(args + fmt.Sprintf(" --exporter=local --exporter-opt output=%s", destDir))
+	require.NoError(t, cmd.Run())
+
+	dt, err := ioutil.ReadFile(filepath.Join(destDir, "foo"))
+	require.NoError(t, err)
+	require.Equal(t, expectedContent, dt)
+
+	// add gzip tar
+	buf2 := bytes.NewBuffer(nil)
+	gz := gzip.NewWriter(buf2)
+	_, err = gz.Write(buf.Bytes())
+	require.NoError(t, err)
+	err = gz.Close()
+	require.NoError(t, err)
+
+	dockerfile = []byte(`
+FROM scratch
+ADD t.tar.gz /
+`)
+
+	dir, err = tmpdir(
+		fstest.CreateFile("Dockerfile", dockerfile, 0600),
+		fstest.CreateFile("t.tar.gz", buf2.Bytes(), 0600),
+	)
+	require.NoError(t, err)
+	defer os.RemoveAll(dir)
+
+	args, trace = dfCmdArgs(dir, dir)
+	defer os.RemoveAll(trace)
+
+	destDir, err = tmpdir()
+	require.NoError(t, err)
+	defer os.RemoveAll(destDir)
+
+	cmd = sb.Cmd(args + fmt.Sprintf(" --exporter=local --exporter-opt output=%s", destDir))
+	require.NoError(t, cmd.Run())
+
+	dt, err = ioutil.ReadFile(filepath.Join(destDir, "foo"))
+	require.NoError(t, err)
+	require.Equal(t, expectedContent, dt)
+
+	// COPY doesn't extract
+	dockerfile = []byte(`
+FROM scratch
+COPY t.tar.gz /
+`)
+
+	dir, err = tmpdir(
+		fstest.CreateFile("Dockerfile", dockerfile, 0600),
+		fstest.CreateFile("t.tar.gz", buf2.Bytes(), 0600),
+	)
+	require.NoError(t, err)
+	defer os.RemoveAll(dir)
+
+	args, trace = dfCmdArgs(dir, dir)
+	defer os.RemoveAll(trace)
+
+	destDir, err = tmpdir()
+	require.NoError(t, err)
+	defer os.RemoveAll(destDir)
+
+	cmd = sb.Cmd(args + fmt.Sprintf(" --exporter=local --exporter-opt output=%s", destDir))
+	require.NoError(t, cmd.Run())
+
+	dt, err = ioutil.ReadFile(filepath.Join(destDir, "t.tar.gz"))
+	require.NoError(t, err)
+	require.Equal(t, buf2.Bytes(), dt)
+
+	// ADD from URL doesn't extract
+	resp := httpserver.Response{
+		Etag:    identity.NewID(),
+		Content: buf2.Bytes(),
+	}
+
+	server := httpserver.NewTestServer(map[string]httpserver.Response{
+		"/t.tar.gz": resp,
+	})
+	defer server.Close()
+
+	dockerfile = []byte(fmt.Sprintf(`
+FROM scratch
+ADD %s /
+`, server.URL+"/t.tar.gz"))
+
+	dir, err = tmpdir(
+		fstest.CreateFile("Dockerfile", dockerfile, 0600),
+	)
+	require.NoError(t, err)
+	defer os.RemoveAll(dir)
+
+	args, trace = dfCmdArgs(dir, dir)
+	defer os.RemoveAll(trace)
+
+	destDir, err = tmpdir()
+	require.NoError(t, err)
+	defer os.RemoveAll(destDir)
+
+	cmd = sb.Cmd(args + fmt.Sprintf(" --exporter=local --exporter-opt output=%s", destDir))
+	require.NoError(t, cmd.Run())
+
+	dt, err = ioutil.ReadFile(filepath.Join(destDir, "t.tar.gz"))
+	require.NoError(t, err)
+	require.Equal(t, buf2.Bytes(), dt)
+}
+
 func tmpdir(appliers ...fstest.Applier) (string, error) {
 	tmpdir, err := ioutil.TempDir("", "buildkit-dockerfile")
 	if err != nil {