diff --git a/repo/object_manager_test.go b/repo/object_manager_test.go
index caad72bf6..2b32f0157 100644
--- a/repo/object_manager_test.go
+++ b/repo/object_manager_test.go
@@ -12,6 +12,7 @@
 	"reflect"
 	"runtime/debug"
 	"testing"
+	"time"
 
 	"github.com/kopia/kopia/auth"
 
@@ -190,6 +191,30 @@ func TestPackingSimple(t *testing.T) {
 	verify(t, repo, oid1a, []byte(content1), "packed-object-1")
 	verify(t, repo, oid2a, []byte(content2), "packed-object-2")
 	verify(t, repo, oid3a, []byte(content3), "packed-object-3")
+
+	if err := repo.Optimize(time.Now().Add(10 * time.Second)); err != nil {
+		t.Errorf("optimize error: %v", err)
+	}
+	data, repo = setupTestWithData(t, data, func(n *NewRepositoryOptions) {
+		n.MaxPackFileLength = 10000
+		n.MaxPackedContentLength = 10000
+	})
+
+	verify(t, repo, oid1a, []byte(content1), "packed-object-1")
+	verify(t, repo, oid2a, []byte(content2), "packed-object-2")
+	verify(t, repo, oid3a, []byte(content3), "packed-object-3")
+
+	if err := repo.Optimize(time.Now().Add(-10 * time.Second)); err != nil {
+		t.Errorf("optimize error: %v", err)
+	}
+	data, repo = setupTestWithData(t, data, func(n *NewRepositoryOptions) {
+		n.MaxPackFileLength = 10000
+		n.MaxPackedContentLength = 10000
+	})
+
+	verify(t, repo, oid1a, []byte(content1), "packed-object-1")
+	verify(t, repo, oid2a, []byte(content2), "packed-object-2")
+	verify(t, repo, oid3a, []byte(content3), "packed-object-3")
 }
 
 func verifyIndirectBlock(t *testing.T, r *Repository, oid ObjectID) {
diff --git a/repo/pack_manager.go b/repo/pack_manager.go
index 8d616d06d..1c9c5eaae 100644
--- a/repo/pack_manager.go
+++ b/repo/pack_manager.go
@@ -345,7 +345,7 @@ func (p *packManager) Compact(cutoffTime time.Time) error {
 		return err
 	}
 
-	if len(blockIDs) < parallelFetches {
+	if len(blockIDs) <= 1 {
 		log.Printf("skipping index compaction - the number of segments %v is too low", len(blockIDs))
 		return nil
 	}