diff --git a/.github/workflows/main.yml b/.github/workflows/main.yml
index 14405d7..4b9ea39 100644
--- a/.github/workflows/main.yml
+++ b/.github/workflows/main.yml
@@ -3,7 +3,7 @@ on: [push]
 env:
   KERNEL_VERSION: 5.15.63-ctsi-1
   RISCV_PK_VERSION: 1.0.0-ctsi-1
-  TOOLCHAIN_VERSION: 0.12.0
+  TOOLCHAIN_VERSION: 0.13.0
 jobs:
   build:
     runs-on: ubuntu-22.04
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 22da92f..497b7aa 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Changed
 - Tuned default kernel config for faster boot time
+- Updated toolchain to v0.13.0
+- Enabled compressed instructions (RISC-V C extension)
 
 ## [0.14.0] - 2022-11-17
 ### Changed
diff --git a/Makefile b/Makefile
index d0d4e9f..258f2d6 100644
--- a/Makefile
+++ b/Makefile
@@ -15,7 +15,7 @@
 
 TAG ?= devel
 TOOLCHAIN_DOCKER_REPOSITORY ?= cartesi/toolchain
-TOOLCHAIN_TAG ?= 0.12.0
+TOOLCHAIN_TAG ?= 0.13.0
 KERNEL_VERSION ?= 5.15.63-ctsi-1
 KERNEL_SRCPATH := dep/linux-${KERNEL_VERSION}.tar.gz
 RISCV_PK_VERSION ?= 1.0.0-ctsi-1
diff --git a/configs/debug-linux-config b/configs/debug-linux-config
index ecff128..561cf3c 100644
--- a/configs/debug-linux-config
+++ b/configs/debug-linux-config
@@ -203,7 +203,7 @@ CONFIG_CMODEL_MEDANY=y
 CONFIG_MAXPHYSMEM_128GB=y
 # CONFIG_SMP is not set
 CONFIG_TUNE_GENERIC=y
-# CONFIG_RISCV_ISA_C is not set
+CONFIG_RISCV_ISA_C=y
 
 #
 # supported PMU type
diff --git a/configs/default-linux-config b/configs/default-linux-config
index a2d023e..baf8f18 100644
--- a/configs/default-linux-config
+++ b/configs/default-linux-config
@@ -8,7 +8,7 @@ CONFIG_IKCONFIG_PROC=y
 CONFIG_NAMESPACES=y
 CONFIG_EMBEDDED=y
 CONFIG_SOC_VIRT=y
-# CONFIG_RISCV_ISA_C is not set
+CONFIG_RISCV_ISA_C=y
 CONFIG_FPU=y
 CONFIG_HZ_100=y
 CONFIG_CMDLINE="earlyprintk"