diff --git a/.changes/next-release/feature-AWSSDKforJavav2-5eb5d9f.json b/.changes/next-release/feature-AWSSDKforJavav2-5eb5d9f.json
new file mode 100644
index 00000000000..372ea366593
--- /dev/null
+++ b/.changes/next-release/feature-AWSSDKforJavav2-5eb5d9f.json
@@ -0,0 +1,6 @@
+{
+    "type": "feature",
+    "category": "AWS SDK for Java v2",
+    "contributor": "",
+    "description": "Move `ApplyUserAgentStage` to later position in request pipeline to ensure all business metrics are properly recorded before finalizing user agent."
+}
diff --git a/core/sdk-core/src/main/java/software/amazon/awssdk/core/internal/http/AmazonAsyncHttpClient.java b/core/sdk-core/src/main/java/software/amazon/awssdk/core/internal/http/AmazonAsyncHttpClient.java
index 8dd6db8acf1..59bd964d6fa 100644
--- a/core/sdk-core/src/main/java/software/amazon/awssdk/core/internal/http/AmazonAsyncHttpClient.java
+++ b/core/sdk-core/src/main/java/software/amazon/awssdk/core/internal/http/AmazonAsyncHttpClient.java
@@ -193,12 +193,12 @@ public <OutputT> CompletableFuture<OutputT> execute(
                         .first(RequestPipelineBuilder
                                 .first(MakeRequestMutableStage::new)
                                 .then(ApplyTransactionIdStage::new)
-                                .then(ApplyUserAgentStage::new)
                                 .then(MergeCustomHeadersStage::new)
                                 .then(MergeCustomQueryParamsStage::new)
                                 .then(QueryParametersToBodyStage::new)
                                 .then(() -> new CompressRequestStage(httpClientDependencies))
                                 .then(() -> new HttpChecksumStage(ClientType.ASYNC))
+                                .then(ApplyUserAgentStage::new)
                                 .then(MakeRequestImmutableStage::new)
                                 .then(RequestPipelineBuilder
                                         .first(AsyncSigningStage::new)
diff --git a/core/sdk-core/src/main/java/software/amazon/awssdk/core/internal/http/AmazonSyncHttpClient.java b/core/sdk-core/src/main/java/software/amazon/awssdk/core/internal/http/AmazonSyncHttpClient.java
index 21fb5cbe130..dccaad1e210 100644
--- a/core/sdk-core/src/main/java/software/amazon/awssdk/core/internal/http/AmazonSyncHttpClient.java
+++ b/core/sdk-core/src/main/java/software/amazon/awssdk/core/internal/http/AmazonSyncHttpClient.java
@@ -181,12 +181,12 @@ public <OutputT> OutputT execute(HttpResponseHandler<Response<OutputT>> response
                     .first(RequestPipelineBuilder
                                .first(MakeRequestMutableStage::new)
                                .then(ApplyTransactionIdStage::new)
-                               .then(ApplyUserAgentStage::new)
                                .then(MergeCustomHeadersStage::new)
                                .then(MergeCustomQueryParamsStage::new)
                                .then(QueryParametersToBodyStage::new)
                                .then(() -> new CompressRequestStage(httpClientDependencies))
                                .then(() -> new HttpChecksumStage(ClientType.SYNC))
+                               .then(ApplyUserAgentStage::new)
                                .then(MakeRequestImmutableStage::new)
                                // End of mutating request
                                .then(RequestPipelineBuilder
diff --git a/core/sdk-core/src/main/java/software/amazon/awssdk/core/useragent/BusinessMetricFeatureId.java b/core/sdk-core/src/main/java/software/amazon/awssdk/core/useragent/BusinessMetricFeatureId.java
index df481f975d5..fe1af17823c 100644
--- a/core/sdk-core/src/main/java/software/amazon/awssdk/core/useragent/BusinessMetricFeatureId.java
+++ b/core/sdk-core/src/main/java/software/amazon/awssdk/core/useragent/BusinessMetricFeatureId.java
@@ -34,7 +34,7 @@ public enum BusinessMetricFeatureId {
     RETRY_MODE_STANDARD("E"),
     RETRY_MODE_ADAPTIVE("F"),
     S3_TRANSFER("G"),
-    GZIP_REQUEST_COMPRESSION("L"), //TODO(metrics): Not working, compression happens after header
+    GZIP_REQUEST_COMPRESSION("L"),
     PROTOCOL_RPC_V2_CBOR("M"),
     ENDPOINT_OVERRIDE("N"),
     ACCOUNT_ID_MODE_PREFERRED("P"),
diff --git a/test/codegen-generated-classes-test/src/test/java/software/amazon/awssdk/services/BusinessMetricsUserAgentTest.java b/test/codegen-generated-classes-test/src/test/java/software/amazon/awssdk/services/BusinessMetricsUserAgentTest.java
index 204c0e389ed..ab9394e70ac 100644
--- a/test/codegen-generated-classes-test/src/test/java/software/amazon/awssdk/services/BusinessMetricsUserAgentTest.java
+++ b/test/codegen-generated-classes-test/src/test/java/software/amazon/awssdk/services/BusinessMetricsUserAgentTest.java
@@ -48,6 +48,8 @@
 import software.amazon.awssdk.regions.Region;
 import software.amazon.awssdk.services.protocolrestjson.ProtocolRestJsonAsyncClient;
 import software.amazon.awssdk.services.protocolrestjson.ProtocolRestJsonAsyncClientBuilder;
+import software.amazon.awssdk.services.protocolrestjson.ProtocolRestJsonClient;
+import software.amazon.awssdk.services.protocolrestjson.ProtocolRestJsonClientBuilder;
 import software.amazon.awssdk.services.protocolrestjson.internal.ServiceVersionInfo;
 import software.amazon.awssdk.services.protocolrestjson.model.PaginatedOperationWithResultKeyResponse;
 import software.amazon.awssdk.services.protocolrestjson.paginators.PaginatedOperationWithResultKeyPublisher;
@@ -162,7 +164,7 @@ void when_paginatedOperationIsCalled_correctMetricIsAdded() throws Exception {
     }
 
     @Test
-    void when_compressedOperationIsCalled_metricIsRecordedButNotAddedToUserAgentString() throws Exception {
+    void when_asyncCompressedOperationIsCalled_metricIsRecordedAndAddedToUserAgentString() throws Exception {
         ProtocolRestJsonAsyncClientBuilder clientBuilder = asyncClientBuilderForProtocolRestJson();
 
         assertThatThrownBy(() -> clientBuilder.build().putOperationWithRequestCompression(r -> r.body(SdkBytes.fromUtf8String(
@@ -173,7 +175,22 @@ void when_compressedOperationIsCalled_metricIsRecordedButNotAddedToUserAgentStri
         BusinessMetricCollection attribute = interceptor.executionAttributes().getAttribute(SdkInternalExecutionAttribute.BUSINESS_METRICS);
         assertThat(attribute).isNotNull();
         assertThat(attribute.recordedMetrics()).contains(BusinessMetricFeatureId.GZIP_REQUEST_COMPRESSION.value());
-        assertThat(userAgent).doesNotMatch(METRIC_SEARCH_PATTERN.apply(BusinessMetricFeatureId.GZIP_REQUEST_COMPRESSION.value()));
+        assertThat(userAgent).matches(METRIC_SEARCH_PATTERN.apply(BusinessMetricFeatureId.GZIP_REQUEST_COMPRESSION.value()));
+    }
+
+    @Test
+    void when_syncCompressedOperationIsCalled_metricIsRecordedAndAddedToUserAgentString() throws Exception {
+        ProtocolRestJsonClientBuilder clientBuilder = syncClientBuilderForProtocolRestJson();
+
+        assertThatThrownBy(() -> clientBuilder.build().putOperationWithRequestCompression(r -> r.body(SdkBytes.fromUtf8String(
+            "whoo")).overrideConfiguration(o -> o.compressionConfiguration(c -> c.minimumCompressionThresholdInBytes(1)))))
+            .hasMessageContaining("stop");
+
+        String userAgent = assertAndGetUserAgentString();
+        BusinessMetricCollection attribute = interceptor.executionAttributes().getAttribute(SdkInternalExecutionAttribute.BUSINESS_METRICS);
+        assertThat(attribute).isNotNull();
+        assertThat(attribute.recordedMetrics()).contains(BusinessMetricFeatureId.GZIP_REQUEST_COMPRESSION.value());
+        assertThat(userAgent).matches(METRIC_SEARCH_PATTERN.apply(BusinessMetricFeatureId.GZIP_REQUEST_COMPRESSION.value()));
     }
 
     private String assertAndGetUserAgentString() {
@@ -196,6 +213,13 @@ private ProtocolRestJsonAsyncClientBuilder asyncClientBuilderForProtocolRestJson
                                           .overrideConfiguration(c -> c.addExecutionInterceptor(interceptor));
     }
 
+    private ProtocolRestJsonClientBuilder syncClientBuilderForProtocolRestJson() {
+        return ProtocolRestJsonClient.builder()
+                                     .region(Region.US_WEST_2)
+                                     .credentialsProvider(CREDENTIALS_PROVIDER)
+                                     .overrideConfiguration(c -> c.addExecutionInterceptor(interceptor));
+    }
+
     public static class CapturingInterceptor implements ExecutionInterceptor {
         private Context.BeforeTransmission context;
         private ExecutionAttributes executionAttributes;