diff --git a/src/ocrmypdf/exec/pngquant.py b/src/ocrmypdf/exec/pngquant.py
index ba033360..9cedee93 100644
--- a/src/ocrmypdf/exec/pngquant.py
+++ b/src/ocrmypdf/exec/pngquant.py
@@ -23,7 +23,7 @@ import os
 import shutil
 
 from . import get_version
-from ..exceptions import ExitCode
+from ..exceptions import ExitCode, MissingDependencyError
 
 
 @lru_cache(maxsize=1)
@@ -31,6 +31,14 @@ def version():
     return get_version('pngquant', regex=r'(\d+(\.\d+)*).*')
 
 
+def available():
+    try:
+        version()
+    except MissingDependencyError:
+        return False
+    return True
+
+
 def quantize(input_file, output_file, quality_min, quality_max):
     args = [
         'pngquant',
@@ -42,4 +50,4 @@ def quantize(input_file, output_file, quality_min, quality_max):
         input_file
     ]
     proc = run(args)
-    proc.check_returncode()
\ No newline at end of file
+    proc.check_returncode()
diff --git a/src/ocrmypdf/optimize.py b/src/ocrmypdf/optimize.py
index 862bac6a..5dd93468 100644
--- a/src/ocrmypdf/optimize.py
+++ b/src/ocrmypdf/optimize.py
@@ -50,8 +50,8 @@ def tif_name(root, xref):
     return img_name(root, xref, '.tif')
 
 
-def extract_image(*, pike, root, log, image, xref, jbig2s,
-                  pngs, jpegs, options):
+def extract_image_jbig2(*, pike, root, log, image, xref, jbig2s,
+                        options):
     if image.Subtype != '/Image':
         return False
     if image.Length < 100:
@@ -82,7 +82,34 @@ def extract_image(*, pike, root, log, image, xref, jbig2s,
         except pikepdf.UnsupportedImageTypeError:
             return False
         jbig2s.append((xref, ext))
-    elif filtdp[0] == '/DCTDecode' \
+    else:
+        return False
+
+    return True
+
+
+def extract_image(*, pike, root, log, image, xref,
+                  pngs, jpegs, options):
+    if image.Subtype != '/Image':
+        return False
+    if image.Length < 100:
+        log.debug("Skipping small image, xref {}".format(xref))
+        return False
+
+    pim = pikepdf.PdfImage(image)
+
+    if len(pim.filter_decodeparms) > 1:
+        log.debug("Skipping multiply filtered, xref {}".format(xref))
+        return False
+    filtdp = pim.filter_decodeparms[0]
+
+    if pim.bits_per_component > 8:
+        return False  # Don't mess with wide gamut images
+
+    if filtdp[0] == '/JPXDecode':
+        return False  # Don't do JPEG2000
+
+    if filtdp[0] == '/DCTDecode' \
             and options.optimize >= 2:
         # This is a simple heuristic derived from some training data, that has
         # about a 70% chance of guessing whether the JPEG is high quality,
@@ -126,13 +153,11 @@ def extract_image(*, pike, root, log, image, xref, jbig2s,
     return True
 
 
-def extract_images(pike, root, log, options):
+def extract_images_jbig2(pike, root, log, options):
     """Extract any image that we think we can improve"""
 
     changed_xrefs = set()
     jbig2_groups = defaultdict(list)
-    jpegs = []
-    pngs = []
     errors = 0
     for pageno, page in enumerate(pike.pages):
         group, _ = divmod(pageno, options.jbig2_page_group_size)
@@ -147,10 +172,10 @@ def extract_images(pike, root, log, options):
             if xref in changed_xrefs:
                 continue  # Don't improve same image twice
             try:
-                result = extract_image(
+                result = extract_image_jbig2(
                     pike=pike, root=root, log=log, image=image,
-                    xref=xref, jbig2s=jbig2_groups[group], pngs=pngs,
-                    jpegs=jpegs, options=options
+                    xref=xref, jbig2s=jbig2_groups[group],
+                    options=options
                 )
                 if result:
                     changed_xrefs.add(xref)
@@ -164,11 +189,51 @@ def extract_images(pike, root, log, options):
                     if len(xrefs) > 0}
     log.debug(
         "Optimizable images: "
-        "JBIG2 groups: {} JPEGs: {} PNGs: {} Errors: {}".format(
-            len(jbig2_groups), len(jpegs), len(pngs), errors
+        "JBIG2 groups: {} Errors: {}".format(
+            len(jbig2_groups), errors
     ))
 
-    return jbig2_groups, jpegs, pngs
+    return jbig2_groups
+
+
+def extract_images(pike, root, log, options):
+    """Extract any image that we think we can improve"""
+
+    changed_xrefs = set()
+    jpegs = []
+    pngs = []
+    errors = 0
+    for pageno, page in enumerate(pike.pages):
+        try:
+            xobjs = page.Resources.XObject
+        except AttributeError:
+            continue
+        for imname, image in dict(xobjs).items():
+            if image.objgen[1] != 0:
+                continue  # Ignore images in an incremental PDF
+            xref = image.objgen[0]
+            if xref in changed_xrefs:
+                continue  # Don't improve same image twice
+            try:
+                result = extract_image(
+                    pike=pike, root=root, log=log, image=image,
+                    xref=xref, pngs=pngs,
+                    jpegs=jpegs, options=options
+                )
+                if result:
+                    changed_xrefs.add(xref)
+            except Exception as e:
+                log.debug("Image {} xref {}".format(imname, xref))
+                log.debug(repr(e))
+                errors += 1
+
+    log.debug(
+        "Optimizable images: "
+        "JPEGs: {} PNGs: {} Errors: {}".format(
+            len(jpegs), len(pngs), errors
+    ))
+
+    return jpegs, pngs
 
 
 def _produce_jbig2_images(jbig2_groups, root, log, options):
@@ -368,16 +433,17 @@ def optimize(
 
     root = Path(output_file).parent / 'images'
     root.mkdir(exist_ok=True)  # pylint: disable=no-member
-    jbig2_groups, jpegs, pngs = extract_images(
-        pike, root, log, options)
 
-    convert_to_jbig2(pike, jbig2_groups, root, log, options)
+    jpegs, pngs = extract_images(pike, root, log, options)
     transcode_jpegs(pike, jpegs, root, log, options)
     transcode_pngs(pike, pngs, root, log, options)
 
-    # Not object_stream_mode + preserve_pdfa generates noncompliant PDFs
+    jbig2_groups = extract_images_jbig2(pike, root, log, options)
+    convert_to_jbig2(pike, jbig2_groups, root, log, options)
+
     target_file = Path(output_file).with_suffix('.opt.pdf')
-    pike.save(target_file, preserve_pdfa=True)
+    pike.save(target_file, preserve_pdfa=True,
+              object_stream_mode=pikepdf.ObjectStreamMode.generate)
 
     input_size = Path(input_file).stat().st_size
     output_size = Path(target_file).stat().st_size
diff --git a/tests/test_optimize.py b/tests/test_optimize.py
index fa1072cf..41f07e55 100644
--- a/tests/test_optimize.py
+++ b/tests/test_optimize.py
@@ -26,7 +26,7 @@ import pikepdf
 
 from ocrmypdf import optimize as opt
 from ocrmypdf.exec.ghostscript import rasterize_pdf
-from ocrmypdf.exec import jbig2enc
+from ocrmypdf.exec import jbig2enc, pngquant
 from ocrmypdf.helpers import fspath
 
 
@@ -83,3 +83,25 @@ def test_jbig2_lossy(lossy, resources, outpdf, spoof_tesseract_noop):
         assert '/JBIG2Globals' in pim.decode_parms[0]
     else:
         assert len(pim.decode_parms) == 0
+
+
+@pytest.mark.skipif(not jbig2enc.available() or not pngquant.available(),
+                    reason='need jbig2enc and pngquant')
+def test_flate_to_jbig2(resources, outdir, spoof_tesseract_noop):
+    # This test requires an image that pngquant is capable of converting to
+    # to 1bpp - so use an existing 1bpp image, convert up, confirm it can
+    # convert down
+    im = Image.open(fspath(resources / 'typewriter.png'))
+    assert im.mode in ('1', 'P')
+    im = im.convert('L')
+    im.save(fspath(outdir / 'type8.png'))
+
+    check_ocrmypdf(
+        outdir / 'type8.png', outdir / 'out.pdf',
+        '--image-dpi', '100', '--png-quality', '10', '--optimize', '3',
+        env=spoof_tesseract_noop
+    )
+
+    pdf = pikepdf.open(outdir / 'out.pdf')
+    pim = pikepdf.PdfImage(next(iter(pdf.pages[0].images.values())))
+    assert pim.filters[0] == '/JBIG2Decode'