diff --git a/aws_lambda_powertools/utilities/parser/envelopes/kinesis.py b/aws_lambda_powertools/utilities/parser/envelopes/kinesis.py
index a4d484931df..41527e03930 100644
--- a/aws_lambda_powertools/utilities/parser/envelopes/kinesis.py
+++ b/aws_lambda_powertools/utilities/parser/envelopes/kinesis.py
@@ -1,6 +1,7 @@
 from __future__ import annotations
 
 import logging
+import zlib
 from typing import TYPE_CHECKING, Any, cast
 
 from aws_lambda_powertools.utilities.parser.envelopes.base import BaseEnvelope
@@ -45,5 +46,17 @@ def parse(self, data: dict[str, Any] | Any | None, model: type[Model]) -> list[M
         for record in parsed_envelope.Records:
             # We allow either AWS expected contract (bytes) or a custom Model, see #943
             data = cast(bytes, record.kinesis.data)
-            models.append(self._parse(data=data.decode("utf-8"), model=model))
+            try:
+                decoded_data = data.decode("utf-8")
+            except UnicodeDecodeError as ude:
+                try:
+                    logger.debug(
+                        f"{type(ude).__name__}: {str(ude)} encountered. "
+                        "Data will be decompressed with zlib.decompress().",
+                    )
+                    decompressed_data = zlib.decompress(data, zlib.MAX_WBITS | 32)
+                    decoded_data = decompressed_data.decode("utf-8")
+                except Exception as e:
+                    raise ValueError("Unable to decode and/or decompress data.") from e
+            models.append(self._parse(data=decoded_data, model=model))
         return models
diff --git a/tests/unit/parser/_pydantic/test_kinesis.py b/tests/unit/parser/_pydantic/test_kinesis.py
index 9da19ed3e0b..9c3e365c5c5 100644
--- a/tests/unit/parser/_pydantic/test_kinesis.py
+++ b/tests/unit/parser/_pydantic/test_kinesis.py
@@ -105,3 +105,28 @@ class DummyModel(BaseModel): ...
         for record in stream_data.Records:
             record.kinesis.data = DummyModel()
             record.decompress_zlib_record_data_as_json()
+
+
+def test_kinesis_stream_event_with_cloud_watch_logs_data_using_envelope():
+    # GIVEN Kinesis Data Stream event with compressed data
+    # such as CloudWatch Logs
+    raw_event = load_event("kinesisStreamCloudWatchLogsEvent.json")
+
+    # WHEN parsing using KinesisDataStreamEvelope to CloudWatchLogsDecode
+    logs = envelopes.KinesisDataStreamEnvelope().parse(raw_event, CloudWatchLogsDecode)
+
+    # THEN logs should be extracted as CloudWatchLogsDecode objects
+    assert isinstance(logs[0], CloudWatchLogsDecode)
+
+
+def test_kinesis_stream_event_with_cloud_watch_logs_data_fails_using_envelope():
+    # GIVEN Kinesis Data Stream event with corrupted compressed data
+    # such as CloudWatch Logs
+    raw_event = load_event("kinesisStreamCloudWatchLogsEvent.json")
+
+    # WHEN parsing using KinesisDataStreamEvelope to CloudWatchLogsDecode
+    # and the data is corrupted
+    raw_event["Records"][0]["kinesis"]["data"] = "eyJ4eXoiOiAiYWJjIn0KH4sIAK25JWgAA6tWqqisUrJSUEpMSlaq5QIAbdJPfw8AAAA="
+    # THEN a ValueError should be thrown
+    with pytest.raises(ValueError):
+        envelopes.KinesisDataStreamEnvelope().parse(raw_event, CloudWatchLogsDecode)