Dictionary compression belongs to the class of lossless compression methods and is mainly used for compressing text files. The most known examples of this technique are the algorithms of the LZ coding family whose common feature is the use of an adaptive dictionary which is dynamically adjusting during the algorithm execution. In this paper, we present a parallel algorithm for one of these coding algorithms, namely the LZ77 coding algorithm also known as a sliding-window coding algorithm. We also present a parallel algorithm for the corresponding LZ77 decoding algorithm. Although there exist PRAM algorithms for various dictionary compression methods, their rather irregular structure has discouraged their implementation on practical interconnection networks such as the mesh and hypercube. However in the case of LZ77 coding/decoding, we show how to exploit the specific properties of the algorithm in order to achieve an efficient implementation on the hypercube. Specifically, we show how to encode a Ncharacter string on a iV-node hypercube in only 0(log 2 iV) time. In contrast, a naive simulation of a PRAM algorithm of the LZ77 coding on the hypercube would have 0(log 3 iV) complexity. In addition, we further enhance the performance of our parallel algorithms by using some known heuristics from the field of text compression.