Engineers must consider performance, power consumption, and cost when designing embedded digital systems; furthermore, memory is a key factor in such systems. Code compression is a technique used in embedded systems to reduce the memory usage. BitMask-based code compression is a modified version of dictionary-based code compression. The basic purpose of BitMask is to record mismatched values and their positions to compress a greater number of instructions; it can be used exclusively or incorporated with the reference instructions to decode the codewords. In this paper, we applied a small separated dictionary, and variable mask numbers were used with the BitMask algorithm to reduce the codeword length of highfrequency instructions. In addition, a novel dictionary selection algorithm was proposed to increase the instruction match rates. The fully separated dictionary method was used to improve the performance of the decompression engine without affecting the compression ratio (CR) (the compressed code size divided by original code size). Based on the experimental results, the proposed method can achieve a 7.5% improvement in the CR with nearly no hardware overhead.Index Terms-Computer architecture, dictionary-based code compression (DCC), embedded systems, separated dictionaries.