We report on the enhanced pulse compression due to the interaction of posit
ive third-order dispersion and cross-phase-modulation effects in birefringe
nt fibres. Polarization soliton compression along the slow axis can be enha
nced in birefringent fibres with positive third-order dispersion, and the p
olarization soliton compression along the fast axis can be enhanced in fibr
es with negative third-order dispersion. Moreover, the third-order dispersi
on parameter can be optimized to obtain the optimal pulse compression.