Code generation under long contexts is becoming increasingly critical as Large Language Models (LLMs) are required to reason over extensive information in the code-base. While recent advances enable code LLMs to process long inputs, high API costs and generation latency remain substantial bottlenecks. Existing context pruning techniques, such as LLMLingua, achieve promising results for general text but overlook code-specific structures and dependencies, leading to suboptimal performance in programming tasks. In this paper, we propose LongCodeZip, a novel plug-and-play code compression framework designed specifically for code LLMs. LongCodeZip employs a dual-stage strategy: (1) coarse-grained compression, which identifies and ranks function-level chunks using conditional perplexity with respect to the instruction, retaining only the most relevant functions; and (2) fine-grained compression, which segments retained functions into blocks based on perplexity and selects an optimal subset under an adaptive token budget to maximize relevance. Evaluations across multiple tasks, including code completion, summarization, and question answering, show that LongCodeZip consistently outperforms baseline methods, achieving up to a 5.6× compression ratio without degrading task performance. By effectively reducing context size while preserving essential information, LongCodeZip enables LLMs to better scale to real-world, large-scale code scenarios, advancing the efficiency and capability of code intelligence applications1.