A self-modulating scroll compressor includes a pair of valves. A first valve moves to a low capacity position when the pressure differential is below a predetermined amount. A second valve moves to a low capacity position when the suction pressure is above a predetermined amount. Low capacity operation will only occur when both valves are open. The present invention thus provides a scroll compressor design with the ability to self-modulate and control the conditions under which low capacity operation occurs based upon two criteria.