A slip-sheet compactor for an imaging device with automatic media handling capabilities provides a two-stage compaction for a slipsheet removed from a media sheet to be imaged. A pair of rollers advances the slipsheet into a pre-compression chamber effecting a first compression or folding operation. In a second compression, a plunger sweeps the pre-compression chamber, which is narrowed towards an exit aperture thus effecting a second compression on the slipsheet material.