This paper presents a new test vector compression technique, which utilizes synergies between Automatic Test Pattern Generation (ATPG) tools provided by EDA (Electronic Design Automation) vendors and Automatic Test Equipment (ATE). The basic approach is to achieve significant compression by agreeing between ATE and ATPG on how to fill don?t care values in the test vectors such that these bits need not be stored on ATE and also possibly not communicated to DUT if decompression is done on chip. Our new technique allows sub-vector level fine grained mixing of pseudo-randomly generated bits and ATPG generated bits. Experimental results, on an actual industrial Network Processor design, show a compression ratio of about 17x.