z A Z file is a compressed Unix file that individuals use to make small files that use Unix or Linux operating system. A Z file is used when an individual has a lot of files that need to be created into one archived file. A Z file creates an organized file of multiple files. A Z file can be viewed through BitZipper, WenRAR, WinZip, Bandizip, PeaZip, and PowerArchiver. A Z file allows any compression method to be used.