Large language models (LLMs) have demonstrated remarkable performance, but their long-context reasoning remains constrained by the excessive memory required for the Key-Value (KV) cache. This makes KV cache compression a critical step toward efficient long-context inference. Recent methods have explored low-rank techniques to reduce the hidden size of the KV cache. However, they neglect the distinct roles and varying importance of Keys and Values, leading to significant performance drops under high compression. To address this, we propose ReCalKV, a post-training low-rank KV cache compression approach with tailored strategies for Keys and Values. For Keys, we propose Head-wise Similarity aware Reordering (HSR), which clusters structurally similar heads into groups, enabling more accurate low-rank approximation via grouped SVD. For Values, we propose Offline Value Calibration (OVC), which efficiently calibrates the value projection matrix using calibration data without training, ensuring an accurate representation of contextual information. Extensive experiments show that ReCalKV consistently outperforms existing low-rank compression methods, achieving high compression ratios with minimal performance loss. The code and models will be available at:https://github.com/XIANGLONGYAN/ReCalKV.

KV-Cache compression methods generally sample a KV-Cache of effectual tokens or quantize it into lower bits. However, these methods cannot exploit the redundancy of the hidden dimension of KV tensors. This paper investigates a unique hidden dimension approach called Palu, a novel KV-Cache compression framework that utilizes low-rank projection. Palu decomposes the linear layers into low-rank matrices, caches the smaller intermediate states, and reconstructs the full keys and values on the fly. To improve accuracy, compression rate, and efficiency, Palu further encompasses (1) a medium-grained low-rank decomposition scheme, (2) an efficient rank search algorithm, (3) a low-rank-aware quantization algorithm, and (4) matrix fusion with optimized GPU kernels. Our extensive experiments with popular LLMs show that Palu can compress KV-Cache by more than 91.25% while maintaining a significantly better accuracy (up to 1.19 lower perplexity) than state-of-the-art KV-Cache quantization methods at a similar or even higher memory usage. When compressing KV-Cache for 50%, Palu delivers up to 1.61x end-to-end speedup for the attention module. Our code is publicly available at https://github.com/shadowpa0327/Palu.