Reexamination of the results of Rudnicki and Rice for shear localization reveals that solutions for compaction bands are possible in a range of parameters typical of porous rock. Compaction bands are narrow planar zones of localized compressive deformation perpendicular to the maximum compressive stress, which have been observed in high-porosity rocks in the laboratory and field. Solutions for compaction bands, as an alternative to homogeneous deformation, are possible when the inelastic volume deformation is compactive and is associated with stress states on a yield surface cap. The cap implies that the shear stress required for further inelastic deformation decreases with increasing compressive mean stress. While the expressions for the critical hardening modulus for compaction and shear bands differ, in both cases, deviations from normality promote band formation. Inelastic compaction deformation associated with mean stress (suggested by Aydin and Johnson) promotes localization by decreasing the magnitude of the critical hardening modulus. Axisymmetric compression is the most favorable deviatoric stress state for formation of compaction bands. Predictions for compaction bands suggest that they could form on the shelf typically observed in axisymmetric compression stress strain curves of porous rock at high confining stress. Either shear or compaction bands may occur depending on the stress path and confining stress. If the increase in local density and decrease in grain size associated with compaction band formation result in strengthening rather than weakening of the band material, formation of a compaction band may not preclude later formation of a shear band. ¿ 2000 American Geophysical Union