  The existence of compactons in the discrete nonlinear Schr\"odinger equation
in the presence of fast periodic time modulations of the nonlinearity is
demonstrated. In the averaged DNLS equation the resulting effective inter-well
tunneling depends on modulation parameters {\it and} on the field amplitude.
This introduces nonlinear dispersion in the system and can lead to a
prototypical realization of single- or multi-site stable discrete compactons in
nonlinear optical waveguide and BEC arrays. These structures can dynamically
arise out of Gaussian or compactly supported initial data.
