Queue computing delivers an attractive alternative for embedded systems. The main features of a queue-based processor are a dense instruction set, high-parallelism capabilities, and low hardware complexity. This paper presents the design of a code generation algorithm implemented in the queue compiler infrastructure to achieve high code density by using a queue-based instruction set processor. We present the efficiency of our code generation technique by comparing the code size and extracted parallelism for a set of embedded applications against a set of conventional embedded processors. The compiled code is, in average, 12.03% more compact than MIPS16 code, and 45.1% more compact than ARM/Thumb code. In addition, we show that the queue compiler, without optimizations, can deliver about 1.16 times more parallelism than fully optimized code for a register machine.