We present observations of a remarkable compact group of galaxies at z = 2.48. Four galaxies, all within 40 kpc of each other, surround a powerful high redshift radio source. This group comprises two compact red passive galaxies and a pair of merging galaxies. One of the red galaxies, with an apparent stellar mass of 3.6×1011 M⊙ and an effective radius of 470 pc, is one of the most extreme examples of a massive quiescent compact galaxy found so far. One of the pair of merging galaxies hosts the AGN producing the large powerful radio structure. The merger is massive and enriched, consistent with the mass-metallicity relation expected at this redshift. Close to the merging nuclei, the emission lines exhibit broad and asymmetric profiles that suggest outflows powered either by a very young expanding radio jet or by AGN radiation. At ≳ 50 kpc from the system, we found a fainter extended-emission region that may be a part of a radio jet-driven outflow.