diff --git a/drivers/gpu/drm/amd/display/dc/dcn10/dcn10_hw_sequencer.c b/drivers/gpu/drm/amd/display/dc/dcn10/dcn10_hw_sequencer.c
index 135e2b58cc73..c50427bfab77 100644
--- a/drivers/gpu/drm/amd/display/dc/dcn10/dcn10_hw_sequencer.c
+++ b/drivers/gpu/drm/amd/display/dc/dcn10/dcn10_hw_sequencer.c
@@ -1362,6 +1362,43 @@ void dcn10_init_pipes(struct dc *dc, struct dc_state *context)
 
 		tg->funcs->tg_init(tg);
 	}
+
+	/* Power gate DSCs */
+	if (hws->funcs.dsc_pg_control != NULL) {
+		uint32_t num_opps = 0;
+		uint32_t opp_id_src0 = OPP_ID_INVALID;
+		uint32_t opp_id_src1 = OPP_ID_INVALID;
+
+		// Step 1: To find out which OPTC is running & OPTC DSC is ON
+		for (i = 0; i < dc->res_pool->res_cap->num_timing_generator; i++) {
+			uint32_t optc_dsc_state = 0;
+			struct timing_generator *tg = dc->res_pool->timing_generators[i];
+
+			if (tg->funcs->is_tg_enabled(tg)) {
+				if (tg->funcs->get_dsc_status)
+					tg->funcs->get_dsc_status(tg, &optc_dsc_state);
+				// Only one OPTC with DSC is ON, so if we got one result, we would exit this block.
+				// non-zero value is DSC enabled
+				if (optc_dsc_state != 0) {
+					tg->funcs->get_optc_source(tg, &num_opps, &opp_id_src0, &opp_id_src1);
+					break;
+				}
+			}
+		}
+
+		// Step 2: To power down DSC but skip DSC  of running OPTC
+		for (i = 0; i < dc->res_pool->res_cap->num_dsc; i++) {
+			struct dcn_dsc_state s  = {0};
+
+			dc->res_pool->dscs[i]->funcs->dsc_read_state(dc->res_pool->dscs[i], &s);
+
+			if ((s.dsc_opp_source == opp_id_src0 || s.dsc_opp_source == opp_id_src1) &&
+				s.dsc_clock_en && s.dsc_fw_en)
+				continue;
+
+			hws->funcs.dsc_pg_control(hws, dc->res_pool->dscs[i]->inst, false);
+		}
+	}
 }
 
 void dcn10_init_hw(struct dc *dc)
diff --git a/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_dsc.c b/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_dsc.c
index 79b640e202eb..ef5c4c0f4d6c 100644
--- a/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_dsc.c
+++ b/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_dsc.c
@@ -162,6 +162,8 @@ static void dsc2_read_state(struct display_stream_compressor *dsc, struct dcn_ds
 	REG_GET(DSCC_PPS_CONFIG2, PIC_WIDTH, &s->dsc_pic_width);
 	REG_GET(DSCC_PPS_CONFIG2, PIC_HEIGHT, &s->dsc_pic_height);
 	REG_GET(DSCC_PPS_CONFIG7, SLICE_BPG_OFFSET, &s->dsc_slice_bpg_offset);
+	REG_GET_2(DSCRM_DSC_FORWARD_CONFIG, DSCRM_DSC_FORWARD_EN, &s->dsc_fw_en,
+		DSCRM_DSC_OPP_PIPE_SOURCE, &s->dsc_opp_source);
 }
 
 
diff --git a/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_optc.c b/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_optc.c
index c90b8516dcc1..8c34751b0e58 100644
--- a/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_optc.c
+++ b/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_optc.c
@@ -190,6 +190,19 @@ void optc2_set_dsc_config(struct timing_generator *optc,
 		OPTC_DSC_SLICE_WIDTH, dsc_slice_width);
 }
 
+/* Get DSC-related configuration.
+ *   dsc_mode: 0 disables DSC, other values enable DSC in specified format
+ */
+void optc2_get_dsc_status(struct timing_generator *optc,
+					uint32_t *dsc_mode)
+{
+	struct optc *optc1 = DCN10TG_FROM_TG(optc);
+
+	REG_GET(OPTC_DATA_FORMAT_CONTROL,
+		OPTC_DSC_MODE, dsc_mode);
+}
+
+
 /*TEMP: Need to figure out inheritance model here.*/
 bool optc2_is_two_pixels_per_containter(const struct dc_crtc_timing *timing)
 {
@@ -579,6 +592,7 @@ static struct timing_generator_funcs dcn20_tg_funcs = {
 		.get_crc = optc1_get_crc,
 		.configure_crc = optc2_configure_crc,
 		.set_dsc_config = optc2_set_dsc_config,
+		.get_dsc_status = optc2_get_dsc_status,
 		.set_dwb_source = optc2_set_dwb_source,
 		.set_odm_bypass = optc2_set_odm_bypass,
 		.set_odm_combine = optc2_set_odm_combine,
diff --git a/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_optc.h b/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_optc.h
index be19a6885fbf..f7968b9ca16e 100644
--- a/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_optc.h
+++ b/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_optc.h
@@ -98,6 +98,9 @@ void optc2_set_dsc_config(struct timing_generator *optc,
 					uint32_t dsc_bytes_per_pixel,
 					uint32_t dsc_slice_width);
 
+void optc2_get_dsc_status(struct timing_generator *optc,
+					uint32_t *dsc_mode);
+
 void optc2_set_odm_bypass(struct timing_generator *optc,
 		const struct dc_crtc_timing *dc_crtc_timing);
 
diff --git a/drivers/gpu/drm/amd/display/dc/dcn30/dcn30_optc.c b/drivers/gpu/drm/amd/display/dc/dcn30/dcn30_optc.c
index 5d9e6413d67a..f5e8916601d3 100644
--- a/drivers/gpu/drm/amd/display/dc/dcn30/dcn30_optc.c
+++ b/drivers/gpu/drm/amd/display/dc/dcn30/dcn30_optc.c
@@ -332,6 +332,7 @@ static struct timing_generator_funcs dcn30_tg_funcs = {
 		.get_crc = optc1_get_crc,
 		.configure_crc = optc2_configure_crc,
 		.set_dsc_config = optc3_set_dsc_config,
+		.get_dsc_status = optc2_get_dsc_status,
 		.set_dwb_source = NULL,
 		.set_odm_bypass = optc3_set_odm_bypass,
 		.set_odm_combine = optc3_set_odm_combine,
diff --git a/drivers/gpu/drm/amd/display/dc/dcn31/dcn31_hwseq.c b/drivers/gpu/drm/amd/display/dc/dcn31/dcn31_hwseq.c
index bdaeb6ebdacb..a668feff30b8 100644
--- a/drivers/gpu/drm/amd/display/dc/dcn31/dcn31_hwseq.c
+++ b/drivers/gpu/drm/amd/display/dc/dcn31/dcn31_hwseq.c
@@ -192,11 +192,6 @@ void dcn31_init_hw(struct dc *dc)
 			link->link_status.link_active = true;
 	}
 
-	/* Power gate DSCs */
-	for (i = 0; i < res_pool->res_cap->num_dsc; i++)
-		if (hws->funcs.dsc_pg_control != NULL)
-			hws->funcs.dsc_pg_control(hws, res_pool->dscs[i]->inst, false);
-
 	/* Enables outbox notifications for usb4 dpia */
 	if (dc->res_pool->usb4_dpia_count)
 		dmub_enable_outbox_notification(dc);
diff --git a/drivers/gpu/drm/amd/display/dc/dcn31/dcn31_optc.c b/drivers/gpu/drm/amd/display/dc/dcn31/dcn31_optc.c
index a4b1d98f0007..e8562fa11366 100644
--- a/drivers/gpu/drm/amd/display/dc/dcn31/dcn31_optc.c
+++ b/drivers/gpu/drm/amd/display/dc/dcn31/dcn31_optc.c
@@ -256,6 +256,7 @@ static struct timing_generator_funcs dcn31_tg_funcs = {
 		.get_crc = optc1_get_crc,
 		.configure_crc = optc2_configure_crc,
 		.set_dsc_config = optc3_set_dsc_config,
+		.get_dsc_status = optc2_get_dsc_status,
 		.set_dwb_source = NULL,
 		.set_odm_bypass = optc3_set_odm_bypass,
 		.set_odm_combine = optc31_set_odm_combine,
diff --git a/drivers/gpu/drm/amd/display/dc/inc/hw/dsc.h b/drivers/gpu/drm/amd/display/dc/inc/hw/dsc.h
index 0c83e79d3ce3..346f0ba73e86 100644
--- a/drivers/gpu/drm/amd/display/dc/inc/hw/dsc.h
+++ b/drivers/gpu/drm/amd/display/dc/inc/hw/dsc.h
@@ -61,6 +61,8 @@ struct dcn_dsc_state {
 	uint32_t dsc_pic_height;
 	uint32_t dsc_slice_bpg_offset;
 	uint32_t dsc_chunk_size;
+	uint32_t dsc_fw_en;
+	uint32_t dsc_opp_source;
 };
 
 
diff --git a/drivers/gpu/drm/amd/display/dc/inc/hw/timing_generator.h b/drivers/gpu/drm/amd/display/dc/inc/hw/timing_generator.h
index 7390baf916b5..c29320b3855d 100644
--- a/drivers/gpu/drm/amd/display/dc/inc/hw/timing_generator.h
+++ b/drivers/gpu/drm/amd/display/dc/inc/hw/timing_generator.h
@@ -290,6 +290,8 @@ struct timing_generator_funcs {
 			       enum optc_dsc_mode dsc_mode,
 			       uint32_t dsc_bytes_per_pixel,
 			       uint32_t dsc_slice_width);
+	void (*get_dsc_status)(struct timing_generator *optc,
+					uint32_t *dsc_mode);
 	void (*set_odm_bypass)(struct timing_generator *optc, const struct dc_crtc_timing *dc_crtc_timing);
 	void (*set_odm_combine)(struct timing_generator *optc, int *opp_id, int opp_cnt,
 			struct dc_crtc_timing *timing);