diff --git a/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_resource.c b/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_resource.c
index d0a5c7afa265..fcf388b509db 100644
--- a/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_resource.c
+++ b/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_resource.c
@@ -3099,7 +3099,7 @@ static enum dcn_zstate_support_state  decide_zstate_support(struct dc *dc, struc
 
 		if (context->bw_ctx.dml.vba.StutterPeriod > 5000.0)
 			return DCN_ZSTATE_SUPPORT_ALLOW;
-		else if (link->psr_settings.psr_feature_enabled)
+		else if (link->psr_settings.psr_version == DC_PSR_VERSION_1 && !dc->debug.disable_psr)
 			return DCN_ZSTATE_SUPPORT_ALLOW_Z10_ONLY;
 		else
 			return DCN_ZSTATE_SUPPORT_DISALLOW;