diff --git a/drivers/accel/amdxdna/aie2_ctx.c b/drivers/accel/amdxdna/aie2_ctx.c
index f97755d60fa3..ddcf06a6b80c 100644
--- a/drivers/accel/amdxdna/aie2_ctx.c
+++ b/drivers/accel/amdxdna/aie2_ctx.c
@@ -27,7 +27,9 @@ static bool force_cmdlist = true;
 module_param(force_cmdlist, bool, 0600);
 MODULE_PARM_DESC(force_cmdlist, "Force use command list (Default true)");
 
-#define HWCTX_MAX_TIMEOUT	60000 /* milliseconds */
+uint tdr_timeout_ms = 2000;
+module_param(tdr_timeout_ms, int, 0400);
+MODULE_PARM_DESC(tdr_timeout_ms, "TDR (Timeout Detection and Recovery) timeout in milliseconds (0 = disable)");
 
 struct aie2_ctx_health {
 	struct amdxdna_ctx_health header;
@@ -39,6 +41,24 @@ struct aie2_ctx_health {
 	u32 fatal_error_app_module;
 };
 
+static inline void aie2_tdr_signal(struct amdxdna_dev *xdna)
+{
+	WRITE_ONCE(xdna->dev_handle->tdr_status, AIE2_TDR_SIGNALED);
+}
+
+static bool aie2_tdr_detect(struct amdxdna_dev *xdna)
+{
+	struct amdxdna_dev_hdl *ndev = xdna->dev_handle;
+
+	if (READ_ONCE(ndev->tdr_status) == AIE2_TDR_WAIT) {
+		XDNA_ERR(xdna, "TDR timeout detected");
+		return true;
+	}
+
+	WRITE_ONCE(ndev->tdr_status, AIE2_TDR_WAIT);
+	return false;
+}
+
 static void aie2_job_release(struct kref *ref)
 {
 	struct amdxdna_sched_job *job;
@@ -177,6 +197,7 @@ aie2_sched_notify(struct amdxdna_sched_job *job)
 
 	trace_xdna_job(&job->base, job->hwctx->name, "signaled fence", job->seq);
 
+	aie2_tdr_signal(job->hwctx->client->xdna);
 	job->hwctx->priv->completed++;
 	dma_fence_signal(fence);
 
@@ -385,6 +406,8 @@ aie2_sched_job_run(struct drm_sched_job *sched_job)
 		aie2_job_put(job);
 		mmput(job->mm);
 		fence = ERR_PTR(ret);
+	} else {
+		aie2_tdr_signal(hwctx->client->xdna);
 	}
 	trace_xdna_job(sched_job, hwctx->name, "sent to device", job->seq);
 
@@ -415,9 +438,12 @@ aie2_sched_job_timedout(struct drm_sched_job *sched_job)
 
 	xdna = hwctx->client->xdna;
 	trace_xdna_job(sched_job, hwctx->name, "job timedout", job->seq);
-	job->job_timeout = true;
 
-	mutex_lock(&xdna->dev_lock);
+	guard(mutex)(&xdna->dev_lock);
+
+	if (!aie2_tdr_detect(xdna))
+		return DRM_GPU_SCHED_STAT_NO_HANG;
+
 	report = kzalloc_obj(*report);
 	if (!report)
 		goto reset_hwctx;
@@ -429,10 +455,10 @@ aie2_sched_job_timedout(struct drm_sched_job *sched_job)
 		job->aie2_job_health = report;
 
 reset_hwctx:
+	job->job_timeout = true;
 	aie2_hwctx_stop(xdna, hwctx, sched_job);
 
 	aie2_hwctx_restart(xdna, hwctx);
-	mutex_unlock(&xdna->dev_lock);
 
 	return DRM_GPU_SCHED_STAT_RESET;
 }
@@ -608,7 +634,7 @@ int aie2_hwctx_init(struct amdxdna_hwctx *hwctx)
 		.ops = &sched_ops,
 		.num_rqs = DRM_SCHED_PRIORITY_COUNT,
 		.credit_limit = HWCTX_MAX_CMDS,
-		.timeout = msecs_to_jiffies(HWCTX_MAX_TIMEOUT),
+		.timeout = msecs_to_jiffies(tdr_timeout_ms),
 		.name = "amdxdna_js",
 		.dev = xdna->ddev.dev,
 	};
diff --git a/drivers/accel/amdxdna/aie2_pci.h b/drivers/accel/amdxdna/aie2_pci.h
index 77ba125e4d72..f83deca2b51a 100644
--- a/drivers/accel/amdxdna/aie2_pci.h
+++ b/drivers/accel/amdxdna/aie2_pci.h
@@ -165,6 +165,11 @@ struct aie2_exec_msg_ops {
 	u32 (*get_chain_msg_op)(u32 cmd_op);
 };
 
+enum aie2_tdr_status {
+	AIE2_TDR_WAIT,
+	AIE2_TDR_SIGNALED,
+};
+
 struct amdxdna_dev_hdl {
 	struct aie_device		aie;
 	const struct amdxdna_dev_priv	*priv;
@@ -197,6 +202,7 @@ struct amdxdna_dev_hdl {
 	u32				hwctx_num;
 
 	struct amdxdna_async_error	last_async_err;
+	enum aie2_tdr_status		tdr_status;
 };
 
 struct aie2_hw_ops {