diff --git a/drivers/gpu/drm/i915/display/intel_display_types.h b/drivers/gpu/drm/i915/display/intel_display_types.h
index 20747fa4d3da..1e0cd81c9474 100644
--- a/drivers/gpu/drm/i915/display/intel_display_types.h
+++ b/drivers/gpu/drm/i915/display/intel_display_types.h
@@ -955,6 +955,12 @@ struct intel_csc_matrix {
 	u16 postoff[3];
 };
 
+enum intel_panel_replay_dsc_support {
+	INTEL_DP_PANEL_REPLAY_DSC_NOT_SUPPORTED,
+	INTEL_DP_PANEL_REPLAY_DSC_FULL_FRAME_ONLY,
+	INTEL_DP_PANEL_REPLAY_DSC_SELECTIVE_UPDATE,
+};
+
 struct intel_crtc_state {
 	/*
 	 * uapi (drm) state. This is the software state shown to userspace.
@@ -1133,6 +1139,8 @@ struct intel_crtc_state {
 	bool has_panel_replay;
 	bool wm_level_disabled;
 	bool pkg_c_latency_used;
+	/* Only used for state verification. */
+	enum intel_panel_replay_dsc_support panel_replay_dsc_support;
 	u32 dc3co_exitline;
 	u16 su_y_granularity;
 	u8 active_non_psr_pipes;
@@ -1706,6 +1714,7 @@ struct intel_psr {
 	bool source_panel_replay_support;
 	bool sink_panel_replay_support;
 	bool sink_panel_replay_su_support;
+	enum intel_panel_replay_dsc_support sink_panel_replay_dsc_support;
 	bool panel_replay_enabled;
 	u32 dc3co_exitline;
 	u32 dc3co_exit_delay;
diff --git a/drivers/gpu/drm/i915/display/intel_dp.c b/drivers/gpu/drm/i915/display/intel_dp.c
index 95884af242b3..215ad690ab07 100644
--- a/drivers/gpu/drm/i915/display/intel_dp.c
+++ b/drivers/gpu/drm/i915/display/intel_dp.c
@@ -6053,6 +6053,8 @@ intel_dp_detect(struct drm_connector *_connector,
 		memset(connector->dp.dsc_dpcd, 0, sizeof(connector->dp.dsc_dpcd));
 		intel_dp->psr.sink_panel_replay_support = false;
 		intel_dp->psr.sink_panel_replay_su_support = false;
+		intel_dp->psr.sink_panel_replay_dsc_support =
+			INTEL_DP_PANEL_REPLAY_DSC_NOT_SUPPORTED;
 
 		intel_dp_mst_disconnect(intel_dp);
 
diff --git a/drivers/gpu/drm/i915/display/intel_psr.c b/drivers/gpu/drm/i915/display/intel_psr.c
index 703e5f6af04c..3e99a65ec988 100644
--- a/drivers/gpu/drm/i915/display/intel_psr.c
+++ b/drivers/gpu/drm/i915/display/intel_psr.c
@@ -29,6 +29,7 @@
 #include <drm/drm_vblank.h>
 
 #include "i915_reg.h"
+#include "i915_utils.h"
 #include "intel_alpm.h"
 #include "intel_atomic.h"
 #include "intel_crtc.h"
@@ -50,6 +51,7 @@
 #include "intel_snps_phy.h"
 #include "intel_step.h"
 #include "intel_vblank.h"
+#include "intel_vdsc.h"
 #include "intel_vrr.h"
 #include "skl_universal_plane.h"
 
@@ -580,6 +582,44 @@ static void intel_dp_get_su_granularity(struct intel_dp *intel_dp)
 	intel_dp->psr.su_y_granularity = y;
 }
 
+static enum intel_panel_replay_dsc_support
+compute_pr_dsc_support(struct intel_dp *intel_dp)
+{
+	u8 pr_dsc_mode;
+	u8 val;
+
+	val = intel_dp->pr_dpcd[INTEL_PR_DPCD_INDEX(DP_PANEL_REPLAY_CAP_CAPABILITY)];
+	pr_dsc_mode = REG_FIELD_GET8(DP_PANEL_REPLAY_DSC_DECODE_CAPABILITY_IN_PR_MASK, val);
+
+	switch (pr_dsc_mode) {
+	case DP_DSC_DECODE_CAPABILITY_IN_PR_FULL_FRAME_ONLY:
+		return INTEL_DP_PANEL_REPLAY_DSC_FULL_FRAME_ONLY;
+	case DP_DSC_DECODE_CAPABILITY_IN_PR_SUPPORTED:
+		return INTEL_DP_PANEL_REPLAY_DSC_SELECTIVE_UPDATE;
+	default:
+		MISSING_CASE(pr_dsc_mode);
+		fallthrough;
+	case DP_DSC_DECODE_CAPABILITY_IN_PR_NOT_SUPPORTED:
+	case DP_DSC_DECODE_CAPABILITY_IN_PR_RESERVED:
+		return INTEL_DP_PANEL_REPLAY_DSC_NOT_SUPPORTED;
+	}
+}
+
+static const char *panel_replay_dsc_support_str(enum intel_panel_replay_dsc_support dsc_support)
+{
+	switch (dsc_support) {
+	case INTEL_DP_PANEL_REPLAY_DSC_NOT_SUPPORTED:
+		return "not supported";
+	case INTEL_DP_PANEL_REPLAY_DSC_FULL_FRAME_ONLY:
+		return "full frame only";
+	case INTEL_DP_PANEL_REPLAY_DSC_SELECTIVE_UPDATE:
+		return "selective update";
+	default:
+		MISSING_CASE(dsc_support);
+		return "n/a";
+	};
+}
+
 static void _panel_replay_init_dpcd(struct intel_dp *intel_dp)
 {
 	struct intel_display *display = to_intel_display(intel_dp);
@@ -615,10 +655,13 @@ static void _panel_replay_init_dpcd(struct intel_dp *intel_dp)
 	    DP_PANEL_REPLAY_SU_SUPPORT)
 		intel_dp->psr.sink_panel_replay_su_support = true;
 
+	intel_dp->psr.sink_panel_replay_dsc_support = compute_pr_dsc_support(intel_dp);
+
 	drm_dbg_kms(display->drm,
-		    "Panel replay %sis supported by panel\n",
+		    "Panel replay %sis supported by panel (in DSC mode: %s)\n",
 		    intel_dp->psr.sink_panel_replay_su_support ?
-		    "selective_update " : "");
+		    "selective_update " : "",
+		    panel_replay_dsc_support_str(intel_dp->psr.sink_panel_replay_dsc_support));
 }
 
 static void _psr_init_dpcd(struct intel_dp *intel_dp)
@@ -1606,9 +1649,21 @@ static bool intel_sel_update_config_valid(struct intel_dp *intel_dp,
 		goto unsupported;
 	}
 
-	if (crtc_state->has_panel_replay && (DISPLAY_VER(display) < 14 ||
-					     !intel_dp->psr.sink_panel_replay_su_support))
-		goto unsupported;
+	if (crtc_state->has_panel_replay) {
+		if (DISPLAY_VER(display) < 14)
+			goto unsupported;
+
+		if (!intel_dp->psr.sink_panel_replay_su_support)
+			goto unsupported;
+
+		if (intel_dsc_enabled_on_link(crtc_state) &&
+		    intel_dp->psr.sink_panel_replay_dsc_support !=
+		    INTEL_DP_PANEL_REPLAY_DSC_SELECTIVE_UPDATE) {
+			drm_dbg_kms(display->drm,
+				    "Selective update with Panel Replay not enabled because it's not supported with DSC\n");
+			goto unsupported;
+		}
+	}
 
 	if (crtc_state->crc_enabled) {
 		drm_dbg_kms(display->drm,
@@ -1685,6 +1740,14 @@ _panel_replay_compute_config(struct intel_dp *intel_dp,
 		return false;
 	}
 
+	if (intel_dsc_enabled_on_link(crtc_state) &&
+	    intel_dp->psr.sink_panel_replay_dsc_support ==
+	    INTEL_DP_PANEL_REPLAY_DSC_NOT_SUPPORTED) {
+		drm_dbg_kms(display->drm,
+			    "Panel Replay not enabled because it's not supported with DSC\n");
+		return false;
+	}
+
 	if (!intel_dp_is_edp(intel_dp))
 		return true;
 
@@ -1790,6 +1853,8 @@ void intel_psr_compute_config(struct intel_dp *intel_dp,
 		return;
 	}
 
+	/* Only used for state verification. */
+	crtc_state->panel_replay_dsc_support = intel_dp->psr.sink_panel_replay_dsc_support;
 	crtc_state->has_panel_replay = _panel_replay_compute_config(intel_dp,
 								    crtc_state,
 								    conn_state);
@@ -2991,6 +3056,20 @@ void intel_psr_pre_plane_update(struct intel_atomic_state *state,
 	}
 }
 
+static void
+verify_panel_replay_dsc_state(const struct intel_crtc_state *crtc_state)
+{
+	struct intel_display *display = to_intel_display(crtc_state);
+
+	if (!crtc_state->has_panel_replay)
+		return;
+
+	drm_WARN_ON(display->drm,
+		    intel_dsc_enabled_on_link(crtc_state) &&
+		    crtc_state->panel_replay_dsc_support ==
+		    INTEL_DP_PANEL_REPLAY_DSC_NOT_SUPPORTED);
+}
+
 void intel_psr_post_plane_update(struct intel_atomic_state *state,
 				 struct intel_crtc *crtc)
 {
@@ -3002,6 +3081,8 @@ void intel_psr_post_plane_update(struct intel_atomic_state *state,
 	if (!crtc_state->has_psr)
 		return;
 
+	verify_panel_replay_dsc_state(crtc_state);
+
 	for_each_intel_encoder_mask_with_psr(state->base.dev, encoder,
 					     crtc_state->uapi.encoder_mask) {
 		struct intel_dp *intel_dp = enc_to_intel_dp(encoder);
@@ -4031,6 +4112,8 @@ static void intel_psr_sink_capability(struct intel_dp *intel_dp,
 	seq_printf(m, ", Panel Replay = %s", str_yes_no(psr->sink_panel_replay_support));
 	seq_printf(m, ", Panel Replay Selective Update = %s",
 		   str_yes_no(psr->sink_panel_replay_su_support));
+	seq_printf(m, ", Panel Replay DSC support = %s",
+		   panel_replay_dsc_support_str(psr->sink_panel_replay_dsc_support));
 	if (intel_dp->pr_dpcd[INTEL_PR_DPCD_INDEX(DP_PANEL_REPLAY_CAP_SUPPORT)] &
 	    DP_PANEL_REPLAY_EARLY_TRANSPORT_SUPPORT)
 		seq_printf(m, " (Early Transport)");