diff --git a/msm/sde/sde_encoder_dce.c b/msm/sde/sde_encoder_dce.c
index 99b294734c..0886e6eb3a 100644
--- a/msm/sde/sde_encoder_dce.c
+++ b/msm/sde/sde_encoder_dce.c
@@ -112,29 +112,68 @@ static void _dce_dsc_pclk_param_calc(struct msm_display_dsc_info *dsc,
 }
 
 static int _dce_dsc_initial_line_calc(struct msm_display_dsc_info *dsc,
-		int enc_ip_width)
+		int enc_ip_width,
+		int dsc_cmn_mode)
 {
-	int max_ssm_delay, max_se_size, obuf_latency;
-	int input_ssm_out_latency, base_hs_latency;
+	int max_ssm_delay, max_se_size, max_muxword_size;
+	int compress_bpp_group, obuf_latency, input_ssm_out_latency;
+	int base_hs_latency, chunk_bits, ob_data_width;
+	int output_rate_extra_budget_bits, multi_hs_extra_budget_bits;
 	int multi_hs_extra_latency,  mux_word_size;
+	int ob_data_width_4comps, ob_data_width_3comps;
+	int output_rate_ratio_complement, container_slice_width;
+	int rtl_num_components, multi_hs_c, multi_hs_d;
 
 	/* Hardent core config */
-	int max_muxword_size = 48;
-	int output_rate = 64;
-	int rtl_max_bpc = 10;
+	int multiplex_mode_enable = 0, split_panel_enable = 0;
+	int rtl_max_bpc = 10, rtl_output_data_width = 64;
 	int pipeline_latency = 28;
+	int bpc = dsc->bpc, bpp = dsc->bpp;
+	int num_of_active_ss = dsc->full_frame_slices;
+	bool native_422 = false, native_420 = false;
 
+	if (dsc_cmn_mode & DSC_MODE_MULTIPLEX)
+		multiplex_mode_enable = 1;
+	if (dsc_cmn_mode & DSC_MODE_SPLIT_PANEL)
+		split_panel_enable = 0;
+	container_slice_width = (native_422 ?
+			dsc->slice_width / 2 : dsc->slice_width);
+	max_muxword_size = ((rtl_max_bpc >= 12) ? 64 : 48);
 	max_se_size = 4 * (rtl_max_bpc + 1);
 	max_ssm_delay = max_se_size + max_muxword_size - 1;
-	mux_word_size = (dsc->bpc >= 12 ? 64 : 48);
-	input_ssm_out_latency = pipeline_latency + (3 * (max_ssm_delay + 2));
-	obuf_latency = DIV_ROUND_UP((9 * output_rate +
-				mux_word_size), dsc->bpp) + 1;
+	mux_word_size = (bpc >= 12 ? 64 : 48);
+	compress_bpp_group = (native_422 ? 2 * bpp : bpp);
+	input_ssm_out_latency = pipeline_latency + (3 * (max_ssm_delay + 2)
+			* num_of_active_ss);
+	rtl_num_components = (native_420 | native_422 ? 4 : 3);
+	ob_data_width_4comps = ((rtl_output_data_width >= (2 *
+			max_muxword_size)) ?
+			rtl_output_data_width :
+			(2 * rtl_output_data_width));
+	ob_data_width_3comps = (rtl_output_data_width >= max_muxword_size ?
+			rtl_output_data_width : 2 * rtl_output_data_width);
+	ob_data_width = (rtl_num_components == 4 ?
+			ob_data_width_4comps : ob_data_width_3comps);
+	obuf_latency = DIV_ROUND_UP((9 * ob_data_width + mux_word_size),
+			compress_bpp_group) + 1;
 	base_hs_latency = dsc->initial_xmit_delay + input_ssm_out_latency
-				+ obuf_latency;
-	multi_hs_extra_latency = DIV_ROUND_UP((8 * dsc->chunk_size), dsc->bpp);
+		+ obuf_latency;
+	chunk_bits = 8 * dsc->chunk_size;
+	output_rate_ratio_complement = ob_data_width - compress_bpp_group;
+	output_rate_extra_budget_bits =
+		(output_rate_ratio_complement * chunk_bits) >>
+		(ob_data_width == 128 ? 7 : 6);
+	multi_hs_c = split_panel_enable * multiplex_mode_enable;
+	multi_hs_d = (num_of_active_ss > 1) * (ob_data_width >
+			compress_bpp_group);
+	multi_hs_extra_budget_bits = (multi_hs_c ?
+				chunk_bits : (multi_hs_d ? chunk_bits :
+					output_rate_extra_budget_bits));
+	multi_hs_extra_latency = DIV_ROUND_UP(multi_hs_extra_budget_bits,
+			compress_bpp_group);
 	dsc->initial_lines = DIV_ROUND_UP((base_hs_latency +
-				multi_hs_extra_latency), dsc->slice_width);
+				multi_hs_extra_latency),
+			container_slice_width);
 
 	return 0;
 }
@@ -307,7 +346,7 @@ static int _dce_dsc_setup(struct sde_encoder_virt *sde_enc,
 	if (dsc_merge)
 		enc_ip_w = intf_ip_w / 2;
 
-	_dce_dsc_initial_line_calc(dsc, enc_ip_w);
+	_dce_dsc_initial_line_calc(dsc, enc_ip_w, dsc_common_mode);
 
 	/*
 	 * __is_ich_reset_override_needed should be called only after