diff --git a/drivers/gpu/drm/amd/display/dc/clk_mgr/dcn31/dcn31_clk_mgr.c b/drivers/gpu/drm/amd/display/dc/clk_mgr/dcn31/dcn31_clk_mgr.c
index d15c628a2ab0a1b15632b68e6b2e9ae5d8d2debc..4a4894e9d9c9a132ed4793995e9e0ee252520ea0 100644
--- a/drivers/gpu/drm/amd/display/dc/clk_mgr/dcn31/dcn31_clk_mgr.c
+++ b/drivers/gpu/drm/amd/display/dc/clk_mgr/dcn31/dcn31_clk_mgr.c
@@ -139,10 +139,10 @@ static void dcn31_update_clocks(struct clk_mgr *clk_mgr_base,
 	 * also if safe to lower is false, we just go in the higher state
 	 */
 	if (safe_to_lower) {
-		if (new_clocks->z9_support == DCN_Z9_SUPPORT_ALLOW &&
-				new_clocks->z9_support != clk_mgr_base->clks.z9_support) {
+		if (new_clocks->zstate_support == DCN_ZSTATE_SUPPORT_ALLOW &&
+				new_clocks->zstate_support != clk_mgr_base->clks.zstate_support) {
 			dcn31_smu_set_Z9_support(clk_mgr, true);
-			clk_mgr_base->clks.z9_support = new_clocks->z9_support;
+			clk_mgr_base->clks.zstate_support = new_clocks->zstate_support;
 		}
 
 		if (clk_mgr_base->clks.dtbclk_en && !new_clocks->dtbclk_en) {
@@ -163,10 +163,10 @@ static void dcn31_update_clocks(struct clk_mgr *clk_mgr_base,
 			}
 		}
 	} else {
-		if (new_clocks->z9_support == DCN_Z9_SUPPORT_DISALLOW &&
-				new_clocks->z9_support != clk_mgr_base->clks.z9_support) {
+		if (new_clocks->zstate_support == DCN_ZSTATE_SUPPORT_DISALLOW &&
+				new_clocks->zstate_support != clk_mgr_base->clks.zstate_support) {
 			dcn31_smu_set_Z9_support(clk_mgr, false);
-			clk_mgr_base->clks.z9_support = new_clocks->z9_support;
+			clk_mgr_base->clks.zstate_support = new_clocks->zstate_support;
 		}
 
 		if (!clk_mgr_base->clks.dtbclk_en && new_clocks->dtbclk_en) {
@@ -286,7 +286,7 @@ static void dcn31_init_clocks(struct clk_mgr *clk_mgr)
 	clk_mgr->clks.p_state_change_support = true;
 	clk_mgr->clks.prev_p_state_change_support = true;
 	clk_mgr->clks.pwr_state = DCN_PWR_STATE_UNKNOWN;
-	clk_mgr->clks.z9_support = DCN_Z9_SUPPORT_UNKNOWN;
+	clk_mgr->clks.zstate_support = DCN_ZSTATE_SUPPORT_UNKNOWN;
 }
 
 static bool dcn31_are_clock_states_equal(struct dc_clocks *a,
@@ -300,7 +300,7 @@ static bool dcn31_are_clock_states_equal(struct dc_clocks *a,
 		return false;
 	else if (a->dcfclk_deep_sleep_khz != b->dcfclk_deep_sleep_khz)
 		return false;
-	else if (a->z9_support != b->z9_support)
+	else if (a->zstate_support != b->zstate_support)
 		return false;
 	else if (a->dtbclk_en != b->dtbclk_en)
 		return false;
diff --git a/drivers/gpu/drm/amd/display/dc/dc.h b/drivers/gpu/drm/amd/display/dc/dc.h
index 45640f1c26c4bf79d6ea8419e0a55acda7c67591..8dcea8ff5c5ad766dc35773910910d7ee41adbe9 100644
--- a/drivers/gpu/drm/amd/display/dc/dc.h
+++ b/drivers/gpu/drm/amd/display/dc/dc.h
@@ -354,10 +354,10 @@ enum dcn_pwr_state {
 };
 
 #if defined(CONFIG_DRM_AMD_DC_DCN)
-enum dcn_z9_support_state {
-	DCN_Z9_SUPPORT_UNKNOWN,
-	DCN_Z9_SUPPORT_ALLOW,
-	DCN_Z9_SUPPORT_DISALLOW,
+enum dcn_zstate_support_state {
+	DCN_ZSTATE_SUPPORT_UNKNOWN,
+	DCN_ZSTATE_SUPPORT_ALLOW,
+	DCN_ZSTATE_SUPPORT_DISALLOW,
 };
 #endif
 /*
@@ -378,7 +378,7 @@ struct dc_clocks {
 	int dramclk_khz;
 	bool p_state_change_support;
 #if defined(CONFIG_DRM_AMD_DC_DCN)
-	enum dcn_z9_support_state z9_support;
+	enum dcn_zstate_support_state zstate_support;
 	bool dtbclk_en;
 #endif
 	enum dcn_pwr_state pwr_state;
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 98d21fb374b14c68a06d1308d09f08590c86cd66..b173fa3653b555adf0fb72c9ccfef39ad7423b30 100644
--- a/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_resource.c
+++ b/drivers/gpu/drm/amd/display/dc/dcn20/dcn20_resource.c
@@ -3081,6 +3081,37 @@ static bool is_dtbclk_required(struct dc *dc, struct dc_state *context)
 	return false;
 }
 
+static enum dcn_zstate_support_state  decide_zstate_support(struct dc *dc, struct dc_state *context)
+{
+	int plane_count;
+	int i;
+
+	plane_count = 0;
+	for (i = 0; i < dc->res_pool->pipe_count; i++) {
+		if (context->res_ctx.pipe_ctx[i].plane_state)
+			plane_count++;
+	}
+
+	/*
+	 * Zstate is allowed in following scenarios:
+	 * 	1. Single eDP with PSR enabled
+	 * 	2. 0 planes (No memory requests)
+	 * 	3. Single eDP without PSR but > 5ms stutter period
+	 */
+	if (plane_count == 0)
+		return DCN_ZSTATE_SUPPORT_ALLOW;
+	else if (context->stream_count == 1 &&  context->streams[0]->signal == SIGNAL_TYPE_EDP) {
+		struct dc_link *link = context->streams[0]->sink->link;
+
+		if ((link->link_index == 0 && link->psr_settings.psr_feature_enabled)
+				|| context->bw_ctx.dml.vba.StutterPeriod > 5000.0)
+			return DCN_ZSTATE_SUPPORT_ALLOW;
+		else
+			return DCN_ZSTATE_SUPPORT_DISALLOW;
+	} else
+		return DCN_ZSTATE_SUPPORT_DISALLOW;
+}
+
 void dcn20_calculate_dlg_params(
 		struct dc *dc, struct dc_state *context,
 		display_e2e_pipe_params_st *pipes,
@@ -3088,7 +3119,6 @@ void dcn20_calculate_dlg_params(
 		int vlevel)
 {
 	int i, pipe_idx;
-	int plane_count;
 
 	/* Writeback MCIF_WB arbitration parameters */
 	dc->res_pool->funcs->set_mcif_arb_params(dc, context, pipes, pipe_cnt);
@@ -3104,17 +3134,7 @@ void dcn20_calculate_dlg_params(
 							!= dm_dram_clock_change_unsupported;
 	context->bw_ctx.bw.dcn.clk.dppclk_khz = 0;
 
-	context->bw_ctx.bw.dcn.clk.z9_support = (context->bw_ctx.dml.vba.StutterPeriod > 5000.0) ?
-			DCN_Z9_SUPPORT_ALLOW : DCN_Z9_SUPPORT_DISALLOW;
-
-	plane_count = 0;
-	for (i = 0; i < dc->res_pool->pipe_count; i++) {
-		if (context->res_ctx.pipe_ctx[i].plane_state)
-			plane_count++;
-	}
-
-	if (plane_count == 0)
-		context->bw_ctx.bw.dcn.clk.z9_support = DCN_Z9_SUPPORT_ALLOW;
+	context->bw_ctx.bw.dcn.clk.zstate_support = decide_zstate_support(dc, context);
 
 	context->bw_ctx.bw.dcn.clk.dtbclk_en = is_dtbclk_required(dc, context);