diff --git a/libhwcomposer/hwc_mdpcomp.cpp b/libhwcomposer/hwc_mdpcomp.cpp
index 48d9575..b4192b6 100644
--- a/libhwcomposer/hwc_mdpcomp.cpp
+++ b/libhwcomposer/hwc_mdpcomp.cpp
@@ -449,7 +449,7 @@
             /* Reset frame ROI when any layer which needs scaling also needs ROI
              * cropping */
             if((res_w != dst_w || res_h != dst_h) &&
-               needsScaling (ctx, layer, mDpy)) {
+                    needsScaling (layer)) {
                 ALOGI("%s: Resetting ROI due to scaling", __FUNCTION__);
                 memset(&mCurrentFrame.drop, 0, sizeof(mCurrentFrame.drop));
                 mCurrentFrame.dropCount = 0;
@@ -530,12 +530,6 @@
         return false;
     }
 
-    if(ctx->listStats[mDpy].needsAlphaScale
-       && ctx->mMDP.version < qdutils::MDSS_V5) {
-        ALOGD_IF(isDebug(), "%s: frame needs alpha downscaling",__FUNCTION__);
-        return false;
-    }
-
     for(int i = 0; i < numAppLayers; ++i) {
         hwc_layer_1_t* layer = &list->hwLayers[i];
         private_handle_t *hnd = (private_handle_t *)layer->handle;
@@ -568,6 +562,12 @@
     } else if(partialMDPComp(ctx, list)) {
         ret = true;
     }
+
+    if(!hwLimitationsCheck(ctx, list)) {
+        ALOGD_IF(isDebug(), "%s: HW limitations",__FUNCTION__);
+        return false;
+    }
+
     return ret;
 }
 
@@ -593,7 +593,7 @@
         //pipe and error is reported.
         if(qdutils::MDPVersion::getInstance().is8x26() &&
                                 mDpy >= HWC_DISPLAY_EXTERNAL &&
-                                qhwc::needsScaling(ctx, layer, mDpy))
+                                qhwc::needsScaling(layer))
             return false;
     }
     mCurrentFrame.fbCount = 0;
@@ -1222,6 +1222,48 @@
     return true;
 }
 
+bool MDPComp::hwLimitationsCheck(hwc_context_t* ctx,
+        hwc_display_contents_1_t* list) {
+
+    //A-family hw limitation:
+    //If a layer need alpha scaling, MDP can not support.
+    if(ctx->mMDP.version < qdutils::MDSS_V5) {
+        for(int i = 0; i < mCurrentFrame.layerCount; ++i) {
+            if(!mCurrentFrame.isFBComposed[i] &&
+                    isAlphaScaled( &list->hwLayers[i])) {
+                ALOGD_IF(isDebug(), "%s:frame needs alphaScaling",__FUNCTION__);
+                return false;
+            }
+        }
+    }
+
+    // On 8x26 & 8974 hw, we have a limitation of downscaling+blending.
+    //If multiple layers requires downscaling and also they are overlapping
+    //fall back to GPU since MDSS can not handle it.
+    if(qdutils::MDPVersion::getInstance().is8x74v2() ||
+            qdutils::MDPVersion::getInstance().is8x26()) {
+        for(int i = 0; i < mCurrentFrame.layerCount-1; ++i) {
+            hwc_layer_1_t* botLayer = &list->hwLayers[i];
+            if(!mCurrentFrame.isFBComposed[i] &&
+                    isDownscaleRequired(botLayer)) {
+                //if layer-i is marked for MDP and needs downscaling
+                //check if any MDP layer on top of i & overlaps with layer-i
+                for(int j = i+1; j < mCurrentFrame.layerCount; ++j) {
+                    hwc_layer_1_t* topLayer = &list->hwLayers[j];
+                    if(!mCurrentFrame.isFBComposed[j] &&
+                            isDownscaleRequired(topLayer)) {
+                        hwc_rect_t r = getIntersection(botLayer->displayFrame,
+                                topLayer->displayFrame);
+                        if(isValidRect(r))
+                            return false;
+                    }
+                }
+            }
+        }
+    }
+    return true;
+}
+
 int MDPComp::prepare(hwc_context_t *ctx, hwc_display_contents_1_t* list) {
     int ret = 0;
     const int numLayers = ctx->listStats[mDpy].numAppLayers;
@@ -1495,7 +1537,7 @@
 
         if(isYuvBuffer(hnd)) {
             type = MDPCOMP_OV_VG;
-        } else if(!qhwc::needsScaling(ctx, layer, mDpy)
+        } else if(!qhwc::needsScaling(layer)
             && Overlay::getDMAMode() != Overlay::DMA_BLOCK_MODE
             && ctx->mMDP.version >= qdutils::MDSS_V5) {
             type = MDPCOMP_OV_DMA;
diff --git a/libhwcomposer/hwc_mdpcomp.h b/libhwcomposer/hwc_mdpcomp.h
index 986b0e6..8e9b1be 100644
--- a/libhwcomposer/hwc_mdpcomp.h
+++ b/libhwcomposer/hwc_mdpcomp.h
@@ -181,6 +181,9 @@
             hwc_display_contents_1_t* list);
     /* checks if the required bandwidth exceeds a certain max */
     bool bandwidthCheck(hwc_context_t *ctx, const double& size);
+    /* checks if MDP/MDSS can process current list w.r.to HW limitations
+     * All peculiar HW limitations should go here */
+    bool hwLimitationsCheck(hwc_context_t* ctx, hwc_display_contents_1_t* list);
     /* generates ROI based on the modified area of the frame */
     void generateROI(hwc_context_t *ctx, hwc_display_contents_1_t* list);
     bool validateAndApplyROI(hwc_context_t *ctx, hwc_display_contents_1_t* list,
diff --git a/libhwcomposer/hwc_utils.cpp b/libhwcomposer/hwc_utils.cpp
index 6f2cb9c..6933c7f 100644
--- a/libhwcomposer/hwc_utils.cpp
+++ b/libhwcomposer/hwc_utils.cpp
@@ -607,8 +607,21 @@
     return extOrientation;
 }
 
-bool needsScaling(hwc_context_t* ctx, hwc_layer_1_t const* layer,
-        const int& dpy) {
+bool isDownscaleRequired(hwc_layer_1_t const* layer) {
+    hwc_rect_t displayFrame  = layer->displayFrame;
+    hwc_rect_t sourceCrop = integerizeSourceCrop(layer->sourceCropf);
+    int dst_w, dst_h, src_w, src_h;
+    dst_w = displayFrame.right - displayFrame.left;
+    dst_h = displayFrame.bottom - displayFrame.top;
+    src_w = sourceCrop.right - sourceCrop.left;
+    src_h = sourceCrop.bottom - sourceCrop.top;
+
+    if(((src_w > dst_w) || (src_h > dst_h)))
+        return true;
+
+    return false;
+}
+bool needsScaling(hwc_layer_1_t const* layer) {
     int dst_w, dst_h, src_w, src_h;
 
     hwc_rect_t displayFrame  = layer->displayFrame;
@@ -677,9 +690,8 @@
     return false;
 }
 
-bool isAlphaScaled(hwc_context_t* ctx, hwc_layer_1_t const* layer,
-        const int& dpy) {
-    if(needsScaling(ctx, layer, dpy) && isAlphaPresent(layer)) {
+bool isAlphaScaled(hwc_layer_1_t const* layer) {
+    if(needsScaling(layer) && isAlphaPresent(layer)) {
         return true;
     }
     return false;
@@ -734,7 +746,6 @@
     ctx->listStats[dpy].numAppLayers = list->numHwLayers - 1;
     ctx->listStats[dpy].fbLayerIndex = list->numHwLayers - 1;
     ctx->listStats[dpy].skipCount = 0;
-    ctx->listStats[dpy].needsAlphaScale = false;
     ctx->listStats[dpy].preMultipliedAlpha = false;
     ctx->listStats[dpy].isSecurePresent = false;
     ctx->listStats[dpy].yuvCount = 0;
@@ -800,9 +811,6 @@
         if(layer->blending == HWC_BLENDING_PREMULT)
             ctx->listStats[dpy].preMultipliedAlpha = true;
 
-        if(!ctx->listStats[dpy].needsAlphaScale)
-            ctx->listStats[dpy].needsAlphaScale =
-                    isAlphaScaled(ctx, layer, dpy);
 
         if(UNLIKELY(isExtOnly(hnd))){
             ctx->listStats[dpy].extOnlyLayerIndex = i;
@@ -1057,7 +1065,7 @@
             hwc_rect_t& topframe =
                 (hwc_rect_t&)list->hwLayers[i].displayFrame;
             while(j >= 0) {
-               if(!needsScaling(ctx, &list->hwLayers[j], dpy)) {
+               if(!needsScaling(&list->hwLayers[j])) {
                   hwc_layer_1_t* layer = (hwc_layer_1_t*)&list->hwLayers[j];
                   hwc_rect_t& bottomframe = layer->displayFrame;
                   hwc_rect_t& bottomCrop = layer->sourceCrop;
diff --git a/libhwcomposer/hwc_utils.h b/libhwcomposer/hwc_utils.h
index 2503e43..9751199 100644
--- a/libhwcomposer/hwc_utils.h
+++ b/libhwcomposer/hwc_utils.h
@@ -97,7 +97,6 @@
     int yuvCount;
     int yuvIndices[MAX_NUM_APP_LAYERS];
     int extOnlyLayerIndex;
-    bool needsAlphaScale;
     bool preMultipliedAlpha;
     int yuv4k2kIndices[MAX_NUM_APP_LAYERS];
     int yuv4k2kCount;
@@ -205,8 +204,9 @@
 bool isSecuring(hwc_context_t* ctx, hwc_layer_1_t const* layer);
 bool isSecureModePolicy(int mdpVersion);
 bool isExternalActive(hwc_context_t* ctx);
-bool needsScaling(hwc_context_t* ctx, hwc_layer_1_t const* layer,
-                  const int& dpy);
+bool isAlphaScaled(hwc_layer_1_t const* layer);
+bool needsScaling(hwc_layer_1_t const* layer);
+bool isDownscaleRequired(hwc_layer_1_t const* layer);
 bool needsScalingWithSplit(hwc_context_t* ctx, hwc_layer_1_t const* layer,
                            const int& dpy);
 void sanitizeSourceCrop(hwc_rect_t& cropL, hwc_rect_t& cropR,