diff --git a/libhwcomposer/hwc.cpp b/libhwcomposer/hwc.cpp
index dcad00b..f6e9729 100644
--- a/libhwcomposer/hwc.cpp
+++ b/libhwcomposer/hwc.cpp
@@ -105,17 +105,27 @@
 //Helper
 static void reset(hwc_context_t *ctx, int numDisplays,
                   hwc_display_contents_1_t** displays) {
+
+    ctx->numActiveDisplays = 0;
     for(int i = 0; i < HWC_NUM_DISPLAY_TYPES; i++) {
         hwc_display_contents_1_t *list = displays[i];
         // XXX:SurfaceFlinger no longer guarantees that this
         // value is reset on every prepare. However, for the layer
         // cache we need to reset it.
         // We can probably rethink that later on
-        if (LIKELY(list && list->numHwLayers > 1)) {
+        if (LIKELY(list && list->numHwLayers > 0)) {
             for(uint32_t j = 0; j < list->numHwLayers; j++) {
                 if(list->hwLayers[j].compositionType != HWC_FRAMEBUFFER_TARGET)
                     list->hwLayers[j].compositionType = HWC_FRAMEBUFFER;
             }
+
+            /* For display devices like SSD and screenrecord, we cannot
+             * rely on isActive and connected attributes of dpyAttr to
+             * determine if the displaydevice is active. Hence in case if
+             * the layer-list is non-null and numHwLayers > 0, we assume
+             * the display device to be active.
+             */
+            ctx->numActiveDisplays += 1;
         }
 
         if(ctx->mFBUpdate[i])
@@ -124,6 +134,7 @@
             ctx->mCopyBit[i]->reset();
         if(ctx->mLayerRotMap[i])
             ctx->mLayerRotMap[i]->reset();
+
     }
 
     ctx->mAD->reset();
@@ -206,7 +217,7 @@
     ctx->mRotMgr->configBegin();
     overlay::Writeback::configBegin();
 
-    for (int32_t i = numDisplays; i >= 0; i--) {
+    for (int32_t i = (numDisplays-1); i >= 0; i--) {
         hwc_display_contents_1_t *list = displays[i];
         int dpy = getDpyforExternalDisplay(ctx, i);
         switch(dpy) {
@@ -538,7 +549,7 @@
 {
     int ret = 0;
     hwc_context_t* ctx = (hwc_context_t*)(dev);
-    for (uint32_t i = 0; i <= numDisplays; i++) {
+    for (uint32_t i = 0; i < numDisplays; i++) {
         hwc_display_contents_1_t* list = displays[i];
         int dpy = getDpyforExternalDisplay(ctx, i);
         switch(dpy) {
diff --git a/libhwcomposer/hwc_utils.cpp b/libhwcomposer/hwc_utils.cpp
index bec51d6..9430721 100644
--- a/libhwcomposer/hwc_utils.cpp
+++ b/libhwcomposer/hwc_utils.cpp
@@ -188,6 +188,7 @@
     ctx->vstate.enable = false;
     ctx->vstate.fakevsync = false;
     ctx->mExtOrientation = 0;
+    ctx->numActiveDisplays = 1;
 
     //Right now hwc starts the service but anybody could do it, or it could be
     //independent process as well.
@@ -1910,6 +1911,32 @@
     ctx->layerProp[dpy] = new LayerProp[numAppLayers];
 }
 
+/* Since we fake non-Hybrid WFD solution as external display, this
+ * function helps us in determining the priority between external
+ * (hdmi/non-Hybrid WFD display) and virtual display devices(SSD/
+ * screenrecord). This can be removed once wfd-client migrates to
+ * using virtual-display api's.
+ */
+bool canUseMDPforVirtualDisplay(hwc_context_t* ctx,
+                                const hwc_display_contents_1_t *list) {
+
+    /* We rely on the fact that for pure virtual display solution
+     * list->outbuf will be a non-NULL handle.
+     *
+     * If there are three active displays (which means there is one
+     * primary, one external and one virtual active display)
+     * we give mdss/mdp hw resources(pipes,smp,etc) for external
+     * display(hdmi/non-Hybrid WFD display) rather than for virtual
+     * display(SSD/screenrecord)
+     */
+
+    if(list->outbuf and (ctx->numActiveDisplays == HWC_NUM_DISPLAY_TYPES)) {
+        return false;
+    }
+
+    return true;
+}
+
 void BwcPM::setBwc(hwc_context_t *ctx, const hwc_rect_t& crop,
             const hwc_rect_t& dst, const int& transform,
             ovutils::eMdpFlags& mdpFlags) {
diff --git a/libhwcomposer/hwc_utils.h b/libhwcomposer/hwc_utils.h
index e64f89c..35b680e 100644
--- a/libhwcomposer/hwc_utils.h
+++ b/libhwcomposer/hwc_utils.h
@@ -225,6 +225,9 @@
 bool isGLESOnlyComp(hwc_context_t *ctx, const int& dpy);
 void reset_layer_prop(hwc_context_t* ctx, int dpy, int numAppLayers);
 
+bool canUseMDPforVirtualDisplay(hwc_context_t* ctx,
+                                const hwc_display_contents_1_t *list);
+
 //Helper function to dump logs
 void dumpsys_log(android::String8& buf, const char* fmt, ...);
 
@@ -486,15 +489,14 @@
     int mExtOrientation;
     //Flags the transition of a video session
     bool mVideoTransFlag;
-
     //Used for SideSync feature
     //which overrides the mExtOrientation
     bool mBufferMirrorMode;
-
     qhwc::LayerRotMap *mLayerRotMap[HWC_NUM_DISPLAY_TYPES];
-
     // Panel reset flag will be set if BTA check fails
     bool mPanelResetStatus;
+    // number of active Displays
+    int numActiveDisplays;
 };
 
 namespace qhwc {
diff --git a/libhwcomposer/hwc_virtual.cpp b/libhwcomposer/hwc_virtual.cpp
index b26a733..b1af7ae 100644
--- a/libhwcomposer/hwc_virtual.cpp
+++ b/libhwcomposer/hwc_virtual.cpp
@@ -67,9 +67,7 @@
     int dpy = HWC_DISPLAY_VIRTUAL;
 
     //Cleanup virtual display objs, since there is no explicit disconnect
-    if(ctx->dpyAttr[dpy].connected &&
-        (numDisplays <= HWC_NUM_PHYSICAL_DISPLAY_TYPES ||
-        displays[dpy] == NULL)) {
+    if(ctx->dpyAttr[dpy].connected && (displays[dpy] == NULL)) {
         ctx->dpyAttr[dpy].connected = false;
 
         if(ctx->mFBUpdate[dpy]) {
@@ -179,7 +177,8 @@
 
     if (LIKELY(list && list->numHwLayers > 1) &&
             ctx->dpyAttr[dpy].isActive &&
-            ctx->dpyAttr[dpy].connected) {
+            ctx->dpyAttr[dpy].connected &&
+            canUseMDPforVirtualDisplay(ctx,list)) {
         reset_layer_prop(ctx, dpy, list->numHwLayers - 1);
         if(!ctx->dpyAttr[dpy].isPause) {
             ctx->dpyAttr[dpy].isConfiguring = false;
@@ -210,7 +209,8 @@
 
     if (LIKELY(list) && ctx->dpyAttr[dpy].isActive &&
             ctx->dpyAttr[dpy].connected &&
-            !ctx->dpyAttr[dpy].isPause) {
+            (!ctx->dpyAttr[dpy].isPause) &&
+            canUseMDPforVirtualDisplay(ctx,list)) {
         uint32_t last = list->numHwLayers - 1;
         hwc_layer_1_t *fbLayer = &list->hwLayers[last];
         int fd = -1; //FenceFD from the Copybit(valid in async mode)
diff --git a/libqdutils/qd_utils.cpp b/libqdutils/qd_utils.cpp
index 5a457d0..0698b33 100644
--- a/libqdutils/qd_utils.cpp
+++ b/libqdutils/qd_utils.cpp
@@ -31,7 +31,6 @@
 
 
 #define MAX_FRAME_BUFFER_NAME_SIZE      (80)
-#define MAX_DISPLAY_DEVICES             (3)
 
 int getHDMINode(void)
 {
@@ -40,7 +39,7 @@
     char msmFbTypePath[MAX_FRAME_BUFFER_NAME_SIZE];
     int j = 0;
 
-    for(j = 0; j < MAX_DISPLAY_DEVICES; j++) {
+    for(j = 0; j < HWC_NUM_DISPLAY_TYPES; j++) {
         snprintf (msmFbTypePath, sizeof(msmFbTypePath),
                   "/sys/class/graphics/fb%d/msm_fb_type", j);
         displayDeviceFP = fopen(msmFbTypePath, "r");
@@ -58,7 +57,7 @@
         }
     }
 
-    if (j < MAX_DISPLAY_DEVICES)
+    if (j < HWC_NUM_DISPLAY_TYPES)
         return j;
     else
         ALOGE("%s: Failed to find HDMI node", __func__);
diff --git a/libqdutils/qd_utils.h b/libqdutils/qd_utils.h
index cca55d5..db6d367 100644
--- a/libqdutils/qd_utils.h
+++ b/libqdutils/qd_utils.h
@@ -42,6 +42,7 @@
 #include <sys/poll.h>
 #include <sys/resource.h>
 #include <cutils/properties.h>
+#include <hardware/hwcomposer.h>
 
 #define EDID_RAW_DATA_SIZE 640