diff --git a/drivers/gpu/drm/amd/display/dc/core/dc.c b/drivers/gpu/drm/amd/display/dc/core/dc.c
index 20dd062d7a33..a8d8358058ff 100644
--- a/drivers/gpu/drm/amd/display/dc/core/dc.c
+++ b/drivers/gpu/drm/amd/display/dc/core/dc.c
@@ -1365,35 +1365,6 @@ static struct dc_stream_status *stream_get_status(
 
 static const enum surface_update_type update_surface_trace_level = UPDATE_TYPE_FULL;
 
-static void notify_display_count_to_smu(
-		struct dc *dc,
-		struct dc_state *context)
-{
-	int i, display_count;
-	struct pp_smu_funcs_rv *pp_smu = dc->res_pool->pp_smu;
-
-	/*
-	 * if function pointer not set up, this message is
-	 * sent as part of pplib_apply_display_requirements.
-	 * So just return.
-	 */
-	if (!pp_smu || !pp_smu->set_display_count)
-		return;
-
-	display_count = 0;
-	for (i = 0; i < context->stream_count; i++) {
-		const struct dc_stream_state *stream = context->streams[i];
-
-		/* only notify active stream */
-		if (stream->dpms_off)
-			continue;
-
-		display_count++;
-	}
-
-	pp_smu->set_display_count(&pp_smu->pp_smu, display_count);
-}
-
 static void commit_planes_do_stream_update(struct dc *dc,
 		struct dc_stream_state *stream,
 		struct dc_stream_update *stream_update,
@@ -1444,15 +1415,13 @@ static void commit_planes_do_stream_update(struct dc *dc,
 			if (stream_update->dpms_off) {
 				if (*stream_update->dpms_off) {
 					core_link_disable_stream(pipe_ctx, KEEP_ACQUIRED_RESOURCE);
-					notify_display_count_to_smu(dc, dc->current_state);
+					dc->hwss.optimize_bandwidth(dc, dc->current_state);
 				} else {
-					notify_display_count_to_smu(dc, dc->current_state);
+					dc->hwss.prepare_bandwidth(dc, dc->current_state);
 					core_link_enable_stream(dc->current_state, pipe_ctx);
 				}
 			}
 
-
-
 			if (stream_update->abm_level && pipe_ctx->stream_res.abm) {
 				if (pipe_ctx->stream_res.tg->funcs->is_blanked) {
 					// if otg funcs defined check if blanked before programming
diff --git a/drivers/gpu/drm/amd/display/dc/dcn10/dcn10_dccg.c b/drivers/gpu/drm/amd/display/dc/dcn10/dcn10_dccg.c
index abfe82f02fd8..0a9f944c961d 100644
--- a/drivers/gpu/drm/amd/display/dc/dcn10/dcn10_dccg.c
+++ b/drivers/gpu/drm/amd/display/dc/dcn10/dcn10_dccg.c
@@ -139,6 +139,29 @@ static void dcn1_ramp_up_dispclk_with_dpp(struct dccg *dccg, struct dc_clocks *n
 	dccg->clks.max_supported_dppclk_khz = new_clocks->max_supported_dppclk_khz;
 }
 
+static int get_active_display_cnt(
+		struct dc *dc,
+		struct dc_state *context)
+{
+	int i, display_count;
+
+	display_count = 0;
+	for (i = 0; i < context->stream_count; i++) {
+		const struct dc_stream_state *stream = context->streams[i];
+
+		/*
+		 * Only notify active stream or virtual stream.
+		 * Need to notify virtual stream to work around
+		 * headless case. HPD does not fire when system is in
+		 * S0i2.
+		 */
+		if (!stream->dpms_off || stream->signal == SIGNAL_TYPE_VIRTUAL)
+			display_count++;
+	}
+
+	return display_count;
+}
+
 static void dcn1_update_clocks(struct dccg *dccg,
 			struct dc_state *context,
 			bool safe_to_lower)
@@ -152,11 +175,27 @@ static void dcn1_update_clocks(struct dccg *dccg,
 	struct dm_pp_clock_for_voltage_req clock_voltage_req = {0};
 	bool send_request_to_increase = false;
 	bool send_request_to_lower = false;
+	int display_count;
 
-	if (new_clocks->phyclk_khz)
-		smu_req.display_count = 1;
-	else
-		smu_req.display_count = 0;
+	bool enter_display_off = false;
+
+	display_count = get_active_display_cnt(dc, context);
+
+	if (display_count == 0)
+		enter_display_off = true;
+
+	if (enter_display_off == safe_to_lower) {
+		/*
+		 * Notify SMU active displays
+		 * if function pointer not set up, this message is
+		 * sent as part of pplib_apply_display_requirements.
+		 */
+		if (pp_smu->set_display_count)
+			pp_smu->set_display_count(&pp_smu->pp_smu, display_count);
+		else
+			smu_req.display_count = display_count;
+
+	}
 
 	if (new_clocks->dispclk_khz > dccg->clks.dispclk_khz
 			|| new_clocks->phyclk_khz > dccg->clks.phyclk_khz