struct amdgpu_dm_connector *aconnector;
 };
 
-static int kbps_to_peak_pbn(int kbps)
+static uint16_t get_fec_overhead_multiplier(struct dc_link *dc_link)
+{
+       u8 link_coding_cap;
+       uint16_t fec_overhead_multiplier_x1000 = PBN_FEC_OVERHEAD_MULTIPLIER_8B_10B;
+
+       link_coding_cap = dc_link_dp_mst_decide_link_encoding_format(dc_link);
+       if (link_coding_cap == DP_128b_132b_ENCODING)
+               fec_overhead_multiplier_x1000 = PBN_FEC_OVERHEAD_MULTIPLIER_128B_132B;
+
+       return fec_overhead_multiplier_x1000;
+}
+
+static int kbps_to_peak_pbn(int kbps, uint16_t fec_overhead_multiplier_x1000)
 {
        u64 peak_kbps = kbps;
 
        peak_kbps *= 1006;
-       peak_kbps = div_u64(peak_kbps, 1000);
+       peak_kbps *= fec_overhead_multiplier_x1000;
+       peak_kbps = div_u64(peak_kbps, 1000 * 1000);
        return (int) DIV64_U64_ROUND_UP(peak_kbps * 64, (54 * 8 * 1000));
 }
 
        int link_timeslots_used;
        int fair_pbn_alloc;
        int ret = 0;
+       uint16_t fec_overhead_multiplier_x1000 = get_fec_overhead_multiplier(dc_link);
 
        for (i = 0; i < count; i++) {
                if (vars[i + k].dsc_enabled) {
                        initial_slack[i] =
-                       kbps_to_peak_pbn(params[i].bw_range.max_kbps) - vars[i + k].pbn;
+                       kbps_to_peak_pbn(params[i].bw_range.max_kbps, fec_overhead_multiplier_x1000) - vars[i + k].pbn;
                        bpp_increased[i] = false;
                        remaining_to_increase += 1;
                } else {
        int next_index;
        int remaining_to_try = 0;
        int ret;
+       uint16_t fec_overhead_multiplier_x1000 = get_fec_overhead_multiplier(dc_link);
 
        for (i = 0; i < count; i++) {
                if (vars[i + k].dsc_enabled
                if (next_index == -1)
                        break;
 
-               vars[next_index].pbn = kbps_to_peak_pbn(params[next_index].bw_range.stream_kbps);
+               vars[next_index].pbn = kbps_to_peak_pbn(params[next_index].bw_range.stream_kbps, fec_overhead_multiplier_x1000);
                ret = drm_dp_atomic_find_time_slots(state,
                                                    params[next_index].port->mgr,
                                                    params[next_index].port,
                        vars[next_index].dsc_enabled = false;
                        vars[next_index].bpp_x16 = 0;
                } else {
-                       vars[next_index].pbn = kbps_to_peak_pbn(params[next_index].bw_range.max_kbps);
+                       vars[next_index].pbn = kbps_to_peak_pbn(params[next_index].bw_range.max_kbps, fec_overhead_multiplier_x1000);
                        ret = drm_dp_atomic_find_time_slots(state,
                                                            params[next_index].port->mgr,
                                                            params[next_index].port,
        int count = 0;
        int i, k, ret;
        bool debugfs_overwrite = false;
+       uint16_t fec_overhead_multiplier_x1000 = get_fec_overhead_multiplier(dc_link);
 
        memset(params, 0, sizeof(params));
 
        /* Try no compression */
        for (i = 0; i < count; i++) {
                vars[i + k].aconnector = params[i].aconnector;
-               vars[i + k].pbn = kbps_to_peak_pbn(params[i].bw_range.stream_kbps);
+               vars[i + k].pbn = kbps_to_peak_pbn(params[i].bw_range.stream_kbps, fec_overhead_multiplier_x1000);
                vars[i + k].dsc_enabled = false;
                vars[i + k].bpp_x16 = 0;
                ret = drm_dp_atomic_find_time_slots(state, params[i].port->mgr, params[i].port,
        /* Try max compression */
        for (i = 0; i < count; i++) {
                if (params[i].compression_possible && params[i].clock_force_enable != DSC_CLK_FORCE_DISABLE) {
-                       vars[i + k].pbn = kbps_to_peak_pbn(params[i].bw_range.min_kbps);
+                       vars[i + k].pbn = kbps_to_peak_pbn(params[i].bw_range.min_kbps, fec_overhead_multiplier_x1000);
                        vars[i + k].dsc_enabled = true;
                        vars[i + k].bpp_x16 = params[i].bw_range.min_target_bpp_x16;
                        ret = drm_dp_atomic_find_time_slots(state, params[i].port->mgr,
                        if (ret < 0)
                                return ret;
                } else {
-                       vars[i + k].pbn = kbps_to_peak_pbn(params[i].bw_range.stream_kbps);
+                       vars[i + k].pbn = kbps_to_peak_pbn(params[i].bw_range.stream_kbps, fec_overhead_multiplier_x1000);
                        vars[i + k].dsc_enabled = false;
                        vars[i + k].bpp_x16 = 0;
                        ret = drm_dp_atomic_find_time_slots(state, params[i].port->mgr,