diff --git a/drivers/gpu/drm/amd/display/dc/core/dc_stream.c b/drivers/gpu/drm/amd/display/dc/core/dc_stream.c
index 38d71b5c1f2d511274192acedfd9300a308ec3dc..20e534f73513721957eaeb0495763826869dd0bc 100644
--- a/drivers/gpu/drm/amd/display/dc/core/dc_stream.c
+++ b/drivers/gpu/drm/amd/display/dc/core/dc_stream.c
@@ -332,9 +332,21 @@ bool dc_stream_set_cursor_attributes(
 
 	dc = stream->ctx->dc;
 
-	if (dc->debug.allow_sw_cursor_fallback && attributes->height * attributes->width * 4 > 16384)
-		if (stream->mall_stream_config.type == SUBVP_MAIN)
+	/* SubVP is not compatible with HW cursor larger than 64 x 64 x 4.
+	 * Therefore, if cursor is greater than 64 x 64 x 4, fallback to SW cursor in the following case:
+	 * 1. For single display cases, if resolution is >= 5K and refresh rate < 120hz
+	 * 2. For multi display cases, if resolution is >= 4K and refresh rate < 120hz
+	 *
+	 * [< 120hz is a requirement for SubVP configs]
+	 */
+	if (dc->debug.allow_sw_cursor_fallback && attributes->height * attributes->width * 4 > 16384) {
+		if (dc->current_state->stream_count == 1 && stream->timing.v_addressable >= 2880 &&
+				((stream->timing.pix_clk_100hz * 100) / stream->timing.v_total / stream->timing.h_total) < 120)
 			return false;
+		else if (dc->current_state->stream_count > 1 && stream->timing.v_addressable >= 2160 &&
+				((stream->timing.pix_clk_100hz * 100) / stream->timing.v_total / stream->timing.h_total) < 120)
+			return false;
+	}
 
 	stream->cursor_attributes = *attributes;
 
diff --git a/drivers/gpu/drm/amd/display/dc/dcn32/dcn32_resource.c b/drivers/gpu/drm/amd/display/dc/dcn32/dcn32_resource.c
index 0c13fe0239d80e9bbf465713b32735c6b074eb6a..c40dccef684368a31e167d4ef13c29444b1cd0e9 100644
--- a/drivers/gpu/drm/amd/display/dc/dcn32/dcn32_resource.c
+++ b/drivers/gpu/drm/amd/display/dc/dcn32/dcn32_resource.c
@@ -723,7 +723,7 @@ static const struct dc_debug_options debug_defaults_drv = {
 	/* Must match enable_single_display_2to1_odm_policy to support dynamic ODM transitions*/
 	.enable_double_buffered_dsc_pg_support = true,
 	.enable_dp_dig_pixel_rate_div_policy = 1,
-	.allow_sw_cursor_fallback = false,
+	.allow_sw_cursor_fallback = false, // Linux can't do SW cursor "fallback"
 	.alloc_extra_way_for_cursor = true,
 	.min_prefetch_in_strobe_ns = 60000, // 60us
 };
diff --git a/drivers/gpu/drm/amd/display/dc/dcn321/dcn321_resource.c b/drivers/gpu/drm/amd/display/dc/dcn321/dcn321_resource.c
index d17d0f22be1f2dd523a9b2cf5b8ed3ba790eccbc..06f144189e9d8bf157b8dad4a492e5c5030da6f8 100644
--- a/drivers/gpu/drm/amd/display/dc/dcn321/dcn321_resource.c
+++ b/drivers/gpu/drm/amd/display/dc/dcn321/dcn321_resource.c
@@ -721,7 +721,7 @@ static const struct dc_debug_options debug_defaults_drv = {
 	/*must match enable_single_display_2to1_odm_policy to support dynamic ODM transitions*/
 	.enable_double_buffered_dsc_pg_support = true,
 	.enable_dp_dig_pixel_rate_div_policy = 1,
-	.allow_sw_cursor_fallback = false,
+	.allow_sw_cursor_fallback = false, // Linux can't do SW cursor "fallback"
 	.alloc_extra_way_for_cursor = true,
 	.min_prefetch_in_strobe_ns = 60000, // 60us
 };