diff --git a/arch/arm/plat-omap/include/plat/display.h b/arch/arm/plat-omap/include/plat/display.h
index b8de70479313..8bd15bdb4132 100644
--- a/arch/arm/plat-omap/include/plat/display.h
+++ b/arch/arm/plat-omap/include/plat/display.h
@@ -560,7 +560,8 @@ void omapdss_dsi_vc_enable_hs(int channel, bool enable);
 int omapdss_dsi_enable_te(struct omap_dss_device *dssdev, bool enable);
 
 int omap_dsi_prepare_update(struct omap_dss_device *dssdev,
-				    u16 *x, u16 *y, u16 *w, u16 *h);
+				    u16 *x, u16 *y, u16 *w, u16 *h,
+				    bool enlarge_update_area);
 int omap_dsi_update(struct omap_dss_device *dssdev,
 		int channel,
 		u16 x, u16 y, u16 w, u16 h,
diff --git a/drivers/video/omap2/displays/panel-taal.c b/drivers/video/omap2/displays/panel-taal.c
index 2a91d5662c07..6848e3633ed9 100644
--- a/drivers/video/omap2/displays/panel-taal.c
+++ b/drivers/video/omap2/displays/panel-taal.c
@@ -1135,7 +1135,7 @@ static int taal_update(struct omap_dss_device *dssdev,
 		goto err;
 	}
 
-	r = omap_dsi_prepare_update(dssdev, &x, &y, &w, &h);
+	r = omap_dsi_prepare_update(dssdev, &x, &y, &w, &h, true);
 	if (r)
 		goto err;
 
diff --git a/drivers/video/omap2/dss/dsi.c b/drivers/video/omap2/dss/dsi.c
index 32297b4f7abb..d0881e948bcf 100644
--- a/drivers/video/omap2/dss/dsi.c
+++ b/drivers/video/omap2/dss/dsi.c
@@ -2860,7 +2860,8 @@ static void dsi_framedone_irq_callback(void *data, u32 mask)
 }
 
 int omap_dsi_prepare_update(struct omap_dss_device *dssdev,
-				    u16 *x, u16 *y, u16 *w, u16 *h)
+				    u16 *x, u16 *y, u16 *w, u16 *h,
+				    bool enlarge_update_area)
 {
 	u16 dw, dh;
 
@@ -2884,7 +2885,8 @@ int omap_dsi_prepare_update(struct omap_dss_device *dssdev,
 	dsi_perf_mark_setup();
 
 	if (dssdev->manager->caps & OMAP_DSS_OVL_MGR_CAP_DISPC) {
-		dss_setup_partial_planes(dssdev, x, y, w, h);
+		dss_setup_partial_planes(dssdev, x, y, w, h,
+				enlarge_update_area);
 		dispc_set_lcd_size(*w, *h);
 	}
 
diff --git a/drivers/video/omap2/dss/dss.h b/drivers/video/omap2/dss/dss.h
index 66e8e97d06a7..5c7940d5f282 100644
--- a/drivers/video/omap2/dss/dss.h
+++ b/drivers/video/omap2/dss/dss.h
@@ -199,7 +199,8 @@ int dss_init_overlay_managers(struct platform_device *pdev);
 void dss_uninit_overlay_managers(struct platform_device *pdev);
 int dss_mgr_wait_for_go_ovl(struct omap_overlay *ovl);
 void dss_setup_partial_planes(struct omap_dss_device *dssdev,
-				u16 *x, u16 *y, u16 *w, u16 *h);
+				u16 *x, u16 *y, u16 *w, u16 *h,
+				bool enlarge_update_area);
 void dss_start_update(struct omap_dss_device *dssdev);
 
 /* overlay */
diff --git a/drivers/video/omap2/dss/manager.c b/drivers/video/omap2/dss/manager.c
index a1d84ef65904..4b09fcb432b3 100644
--- a/drivers/video/omap2/dss/manager.c
+++ b/drivers/video/omap2/dss/manager.c
@@ -440,6 +440,10 @@ struct manager_cache_data {
 
 	/* manual update region */
 	u16 x, y, w, h;
+
+	/* enlarge the update area if the update area contains scaled
+	 * overlays */
+	bool enlarge_update_area;
 };
 
 static struct {
@@ -721,6 +725,7 @@ static int configure_overlay(enum omap_plane plane)
 	u16 x, y, w, h;
 	u32 paddr;
 	int r;
+	u16 orig_w, orig_h, orig_outw, orig_outh;
 
 	DSSDBGF("%d", plane);
 
@@ -741,8 +746,16 @@ static int configure_overlay(enum omap_plane plane)
 	outh = c->out_height == 0 ? c->height : c->out_height;
 	paddr = c->paddr;
 
+	orig_w = w;
+	orig_h = h;
+	orig_outw = outw;
+	orig_outh = outh;
+
 	if (c->manual_update && mc->do_manual_update) {
 		unsigned bpp;
+		unsigned scale_x_m = w, scale_x_d = outw;
+		unsigned scale_y_m = h, scale_y_d = outh;
+
 		/* If the overlay is outside the update region, disable it */
 		if (!rectangle_intersects(mc->x, mc->y, mc->w, mc->h,
 					x, y, outw, outh)) {
@@ -773,39 +786,33 @@ static int configure_overlay(enum omap_plane plane)
 			BUG();
 		}
 
-		if (dispc_is_overlay_scaled(c)) {
-			/* If the overlay is scaled, the update area has
-			 * already been enlarged to cover the whole overlay. We
-			 * only need to adjust x/y here */
-			x = c->pos_x - mc->x;
-			y = c->pos_y - mc->y;
+		if (mc->x > c->pos_x) {
+			x = 0;
+			outw -= (mc->x - c->pos_x);
+			paddr += (mc->x - c->pos_x) *
+				scale_x_m / scale_x_d * bpp / 8;
 		} else {
-			if (mc->x > c->pos_x) {
-				x = 0;
-				w -= (mc->x - c->pos_x);
-				paddr += (mc->x - c->pos_x) * bpp / 8;
-			} else {
-				x = c->pos_x - mc->x;
-			}
-
-			if (mc->y > c->pos_y) {
-				y = 0;
-				h -= (mc->y - c->pos_y);
-				paddr += (mc->y - c->pos_y) * c->screen_width *
-					bpp / 8;
-			} else {
-				y = c->pos_y - mc->y;
-			}
-
-			if (mc->w < (x+w))
-				w -= (x+w) - (mc->w);
-
-			if (mc->h < (y+h))
-				h -= (y+h) - (mc->h);
-
-			outw = w;
-			outh = h;
+			x = c->pos_x - mc->x;
 		}
+
+		if (mc->y > c->pos_y) {
+			y = 0;
+			outh -= (mc->y - c->pos_y);
+			paddr += (mc->y - c->pos_y) *
+				scale_y_m / scale_y_d *
+				c->screen_width * bpp / 8;
+		} else {
+			y = c->pos_y - mc->y;
+		}
+
+		if (mc->w < (x + outw))
+			outw -= (x + outw) - (mc->w);
+
+		if (mc->h < (y + outh))
+			outh -= (y + outh) - (mc->h);
+
+		w = w * outw / orig_outw;
+		h = h * outh / orig_outh;
 	}
 
 	r = dispc_setup_plane(plane,
@@ -963,7 +970,7 @@ static void make_even(u16 *x, u16 *w)
 /* Configure dispc for partial update. Return possibly modified update
  * area */
 void dss_setup_partial_planes(struct omap_dss_device *dssdev,
-		u16 *xi, u16 *yi, u16 *wi, u16 *hi)
+		u16 *xi, u16 *yi, u16 *wi, u16 *hi, bool enlarge_update_area)
 {
 	struct overlay_cache_data *oc;
 	struct manager_cache_data *mc;
@@ -1015,6 +1022,9 @@ void dss_setup_partial_planes(struct omap_dss_device *dssdev,
 
 			oc->dirty = true;
 
+			if (!enlarge_update_area)
+				continue;
+
 			if (!oc->enabled)
 				continue;
 
@@ -1074,6 +1084,7 @@ void dss_setup_partial_planes(struct omap_dss_device *dssdev,
 
 	mc = &dss_cache.manager_cache[mgr->id];
 	mc->do_manual_update = true;
+	mc->enlarge_update_area = enlarge_update_area;
 	mc->x = x;
 	mc->y = y;
 	mc->w = w;
diff --git a/drivers/video/omap2/dss/rfbi.c b/drivers/video/omap2/dss/rfbi.c
index cc23f53cc62d..bbe62464e92d 100644
--- a/drivers/video/omap2/dss/rfbi.c
+++ b/drivers/video/omap2/dss/rfbi.c
@@ -886,7 +886,7 @@ int omap_rfbi_prepare_update(struct omap_dss_device *dssdev,
 		return -EINVAL;
 
 	if (dssdev->manager->caps & OMAP_DSS_OVL_MGR_CAP_DISPC) {
-		dss_setup_partial_planes(dssdev, x, y, w, h);
+		dss_setup_partial_planes(dssdev, x, y, w, h, true);
 		dispc_set_lcd_size(*w, *h);
 	}