diff --git a/libgralloc-qsd8k/gralloc_priv.h b/libgralloc-qsd8k/gralloc_priv.h
index 04a15ce..7e41906 100755
--- a/libgralloc-qsd8k/gralloc_priv.h
+++ b/libgralloc-qsd8k/gralloc_priv.h
@@ -257,6 +257,7 @@ struct private_handle_t {
         PRIV_FLAGS_USES_PMEM_ADSP = 0x00000004,
         PRIV_FLAGS_NEEDS_FLUSH    = 0x00000008,
         PRIV_FLAGS_USES_ASHMEM    = 0x00000010,
+        PRIV_FLAGS_FORMAT_CHANGED = 0x00000020,
     };
 
     enum {
diff --git a/libgralloc-qsd8k/mapper.cpp b/libgralloc-qsd8k/mapper.cpp
index e25a3cd..444a2ff 100755
--- a/libgralloc-qsd8k/mapper.cpp
+++ b/libgralloc-qsd8k/mapper.cpp
@@ -369,7 +369,10 @@ int gralloc_perform(struct gralloc_module_t const* module,
             private_handle_t* hnd = (private_handle_t*)handle;
             hnd->width = w;
             hnd->height = h;
-            hnd->format = f;
+            if (hnd->format != f) {
+                hnd->format = f;
+                hnd->flags |= private_handle_t::PRIV_FLAGS_FORMAT_CHANGED;
+            }
             break;
         }
 	default:
diff --git a/libhwcomposer/hwcomposer.cpp b/libhwcomposer/hwcomposer.cpp
index b33cf97..c21b210 100755
--- a/libhwcomposer/hwcomposer.cpp
+++ b/libhwcomposer/hwcomposer.cpp
@@ -341,12 +341,31 @@ static int drawLayerUsingOverlay(hwc_context_t *ctx, hwc_layer_t *layer)
 
         private_handle_t *hnd = (private_handle_t *)layer->handle;
         overlay::Overlay *ovLibObject = ctx->mOverlayLibObject;
+        int orientation = 0;
+        if (OVERLAY_CHANNEL_UP == ovLibObject->getChannelStatus())
+            ovLibObject->getOrientation(orientation);
 
-        ret = ovLibObject->setSource(hnd->width, hnd->height, hnd->format, layer->transform,
+        if ((OVERLAY_CHANNEL_DOWN == ovLibObject->getChannelStatus())
+            || (layer->transform != orientation) ||
+            (hnd->flags & private_handle_t::PRIV_FLAGS_FORMAT_CHANGED)) {
+            // Overlay channel is not started, or we have an orientation change or there is a
+            // format change, call setSource to open the overlay if necessary
+            ret = ovLibObject->setSource(hnd->width, hnd->height, hnd->format, layer->transform,
                                      (ovLibObject->getHDMIStatus()?true:false), false);
-        if (!ret) {
-            LOGE("drawLayerUsingOverlay setSource failed");
-            return -1;
+            if (!ret) {
+                LOGE("drawLayerUsingOverlay setSource failed");
+                return -1;
+            }
+            // Reset this flag so that we don't keep opening and closing channels unnecessarily
+            hnd->flags &= ~private_handle_t::PRIV_FLAGS_FORMAT_CHANGED;
+        } else {
+            // The overlay goemetry may have changed, we only need to update the overlay
+            ret = ovLibObject->updateOverlaySource(hnd->width, hnd->height, hnd->format,
+                                                   layer->transform);
+            if (!ret) {
+                LOGE("drawLayerUsingOverlay updateOverlaySource failed");
+                return -1;
+            }
         }
 
         hwc_rect_t sourceCrop = layer->sourceCrop;
@@ -373,7 +392,6 @@ static int drawLayerUsingOverlay(hwc_context_t *ctx, hwc_layer_t *layer)
             return -1;
         }
 
-        int orientation;
         ovLibObject->getOrientation(orientation);
         if (orientation != layer->transform)
             ret = ovLibObject->setParameter(OVERLAY_TRANSFORM, layer->transform);
diff --git a/liboverlay/overlayLib.cpp b/liboverlay/overlayLib.cpp
index 39afe4d..8904951 100644
--- a/liboverlay/overlayLib.cpp
+++ b/liboverlay/overlayLib.cpp
@@ -271,6 +271,37 @@ bool Overlay::setPositionS3D(int x, int y, uint32_t w, uint32_t h) {
     return ret;
 }
 
+bool Overlay::updateOverlaySource(uint32_t w, uint32_t h, int format, int orientation) {
+    if (hasHDMIStatusChanged()) {
+        return setSource(w, h, format, orientation, mHDMIConnected);
+    }
+
+    bool ret = true;
+    // Set the overlay source info
+    if (objOvCtrlChannel[0].isChannelUP()) {
+        ret = objOvCtrlChannel[0].updateOverlaySource(w, h);
+        if (ret && objOvCtrlChannel[1].isChannelUP())
+            ret = objOvCtrlChannel[1].updateOverlaySource(w, h);
+    }
+    return ret;
+}
+
+int Overlay::hasHDMIStatusChanged() {
+    int hdmiChanged = 0;
+    if (mHDMIConnected) {
+        // If HDMI is connected and both channels are not up, set the status
+        if (!objOvCtrlChannel[0].isChannelUP() || !objOvCtrlChannel[1].isChannelUP()) {
+            hdmiChanged = 0x1;
+        }
+    } else {
+        // HDMI is disconnected and both channels are up, set the status
+        if (objOvCtrlChannel[0].isChannelUP() && objOvCtrlChannel[1].isChannelUP()) {
+            hdmiChanged = 0x1;
+        }
+    }
+    return hdmiChanged;
+}
+
 bool Overlay::setSource(uint32_t w, uint32_t h, int format, int orientation,
                         bool hdmiConnected, bool ignoreFB, int num_buffers) {
     if (mCloseChannel)
@@ -298,19 +329,8 @@ bool Overlay::setSource(uint32_t w, uint32_t h, int format, int orientation,
 
     if (format3D != mS3DFormat)
        s3dChanged = 0x10;
-    if (mHDMIConnected) {
-        // If HDMI is connected and both channels are not up, set the status
-        if (!objOvCtrlChannel[0].isChannelUP() || !objOvCtrlChannel[1].isChannelUP()) {
-            hdmiChanged = 0x1;
-        }
-    } else {
-        // HDMI is disconnected and both channels are up, set the status
-        if (objOvCtrlChannel[0].isChannelUP() && objOvCtrlChannel[1].isChannelUP()) {
-            hdmiChanged = 0x1;
-        }
-    }
 
-    stateChanged = s3dChanged|hdmiChanged;
+    stateChanged = s3dChanged|hasHDMIStatusChanged();
     if (stateChanged || !objOvCtrlChannel[0].setSource(w, h, colorFormat, orientation, ignoreFB)) {
         if (mChannelUP && isRGBType(hw_format) && (stateChanged != 0x10)) {
             mCloseChannel = true;
@@ -682,6 +702,91 @@ bool OverlayControlChannel::startOVRotatorSessions(int w, int h,
     return ret;
 }
 
+bool OverlayControlChannel::updateOverlaySource(uint32_t w, uint32_t h)
+{
+    // Set Rotator info
+    if (mRotFD >=0) {
+        if(mRotInfo.src.format == MDP_Y_CRCB_H2V2_TILE) {
+            if ((mRotInfo.src.width == (((w-1)/64 +1)*64)) &&
+               (mRotInfo.src.height == (((h-1)/32 +1)*32)))
+                return true;
+
+            mRotInfo.src.width =  (((w-1)/64 +1)*64);
+            mRotInfo.src.height = (((h-1)/32 +1)*32);
+            mRotInfo.src_rect.w = (((w-1)/64 +1)*64);
+            mRotInfo.src_rect.h = (((h-1)/32 +1)*32);
+            mRotInfo.dst.height = (((w-1)/64 +1)*64);
+            mRotInfo.dst.width = (((h-1)/32 +1)*32);
+            mRotInfo.dst.format = MDP_Y_CRCB_H2V2;
+        } else {
+            if ((mRotInfo.src.width == w) &&
+                (mRotInfo.src.height == h))
+                return true;
+
+            mRotInfo.src.width = w;
+            mRotInfo.src.height = h;
+            mRotInfo.src_rect.w = w;
+            mRotInfo.src_rect.h = h;
+            mRotInfo.dst.width = h;
+            mRotInfo.dst.height = w;
+        }
+
+        if (mOVInfo.user_data[0] == MDP_ROT_NOP)
+            mRotInfo.enable = 0;
+
+        if (ioctl(mRotFD, MSM_ROTATOR_IOCTL_START, &mRotInfo)) {
+            LOGE("updateOverlaySource MSM_ROTATOR_IOCTL_START failed");
+            return true;
+        }
+    }
+
+    // Set overlay info
+    switch (mOVInfo.user_data[0]) {
+    case MDP_ROT_90:
+    case (MDP_ROT_90 | MDP_FLIP_UD):
+    case (MDP_ROT_90 | MDP_FLIP_LR):
+    case MDP_ROT_270: {
+        if ((mOVInfo.src.height == (((w-1)/64 +1)*64)) &&
+            (mOVInfo.src.width == (((h-1)/32 +1)*32)))
+            return true;
+
+        mOVInfo.src_rect.w = h;
+        mOVInfo.src_rect.h = w;
+        mOVInfo.src.height = (((w-1)/64 +1)*64);
+        mOVInfo.src.width = (((h-1)/32 +1)*32);
+        mOVInfo.src_rect.x = 0;
+        mOVInfo.src_rect.y = 0;;
+    } break;
+    case MDP_ROT_180:
+    case MDP_ROT_NOP: {
+        if ((mOVInfo.src.width  == w) &&
+            (mOVInfo.src.height == h))
+            return true;
+
+        mOVInfo.src.width  = w;
+        mOVInfo.src.height = h;
+        mOVInfo.src_rect.x = 0;
+        mOVInfo.src_rect.y = 0;
+        if(mOVInfo.src.format == MDP_Y_CRCB_H2V2_TILE) {
+            mOVInfo.src_rect.w = w - ( (((w-1)/64 +1)*64) - w);
+            mOVInfo.src_rect.h = h - ((((h-1)/32 +1)*32) - h);
+        } else {
+            mOVInfo.src_rect.w = w;
+            mOVInfo.src_rect.h = h;
+        }
+    } break;
+    default:
+        LOGE("updateOverlaySource: Invalid rotation parameter");
+        return false;
+    }
+
+    if (ioctl(mFD, MSMFB_OVERLAY_SET, &mOVInfo)) {
+        LOGE("updateOverlaySource MSMFB_OVERLAY_SET failed");
+        return true;
+    }
+    return true;
+}
+
 bool OverlayControlChannel::startControlChannel(int w, int h,
                                            int format, int fbnum, bool norot,
                                            bool uichannel,
diff --git a/liboverlay/overlayLib.h b/liboverlay/overlayLib.h
index 42760bc..55af19f 100644
--- a/liboverlay/overlayLib.h
+++ b/liboverlay/overlayLib.h
@@ -139,6 +139,7 @@ public:
                        int orientation, bool ignoreFB);
     bool getAspectRatioPosition(int w, int h, int format, overlay_rect *rect);
     bool getPositionS3D(int channel, int format, overlay_rect *rect);
+    bool updateOverlaySource(uint32_t w, uint32_t h);
 };
 
 class OverlayDataChannel {
@@ -216,6 +217,7 @@ public:
     int  getChannelStatus() const { return (mChannelUP ? OVERLAY_CHANNEL_UP: OVERLAY_CHANNEL_DOWN); }
     void setHDMIStatus (bool isHDMIConnected) { mHDMIConnected = isHDMIConnected; }
     int getHDMIStatus() const {return (mHDMIConnected ? HDMI_ON : HDMI_OFF); }
+    bool updateOverlaySource(uint32_t w, uint32_t h, int format, int orientation);
 
 private:
     bool startChannelHDMI(int w, int h, int format, bool norot);
@@ -225,6 +227,7 @@ private:
     bool setChannelPosition(int x, int y, uint32_t w, uint32_t h, int channel = 0);
     bool setChannelCrop(uint32_t x, uint32_t y, uint32_t w, uint32_t h, int channel);
     bool queueBuffer(int fd, uint32_t offset, int channel);
+    int  hasHDMIStatusChanged();
 };
 
 struct overlay_shared_data {