diff --git a/drivers/gpu/drm/amd/display/amdgpu_dm/amdgpu_dm.c b/drivers/gpu/drm/amd/display/amdgpu_dm/amdgpu_dm.c
index deec7e0466da0f..1b71e0ca1a89ab 100644
--- a/drivers/gpu/drm/amd/display/amdgpu_dm/amdgpu_dm.c
+++ b/drivers/gpu/drm/amd/display/amdgpu_dm/amdgpu_dm.c
@@ -9870,6 +9870,53 @@ static int add_affected_mst_dsc_crtcs(struct drm_atomic_state *state, struct drm
 }
 #endif
 
+static int validate_overlay(struct drm_atomic_state *state)
+{
+	int i;
+	struct drm_plane *plane;
+	struct drm_plane_state *old_plane_state, *new_plane_state;
+	struct drm_plane_state *primary_state, *overlay_state = NULL;
+
+	/* Check if primary plane is contained inside overlay */
+	for_each_oldnew_plane_in_state_reverse(state, plane, old_plane_state, new_plane_state, i) {
+		if (plane->type == DRM_PLANE_TYPE_OVERLAY) {
+			if (drm_atomic_plane_disabling(plane->state, new_plane_state))
+				return 0;
+
+			overlay_state = new_plane_state;
+			continue;
+		}
+	}
+
+	/* check if we're making changes to the overlay plane */
+	if (!overlay_state)
+		return 0;
+
+	/* check if overlay plane is enabled */
+	if (!overlay_state->crtc)
+		return 0;
+
+	/* find the primary plane for the CRTC that the overlay is enabled on */
+	primary_state = drm_atomic_get_plane_state(state, overlay_state->crtc->primary);
+	if (IS_ERR(primary_state))
+		return PTR_ERR(primary_state);
+
+	/* check if primary plane is enabled */
+	if (!primary_state->crtc)
+		return 0;
+
+	/* Perform the bounds check to ensure the overlay plane covers the primary */
+	if (primary_state->crtc_x < overlay_state->crtc_x ||
+	    primary_state->crtc_y < overlay_state->crtc_y ||
+	    primary_state->crtc_x + primary_state->crtc_w > overlay_state->crtc_x + overlay_state->crtc_w ||
+	    primary_state->crtc_y + primary_state->crtc_h > overlay_state->crtc_y + overlay_state->crtc_h) {
+		DRM_DEBUG_ATOMIC("Overlay plane is enabled with hardware cursor but does not fully cover primary plane\n");
+		return -EINVAL;
+	}
+
+	return 0;
+}
+
 /**
  * amdgpu_dm_atomic_check() - Atomic check implementation for AMDgpu DM.
  * @dev: The DRM device
@@ -10044,6 +10091,10 @@ static int amdgpu_dm_atomic_check(struct drm_device *dev,
 			goto fail;
 	}
 
+	ret = validate_overlay(state);
+	if (ret)
+		goto fail;
+
 	/* Add new/modified planes */
 	for_each_oldnew_plane_in_state_reverse(state, plane, old_plane_state, new_plane_state, i) {
 		ret = dm_update_plane_state(dc, state, plane,