diff --git a/backend/Backend.cpp b/backend/Backend.cpp
index 679f083..f3156ed 100644
--- a/backend/Backend.cpp
+++ b/backend/Backend.cpp
@@ -83,8 +83,7 @@
 
 bool Backend::IsClientLayer(HwcDisplay *display, HwcLayer *layer) {
   return !HardwareSupportsLayerType(layer->GetSfType()) ||
-         !layer->IsLayerUsableAsDevice() ||
-         display->color_transform_hint() != HAL_COLOR_TRANSFORM_IDENTITY ||
+         !layer->IsLayerUsableAsDevice() || display->CtmByGpu() ||
          (layer->GetLayerData().pi.RequireScalingOrPhasing() &&
           display->GetHwc2()->GetResMan().ForcedScalingWithGpu());
 }
diff --git a/drm/DrmAtomicStateManager.cpp b/drm/DrmAtomicStateManager.cpp
index 58a5523..4ff16e2 100644
--- a/drm/DrmAtomicStateManager.cpp
+++ b/drm/DrmAtomicStateManager.cpp
@@ -107,6 +107,20 @@
     }
   }
 
+  if (args.color_matrix && crtc->GetCtmProperty()) {
+    auto blob = drm->RegisterUserPropertyBlob(args.color_matrix.get(),
+                                              sizeof(drm_color_ctm));
+    new_frame_state.ctm_blob = std::move(blob);
+
+    if (!new_frame_state.ctm_blob) {
+      ALOGE("Failed to create CTM blob");
+      return -EINVAL;
+    }
+
+    if (!crtc->GetCtmProperty().AtomicSet(*pset, *new_frame_state.ctm_blob))
+      return -EINVAL;
+  }
+
   auto unused_planes = new_frame_state.used_planes;
 
   if (args.composition) {
diff --git a/drm/DrmAtomicStateManager.h b/drm/DrmAtomicStateManager.h
index e456a91..6e32a37 100644
--- a/drm/DrmAtomicStateManager.h
+++ b/drm/DrmAtomicStateManager.h
@@ -35,6 +35,7 @@
   std::optional<DrmMode> display_mode;
   std::optional<bool> active;
   std::shared_ptr<DrmKmsPlan> composition;
+  std::shared_ptr<drm_color_ctm> color_matrix;
 
   /* out */
   SharedFd out_fence;
@@ -75,6 +76,7 @@
     std::vector<std::shared_ptr<DrmFbIdHandle>> used_framebuffers;
 
     DrmModeUserPropertyBlobUnique mode_blob;
+    DrmModeUserPropertyBlobUnique ctm_blob;
 
     int release_fence_pt_index{};
 
diff --git a/drm/DrmCrtc.cpp b/drm/DrmCrtc.cpp
index 3b749b1..948a9ac 100644
--- a/drm/DrmCrtc.cpp
+++ b/drm/DrmCrtc.cpp
@@ -61,6 +61,11 @@
     return {};
   }
 
+  ret = GetCrtcProperty(dev, *c, "CTM", &c->ctm_property_);
+  if (ret != 0) {
+    ALOGV("Missing optional CTM property");
+  }
+
   return c;
 }
 
diff --git a/drm/DrmCrtc.h b/drm/DrmCrtc.h
index 64fb56f..96443cd 100644
--- a/drm/DrmCrtc.h
+++ b/drm/DrmCrtc.h
@@ -58,6 +58,10 @@
     return out_fence_ptr_property_;
   }
 
+  auto &GetCtmProperty() const {
+    return ctm_property_;
+  }
+
  private:
   DrmCrtc(DrmModeCrtcUnique crtc, uint32_t index)
       : crtc_(std::move(crtc)), index_in_res_array_(index){};
@@ -66,6 +70,8 @@
 
   const uint32_t index_in_res_array_;
 
+  DrmProperty ctm_property_;
+
   DrmProperty active_property_;
   DrmProperty mode_property_;
   DrmProperty out_fence_ptr_property_;
diff --git a/drm/ResourceManager.cpp b/drm/ResourceManager.cpp
index dd26c17..577d86c 100644
--- a/drm/ResourceManager.cpp
+++ b/drm/ResourceManager.cpp
@@ -72,9 +72,21 @@
     }
   }
 
-  char scale_with_gpu[PROPERTY_VALUE_MAX];
-  property_get("vendor.hwc.drm.scale_with_gpu", scale_with_gpu, "0");
-  scale_with_gpu_ = bool(strncmp(scale_with_gpu, "0", 1));
+  char proptext[PROPERTY_VALUE_MAX];
+  property_get("vendor.hwc.drm.scale_with_gpu", proptext, "0");
+  scale_with_gpu_ = bool(strncmp(proptext, "0", 1));
+
+  constexpr char kDrmOrGpu[] = "DRM_OR_GPU";
+  constexpr char kDrmOrIgnore[] = "DRM_OR_IGNORE";
+  property_get("vendor.hwc.drm.ctm", proptext, kDrmOrGpu);
+  if (strncmp(proptext, kDrmOrGpu, sizeof(kDrmOrGpu)) == 0) {
+    ctm_handling_ = CtmHandling::kDrmOrGpu;
+  } else if (strncmp(proptext, kDrmOrIgnore, sizeof(kDrmOrIgnore)) == 0) {
+    ctm_handling_ = CtmHandling::kDrmOrIgnore;
+  } else {
+    ALOGE("Invalid value for vendor.hwc.drm.ctm: %s", proptext);
+    ctm_handling_ = CtmHandling::kDrmOrGpu;
+  }
 
   if (BufferInfoGetter::GetInstance() == nullptr) {
     ALOGE("Failed to initialize BufferInfoGetter");
diff --git a/drm/ResourceManager.h b/drm/ResourceManager.h
index 60b6b16..7fa3fc6 100644
--- a/drm/ResourceManager.h
+++ b/drm/ResourceManager.h
@@ -26,6 +26,11 @@
 
 namespace android {
 
+enum class CtmHandling {
+  kDrmOrGpu,    /* Handled by DRM is possible, otherwise by GPU */
+  kDrmOrIgnore, /* Handled by DRM is possible, otherwise displayed as is */
+};
+
 class PipelineToFrontendBindingInterface {
  public:
   virtual ~PipelineToFrontendBindingInterface() = default;
@@ -52,6 +57,10 @@
     return scale_with_gpu_;
   }
 
+  auto &GetCtmHandling() const {
+    return ctm_handling_;
+  }
+
   auto &GetMainLock() {
     return main_lock_;
   }
@@ -65,7 +74,9 @@
 
   std::vector<std::unique_ptr<DrmDevice>> drms_;
 
+  // Android properties:
   bool scale_with_gpu_{};
+  CtmHandling ctm_handling_{};
 
   std::shared_ptr<UEventListener> uevent_listener_;
 
diff --git a/hwc2_device/HwcDisplay.cpp b/hwc2_device/HwcDisplay.cpp
index 1550e21..cdcf518 100644
--- a/hwc2_device/HwcDisplay.cpp
+++ b/hwc2_device/HwcDisplay.cpp
@@ -87,17 +87,18 @@
 
 HwcDisplay::HwcDisplay(hwc2_display_t handle, HWC2::DisplayType type,
                        DrmHwcTwo *hwc2)
-    : hwc2_(hwc2),
-      handle_(handle),
-      type_(type),
-      client_layer_(this),
-      color_transform_hint_(HAL_COLOR_TRANSFORM_IDENTITY) {
-  // clang-format off
-  color_transform_matrix_ = {1.0, 0.0, 0.0, 0.0,
-                             0.0, 1.0, 0.0, 0.0,
-                             0.0, 0.0, 1.0, 0.0,
-                             0.0, 0.0, 0.0, 1.0};
-  // clang-format on
+    : hwc2_(hwc2), handle_(handle), type_(type), client_layer_(this){};
+
+void HwcDisplay::SetColorMarixToIdentity() {
+  color_matrix_ = std::make_shared<drm_color_ctm>();
+  for (int i = 0; i < kCtmCols; i++) {
+    for (int j = 0; j < kCtmRows; j++) {
+      constexpr uint64_t kOne = 1L << 32; /* 1.0 in s31.32 format */
+      color_matrix_->matrix[i * kCtmRows + j] = (i == j) ? kOne : 0;
+    }
+  }
+
+  color_transform_hint_ = HAL_COLOR_TRANSFORM_IDENTITY;
 }
 
 HwcDisplay::~HwcDisplay() = default;
@@ -195,6 +196,8 @@
 
   client_layer_.SetLayerBlendMode(HWC2_BLEND_MODE_PREMULTIPLIED);
 
+  SetColorMarixToIdentity();
+
   return HWC2::Error::None;
 }
 
@@ -465,6 +468,8 @@
     return HWC2::Error::None;
   }
 
+  a_args.color_matrix = color_matrix_;
+
   uint32_t prev_vperiod_ns = 0;
   GetDisplayVsyncPeriod(&prev_vperiod_ns);
 
@@ -595,6 +600,9 @@
   this->present_fence_ = a_args.out_fence;
   *out_present_fence = DupFd(a_args.out_fence);
 
+  // Reset the color matrix so we don't apply it over and over again.
+  color_matrix_ = {};
+
   ++frame_no_;
   return HWC2::Error::None;
 }
@@ -673,6 +681,8 @@
   return HWC2::Error::None;
 }
 
+#include <xf86drmMode.h>
+
 HWC2::Error HwcDisplay::SetColorTransform(const float *matrix, int32_t hint) {
   if (hint < HAL_COLOR_TRANSFORM_IDENTITY ||
       hint > HAL_COLOR_TRANSFORM_CORRECT_TRITANOPIA)
@@ -682,12 +692,46 @@
     return HWC2::Error::BadParameter;
 
   color_transform_hint_ = static_cast<android_color_transform_t>(hint);
-  if (color_transform_hint_ == HAL_COLOR_TRANSFORM_ARBITRARY_MATRIX)
-    std::copy(matrix, matrix + MATRIX_SIZE, color_transform_matrix_.begin());
+
+  if (!GetPipe().crtc->Get()->GetCtmProperty())
+    return HWC2::Error::None;
+
+  switch (color_transform_hint_) {
+    case HAL_COLOR_TRANSFORM_IDENTITY:
+      SetColorMarixToIdentity();
+      break;
+    case HAL_COLOR_TRANSFORM_ARBITRARY_MATRIX:
+      color_matrix_ = std::make_shared<drm_color_ctm>();
+      /* DRM expects a 3x3 matrix, but the HAL provides a 4x4 matrix. */
+      for (int i = 0; i < kCtmCols; i++) {
+        for (int j = 0; j < kCtmRows; j++) {
+          constexpr int kInCtmRows = 4;
+          /* HAL matrix type is float, but DRM expects a s31.32 fix point */
+          auto value = uint64_t(matrix[i * kInCtmRows + j] * float(1L << 32));
+          color_matrix_->matrix[i * kCtmRows + j] = value;
+        }
+      }
+      break;
+    default:
+      return HWC2::Error::Unsupported;
+  }
 
   return HWC2::Error::None;
 }
 
+bool HwcDisplay::CtmByGpu() {
+  if (color_transform_hint_ == HAL_COLOR_TRANSFORM_IDENTITY)
+    return false;
+
+  if (GetPipe().crtc->Get()->GetCtmProperty())
+    return false;
+
+  if (GetHwc2()->GetResMan().GetCtmHandling() == CtmHandling::kDrmOrIgnore)
+    return false;
+
+  return true;
+}
+
 HWC2::Error HwcDisplay::SetOutputBuffer(buffer_handle_t /*buffer*/,
                                         int32_t /*release_fence*/) {
   // TODO(nobody): Need virtual display support
@@ -892,12 +936,31 @@
 }
 
 HWC2::Error HwcDisplay::GetDisplayCapabilities(uint32_t *outNumCapabilities,
-                                               uint32_t * /*outCapabilities*/) {
+                                               uint32_t *outCapabilities) {
   if (outNumCapabilities == nullptr) {
     return HWC2::Error::BadParameter;
   }
 
-  *outNumCapabilities = 0;
+  bool skip_ctm = false;
+
+  // Skip client CTM if user requested DRM_OR_IGNORE
+  if (GetHwc2()->GetResMan().GetCtmHandling() == CtmHandling::kDrmOrIgnore)
+    skip_ctm = true;
+
+  // Skip client CTM if DRM can handle it
+  if (!skip_ctm && !IsInHeadlessMode() &&
+      GetPipe().crtc->Get()->GetCtmProperty())
+    skip_ctm = true;
+
+  if (!skip_ctm) {
+    *outNumCapabilities = 0;
+    return HWC2::Error::None;
+  }
+
+  *outNumCapabilities = 1;
+  if (outCapabilities) {
+    outCapabilities[0] = HWC2_DISPLAY_CAPABILITY_SKIP_CLIENT_COLOR_TRANSFORM;
+  }
 
   return HWC2::Error::None;
 }
diff --git a/hwc2_device/HwcDisplay.h b/hwc2_device/HwcDisplay.h
index 6cac60f..653aa4a 100644
--- a/hwc2_device/HwcDisplay.h
+++ b/hwc2_device/HwcDisplay.h
@@ -159,9 +159,7 @@
     return *pipeline_;
   }
 
-  android_color_transform_t &color_transform_hint() {
-    return color_transform_hint_;
-  }
+  bool CtmByGpu();
 
   Stats &total_stats() {
     return total_stats_;
@@ -194,8 +192,6 @@
 
   std::atomic_int flattenning_state_{ClientFlattenningState::NotRequired};
 
-  constexpr static size_t MATRIX_SIZE = 16;
-
   HwcDisplayConfigs configs_;
 
   DrmHwcTwo *const hwc2_;
@@ -224,8 +220,10 @@
   std::map<hwc2_layer_t, HwcLayer> layers_;
   HwcLayer client_layer_;
   int32_t color_mode_{};
-  std::array<float, MATRIX_SIZE> color_transform_matrix_{};
-  android_color_transform_t color_transform_hint_;
+  static constexpr int kCtmRows = 3;
+  static constexpr int kCtmCols = 3;
+  std::shared_ptr<drm_color_ctm> color_matrix_;
+  android_color_transform_t color_transform_hint_{};
 
   std::shared_ptr<DrmKmsPlan> current_plan_;
 
@@ -234,6 +232,8 @@
   Stats prev_stats_;
   std::string DumpDelta(HwcDisplay::Stats delta);
 
+  void SetColorMarixToIdentity();
+
   HWC2::Error Init();
 
   HWC2::Error SetActiveConfigInternal(uint32_t config, int64_t change_time);