diff --git a/libs/renderengine/Android.bp b/libs/renderengine/Android.bp
index 84e84dd..cb92df3 100644
--- a/libs/renderengine/Android.bp
+++ b/libs/renderengine/Android.bp
@@ -27,6 +27,7 @@
         "-DEGL_EGLEXT_PROTOTYPES",
     ],
     shared_libs: [
+        "android.hardware.graphics.composer3-V1-ndk",
         "libbase",
         "libcutils",
         "libEGL",
diff --git a/libs/renderengine/benchmark/Android.bp b/libs/renderengine/benchmark/Android.bp
index 471159f..249fec5 100644
--- a/libs/renderengine/benchmark/Android.bp
+++ b/libs/renderengine/benchmark/Android.bp
@@ -43,6 +43,7 @@
     ],
 
     shared_libs: [
+        "android.hardware.graphics.composer3-V1-ndk",
         "libbase",
         "libcutils",
         "libjnigraphics",
diff --git a/libs/renderengine/include/renderengine/DisplaySettings.h b/libs/renderengine/include/renderengine/DisplaySettings.h
index 40ba5ad..bf50644 100644
--- a/libs/renderengine/include/renderengine/DisplaySettings.h
+++ b/libs/renderengine/include/renderengine/DisplaySettings.h
@@ -16,6 +16,7 @@
 
 #pragma once
 
+#include <aidl/android/hardware/graphics/composer3/DimmingStage.h>
 #include <iosfwd>
 
 #include <math/mat4.h>
@@ -68,6 +69,10 @@
     // All layers will be dimmed by (max(layer white points) / targetLuminanceNits).
     // If the target luminance is unknown, then no display-level dimming occurs.
     float targetLuminanceNits = -1.f;
+
+    // Configures when dimming should be applied for each layer.
+    aidl::android::hardware::graphics::composer3::DimmingStage dimmingStage =
+            aidl::android::hardware::graphics::composer3::DimmingStage::NONE;
 };
 
 static inline bool operator==(const DisplaySettings& lhs, const DisplaySettings& rhs) {
diff --git a/libs/renderengine/skia/SkiaGLRenderEngine.cpp b/libs/renderengine/skia/SkiaGLRenderEngine.cpp
index 1665550..34c2e15 100644
--- a/libs/renderengine/skia/SkiaGLRenderEngine.cpp
+++ b/libs/renderengine/skia/SkiaGLRenderEngine.cpp
@@ -736,7 +736,9 @@
     return roundedRect;
 }
 
-static bool equalsWithinMargin(float expected, float value, float margin) {
+// Arbitrary default margin which should be close enough to zero.
+constexpr float kDefaultMargin = 0.0001f;
+static bool equalsWithinMargin(float expected, float value, float margin = kDefaultMargin) {
     LOG_ALWAYS_FATAL_IF(margin < 0.f, "Margin is negative!");
     return std::abs(expected - value) < margin;
 }
@@ -994,10 +996,13 @@
                 ? displayDimmingRatio
                 : (layer.whitePointNits / maxLayerWhitePoint) * displayDimmingRatio;
 
+        const bool dimInLinearSpace = display.dimmingStage !=
+                aidl::android::hardware::graphics::composer3::DimmingStage::GAMMA_OETF;
+
         const bool requiresLinearEffect = layer.colorTransform != mat4() ||
                 (mUseColorManagement &&
                  needsToneMapping(layer.sourceDataspace, display.outputDataspace)) ||
-                !equalsWithinMargin(1.f, layerDimmingRatio, 0.001f);
+                (dimInLinearSpace && !equalsWithinMargin(1.f, layerDimmingRatio));
 
         // quick abort from drawing the remaining portion of the layer
         if (layer.skipContentDraw ||
@@ -1103,7 +1108,9 @@
                                                   .undoPremultipliedAlpha = !item.isOpaque &&
                                                           item.usePremultipliedAlpha,
                                                   .requiresLinearEffect = requiresLinearEffect,
-                                                  .layerDimmingRatio = layerDimmingRatio}));
+                                                  .layerDimmingRatio = dimInLinearSpace
+                                                          ? layerDimmingRatio
+                                                          : 1.f}));
 
             // Turn on dithering when dimming beyond this threshold.
             static constexpr float kDimmingThreshold = 0.2f;
@@ -1170,7 +1177,20 @@
         // An A8 buffer will already have the proper color filter attached to
         // its paint, including the displayColorTransform as needed.
         if (!paint.getColorFilter()) {
-            paint.setColorFilter(displayColorTransform);
+            if (!dimInLinearSpace && !equalsWithinMargin(1.0, layerDimmingRatio)) {
+                // If we don't dim in linear space, then when we gamma correct the dimming ratio we
+                // can assume a gamma 2.2 transfer function.
+                static constexpr float kInverseGamma22 = 1.f / 2.2f;
+                const auto gammaCorrectedDimmingRatio =
+                        std::pow(layerDimmingRatio, kInverseGamma22);
+                const auto dimmingMatrix =
+                        mat4::scale(vec4(gammaCorrectedDimmingRatio, gammaCorrectedDimmingRatio,
+                                         gammaCorrectedDimmingRatio, 1.f));
+                paint.setColorFilter(SkColorFilters::Matrix(
+                        toSkColorMatrix(display.colorTransform * dimmingMatrix)));
+            } else {
+                paint.setColorFilter(displayColorTransform);
+            }
         }
 
         if (!roundRectClip.isEmpty()) {
diff --git a/libs/renderengine/tests/Android.bp b/libs/renderengine/tests/Android.bp
index d91af1e..e66fee1 100644
--- a/libs/renderengine/tests/Android.bp
+++ b/libs/renderengine/tests/Android.bp
@@ -47,6 +47,7 @@
     ],
 
     shared_libs: [
+        "android.hardware.graphics.composer3-V1-ndk",
         "libbase",
         "libcutils",
         "libEGL",
diff --git a/libs/renderengine/tests/RenderEngineTest.cpp b/libs/renderengine/tests/RenderEngineTest.cpp
index 38ae2fd..2493242 100644
--- a/libs/renderengine/tests/RenderEngineTest.cpp
+++ b/libs/renderengine/tests/RenderEngineTest.cpp
@@ -2405,15 +2405,18 @@
 
 TEST_P(RenderEngineTest, testDimming) {
     if (GetParam()->type() == renderengine::RenderEngine::RenderEngineType::GLES) {
-        return;
+        GTEST_SKIP();
     }
+
     initializeRenderEngine();
 
+    const ui::Dataspace dataspace = ui::Dataspace::V0_SRGB_LINEAR;
+
     const auto displayRect = Rect(3, 1);
     const renderengine::DisplaySettings display{
             .physicalDisplay = displayRect,
             .clip = displayRect,
-            .outputDataspace = ui::Dataspace::V0_SRGB_LINEAR,
+            .outputDataspace = dataspace,
             .targetLuminanceNits = 1000.f,
     };
 
@@ -2432,7 +2435,7 @@
                                     },
                     },
             .alpha = 1.0f,
-            .sourceDataspace = ui::Dataspace::V0_SRGB_LINEAR,
+            .sourceDataspace = dataspace,
             .whitePointNits = 200.f,
     };
 
@@ -2447,7 +2450,7 @@
                                     },
                     },
             .alpha = 1.0f,
-            .sourceDataspace = ui::Dataspace::V0_SRGB_LINEAR,
+            .sourceDataspace = dataspace,
             .whitePointNits = 1000.f / 51.f,
     };
 
@@ -2462,7 +2465,7 @@
                                     },
                     },
             .alpha = 1.0f,
-            .sourceDataspace = ui::Dataspace::V0_SRGB_LINEAR,
+            .sourceDataspace = dataspace,
             // When the white point is not set for a layer, just ignore it and treat it as the same
             // as the max layer
             .whitePointNits = -1.f,
@@ -2476,6 +2479,84 @@
     expectBufferColor(Rect(2, 0, 3, 1), 51, 0, 0, 255, 1);
 }
 
+TEST_P(RenderEngineTest, testDimming_inGammaSpace) {
+    if (GetParam()->type() == renderengine::RenderEngine::RenderEngineType::GLES) {
+        GTEST_SKIP();
+    }
+    initializeRenderEngine();
+
+    const ui::Dataspace dataspace = static_cast<ui::Dataspace>(ui::Dataspace::STANDARD_BT709 |
+                                                               ui::Dataspace::TRANSFER_GAMMA2_2 |
+                                                               ui::Dataspace::RANGE_FULL);
+
+    const auto displayRect = Rect(3, 1);
+    const renderengine::DisplaySettings display{
+            .physicalDisplay = displayRect,
+            .clip = displayRect,
+            .outputDataspace = dataspace,
+            .targetLuminanceNits = 1000.f,
+            .dimmingStage = aidl::android::hardware::graphics::composer3::DimmingStage::GAMMA_OETF,
+    };
+
+    const auto greenBuffer = allocateAndFillSourceBuffer(1, 1, ubyte4(0, 255, 0, 255));
+    const auto blueBuffer = allocateAndFillSourceBuffer(1, 1, ubyte4(0, 0, 255, 255));
+    const auto redBuffer = allocateAndFillSourceBuffer(1, 1, ubyte4(255, 0, 0, 255));
+
+    const renderengine::LayerSettings greenLayer{
+            .geometry.boundaries = FloatRect(0.f, 0.f, 1.f, 1.f),
+            .source =
+                    renderengine::PixelSource{
+                            .buffer =
+                                    renderengine::Buffer{
+                                            .buffer = greenBuffer,
+                                            .usePremultipliedAlpha = true,
+                                    },
+                    },
+            .alpha = 1.0f,
+            .sourceDataspace = dataspace,
+            .whitePointNits = 200.f,
+    };
+
+    const renderengine::LayerSettings blueLayer{
+            .geometry.boundaries = FloatRect(1.f, 0.f, 2.f, 1.f),
+            .source =
+                    renderengine::PixelSource{
+                            .buffer =
+                                    renderengine::Buffer{
+                                            .buffer = blueBuffer,
+                                            .usePremultipliedAlpha = true,
+                                    },
+                    },
+            .alpha = 1.0f,
+            .sourceDataspace = dataspace,
+            .whitePointNits = 1000.f / 51.f,
+    };
+
+    const renderengine::LayerSettings redLayer{
+            .geometry.boundaries = FloatRect(2.f, 0.f, 3.f, 1.f),
+            .source =
+                    renderengine::PixelSource{
+                            .buffer =
+                                    renderengine::Buffer{
+                                            .buffer = redBuffer,
+                                            .usePremultipliedAlpha = true,
+                                    },
+                    },
+            .alpha = 1.0f,
+            .sourceDataspace = dataspace,
+            // When the white point is not set for a layer, just ignore it and treat it as the same
+            // as the max layer
+            .whitePointNits = -1.f,
+    };
+
+    std::vector<renderengine::LayerSettings> layers{greenLayer, blueLayer, redLayer};
+    invokeDraw(display, layers);
+
+    expectBufferColor(Rect(1, 1), 0, 122, 0, 255, 1);
+    expectBufferColor(Rect(1, 0, 2, 1), 0, 0, 42, 255, 1);
+    expectBufferColor(Rect(2, 0, 3, 1), 122, 0, 0, 255, 1);
+}
+
 TEST_P(RenderEngineTest, testDimming_withoutTargetLuminance) {
     initializeRenderEngine();
     if (GetParam()->type() == renderengine::RenderEngine::RenderEngineType::GLES) {