diff --git a/hal/audio_extn/audio_extn.c b/hal/audio_extn/audio_extn.c
index c6a8e68..245f5ca 100644
--- a/hal/audio_extn/audio_extn.c
+++ b/hal/audio_extn/audio_extn.c
@@ -174,7 +174,7 @@
 #endif /* ANC_HEADSET_ENABLED */
 
 #ifndef AFE_PROXY_ENABLED
-#define audio_extn_set_afe_proxy_parameters(parms)        (0)
+#define audio_extn_set_afe_proxy_parameters(adev, parms)  (0)
 #define audio_extn_get_afe_proxy_parameters(query, reply) (0)
 #else
 /* Front left channel. */
@@ -290,7 +290,8 @@
     return ret;
 }
 
-void audio_extn_set_afe_proxy_parameters(struct str_parms *parms)
+void audio_extn_set_afe_proxy_parameters(struct audio_device *adev,
+                                         struct str_parms *parms)
 {
     int ret, val;
     char value[32]={0};
@@ -300,6 +301,7 @@
     if (ret >= 0) {
         val = atoi(value);
         aextnmod.proxy_channel_num = val;
+        adev->cur_wfd_channels = val;
         ALOGD("%s: channel capability set to: %d", __func__,
                aextnmod.proxy_channel_num);
     }
@@ -358,7 +360,7 @@
                                struct str_parms *parms)
 {
    audio_extn_set_anc_parameters(adev, parms);
-   audio_extn_set_afe_proxy_parameters(parms);
+   audio_extn_set_afe_proxy_parameters(adev, parms);
    audio_extn_fm_set_parameters(adev, parms);
    audio_extn_listen_set_parameters(adev, parms);
    audio_extn_hfp_set_parameters(adev, parms);
diff --git a/hal/audio_extn/dolby.c b/hal/audio_extn/dolby.c
index 094f077..99fa2b7 100644
--- a/hal/audio_extn/dolby.c
+++ b/hal/audio_extn/dolby.c
@@ -64,7 +64,7 @@
 
 /* DS1-DDP Endp Params */
 #define DDP_ENDP_NUM_PARAMS 17
-#define DDP_ENDP_NUM_DEVICES 22
+#define DDP_ENDP_NUM_DEVICES 23
 static int ddp_endp_params_id[DDP_ENDP_NUM_PARAMS] = {
     PARAM_ID_MAX_OUTPUT_CHANNELS, PARAM_ID_CTL_RUNNING_MODE,
     PARAM_ID_CTL_ERROR_CONCEAL, PARAM_ID_CTL_ERROR_MAX_RPTS,
@@ -147,7 +147,10 @@
               {8, 0, 0, 0, 0, 0, 0, 21, 1, 6, 0, 0, 0, 0, 0, 0, 0},
               {1, 0, 0, 0, 0, 0, 0, 1, 1, 1, 1, 0, 0, 0, 0, 0, 0} },
           {AUDIO_DEVICE_OUT_PROXY, 2,
-              {8, 0, 0, 0, 0, 0, 0, 21, 1, 6, 0, 0, 0, 0, 0, 0, 0},
+              {8, 0, 0, 0, 0, 0, 0, 21, 1, 2, 0, 0, 0, 0, 0, 0, 0},
+              {1, 0, 0, 0, 0, 0, 0, 1, 1, 1, 1, 0, 0, 0, 0, 0, 0} },
+          {AUDIO_DEVICE_OUT_PROXY, 6,
+              {8, 0, 0, 0, 0, 0, 0, 21, 1, 2, 0, 0, 0, 0, 0, 0, 0},
               {1, 0, 0, 0, 0, 0, 0, 1, 1, 1, 1, 0, 0, 0, 0, 0, 0} },
 };
 
@@ -264,9 +267,16 @@
             (usecase->stream.out->flags & AUDIO_OUTPUT_FLAG_COMPRESS_OFFLOAD) &&
             ((usecase->stream.out->format == AUDIO_FORMAT_AC3) ||
              (usecase->stream.out->format == AUDIO_FORMAT_EAC3))) {
+            /*
+             * Use wfd /hdmi sink channel cap for dolby params if device is wfd
+             * or hdmi. Otherwise use stereo configuration
+             */
+            int channel_cap = usecase->devices & AUDIO_DEVICE_OUT_AUX_DIGITAL ?
+                              adev->cur_hdmi_channels :
+                              usecase->devices & AUDIO_DEVICE_OUT_PROXY ?
+                              adev->cur_wfd_channels : 2;
             send_ddp_endp_params_stream(usecase->stream.out, usecase->devices,
-                           usecase->devices & AUDIO_DEVICE_OUT_AUX_DIGITAL ?
-                           adev->cur_hdmi_channels : 2, false /* set cache */);
+                                        channel_cap, false /* set cache */);
         }
     }
 }
@@ -334,7 +344,9 @@
         update_ddp_endp_table(ddp_dev, dev_ch_cap,
                               PARAM_ID_OUT_CTL_STEREO_MODE, val);
     }
-
+    /* TODO: Do we need device channel caps here?
+     * We dont have that information as this is from dolby modules
+     */
     send_ddp_endp_params(adev, ddp_dev, dev_ch_cap);
 }
 
@@ -343,13 +355,20 @@
                                       audio_format_t format)
 {
     int id = 0;
+    /*
+     * Use wfd /hdmi sink channel cap for dolby params if device is wfd
+     * or hdmi. Otherwise use stereo configuration
+     */
+    int channel_cap = out->devices & AUDIO_DEVICE_OUT_AUX_DIGITAL ?
+                      adev->cur_hdmi_channels :
+                      out->devices & AUDIO_DEVICE_OUT_PROXY ?
+                      adev->cur_wfd_channels : 2;
 
     switch (format) {
     case AUDIO_FORMAT_AC3:
         id = SND_AUDIOCODEC_AC3;
         send_ddp_endp_params_stream(out, out->devices,
-                            out->devices & AUDIO_DEVICE_OUT_AUX_DIGITAL ?
-                            adev->cur_hdmi_channels : 2, true /* set_cache */);
+                            channel_cap, true /* set_cache */);
 #ifndef DS1_DOLBY_DAP_ENABLED
         audio_extn_dolby_set_dmid(adev);
 #endif
@@ -357,8 +376,7 @@
     case AUDIO_FORMAT_EAC3:
         id = SND_AUDIOCODEC_EAC3;
         send_ddp_endp_params_stream(out, out->devices,
-                            out->devices & AUDIO_DEVICE_OUT_AUX_DIGITAL ?
-                            adev->cur_hdmi_channels : 2, true /* set_cache */);
+                            channel_cap, true /* set_cache */);
 #ifndef DS1_DOLBY_DAP_ENABLED
         audio_extn_dolby_set_dmid(adev);
 #endif
diff --git a/hal/audio_hw.c b/hal/audio_hw.c
index b26fd1b..3bb9098 100644
--- a/hal/audio_hw.c
+++ b/hal/audio_hw.c
@@ -2695,6 +2695,7 @@
     adev->snd_dev_ref_cnt = calloc(SND_DEVICE_MAX, sizeof(int));
     voice_init(adev);
     list_init(&adev->usecase_list);
+    adev->cur_wfd_channels = 2;
 
     /* Loads platform specific libraries dynamically */
     adev->platform = platform_init(adev);
diff --git a/hal/audio_hw.h b/hal/audio_hw.h
index 205977b..21b7790 100644
--- a/hal/audio_hw.h
+++ b/hal/audio_hw.h
@@ -223,6 +223,7 @@
     bool speaker_lr_swap;
     struct voice voice;
     unsigned int cur_hdmi_channels;
+    unsigned int cur_wfd_channels;
 
     int snd_card;
     void *platform;