diff --git a/libhwcomposer/hwc_utils.cpp b/libhwcomposer/hwc_utils.cpp
index ce2da87..92edb21 100644
--- a/libhwcomposer/hwc_utils.cpp
+++ b/libhwcomposer/hwc_utils.cpp
@@ -962,8 +962,14 @@
 bool isActionSafePresent(hwc_context_t *ctx, int dpy) {
     // if external supports underscan, do nothing
     // it will be taken care in the driver
-    if(!dpy || ctx->mExtDisplay->isCEUnderscanSupported())
+    // Disable Action safe for 8974 due to HW limitation for downscaling
+    // layers with overlapped region
+    // Disable Actionsafe for non HDMI displays.
+    if(!(dpy == HWC_DISPLAY_EXTERNAL) ||
+        qdutils::MDPVersion::getInstance().is8x74v2() ||
+        ctx->mExtDisplay->isCEUnderscanSupported()) {
         return false;
+    }
 
     char value[PROPERTY_VALUE_MAX];
     // Read action safe properties
@@ -1696,6 +1702,10 @@
             whf.format = getMdpFormat(HAL_PIXEL_FORMAT_BGRX_8888);
     }
 
+    /* Calculate the external display position based on MDP downscale,
+       ActionSafe, and extorientation features. */
+    calcExtDisplayPosition(ctx, hnd, dpy, crop, dst, transform, orient);
+
     setMdpFlags(layer, mdpFlagsL, 0, transform);
 
     if(lDest != OV_INVALID && rDest != OV_INVALID) {