diff --git a/drivers/gpu/drm/amd/display/dc/Makefile b/drivers/gpu/drm/amd/display/dc/Makefile
index bbde6e6a4e43..f33847299bca 100644
--- a/drivers/gpu/drm/amd/display/dc/Makefile
+++ b/drivers/gpu/drm/amd/display/dc/Makefile
@@ -54,8 +54,9 @@ AMD_DC = $(addsuffix /Makefile, $(addprefix $(FULL_AMD_DISPLAY_PATH)/dc/,$(DC_LI
 
 include $(AMD_DC)
 
-DISPLAY_CORE = dc.o dc_stat.o dc_link.o dc_resource.o dc_hw_sequencer.o dc_sink.o \
-dc_surface.o dc_link_hwss.o dc_link_dp.o dc_link_ddc.o dc_debug.o dc_stream.o
+DISPLAY_CORE = dc.o dc_link.o dc_resource.o dc_hw_sequencer.o dc_sink.o \
+dc_surface.o dc_link_hwss.o dc_link_dp.o dc_link_ddc.o dc_debug.o dc_stream.o \
+dc_link_enc_cfg.o
 
 ifdef CONFIG_DRM_AMD_DC_DCN
 DISPLAY_CORE += dc_vm_helper.o
diff --git a/drivers/gpu/drm/amd/display/dc/core/dc.c b/drivers/gpu/drm/amd/display/dc/core/dc.c
index d55c1dd6464c..12cb95c5a1f9 100644
--- a/drivers/gpu/drm/amd/display/dc/core/dc.c
+++ b/drivers/gpu/drm/amd/display/dc/core/dc.c
@@ -52,6 +52,7 @@
 
 #include "link_hwss.h"
 #include "link_encoder.h"
+#include "link_enc_cfg.h"
 
 #include "dc_link_ddc.h"
 #include "dm_helpers.h"
@@ -870,6 +871,9 @@ static bool dc_construct(struct dc *dc,
 	if (!create_links(dc, init_params->num_virtual_links))
 		goto fail;
 
+	/* Initialise DIG link encoder resource tracking variables. */
+	link_enc_cfg_init(dc, dc->current_state);
+
 	return true;
 
 fail:
diff --git a/drivers/gpu/drm/amd/display/dc/core/dc_link.c b/drivers/gpu/drm/amd/display/dc/core/dc_link.c
index 2cfb53387c55..719fc6b502b6 100644
--- a/drivers/gpu/drm/amd/display/dc/core/dc_link.c
+++ b/drivers/gpu/drm/amd/display/dc/core/dc_link.c
@@ -92,11 +92,14 @@ static void dc_link_destruct(struct dc_link *link)
 		link->panel_cntl->funcs->destroy(&link->panel_cntl);
 
 	if (link->link_enc) {
-		/* Update link encoder tracking variables. These are used for the dynamic
-		 * assignment of link encoders to streams.
+		/* Update link encoder resource tracking variables. These are used for
+		 * the dynamic assignment of link encoders to streams. Virtual links
+		 * are not assigned encoder resources on creation.
 		 */
-		link->dc->res_pool->link_encoders[link->link_enc->preferred_engine] = NULL;
-		link->dc->res_pool->dig_link_enc_count--;
+		if (link->link_id.id != CONNECTOR_ID_VIRTUAL) {
+			link->dc->res_pool->link_encoders[link->eng_id - ENGINE_ID_DIGA] = NULL;
+			link->dc->res_pool->dig_link_enc_count--;
+		}
 		link->link_enc->funcs->destroy(&link->link_enc);
 	}
 
@@ -1409,6 +1412,8 @@ static bool dc_link_construct(struct dc_link *link,
 	link->link_id =
 		bios->funcs->get_connector_id(bios, init_params->connector_index);
 
+	link->ep_type = DISPLAY_ENDPOINT_PHY;
+
 	DC_LOG_DC("BIOS object table - link_id: %d", link->link_id.id);
 
 	if (bios->funcs->get_disp_connector_caps_info) {
@@ -1547,7 +1552,8 @@ static bool dc_link_construct(struct dc_link *link,
 	/* Update link encoder tracking variables. These are used for the dynamic
 	 * assignment of link encoders to streams.
 	 */
-	link->dc->res_pool->link_encoders[link->link_enc->preferred_engine] = link->link_enc;
+	link->eng_id = link->link_enc->preferred_engine;
+	link->dc->res_pool->link_encoders[link->eng_id - ENGINE_ID_DIGA] = link->link_enc;
 	link->dc->res_pool->dig_link_enc_count++;
 
 	link->link_enc_hw_inst = link->link_enc->transmitter;
diff --git a/drivers/gpu/drm/amd/display/dc/core/dc_link_enc_cfg.c b/drivers/gpu/drm/amd/display/dc/core/dc_link_enc_cfg.c
new file mode 100644
index 000000000000..c2bf9e5d9675
--- /dev/null
+++ b/drivers/gpu/drm/amd/display/dc/core/dc_link_enc_cfg.c
@@ -0,0 +1,204 @@
+/*
+ * Copyright 2021 Advanced Micro Devices, Inc.
+ *
+ * Permission is hereby granted, free of charge, to any person obtaining a
+ * copy of this software and associated documentation files (the "Software"),
+ * to deal in the Software without restriction, including without limitation
+ * the rights to use, copy, modify, merge, publish, distribute, sublicense,
+ * and/or sell copies of the Software, and to permit persons to whom the
+ * Software is furnished to do so, subject to the following conditions:
+ *
+ * The above copyright notice and this permission notice shall be included in
+ * all copies or substantial portions of the Software.
+ *
+ * THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+ * IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+ * FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.  IN NO EVENT SHALL
+ * THE COPYRIGHT HOLDER(S) OR AUTHOR(S) BE LIABLE FOR ANY CLAIM, DAMAGES OR
+ * OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE,
+ * ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR
+ * OTHER DEALINGS IN THE SOFTWARE.
+ *
+ * Authors: AMD
+ *
+ */
+
+#include "link_enc_cfg.h"
+#include "resource.h"
+#include "dc_link_dp.h"
+
+/* Check whether stream is supported by DIG link encoders. */
+static bool is_dig_link_enc_stream(struct dc_stream_state *stream)
+{
+	bool is_dig_stream = false;
+	struct link_encoder *link_enc = NULL;
+	int i;
+
+	/* Loop over created link encoder objects. */
+	for (i = 0; i < stream->ctx->dc->res_pool->res_cap->num_dig_link_enc; i++) {
+		link_enc = stream->ctx->dc->res_pool->link_encoders[i];
+
+		if (link_enc &&
+				((uint32_t)stream->signal & link_enc->output_signals)) {
+			if (dc_is_dp_signal(stream->signal)) {
+				/* DIGs do not support DP2.0 streams with 128b/132b encoding. */
+				struct dc_link_settings link_settings = {0};
+
+				decide_link_settings(stream, &link_settings);
+				if ((link_settings.link_rate >= LINK_RATE_LOW) &&
+						link_settings.link_rate <= LINK_RATE_HIGH3) {
+					is_dig_stream = true;
+					break;
+				}
+			} else {
+				is_dig_stream = true;
+				break;
+			}
+		}
+	}
+
+	return is_dig_stream;
+}
+
+/* Update DIG link encoder resource tracking variables in dc_state. */
+static void update_link_enc_assignment(
+		struct dc_state *state,
+		struct dc_stream_state *stream,
+		enum engine_id eng_id,
+		bool add_enc)
+{
+	int eng_idx;
+	int stream_idx;
+	int i;
+
+	if (eng_id != ENGINE_ID_UNKNOWN) {
+		eng_idx = eng_id - ENGINE_ID_DIGA;
+		stream_idx = -1;
+
+		/* Index of stream in dc_state used to update correct entry in
+		 * link_enc_assignments table.
+		 */
+		for (i = 0; i < state->stream_count; i++) {
+			if (stream == state->streams[i]) {
+				stream_idx = i;
+				break;
+			}
+		}
+
+		/* Update link encoder assignments table, link encoder availability
+		 * pool and link encoder assigned to stream in state.
+		 * Add/remove encoder resource to/from stream.
+		 */
+		if (stream_idx != -1) {
+			if (add_enc) {
+				state->res_ctx.link_enc_assignments[stream_idx] = (struct link_enc_assignment){
+					.valid = true,
+					.ep_id = (struct display_endpoint_id) {
+						.link_id = stream->link->link_id,
+						.ep_type = stream->link->ep_type},
+					.eng_id = eng_id};
+				state->res_ctx.link_enc_avail[eng_idx] = ENGINE_ID_UNKNOWN;
+				stream->link_enc = stream->ctx->dc->res_pool->link_encoders[eng_idx];
+			} else {
+				state->res_ctx.link_enc_assignments[stream_idx].valid = false;
+				state->res_ctx.link_enc_avail[eng_idx] = eng_id;
+				stream->link_enc = NULL;
+			}
+		} else {
+			dm_output_to_console("%s: Stream not found in dc_state.\n", __func__);
+		}
+	}
+}
+
+/* Return first available DIG link encoder. */
+static enum engine_id find_first_avail_link_enc(
+		struct dc_context *ctx,
+		struct dc_state *state)
+{
+	enum engine_id eng_id = ENGINE_ID_UNKNOWN;
+	int i;
+
+	for (i = 0; i < ctx->dc->res_pool->res_cap->num_dig_link_enc; i++) {
+		eng_id = state->res_ctx.link_enc_avail[i];
+		if (eng_id != ENGINE_ID_UNKNOWN)
+			break;
+	}
+
+	return eng_id;
+}
+
+void link_enc_cfg_init(
+		struct dc *dc,
+		struct dc_state *state)
+{
+	int i;
+
+	for (i = 0; i < dc->res_pool->res_cap->num_dig_link_enc; i++) {
+		if (dc->res_pool->link_encoders[i])
+			state->res_ctx.link_enc_avail[i] = (enum engine_id) i;
+		else
+			state->res_ctx.link_enc_avail[i] = ENGINE_ID_UNKNOWN;
+	}
+}
+
+void link_enc_cfg_link_encs_assign(
+		struct dc *dc,
+		struct dc_state *state,
+		struct dc_stream_state *streams[],
+		uint8_t stream_count)
+{
+	enum engine_id eng_id = ENGINE_ID_UNKNOWN;
+	int i;
+
+	/* Release DIG link encoder resources before running assignment algorithm. */
+	for (i = 0; i < stream_count; i++)
+		dc->res_pool->funcs->link_enc_unassign(state, streams[i]);
+
+	/* (a) Assign DIG link encoders to physical (unmappable) endpoints first. */
+	for (i = 0; i < stream_count; i++) {
+		struct dc_stream_state *stream = streams[i];
+
+		/* Skip stream if not supported by DIG link encoder. */
+		if (!is_dig_link_enc_stream(stream))
+			continue;
+
+		/* Physical endpoints have a fixed mapping to DIG link encoders. */
+		if (!stream->link->is_dig_mapping_flexible) {
+			eng_id = stream->link->eng_id;
+			update_link_enc_assignment(state, stream, eng_id, true);
+		}
+	}
+
+	/* (b) Then assign encoders to mappable endpoints. */
+	eng_id = ENGINE_ID_UNKNOWN;
+
+	for (i = 0; i < stream_count; i++) {
+		struct dc_stream_state *stream = streams[i];
+
+		/* Skip stream if not supported by DIG link encoder. */
+		if (!is_dig_link_enc_stream(stream))
+			continue;
+
+		/* Mappable endpoints have a flexible mapping to DIG link encoders. */
+		if (stream->link->is_dig_mapping_flexible) {
+			eng_id = find_first_avail_link_enc(stream->ctx, state);
+			update_link_enc_assignment(state, stream, eng_id, true);
+		}
+	}
+}
+
+void link_enc_cfg_link_enc_unassign(
+		struct dc_state *state,
+		struct dc_stream_state *stream)
+{
+	enum engine_id eng_id = ENGINE_ID_UNKNOWN;
+
+	/* Only DIG link encoders. */
+	if (!is_dig_link_enc_stream(stream))
+		return;
+
+	if (stream->link_enc)
+		eng_id = stream->link_enc->preferred_engine;
+
+	update_link_enc_assignment(state, stream, eng_id, false);
+}
diff --git a/drivers/gpu/drm/amd/display/dc/core/dc_resource.c b/drivers/gpu/drm/amd/display/dc/core/dc_resource.c
index 3c91d16c2710..ac7a75887f95 100644
--- a/drivers/gpu/drm/amd/display/dc/core/dc_resource.c
+++ b/drivers/gpu/drm/amd/display/dc/core/dc_resource.c
@@ -1930,6 +1930,9 @@ enum dc_status dc_remove_stream_from_ctx(
 				dc->res_pool,
 			del_pipe->stream_res.stream_enc,
 			false);
+	/* Release link encoder from stream in new dc_state. */
+	if (dc->res_pool->funcs->link_enc_unassign)
+		dc->res_pool->funcs->link_enc_unassign(new_ctx, del_pipe->stream);
 
 	if (del_pipe->stream_res.audio)
 		update_audio_usage(
@@ -2842,6 +2845,10 @@ bool pipe_need_reprogram(
 	if (pipe_ctx_old->stream_res.dsc != pipe_ctx->stream_res.dsc)
 		return true;
 
+	/* DIG link encoder resource assignment for stream changed. */
+	if (pipe_ctx_old->stream->link_enc != pipe_ctx->stream->link_enc)
+		return true;
+
 	return false;
 }
 
diff --git a/drivers/gpu/drm/amd/display/dc/dc_link.h b/drivers/gpu/drm/amd/display/dc/dc_link.h
index 7b927e634279..b0013e674864 100644
--- a/drivers/gpu/drm/amd/display/dc/dc_link.h
+++ b/drivers/gpu/drm/amd/display/dc/dc_link.h
@@ -132,6 +132,11 @@ struct dc_link {
 	uint8_t hpd_src;
 
 	uint8_t link_enc_hw_inst;
+	/* DIG link encoder ID. Used as index in link encoder resource pool.
+	 * For links with fixed mapping to DIG, this is not changed after dc_link
+	 * object creation.
+	 */
+	enum engine_id eng_id;
 
 	bool test_pattern_enabled;
 	union compliance_test_state compliance_test_state;
@@ -151,6 +156,11 @@ struct dc_link {
 	struct panel_cntl *panel_cntl;
 	struct link_encoder *link_enc;
 	struct graphics_object_id link_id;
+	/* Endpoint type distinguishes display endpoints which do not have entries
+	 * in the BIOS connector table from those that do. Helps when tracking link
+	 * encoder to display endpoint assignments.
+	 */
+	enum display_endpoint_type ep_type;
 	union ddi_channel_mapping ddi_channel_mapping;
 	struct connector_device_tag_info device_tag;
 	struct dpcd_caps dpcd_caps;
diff --git a/drivers/gpu/drm/amd/display/dc/dc_stream.h b/drivers/gpu/drm/amd/display/dc/dc_stream.h
index e747370fc43b..2bc057e0b447 100644
--- a/drivers/gpu/drm/amd/display/dc/dc_stream.h
+++ b/drivers/gpu/drm/amd/display/dc/dc_stream.h
@@ -136,6 +136,10 @@ struct dc_stream_state {
 	struct dc_sink *sink;
 
 	struct dc_link *link;
+	/* For dynamic link encoder assignment, update the link encoder assigned to
+	 * a stream via the volatile dc_state rather than the static dc_link.
+	 */
+	struct link_encoder *link_enc;
 	struct dc_panel_patch sink_patches;
 	union display_content_support content_support;
 	struct dc_crtc_timing timing;
diff --git a/drivers/gpu/drm/amd/display/dc/dc_types.h b/drivers/gpu/drm/amd/display/dc/dc_types.h
index 80757a0ea7c6..b5e875ee9027 100644
--- a/drivers/gpu/drm/amd/display/dc/dc_types.h
+++ b/drivers/gpu/drm/amd/display/dc/dc_types.h
@@ -934,4 +934,19 @@ enum dc_psr_version {
 	DC_PSR_VERSION_UNSUPPORTED		= 0xFFFFFFFF,
 };
 
+/* Possible values of display_endpoint_id.endpoint */
+enum display_endpoint_type {
+	DISPLAY_ENDPOINT_PHY = 0, /* Physical connector. */
+	DISPLAY_ENDPOINT_UNKNOWN = -1
+};
+
+/* Extends graphics_object_id with an additional member 'ep_type' for
+ * distinguishing between physical endpoints (with entries in BIOS connector table) and
+ * logical endpoints.
+ */
+struct display_endpoint_id {
+	struct graphics_object_id link_id;
+	enum display_endpoint_type ep_type;
+};
+
 #endif /* DC_TYPES_H_ */
diff --git a/drivers/gpu/drm/amd/display/dc/inc/core_types.h b/drivers/gpu/drm/amd/display/dc/inc/core_types.h
index eb1a19bf0d81..81b92f20d5b6 100644
--- a/drivers/gpu/drm/amd/display/dc/inc/core_types.h
+++ b/drivers/gpu/drm/amd/display/dc/inc/core_types.h
@@ -118,6 +118,27 @@ struct resource_funcs {
 		display_e2e_pipe_params_st *pipes,
 		bool fast_validate);
 
+	/*
+	 * Algorithm for assigning available link encoders to links.
+	 *
+	 * Update link_enc_assignments table and link_enc_avail list accordingly in
+	 * struct resource_context.
+	 */
+	void (*link_encs_assign)(
+			struct dc *dc,
+			struct dc_state *state,
+			struct dc_stream_state *streams[],
+			uint8_t stream_count);
+	/*
+	 * Unassign a link encoder from a stream.
+	 *
+	 * Update link_enc_assignments table and link_enc_avail list accordingly in
+	 * struct resource_context.
+	 */
+	void (*link_enc_unassign)(
+			struct dc_state *state,
+			struct dc_stream_state *stream);
+
 	enum dc_status (*validate_global)(
 		struct dc *dc,
 		struct dc_state *context);
@@ -358,6 +379,12 @@ struct resource_context {
 	uint8_t clock_source_ref_count[MAX_CLOCK_SOURCES];
 	uint8_t dp_clock_source_ref_count;
 	bool is_dsc_acquired[MAX_PIPES];
+	/* A table/array of encoder-to-link assignments. One entry per stream.
+	 * Indexed by stream index in dc_state.
+	 */
+	struct link_enc_assignment link_enc_assignments[MAX_PIPES];
+	/* List of available link encoders. Uses engine ID as encoder identifier. */
+	enum engine_id link_enc_avail[MAX_DIG_LINK_ENCODERS];
 #if defined(CONFIG_DRM_AMD_DC_DCN)
 	bool is_mpc_3dlut_acquired[MAX_PIPES];
 #endif
diff --git a/drivers/gpu/drm/amd/display/dc/inc/hw/link_encoder.h b/drivers/gpu/drm/amd/display/dc/inc/hw/link_encoder.h
index 7f5acd8fb918..80bc99500645 100644
--- a/drivers/gpu/drm/amd/display/dc/inc/hw/link_encoder.h
+++ b/drivers/gpu/drm/amd/display/dc/inc/hw/link_encoder.h
@@ -187,4 +187,17 @@ struct link_encoder_funcs {
 		struct link_encoder *enc);
 };
 
+/*
+ * Used to track assignments of links (display endpoints) to link encoders.
+ *
+ * Entry in link_enc_assignments table in struct resource_context.
+ * Entries only marked valid once encoder assigned to a link and invalidated once unassigned.
+ * Uses engine ID as identifier since PHY ID not relevant for USB4 DPIA endpoint.
+ */
+struct link_enc_assignment {
+	bool valid;
+	struct display_endpoint_id ep_id;
+	enum engine_id eng_id;
+};
+
 #endif /* LINK_ENCODER_H_ */
diff --git a/drivers/gpu/drm/amd/display/dc/inc/link_enc_cfg.h b/drivers/gpu/drm/amd/display/dc/inc/link_enc_cfg.h
new file mode 100644
index 000000000000..ad641632eadd
--- /dev/null
+++ b/drivers/gpu/drm/amd/display/dc/inc/link_enc_cfg.h
@@ -0,0 +1,68 @@
+/*
+ * Copyright 2021 Advanced Micro Devices, Inc.
+ *
+ * Permission is hereby granted, free of charge, to any person obtaining a
+ * copy of this software and associated documentation files (the "Software"),
+ * to deal in the Software without restriction, including without limitation
+ * the rights to use, copy, modify, merge, publish, distribute, sublicense,
+ * and/or sell copies of the Software, and to permit persons to whom the
+ * Software is furnished to do so, subject to the following conditions:
+ *
+ * The above copyright notice and this permission notice shall be included in
+ * all copies or substantial portions of the Software.
+ *
+ * THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+ * IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+ * FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.  IN NO EVENT SHALL
+ * THE COPYRIGHT HOLDER(S) OR AUTHOR(S) BE LIABLE FOR ANY CLAIM, DAMAGES OR
+ * OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE,
+ * ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR
+ * OTHER DEALINGS IN THE SOFTWARE.
+ *
+ * Authors: AMD
+ *
+ */
+
+#ifndef DC_INC_LINK_ENC_CFG_H_
+#define DC_INC_LINK_ENC_CFG_H_
+
+/* This module implements functionality for dynamically assigning DIG link
+ * encoder resources to display endpoints (links).
+ */
+
+#include "core_types.h"
+
+/*
+ * Initialise link encoder resource tracking.
+ */
+void link_enc_cfg_init(
+		struct dc *dc,
+		struct dc_state *state);
+
+/*
+ * Algorithm for assigning available DIG link encoders to streams.
+ *
+ * Update link_enc_assignments table and link_enc_avail list accordingly in
+ * struct resource_context.
+ *
+ * Loop over all streams twice:
+ * a) First assign encoders to unmappable endpoints.
+ * b) Then assign encoders to mappable endpoints.
+ */
+void link_enc_cfg_link_encs_assign(
+		struct dc *dc,
+		struct dc_state *state,
+		struct dc_stream_state *streams[],
+		uint8_t stream_count);
+
+/*
+ * Unassign a link encoder from a stream.
+ *
+ * Update link_enc_assignments table and link_enc_avail list accordingly in
+ * struct resource_context.
+ */
+void link_enc_cfg_link_enc_unassign(
+		struct dc_state *state,
+		struct dc_stream_state *stream);
+
+#endif /* DC_INC_LINK_ENC_CFG_H_ */