diff --git a/msm8960/libhwcomposer/hwc_mdpcomp.cpp b/msm8960/libhwcomposer/hwc_mdpcomp.cpp
index 24b941f..744fc09 100644
--- a/msm8960/libhwcomposer/hwc_mdpcomp.cpp
+++ b/msm8960/libhwcomposer/hwc_mdpcomp.cpp
@@ -358,10 +358,6 @@
     } else if(ctx->mVideoTransFlag) {
         ALOGD_IF(isDebug(), "%s: MDP Comp. video transition padding round",
                 __FUNCTION__);
-    } else if(numAppLayers > MAX_NUM_APP_LAYERS) {
-        ALOGD_IF(isDebug(), "%s: Number of App layers exceeded the limit ",
-                 __FUNCTION__);
-        ret = false;
     }
     return ret;
 }
@@ -733,10 +729,19 @@
 
 int MDPComp::prepare(hwc_context_t *ctx, hwc_display_contents_1_t* list) {
 
-    //reset old data
     const int numLayers = ctx->listStats[mDpy].numAppLayers;
+
+    //reset old data
     mCurrentFrame.reset(numLayers);
 
+    //number of app layers exceeds MAX_NUM_APP_LAYERS fall back to GPU
+    //do not cache the information for next draw cycle.
+    if(numLayers > MAX_NUM_APP_LAYERS) {
+        ALOGD_IF(isDebug(), "%s: Number of App layers exceeded the limit ",
+                 __FUNCTION__);
+        return 0;
+    }
+
     //Hard conditions, if not met, cannot do MDP comp
     if(!isFrameDoable(ctx)) {
         ALOGD_IF( isDebug(),"%s: MDP Comp not possible for this frame",