diff --git a/drivers/gpu/drm/xe/xe_pt.c b/drivers/gpu/drm/xe/xe_pt.c
index 46cea37bdac5144a0f5db23b5a36e64b8a2fd0ce..7f54bc3e389d58f8023f3a1092aa47d3e852a16b 100644
--- a/drivers/gpu/drm/xe/xe_pt.c
+++ b/drivers/gpu/drm/xe/xe_pt.c
@@ -547,13 +547,16 @@ xe_pt_stage_bind_entry(struct xe_ptw *parent, pgoff_t offset,
 		*child = &xe_child->base;
 
 		/*
-		 * Prefer the compact pagetable layout for L0 if possible.
+		 * Prefer the compact pagetable layout for L0 if possible. Only
+		 * possible if VMA covers entire 2MB region as compact 64k and
+		 * 4k pages cannot be mixed within a 2MB region.
 		 * TODO: Suballocate the pt bo to avoid wasting a lot of
 		 * memory.
 		 */
 		if (GRAPHICS_VERx100(tile_to_xe(xe_walk->tile)) >= 1250 && level == 1 &&
 		    covers && xe_pt_scan_64K(addr, next, xe_walk)) {
 			walk->shifts = xe_compact_pt_shifts;
+			xe_walk->vma->gpuva.flags |= XE_VMA_PTE_COMPACT;
 			flags |= XE_PDE_64K;
 			xe_child->is_compact = true;
 		}
diff --git a/drivers/gpu/drm/xe/xe_vm.c b/drivers/gpu/drm/xe/xe_vm.c
index 7781290d2b99b13cc63c0564a96cdabacde1af5d..23a44ef85aa4bd92dbe24f2c99a8e54b8098797e 100644
--- a/drivers/gpu/drm/xe/xe_vm.c
+++ b/drivers/gpu/drm/xe/xe_vm.c
@@ -2190,7 +2190,7 @@ static u64 xe_vma_max_pte_size(struct xe_vma *vma)
 {
 	if (vma->gpuva.flags & XE_VMA_PTE_1G)
 		return SZ_1G;
-	else if (vma->gpuva.flags & XE_VMA_PTE_2M)
+	else if (vma->gpuva.flags & (XE_VMA_PTE_2M | XE_VMA_PTE_COMPACT))
 		return SZ_2M;
 	else if (vma->gpuva.flags & XE_VMA_PTE_64K)
 		return SZ_64K;
diff --git a/drivers/gpu/drm/xe/xe_vm_types.h b/drivers/gpu/drm/xe/xe_vm_types.h
index 91800ce7084500f2cf9c96ef3b2bb1371698b57e..a603cc2eb56b3f574f3e76612c10bb6e42fbedb9 100644
--- a/drivers/gpu/drm/xe/xe_vm_types.h
+++ b/drivers/gpu/drm/xe/xe_vm_types.h
@@ -30,6 +30,7 @@ struct xe_vm;
 #define XE_VMA_PTE_2M		(DRM_GPUVA_USERBITS << 6)
 #define XE_VMA_PTE_1G		(DRM_GPUVA_USERBITS << 7)
 #define XE_VMA_PTE_64K		(DRM_GPUVA_USERBITS << 8)
+#define XE_VMA_PTE_COMPACT	(DRM_GPUVA_USERBITS << 9)
 
 /** struct xe_userptr - User pointer */
 struct xe_userptr {