diff --git a/lib_com/ivas_prot.h b/lib_com/ivas_prot.h
index 67c6a4b6844880cd3d2abaa632170b27fa97ff3f..987455ea7ca8444e81ae82064a047c17a7c50d77 100755
--- a/lib_com/ivas_prot.h
+++ b/lib_com/ivas_prot.h
@@ -5592,7 +5592,9 @@ void ivas_osba_stereo_add_channels(
     const float gain,                                           /* i  : gain bed value                          */
     const int16_t nchan_out,                                    /* i  : number of output channels               */
     const int16_t nchan_ism,                                    /* i  : number of ISM channels                  */
+#ifndef NONBE_FIX_1262_OSBA_STEREO
     const int16_t ism_mode,                                     /* i  : ISM mode                                */
+#endif
     const int16_t n_samples_to_render                           /* i  : output frame length per channel         */
 );
 
diff --git a/lib_com/options.h b/lib_com/options.h
index 716dc78ddb90255a300ee47aa413761c25f9c108..754937c540e986ed56ce1dad969e20055463b056 100644
--- a/lib_com/options.h
+++ b/lib_com/options.h
@@ -172,6 +172,7 @@
 #define NONBE_1217_OBJ_EDIT_FOA                         /* VA/Nokia: isse 1217: fix crash in object editing to FOA output in ParamISM */
 #define NONBE_1215_FIX_JBM_MAX_SCALING                  /* FhG: issue 1215: Fix assert hit in a specific VoIP decoder config. Caused by integer overflow in max scaling calculation. */
 #define NONBE_FIX_1255_OBJ_EDIT_JBM                     /* VA: issue 1255: restore object editing in JBM */
+#define NONBE_FIX_1262_OSBA_STEREO                      /* FhG: issue 1262: Fix missing scaling factor for OSBA stereo output */
 #define NONBE_FIX_1189_GSC_IVAS_OMASA                   /* VA: Fix for issue 1189: Bitstream desynchornization due to reading/writing of the GSC_IVAS_mode parameter */
 #define NONBE_1214_PLC_LSF_MEMORY                       /* VA: issue 1224: reset ACELP PLC FEC memory in case of switching from MDCT stereo to TD/DFT stereo */
 #define NONBE_FIX_1261_MASA_EXT_META_JBM                /* Nokia: issue #1261: MASA metadata EXT output delay buffer init in JBM */
diff --git a/lib_dec/ivas_jbm_dec.c b/lib_dec/ivas_jbm_dec.c
index 3fd629a6853fa337568ac029270ecfbf079e496c..f986791d97e364b9dff1d0617969955379aae0df 100644
--- a/lib_dec/ivas_jbm_dec.c
+++ b/lib_dec/ivas_jbm_dec.c
@@ -1096,7 +1096,11 @@ ivas_error ivas_jbm_dec_render(
                 ivas_ism_render_sf( st_ivas, st_ivas->renderer_type, p_output, *nSamplesRendered );
 
                 /* add already rendered SBA part */
+#ifdef NONBE_FIX_1262_OSBA_STEREO
+                ivas_osba_stereo_add_channels( p_tc, p_output, st_ivas->hSbaIsmData->gain_bed, nchan_out, st_ivas->nchan_ism, *nSamplesRendered );
+#else
                 ivas_osba_stereo_add_channels( p_tc, p_output, st_ivas->hSbaIsmData->gain_bed, nchan_out, st_ivas->nchan_ism, st_ivas->ism_mode, *nSamplesRendered );
+#endif
             }
             else if ( st_ivas->renderer_type == RENDERER_OSBA_AMBI || st_ivas->renderer_type == RENDERER_OSBA_LS || st_ivas->renderer_type == RENDERER_BINAURAL_FASTCONV_ROOM )
             {
diff --git a/lib_dec/ivas_osba_dec.c b/lib_dec/ivas_osba_dec.c
index 18493968bf533d23fd1e7e61064baa97a701c72a..473d82dee2ed0d45cb97bbbabe9bf240e6217800 100644
--- a/lib_dec/ivas_osba_dec.c
+++ b/lib_dec/ivas_osba_dec.c
@@ -309,19 +309,23 @@ ivas_error ivas_osba_render_sf(
  *-------------------------------------------------------------------------*/
 
 void ivas_osba_stereo_add_channels(
-    float *tc_f[],                    /* i  : transport channels                */
-    float *output_f[],                /* i/o: output channels                   */
-    const float gain,                 /* i  : gain bed value                    */
-    const int16_t nchan_out,          /* i  : number of output channels         */
-    const int16_t nchan_ism,          /* i  : number of ISM channels            */
-    const int16_t ism_mode,           /* i  : ISM mode                          */
+    float *tc_f[],           /* i  : transport channels                */
+    float *output_f[],       /* i/o: output channels                   */
+    const float gain,        /* i  : gain bed value                    */
+    const int16_t nchan_out, /* i  : number of output channels         */
+    const int16_t nchan_ism, /* i  : number of ISM channels            */
+#ifndef NONBE_FIX_1262_OSBA_STEREO
+    const int16_t ism_mode, /* i  : ISM mode                          */
+#endif
     const int16_t n_samples_to_render /* i  : output frame length per channel   */
 )
 {
     int16_t n;
 
+#ifndef NONBE_FIX_1262_OSBA_STEREO
     if ( ism_mode == ISM_SBA_MODE_DISC )
     {
+#endif
         if ( gain != 1.0f && gain >= 0.0f )
         {
             int16_t i;
@@ -340,6 +344,7 @@ void ivas_osba_stereo_add_channels(
                 v_add( output_f[n], tc_f[n + nchan_ism], output_f[n], n_samples_to_render );
             }
         }
+#ifndef NONBE_FIX_1262_OSBA_STEREO
     }
     else
     {
@@ -348,6 +353,14 @@ void ivas_osba_stereo_add_channels(
             v_add( output_f[n], tc_f[n + nchan_ism], output_f[n], n_samples_to_render );
         }
     }
+#endif
+#ifdef NONBE_FIX_1262_OSBA_STEREO
+
+    for ( n = 0; n < nchan_out; n++ )
+    {
+        v_multc( output_f[n], 0.5f, output_f[n], n_samples_to_render );
+    }
+#endif
 
     return;
 }