diff --git a/lib_com/options.h b/lib_com/options.h
index 2d39346da68a5aaddcffc7c291e283977eda7f34..9e2052b43b8b3a7b1414469911054d74ff74e0d6 100644
--- a/lib_com/options.h
+++ b/lib_com/options.h
@@ -170,6 +170,7 @@
 #define RTP_SR_CODEC_FRAME_SIZE_IN_TOC_BYTE            /* CR for split rendering codec framesize signalling in Toc Byte*/
 #define FIX_SPLIT_RENDERING_ON_DECODER_RESTART         /* Re-configure split rendering on decoder restart */
 #define RTP_UPDATES_SA4_134                            /* Updates to RTP during SA4 134 */
+#define COMPACT_ORIENTATION_PI_DATA
 
 /* ################### Start BE switches ################################# */
 /* only BE switches wrt selection floating point code */
diff --git a/lib_util/ivas_rtp_pi_data.c b/lib_util/ivas_rtp_pi_data.c
index af1143990fa55e937fb7729f657b6a7326b76bc6..31ebe1c21cdce5acff960b16ef17d6a36a849328 100644
--- a/lib_util/ivas_rtp_pi_data.c
+++ b/lib_util/ivas_rtp_pi_data.c
@@ -106,6 +106,95 @@ static int16_t ivasPayload_convertToQ9( float value )
     return (int16_t) ( value );
 }
 
+#ifdef COMPACT_ORIENTATION_PI_DATA
+static uint32_t packQuaternion( IVAS_QUATERNION orientation, uint8_t *buffer )
+{
+    uint32_t nBytes = 0;
+    float q[4], q_max;
+    uint16_t max_q_idx, n, k;
+    uint32_t lWord;
+
+    q[0] = orientation.w;
+    q[1] = orientation.x;
+    q[2] = orientation.y;
+    q[3] = orientation.z;
+
+    max_q_idx = 0;
+    q_max = (float) fabs( q[0] );
+    for ( n = 1; n < 4; n++ )
+    {
+        if ( (float) fabs( q[n] ) > q_max )
+        {
+            q_max = (float) fabs( q[n] );
+            max_q_idx = n;
+        }
+    }
+
+    if ( q[max_q_idx] < 0 )
+    {
+        for ( n = 0; n < 4; n++ )
+        {
+            q[n] = -q[n];
+        }
+    }
+    lWord = max_q_idx << 30;
+
+    k = 1;
+    for ( n = 0; n < 4; n++ )
+    {
+        if ( n == max_q_idx )
+        {
+            continue;
+        }
+        lWord |= ( ( (int16_t) ( ( q[n] + 1 ) * 1023 * 0.5f ) & MASK_10BIT ) << ( 30 - k * 10 ) );
+        k++;
+    }
+
+    buffer[nBytes++] = ( lWord >> 24 ) & MASK_8BIT;
+    buffer[nBytes++] = ( lWord >> 16 ) & MASK_8BIT;
+    buffer[nBytes++] = ( lWord >> 8 ) & MASK_8BIT;
+    buffer[nBytes++] = (lWord) &MASK_8BIT;
+
+    return nBytes;
+}
+
+
+static ivas_error unpackQuaternion( const uint8_t *buffer, IVAS_QUATERNION *orientation )
+{
+    uint32_t i, k, lWord;
+    uint16_t max_q_idx, tmp;
+    float q[4], qs;
+
+    lWord = ( buffer[0] ) << 24;
+    lWord |= ( buffer[1] ) << 16;
+    lWord |= ( buffer[2] ) << 8;
+    lWord |= buffer[3];
+
+    max_q_idx = ( lWord >> 30 ) & MASK_2BIT;
+    k = 1;
+    qs = 0.0f;
+    for ( i = 0; i < 4; i++ )
+    {
+        if ( i == max_q_idx )
+        {
+            continue;
+        }
+        tmp = ( lWord >> ( 30 - k * 10 ) ) & MASK_10BIT;
+        q[i] = tmp / 1023.0f * 2.0f - 1;
+        qs += q[i] * q[i];
+        k++;
+    }
+    q[max_q_idx] = sqrtf( 1 - qs );
+    orientation->w = q[0];
+    orientation->x = q[1];
+    orientation->y = q[2];
+    orientation->z = q[3];
+
+    return IVAS_ERR_OK;
+}
+
+#else
+
 /*-----------------------------------------------------------------------*
  * ivasPayload_convertToQ7()
  *
@@ -119,6 +208,7 @@ static int16_t ivasPayload_convertToQ7( float value )
     return (int16_t) ( value );
 }
 #endif
+#endif
 
 static ivas_error packUnsupportedData( const IVAS_PIDATA_GENERIC *piData, uint8_t *buffer, uint32_t maxDataBytes, uint32_t *nBytesWritten )
 {
@@ -210,10 +300,14 @@ static ivas_error packOrientation( const IVAS_PIDATA_GENERIC *piData, uint8_t *b
     buffer[nBytes++] = ( orientation->piDataType & MASK_5BIT ); /* PF/PM populated during final packing */
 #ifdef RTP_UPDATES_SA4_134
     buffer[nBytes++] = 4;
+#ifdef COMPACT_ORIENTATION_PI_DATA
+    nBytes += packQuaternion( orientation->orientation, &buffer[nBytes] );
+#else
     buffer[nBytes++] = (uint8_t) ivasPayload_convertToQ7( orientation->orientation.w );
     buffer[nBytes++] = (uint8_t) ivasPayload_convertToQ7( orientation->orientation.x );
     buffer[nBytes++] = (uint8_t) ivasPayload_convertToQ7( orientation->orientation.y );
     buffer[nBytes++] = (uint8_t) ivasPayload_convertToQ7( orientation->orientation.z );
+#endif
 #else
     buffer[nBytes++] = 8;
     nBytes = writeInt16( buffer, nBytes, ivasPayload_convertToQ15( orientation->orientation.w ) );
@@ -262,10 +356,14 @@ static ivas_error packISMOrientation( const IVAS_PIDATA_GENERIC *piData, uint8_t
     buffer[nBytes++] = (uint8_t) orientation->numObjects * 4;
     for ( n = 0; n < orientation->numObjects; n++ )
     {
+#ifdef COMPACT_ORIENTATION_PI_DATA
+        nBytes += packQuaternion( orientation->orientation[n], &buffer[nBytes] );
+#else
         buffer[nBytes++] = (uint8_t) ivasPayload_convertToQ7( orientation->orientation[n].w );
         buffer[nBytes++] = (uint8_t) ivasPayload_convertToQ7( orientation->orientation[n].x );
         buffer[nBytes++] = (uint8_t) ivasPayload_convertToQ7( orientation->orientation[n].y );
         buffer[nBytes++] = (uint8_t) ivasPayload_convertToQ7( orientation->orientation[n].z );
+#endif
     }
 #else
     buffer[nBytes++] = (uint8_t) orientation->numObjects * 8;
@@ -294,10 +392,14 @@ static ivas_error unpackOrientation( const uint8_t *buffer, uint32_t numDataByte
     }
 
     piData->size = sizeof( IVAS_PIDATA_ORIENTATION );
+#ifdef COMPACT_ORIENTATION_PI_DATA
+    unpackQuaternion( buffer, &( orientation->orientation ) );
+#else
     orientation->orientation.w = FLOAT_FROM_Q7( (int8_t) buffer[0] );
     orientation->orientation.x = FLOAT_FROM_Q7( (int8_t) buffer[1] );
     orientation->orientation.y = FLOAT_FROM_Q7( (int8_t) buffer[2] );
     orientation->orientation.z = FLOAT_FROM_Q7( (int8_t) buffer[3] );
+#endif
 #else
     /* Orientation data is 8 bytes */
     if ( numDataBytes != 8 )
@@ -306,12 +408,12 @@ static ivas_error unpackOrientation( const uint8_t *buffer, uint32_t numDataByte
     }
 
     piData->size = sizeof( IVAS_PIDATA_ORIENTATION );
+
     orientation->orientation.w = FLOAT_FROM_Q15( readInt16( &buffer[0] ) );
     orientation->orientation.x = FLOAT_FROM_Q15( readInt16( &buffer[2] ) );
     orientation->orientation.y = FLOAT_FROM_Q15( readInt16( &buffer[4] ) );
     orientation->orientation.z = FLOAT_FROM_Q15( readInt16( &buffer[6] ) );
 #endif
-
     return IVAS_ERR_OK;
 }
 
@@ -333,10 +435,14 @@ static ivas_error unpackISMOrientation( const uint8_t *buffer, uint32_t numDataB
 
     for ( n = 0; n < ism_orientation->numObjects; n++ )
     {
+#ifdef COMPACT_ORIENTATION_PI_DATA
+        unpackQuaternion( &buffer[4 * n], &( ism_orientation->orientation[n] ) );
+#else
         ism_orientation->orientation[n].w = FLOAT_FROM_Q7( (int8_t) buffer[4 * n] );
         ism_orientation->orientation[n].x = FLOAT_FROM_Q7( (int8_t) buffer[4 * n + 1] );
         ism_orientation->orientation[n].y = FLOAT_FROM_Q7( (int8_t) buffer[4 * n + 2] );
         ism_orientation->orientation[n].z = FLOAT_FROM_Q7( (int8_t) buffer[4 * n + 3] );
+#endif
     }
 #else
     /* Orientation data is 8 bytes */
@@ -1036,10 +1142,14 @@ static ivas_error packAudioFocusCommon( const IVAS_PIDATA_GENERIC *piData, uint8
 #ifdef RTP_UPDATES_SA4_134
     if ( packedSize == 5 || packedSize == 4 )
     {
+#ifdef COMPACT_ORIENTATION_PI_DATA
+        nBytes += packQuaternion( audioFocus->direction, &buffer[nBytes] );
+#else
         buffer[nBytes++] = (uint8_t) ivasPayload_convertToQ7( audioFocus->direction.w );
         buffer[nBytes++] = (uint8_t) ivasPayload_convertToQ7( audioFocus->direction.x );
         buffer[nBytes++] = (uint8_t) ivasPayload_convertToQ7( audioFocus->direction.y );
         buffer[nBytes++] = (uint8_t) ivasPayload_convertToQ7( audioFocus->direction.z );
+#endif
     }
     if ( packedSize == 5 || packedSize == 1 )
     {
@@ -1084,10 +1194,14 @@ static ivas_error unpackAudioFocusCommon( const uint8_t *buffer, uint32_t numDat
     }
     else
     {
+#ifdef COMPACT_ORIENTATION_PI_DATA
+        unpackQuaternion( buffer, &( audioFocus->direction ) );
+#else
         audioFocus->direction.w = FLOAT_FROM_Q7( (int8_t) buffer[0] );
         audioFocus->direction.x = FLOAT_FROM_Q7( (int8_t) buffer[1] );
         audioFocus->direction.y = FLOAT_FROM_Q7( (int8_t) buffer[2] );
         audioFocus->direction.z = FLOAT_FROM_Q7( (int8_t) buffer[3] );
+#endif
 
         if ( numDataBytes == 5 )
         {
diff --git a/tests/rtp/ivasrtp.py b/tests/rtp/ivasrtp.py
index aec9d4cbe3344bcda45c02126faa21c756f1960b..1c0eef8d3702b8652d87608305de7aaca823cf8f 100644
--- a/tests/rtp/ivasrtp.py
+++ b/tests/rtp/ivasrtp.py
@@ -761,11 +761,23 @@ def unpackOrientations(bitstrm: ConstBitStream, piSize: int) -> list[ORIENTATION
         piSize % 4
     ) == 0 and piSize <= 16, "Incorrect PI Data Size for list[ORIENTATION]"
     orientations = list()
+    q = [(float)]*4
+    qs = 0
     while piSize > 0:
-        w = bitstrm.read(8).int / 128.0
-        x = bitstrm.read(8).int / 128.0
-        y = bitstrm.read(8).int / 128.0
-        z = bitstrm.read(8).int / 128.0
+        max_q_idx = bitstrm.read(2).uint
+        for i in range(0,4):
+            if i == max_q_idx:
+                continue
+            tmp = bitstrm.read(10).uint
+            q[i] = (tmp / 1023.0) * 2.0 - 1.0
+            qs = qs + q[i]**2
+        
+        q[max_q_idx] = (1 - qs)**0.5
+            
+        w = q[0]
+        x = q[1]
+        y = q[2]
+        z = q[3]
         orientations.append(ORIENTATION(w, x, y, z))
         piSize -= 4
     return orientations
@@ -777,10 +789,16 @@ def packOrientations(bitstrm: BitStream, data: any):
         assert (
             type(orientation) == ORIENTATION
         ), "Orientation PI Data expects a data of type list[ORIENTATION]"
-        bitstrm.append(f"intbe:8={q7(orientation.w)}")
-        bitstrm.append(f"intbe:8={q7(orientation.x)}")
-        bitstrm.append(f"intbe:8={q7(orientation.y)}")
-        bitstrm.append(f"intbe:8={q7(orientation.z)}")
+        q = [orientation.w, orientation.x, orientation.y, orientation.z]
+        max_q = max(q, key=abs)
+        max_q_idx = q.index(max_q)
+        if max_q < 0:
+            q = [-x for x in q]
+        bitstrm.append(f"uint:2={max_q_idx}")
+        for i in range(0,4):
+            if i == max_q_idx:
+                continue
+            bitstrm.append(f"uint:10={(int)((q[i]+1)*1023*1/2)}")
 
 
 def unpackPositions(bitstrm: ConstBitStream, piSize: int) -> list[POSITION]:
diff --git a/tests/rtp/test_rtp.py b/tests/rtp/test_rtp.py
index b385ab80f2713bdb463c2d8f9c462a81b8299f6b..8ef0f57c701e19235cf996d7e0a60e8b3b470619 100644
--- a/tests/rtp/test_rtp.py
+++ b/tests/rtp/test_rtp.py
@@ -182,12 +182,17 @@ def generateRequests(startTs: int, endTs: int) -> dict:
 def generatePiData(startTs: int, endTs: int) -> dict:
     data = dict()
 
-    someOrientation = lambda: ORIENTATION(
-        w=2 * random.random() - 1.0,
-        x=2 * random.random() - 1.0,
-        y=2 * random.random() - 1.0,
-        z=2 * random.random() - 1.0,
-    )
+    def random_unit_quaternion():
+        w = 2*random.random() - 1.0
+        x = 2*random.random() - 1.0
+        y = 2*random.random() - 1.0
+        z = 2*random.random() - 1.0
+        n = (w*w + x*x + y*y + z*z)**0.5
+        if n == 0.0:
+            return random_unit_quaternion()
+        return ORIENTATION(w/n, x/n, y/n, z/n)
+
+    someOrientation = lambda: random_unit_quaternion()
     somePosition = lambda: POSITION(
         x=random.randint(-32788, 32767) / 100.0,
         y=random.randint(-32788, 32767) / 100.0,
@@ -214,23 +219,8 @@ def generatePiData(startTs: int, endTs: int) -> dict:
     someDIG = lambda: DIEGETIC_TYPE(
         isDigetic=[bool(random.getrandbits(1)) for _ in range(random.randint(1, 5))]
     )
-    someAuFocusDirLvl = lambda: AUDIO_FOCUS(
-        ORIENTATION(
-            w=2 * random.random() - 1.0,
-            x=2 * random.random() - 1.0,
-            y=2 * random.random() - 1.0,
-            z=2 * random.random() - 1.0,
-        ),
-        level=AUDIO_FOCUS_LEVEL(random.randint(0, 15)),
-    )
-    someAuFocusDir = lambda: AUDIO_FOCUS(
-        ORIENTATION(
-            w=2 * random.random() - 1.0,
-            x=2 * random.random() - 1.0,
-            y=2 * random.random() - 1.0,
-            z=2 * random.random() - 1.0,
-        )
-    )
+    someAuFocusDirLvl = lambda: AUDIO_FOCUS(random_unit_quaternion(),level=AUDIO_FOCUS_LEVEL(random.randint(0, 15)),)
+    someAuFocusDir = lambda: AUDIO_FOCUS(random_unit_quaternion())
     someAuFocusLvl = lambda: AUDIO_FOCUS(level=AUDIO_FOCUS_LEVEL(random.randint(0, 15)))
     someAuFocusList = [someAuFocusDirLvl, someAuFocusDir, someAuFocusLvl]
     someLatency = lambda: PI_LATENCY(
@@ -278,7 +268,7 @@ def generatePiData(startTs: int, endTs: int) -> dict:
     someNumISM = lambda : ISM_NUM(num=random.randint(1, 4))
     someISMIds = lambda num_ism : ISM_ID(ids=[int(random.getrandbits(8)) for _ in range(num_ism)])
     someISMGains = lambda num_ism : ISM_GAIN(gains=[random.choice([int(random.randint(-24,12)), -128]) for _ in range(num_ism)]) # -128 corresponds to -Inf
-    someISMOrientations = lambda num_ism : [ORIENTATION(w=2*random.random()-1.0, x=2*random.random()-1.0, y=2*random.random()-1.0, z=2*random.random()-1.0) for _ in range(num_ism)]
+    someISMOrientations = lambda num_ism : [random_unit_quaternion() for _ in range(num_ism)]
     someISMPositions = lambda num_ism : [POSITION( x=random.randint(-32788, 32767)/100.0, y=random.randint(-32788, 32767)/100.0, z=random.randint(-32788, 32767)/100.0) for _ in range(num_ism)]
     someISMPositionsCompact = lambda num_ism : [POSITION( x=random.randint(-1024, 1023)/100.0, y=random.randint(-1024, 1023)/100.0, z=random.randint(-512, 511)/100.0) for _ in range(num_ism)]
     someISMDistanceAttenuations = lambda num_ism : [DISTANCE_ATTENUATION(ref_dist=random.randint(1,64)/10.0, max_dist=random.randint(1,64), roll_off=random.randint(0,40)/10.0) for _ in range(num_ism)]
@@ -330,10 +320,10 @@ def isEqualFrame(refFrame: bytes, dutFrame: bytes):
 
 
 def isEqualOrientation(ref: ORIENTATION, dut: ORIENTATION):
-    assert abs(ref.w - dut.w) < 0.0079, "Scene Orientation PI Data mismatch in w"
-    assert abs(ref.x - dut.x) < 0.0079, "Scene Orientation PI Data mismatch in x"
-    assert abs(ref.y - dut.y) < 0.0079, "Scene Orientation PI Data mismatch in y"
-    assert abs(ref.z - dut.z) < 0.0079, "Scene Orientation PI Data mismatch in z"
+    assert abs(abs(ref.w) - abs(dut.w)) < 0.01, "Scene Orientation PI Data mismatch in w"
+    assert abs(abs(ref.x) - abs(dut.x)) < 0.01, "Scene Orientation PI Data mismatch in x"
+    assert abs(abs(ref.y) - abs(dut.y)) < 0.01, "Scene Orientation PI Data mismatch in y"
+    assert abs(abs(ref.z) - abs(dut.z)) < 0.01, "Scene Orientation PI Data mismatch in z"
 
 
 def isEqualPosition(ref: POSITION, dut: POSITION):
@@ -400,16 +390,16 @@ def isEqualAudioFocus(ref: AUDIO_FOCUS, dut: AUDIO_FOCUS):
         assert dut.direction is not None, "Audio Focus PI Data missing direction"
     if ref.direction is not None and dut.direction is not None:
         assert (
-            abs(ref.direction["w"] - dut.direction.w) < 0.0079
+            abs(abs(ref.direction["w"]) - abs(dut.direction.w)) < 0.01
         ), "Audio Focus PI Data mismatch in direction w"
         assert (
-            abs(ref.direction["x"] - dut.direction.x) < 0.0079
+            abs(abs(ref.direction["x"]) - abs(dut.direction.x)) < 0.01
         ), "Audio Focus PI Data mismatch in direction x"
         assert (
-            abs(ref.direction["y"] - dut.direction.y) < 0.0079
+            abs(abs(ref.direction["y"]) - abs(dut.direction.y)) < 0.01
         ), "Audio Focus PI Data mismatch in direction y"
         assert (
-            abs(ref.direction["z"] - dut.direction.z) < 0.0079
+            abs(abs(ref.direction["z"]) - abs(dut.direction.z)) < 0.01
         ), "Audio Focus PI Data mismatch in direction z"
     assert ref.level == dut.level, "Audio Focus PI Data mismatch in level"