diff --git a/lib_com/options.h b/lib_com/options.h
index 68e801b352a368a5240b03fa358873a31eaceaa9..29d980db05ef534beb08b3257e2e442a428b4e1e 100755
--- a/lib_com/options.h
+++ b/lib_com/options.h
@@ -160,7 +160,7 @@
 #define FIX_I214_CLIPPING_STANDALONE_REND               /* Issue 214: TD standalone renderer does not handle clipping */
 #define FIX_I218_PARAMISM_NOISY_SPEECH                  /* Issue 218: Fix noisy speech buffer in ParamISM */
 #define FIX_I217_GSC_FLAG_IN_ISM                        /* Issue 217: fix BER detected in ISM4 due to desynchronized 'GSC_IVAS_mode' parameter */
-
+#define FIX_158_DIRAC_MEM                               /* Issue 158: Reduce memory consumption in the hDirac_mem handle */
 
 /* ################## End DEVELOPMENT switches ######################### */
 /* clang-format on */
diff --git a/lib_dec/ivas_dirac_dec.c b/lib_dec/ivas_dirac_dec.c
index d7feb33256936ed413db192a1156e0f9fad25e21..f8c19d0c10a84a711746a5cf2877d4c4d21ef811 100644
--- a/lib_dec/ivas_dirac_dec.c
+++ b/lib_dec/ivas_dirac_dec.c
@@ -49,8 +49,11 @@
 /*-----------------------------------------------------------------------*
  * Local function prototypes
  *-----------------------------------------------------------------------*/
-
+#ifdef FIX_158_DIRAC_MEM
+static void ivas_dirac_alloc_mem( DIRAC_DEC_HANDLE hDirAC, const RENDERER_TYPE renderer_type, DIRAC_DEC_STACK_MEM_HANDLE hDirAC_mem );
+#else
 static void ivas_dirac_alloc_mem( DIRAC_DEC_HANDLE hDirAC, DIRAC_DEC_STACK_MEM_HANDLE hDirAC_mem );
+#endif
 
 static void ivas_dirac_free_mem( DIRAC_DEC_STACK_MEM_HANDLE hDirAC_mem );
 
@@ -714,6 +717,13 @@ ivas_error ivas_dirac_dec_config(
         }
     }
 
+
+#ifdef FIX_158_DIRAC_MEM
+    if ( flag_config == DIRAC_OPEN )
+    {
+        hDirAC->buffer_energy = NULL;
+    }
+#endif
     if ( ( flag_config == DIRAC_OPEN && hDirAC->hConfig->dec_param_estim == TRUE ) || ( flag_config == DIRAC_RECONFIGURE && ( hDirAC->hConfig->dec_param_estim == TRUE && dec_param_estim_old == FALSE ) ) )
     {
         hDirAC->index_buffer_intensity = 0;
@@ -726,7 +736,12 @@ ivas_error ivas_dirac_dec_config(
                 set_f( hDirAC->buffer_intensity_real[i][j], 0.0f, CLDFB_NO_CHANNELS_MAX );
             }
         }
-
+#ifdef FIX_158_DIRAC_MEM
+        if ( hDirAC->buffer_energy == NULL )
+        {
+            hDirAC->buffer_energy = (float *) count_malloc( DIRAC_NO_COL_AVG_DIFF * CLDFB_NO_CHANNELS_MAX * sizeof( float ) );
+        }
+#endif
         set_f( hDirAC->buffer_energy, 0.0f, DIRAC_NO_COL_AVG_DIFF * CLDFB_NO_CHANNELS_MAX );
     }
     else if ( ( flag_config == DIRAC_OPEN && hDirAC->hConfig->dec_param_estim == FALSE ) || ( flag_config == DIRAC_RECONFIGURE && ( hDirAC->hConfig->dec_param_estim == FALSE && dec_param_estim_old == TRUE ) ) )
@@ -742,6 +757,13 @@ ivas_error ivas_dirac_dec_config(
                 hDirAC->buffer_intensity_real[i][j] = NULL;
             }
         }
+#ifdef FIX_158_DIRAC_MEM
+        if ( hDirAC->buffer_energy != NULL )
+        {
+            count_free( hDirAC->buffer_energy );
+            hDirAC->buffer_energy = NULL;
+        }
+#endif
     }
 
     /* output synthesis */
@@ -752,7 +774,11 @@ ivas_error ivas_dirac_dec_config(
     {
         ivas_dirac_free_mem( &( hDirAC->stack_mem ) );
     }
+#ifdef FIX_158_DIRAC_MEM
+    ivas_dirac_alloc_mem( hDirAC, st_ivas->renderer_type, &( hDirAC->stack_mem ) );
+#else
     ivas_dirac_alloc_mem( hDirAC, &( hDirAC->stack_mem ) );
+#endif
 
     mvs2s( DirAC_block_grouping, hDirAC->block_grouping, MAX_PARAM_SPATIAL_SUBFRAMES + 1 );
 
@@ -935,6 +961,13 @@ void ivas_dirac_dec_close(
             }
         }
     }
+#ifdef FIX_158_DIRAC_MEM
+    if ( hDirAC->buffer_energy != NULL )
+    {
+        count_free( hDirAC->buffer_energy );
+        hDirAC->buffer_energy = NULL;
+    }
+#endif
 
     for ( i = 0; i < hDirAC->dirac_md_buffer_length; i++ )
     {
@@ -1091,6 +1124,9 @@ void ivas_dirac_dec_close(
 
 static void ivas_dirac_alloc_mem(
     DIRAC_DEC_HANDLE hDirAC,
+#ifdef FIX_158_DIRAC_MEM
+    const RENDERER_TYPE renderer_type,
+#endif
     DIRAC_DEC_STACK_MEM_HANDLE hDirAC_mem )
 {
     int16_t num_freq_bands, num_freq_bands_diff, size;
@@ -1123,8 +1159,14 @@ static void ivas_dirac_alloc_mem(
         set_zero( hDirAC_mem->proto_power_diff_smooth, size );
         hDirAC_mem->direct_responses_square = (float *) malloc( sizeof( float ) * size );
         set_zero( hDirAC_mem->direct_responses_square, size );
-
-        hDirAC_mem->frame_dec_f = (float *) malloc( sizeof( float ) * 2 * num_outputs_diff * num_freq_bands );
+#ifdef FIX_158_DIRAC_MEM
+        if ( hDirAC->proto_signal_decorr_on && ( renderer_type != RENDERER_BINAURAL_PARAMETRIC && renderer_type != RENDERER_BINAURAL_PARAMETRIC_ROOM && renderer_type != RENDERER_STEREO_PARAMETRIC ) )
+        {
+#endif
+            hDirAC_mem->frame_dec_f = (float *) malloc( sizeof( float ) * 2 * num_outputs_diff * num_freq_bands );
+#ifdef FIX_158_DIRAC_MEM
+        }
+#endif
     }
     hDirAC->h_output_synthesis_psd_state.proto_power_smooth = hDirAC_mem->proto_power_smooth;
     hDirAC->h_output_synthesis_psd_state.proto_power_diff_smooth = hDirAC_mem->proto_power_diff_smooth;
@@ -1153,21 +1195,44 @@ static void ivas_dirac_alloc_mem(
     hDirAC->h_output_synthesis_psd_state.direct_responses = hDirAC_mem->direct_responses;
 
     /* Prototypes */
-    hDirAC_mem->proto_direct_buffer_f = (float *) malloc( sizeof( float ) * 2 * MAX_PARAM_SPATIAL_SUBFRAMES * num_protos_dir * num_freq_bands );
-    if ( hDirAC->synthesisConf == DIRAC_SYNTHESIS_PSD_SHD )
-    {
-        hDirAC_mem->proto_diffuse_buffer_f = (float *) malloc( sizeof( float ) * 2 * MAX_PARAM_SPATIAL_SUBFRAMES * size );
-    }
-    else
+#ifdef FIX_158_DIRAC_MEM
+    hDirAC_mem->proto_direct_buffer_f = NULL;
+    hDirAC_mem->proto_diffuse_buffer_f = NULL;
+    if ( renderer_type != RENDERER_BINAURAL_PARAMETRIC && renderer_type != RENDERER_BINAURAL_PARAMETRIC_ROOM && renderer_type != RENDERER_STEREO_PARAMETRIC )
     {
-        hDirAC_mem->proto_diffuse_buffer_f = (float *) malloc( sizeof( float ) * 2 * MAX_PARAM_SPATIAL_SUBFRAMES * num_outputs_diff * num_freq_bands );
+#endif
+        hDirAC_mem->proto_direct_buffer_f = (float *) malloc( sizeof( float ) * 2 * MAX_PARAM_SPATIAL_SUBFRAMES * num_protos_dir * num_freq_bands );
+#ifdef FIX_158_DIRAC_MEM
+        if ( hDirAC->proto_signal_decorr_on )
+        {
+#endif
+            if ( hDirAC->synthesisConf == DIRAC_SYNTHESIS_PSD_SHD )
+            {
+                hDirAC_mem->proto_diffuse_buffer_f = (float *) malloc( sizeof( float ) * 2 * MAX_PARAM_SPATIAL_SUBFRAMES * size );
+            }
+            else
+            {
+                hDirAC_mem->proto_diffuse_buffer_f = (float *) malloc( sizeof( float ) * 2 * MAX_PARAM_SPATIAL_SUBFRAMES * num_outputs_diff * num_freq_bands );
+            }
+#ifdef FIX_158_DIRAC_MEM
+        }
     }
+#endif
     hDirAC->h_output_synthesis_psd_state.proto_direct_buffer_f = hDirAC_mem->proto_direct_buffer_f;
     hDirAC->h_output_synthesis_psd_state.proto_diffuse_buffer_f = hDirAC_mem->proto_diffuse_buffer_f;
 
     /* Gains/power factors*/
-    hDirAC_mem->direct_power_factor = (float *) malloc( sizeof( float ) * num_freq_bands );
-    hDirAC_mem->diffuse_power_factor = (float *) malloc( sizeof( float ) * num_freq_bands );
+#ifdef FIX_158_DIRAC_MEM
+    hDirAC_mem->direct_power_factor = NULL;
+    hDirAC_mem->diffuse_power_factor = NULL;
+    if ( renderer_type != RENDERER_BINAURAL_PARAMETRIC && renderer_type != RENDERER_BINAURAL_PARAMETRIC_ROOM && renderer_type != RENDERER_STEREO_PARAMETRIC )
+    {
+#endif
+        hDirAC_mem->direct_power_factor = (float *) malloc( sizeof( float ) * num_freq_bands );
+        hDirAC_mem->diffuse_power_factor = (float *) malloc( sizeof( float ) * num_freq_bands );
+#ifdef FIX_158_DIRAC_MEM
+    }
+#endif
     hDirAC->h_output_synthesis_psd_state.direct_power_factor = hDirAC_mem->direct_power_factor;
     hDirAC->h_output_synthesis_psd_state.diffuse_power_factor = hDirAC_mem->diffuse_power_factor;
 
@@ -1175,8 +1240,20 @@ static void ivas_dirac_alloc_mem(
     hDirAC_mem->onset_filter = NULL;
     if ( hDirAC->synthesisConf != DIRAC_SYNTHESIS_GAIN_SHD )
     {
-        hDirAC_mem->reference_power = (float *) malloc( sizeof( float ) * 2 * num_freq_bands );
-        hDirAC_mem->onset_filter = (float *) malloc( sizeof( float ) * num_outputs_diff * num_freq_bands );
+#ifdef FIX_158_DIRAC_MEM
+        if ( renderer_type != RENDERER_BINAURAL_PARAMETRIC && renderer_type != RENDERER_BINAURAL_PARAMETRIC_ROOM && renderer_type != RENDERER_STEREO_PARAMETRIC )
+        {
+#endif
+            hDirAC_mem->reference_power = (float *) malloc( sizeof( float ) * 2 * num_freq_bands );
+#ifdef FIX_158_DIRAC_MEM
+            if ( hDirAC->proto_signal_decorr_on )
+            {
+#endif
+                hDirAC_mem->onset_filter = (float *) malloc( sizeof( float ) * num_outputs_diff * num_freq_bands );
+#ifdef FIX_158_DIRAC_MEM
+            }
+        }
+#endif
     }
     else
     {
@@ -1184,11 +1261,20 @@ static void ivas_dirac_alloc_mem(
         {
             hDirAC_mem->reference_power = (float *) malloc( sizeof( float ) * 5 * num_freq_bands );
         }
+#ifndef FIX_158_DIRAC_MEM
         else
         {
             hDirAC_mem->reference_power = (float *) malloc( sizeof( float ) * num_freq_bands );
         }
-        hDirAC_mem->onset_filter = (float *) malloc( sizeof( float ) * 2 * num_freq_bands );
+#endif
+#ifdef FIX_158_DIRAC_MEM
+        if ( hDirAC->proto_signal_decorr_on )
+        {
+#endif
+            hDirAC_mem->onset_filter = (float *) malloc( sizeof( float ) * 2 * num_freq_bands );
+#ifdef FIX_158_DIRAC_MEM
+        }
+#endif
     }
 
     return;
diff --git a/lib_dec/ivas_stat_dec.h b/lib_dec/ivas_stat_dec.h
index 50369fab6df6656564be67c6b3eac0e0f6087133..2393a41f2f5a831f0f03546264bf605e1a9cf536 100644
--- a/lib_dec/ivas_stat_dec.h
+++ b/lib_dec/ivas_stat_dec.h
@@ -663,7 +663,11 @@ typedef struct ivas_dirac_dec_data_structure
     /*Parameter estimation*/
     int16_t index_buffer_intensity;
     float *buffer_intensity_real[DIRAC_NUM_DIMS][DIRAC_NO_COL_AVG_DIFF];
+#ifdef FIX_158_DIRAC_MEM
+    float *buffer_energy;
+#else
     float buffer_energy[DIRAC_NO_COL_AVG_DIFF * CLDFB_NO_CHANNELS_MAX];
+#endif
 
     /*Decoder parameters */
     /*Prototypes*/