diff --git a/lib_com/options.h b/lib_com/options.h
index 78b765d30e8b0ff1bf9d3f907471e0052f331916..b01e74a7a7a5316057188a57e68ff5be2bde8a2e 100644
--- a/lib_com/options.h
+++ b/lib_com/options.h
@@ -184,6 +184,8 @@
 
 #define FIX_440_PARAM_ISM_DIR_NOISE                     /* FhG: Issue 440: Fix directional background noise becoming diffuse in ParamISM */
 
-/* ################## End DEVELOPMENT switches ######################### */
+#define FIX_447_PARAMBIN_MASA_REGU_FAC                  /* Nokia: Issue 447: Fix issue by adjusting regularization factor minimum value. */
+
+ /* ################## End DEVELOPMENT switches ######################### */
 /* clang-format on */
 #endif
diff --git a/lib_rend/ivas_dirac_dec_binaural_functions.c b/lib_rend/ivas_dirac_dec_binaural_functions.c
index 035036bad3c27cf7b11a05f7a65f53464a25ea57..0af9e47868fc878c6e8ce1903dd1c603873bf9f2 100644
--- a/lib_rend/ivas_dirac_dec_binaural_functions.c
+++ b/lib_rend/ivas_dirac_dec_binaural_functions.c
@@ -2936,6 +2936,12 @@ static
 
     if ( ivas_format == MASA_FORMAT )
     {
+#ifdef FIX_447_PARAMBIN_MASA_REGU_FAC
+        if ( ivas_total_brate >= IVAS_160k )
+        {
+            reqularizationFactor = 0.4f;
+        }
+#else
         if ( ivas_total_brate >= IVAS_256k )
         {
             reqularizationFactor = 0.2f;
@@ -2948,6 +2954,7 @@ static
         {
             reqularizationFactor = 0.4f;
         }
+#endif
         else if ( ivas_total_brate == IVAS_128k )
         {
             reqularizationFactor = 0.5f;
@@ -2970,7 +2977,11 @@ static
     {
         if ( ivas_total_brate >= IVAS_96k )
         {
+#ifdef FIX_447_PARAMBIN_MASA_REGU_FAC
+            reqularizationFactor = 0.4f;
+#else
             reqularizationFactor = 0.3f;
+#endif
         }
         else if ( ivas_total_brate >= IVAS_80k )
         {