diff --git a/lib_com/options.h b/lib_com/options.h
index 13f2c757e01eb07852a6a7b910b2e23972e92bc8..c4646a49ca165983802fcc4608dc4353f595d28b 100644
--- a/lib_com/options.h
+++ b/lib_com/options.h
@@ -137,6 +137,7 @@
 #define FIX_1053_REVERB_RECONFIGURATION
 #define TMP_FIX_1119_SPLIT_RENDERING_VOIP               /* FhG: Add error check for unsupported config: split rendering with VoIP mode */
 #define FIX_1113_EXTREND_ISAR                           /* FhG: issue 1113: fix external renderer asserts for FOA/HOA2 and CLDFB config */
+#define NONBE_1203_MDCT2DFT_SWITCHING                   /* VA: issue 1203: fix severe artifacts during MDCT to DFT stereo switching when MDCT ITD is not used */
 #define NONBE_1122_JBM_FIX_PLAYOUT_DELAY_IN_DTX         /* FhG: Avoid JBM ignoring safety margin and setting playout delay to 0 during DTX */
 #define NONBE_1122_KEEP_EVS_MODE_UNCHANGED              /* FhG: Disables fix for issue 1122 in EVS mode to keep BE tests green. This switch should be removed once the 1122 fix is added to EVS via a CR.  */
 #define FIX_938_COMPILER_WARNING                        /* FhG: Fix compiler warning in ivas_mdct_core_reconstruct() */
diff --git a/lib_enc/ivas_stereo_dft_td_itd_fx.c b/lib_enc/ivas_stereo_dft_td_itd_fx.c
index a0d49176f1426be0467bfb660b883abaf693bcb0..0e404a0de6fe6e81056f5767994d4d055674f3c7 100644
--- a/lib_enc/ivas_stereo_dft_td_itd_fx.c
+++ b/lib_enc/ivas_stereo_dft_td_itd_fx.c
@@ -573,6 +573,10 @@ void stereo_td_itd_mdct_stereo_fx(
     Word16 DFT_e[CPE_CHANNELS];
     Word16 DFT_tmp_e[CPE_CHANNELS][STEREO_DFT_N_MAX_ENC];
     STEREO_MDCT_ENC_DATA_HANDLE hStereoMdct;
+#ifdef NONBE_1203_MDCT2DFT_SWITCHING
+    Word16 dft_ovl;
+    Word16 sf;
+#endif
 
     test();
     IF( hCPE->hStereoMdct != NULL && hCPE->hStereoMdct->hItd != NULL )
@@ -611,6 +615,21 @@ void stereo_td_itd_mdct_stereo_fx(
         /* Time Domain ITD compensation using extrapolation */
         stereo_td_itd_fx( hStereoMdct->hItd, NULL, NULL, 1, hStereoMdct->hDft_ana->dft_ovl, hCPE->hCoreCoder, input_frame, hCPE->input_mem_fx, hCPE->q_input_mem );
     }
+#ifdef NONBE_1203_MDCT2DFT_SWITCHING
+    ELSE IF( hCPE->input_mem_fx[0] != NULL )
+    {
+        dft_ovl = extract_l( Mpy_32_32( imult3216( input_frame, STEREO_DFT_OVL_MAX ), 2236963 ) ); // 1/L_FRAME48k = 2236963 (Q31)
+
+        FOR( i = 0; i < CPE_CHANNELS; i++ )
+        {
+            sf = L_norm_arr( hCPE->hCoreCoder[i]->input32_fx + input_frame - dft_ovl, dft_ovl );
+            Copy_Scale_sig32_16( hCPE->hCoreCoder[i]->input32_fx + input_frame - dft_ovl, hCPE->input_mem_fx[i], dft_ovl, sf );
+            hCPE->q_input_mem[i] = sub( add( hCPE->hCoreCoder[i]->q_inp32, sf ), 16 );
+            move16();
+        }
+    }
+#endif
+
 
     return;
 }
diff --git a/lib_enc/ivas_stereo_switching_enc_fx.c b/lib_enc/ivas_stereo_switching_enc_fx.c
index 3bee884824a9fd1af85a79e4c36727efa40b4d54..24ff57217cb95b64d983a3f0ddf6f27312fab872 100644
--- a/lib_enc/ivas_stereo_switching_enc_fx.c
+++ b/lib_enc/ivas_stereo_switching_enc_fx.c
@@ -649,15 +649,25 @@ void stereo_switching_enc_fx(
     dft_ovl = extract_l( Mpy_32_32( imult3216( input_frame, STEREO_DFT_OVL_MAX ), 2236963 ) ); // 1/L_FRAME48k = 2236963 (Q31)
 
     /* update DFT analysis overlap memory */
+#ifdef NONBE_1203_MDCT2DFT_SWITCHING
+    /* note: in MDCT stereo, the update is done in stereo_td_itd_mdct_stereo() */
+#endif
     test();
     test();
     IF( GT_16( hCPE->element_mode, IVAS_CPE_DFT ) && hCPE->input_mem_fx[0] != NULL && NE_16( hCPE->element_mode, IVAS_CPE_MDCT ) )
     {
         FOR( n = 0; n < CPE_CHANNELS; n++ )
         {
-            Copy_Scale_sig32_16( sts[n]->input32_fx + input_frame - dft_ovl, hCPE->input_mem_fx[n], dft_ovl, 0 ); /* sts[n]->q_inp32 - 16*/
+#ifdef NONBE_1203_MDCT2DFT_SWITCHING
+            Word16 sf = L_norm_arr( sts[n]->input32_fx + input_frame - dft_ovl, dft_ovl );
+            Copy_Scale_sig32_16( sts[n]->input32_fx + input_frame - dft_ovl, hCPE->input_mem_fx[n], dft_ovl, sf ); /* sts[n]->q_inp32 - 16 */
+            hCPE->q_input_mem[n] = sub( add( sts[n]->q_inp32, sf ), 16 );
+            move16();
+#else
+            Copy_Scale_sig32_16( sts[n]->input32_fx + input_frame - dft_ovl, hCPE->input_mem_fx[n], dft_ovl, 0 ); /* sts[n]->q_inp32 - 16 */
             hCPE->q_input_mem[n] = sub( sts[n]->q_inp32, 16 );
             move16();
+#endif
         }
     }