diff --git a/sys/msdk/gstmsdkh265enc.c b/sys/msdk/gstmsdkh265enc.c
index 0528157dbc..f164137798 100644
--- a/sys/msdk/gstmsdkh265enc.c
+++ b/sys/msdk/gstmsdkh265enc.c
@@ -51,6 +51,7 @@ enum
   PROP_TILE_COL,
   PROP_MAX_SLICE_SIZE,
   PROP_TUNE_MODE,
+  PROP_TRANSFORM_SKIP,
 };
 
 enum
@@ -64,6 +65,7 @@ enum
 #define PROP_TILE_COL_DEFAULT           1
 #define PROP_MAX_SLICE_SIZE_DEFAULT     0
 #define PROP_TUNE_MODE_DEFAULT          MFX_CODINGOPTION_UNKNOWN
+#define PROP_TRANSFORM_SKIP_DEFAULT     MFX_CODINGOPTION_UNKNOWN
 
 #define RAW_FORMATS "NV12, I420, YV12, YUY2, UYVY, BGRA, P010_10LE, VUYA"
 #define PROFILES    "main, main-10, main-444"
@@ -337,6 +339,14 @@ gst_msdkh265enc_configure (GstMsdkEnc * encoder)
 
   /* Enable Extended coding options */
   encoder->option2.MaxSliceSize = h265enc->max_slice_size;
+
+#if (MFX_VERSION >= 1026)
+  if (h265enc->transform_skip != MFX_CODINGOPTION_UNKNOWN) {
+    encoder->option3.TransformSkip = h265enc->transform_skip;
+    encoder->enable_extopt3 = TRUE;
+  }
+#endif
+
   gst_msdkenc_ensure_extended_coding_options (encoder);
 
   if (h265enc->num_tile_rows > 1 || h265enc->num_tile_cols > 1) {
@@ -516,6 +526,10 @@ gst_msdkh265enc_set_property (GObject * object, guint prop_id,
       thiz->prop_flag |= GST_MSDK_FLAG_TUNE_MODE;
       break;
 
+    case PROP_TRANSFORM_SKIP:
+      thiz->transform_skip = g_value_get_enum (value);
+      break;
+
     default:
       G_OBJECT_WARN_INVALID_PROPERTY_ID (object, prop_id, pspec);
       break;
@@ -556,6 +570,10 @@ gst_msdkh265enc_get_property (GObject * object, guint prop_id, GValue * value,
       g_value_set_enum (value, thiz->tune_mode);
       break;
 
+    case PROP_TRANSFORM_SKIP:
+      g_value_set_enum (value, thiz->transform_skip);
+      break;
+
     default:
       G_OBJECT_WARN_INVALID_PROPERTY_ID (object, prop_id, pspec);
       break;
@@ -675,6 +693,12 @@ gst_msdkh265enc_class_init (GstMsdkH265EncClass * klass)
           gst_msdkenc_tune_mode_get_type (), PROP_TUNE_MODE_DEFAULT,
           G_PARAM_READWRITE | G_PARAM_STATIC_STRINGS));
 
+  g_object_class_install_property (gobject_class, PROP_TRANSFORM_SKIP,
+      g_param_spec_enum ("transform-skip", "Transform Skip",
+          "Transform Skip option",
+          gst_msdkenc_transform_skip_get_type (), PROP_TRANSFORM_SKIP_DEFAULT,
+          G_PARAM_READWRITE | G_PARAM_STATIC_STRINGS));
+
   gst_element_class_set_static_metadata (element_class,
       "Intel MSDK H265 encoder",
       "Codec/Encoder/Video/Hardware",
@@ -694,5 +718,6 @@ gst_msdkh265enc_init (GstMsdkH265Enc * thiz)
   thiz->num_tile_cols = PROP_TILE_COL_DEFAULT;
   thiz->max_slice_size = PROP_MAX_SLICE_SIZE_DEFAULT;
   thiz->tune_mode = PROP_TUNE_MODE_DEFAULT;
+  thiz->transform_skip = PROP_TRANSFORM_SKIP_DEFAULT;
   msdk_enc->num_extra_frames = 1;
 }
diff --git a/sys/msdk/gstmsdkh265enc.h b/sys/msdk/gstmsdkh265enc.h
index b1ce7b6620..d3730980fa 100644
--- a/sys/msdk/gstmsdkh265enc.h
+++ b/sys/msdk/gstmsdkh265enc.h
@@ -62,6 +62,7 @@ struct _GstMsdkH265Enc
   guint max_slice_size;
   gint tune_mode;
   guint prop_flag;
+  gushort transform_skip;
 
   mfxExtHEVCTiles ext_tiles;
   /* roi[0] for current ROI and roi[1] for previous ROI */
diff --git a/sys/msdk/msdk-enums.c b/sys/msdk/msdk-enums.c
index 9a2ac2c684..73064228da 100644
--- a/sys/msdk/msdk-enums.c
+++ b/sys/msdk/msdk-enums.c
@@ -195,6 +195,26 @@ gst_msdkenc_tune_mode_get_type (void)
   return type;
 }
 
+GType
+gst_msdkenc_transform_skip_get_type (void)
+{
+  static GType type = 0;
+
+  static const GEnumValue values[] = {
+    {MFX_CODINGOPTION_UNKNOWN, "SDK desides what to do", "auto"},
+    {MFX_CODINGOPTION_OFF,
+        "transform_skip_enabled_flag will be set to 0 in PPS ", "off"},
+    {MFX_CODINGOPTION_ON,
+        "transform_skip_enabled_flag will be set to 1 in PPS ", "on"},
+    {0, NULL, NULL}
+  };
+
+  if (!type) {
+    type = g_enum_register_static ("GstMsdkEncTransformSkip", values);
+  }
+  return type;
+}
+
 /*========= MSDK VPP Enums =========================*/
 
 #ifndef GST_REMOVE_DEPRECATED
diff --git a/sys/msdk/msdk-enums.h b/sys/msdk/msdk-enums.h
index 3c0028a412..26c990315c 100644
--- a/sys/msdk/msdk-enums.h
+++ b/sys/msdk/msdk-enums.h
@@ -101,5 +101,8 @@ gst_msdkvpp_scaling_mode_get_type (void);
 GType
 gst_msdkvpp_frc_algorithm_get_type (void);
 
+GType
+gst_msdkenc_transform_skip_get_type (void);
+
 G_END_DECLS
 #endif