diff --git a/av1/encoder/aq_cyclicrefresh.c b/av1/encoder/aq_cyclicrefresh.c
index 63f99b3..f78d90c 100644
--- a/av1/encoder/aq_cyclicrefresh.c
+++ b/av1/encoder/aq_cyclicrefresh.c
@@ -12,6 +12,7 @@
 #include <limits.h>
 #include <math.h>
 
+#include "av1/common/pred_common.h"
 #include "av1/common/seg_common.h"
 #include "av1/encoder/aq_cyclicrefresh.h"
 #include "av1/encoder/ratectrl.h"
@@ -147,6 +148,42 @@
   return bits_per_mb;
 }
 
+void av1_cyclic_reset_segment_skip(const AV1_COMP *cpi, MACROBLOCK *const x,
+                                   int mi_row, int mi_col, BLOCK_SIZE bsize) {
+  int cdf_num;
+  const AV1_COMMON *const cm = &cpi->common;
+  MACROBLOCKD *const xd = &x->e_mbd;
+  MB_MODE_INFO *const mbmi = xd->mi[0];
+  const int prev_segment_id = mbmi->segment_id;
+  mbmi->segment_id = av1_get_spatial_seg_pred(cm, xd, &cdf_num);
+  if (prev_segment_id != mbmi->segment_id) {
+    CYCLIC_REFRESH *const cr = cpi->cyclic_refresh;
+    const int bw = mi_size_wide[bsize];
+    const int bh = mi_size_high[bsize];
+    const int xmis = AOMMIN(cm->mi_params.mi_cols - mi_col, bw);
+    const int ymis = AOMMIN(cm->mi_params.mi_rows - mi_row, bh);
+    const int block_index = mi_row * cm->mi_params.mi_cols + mi_col;
+    for (int mi_y = 0; mi_y < ymis; mi_y++) {
+      for (int mi_x = 0; mi_x < xmis; mi_x++) {
+        const int map_offset =
+            block_index + mi_y * cm->mi_params.mi_cols + mi_x;
+        cr->map[map_offset] = 0;
+        cpi->enc_seg.map[map_offset] = mbmi->segment_id;
+        cm->cur_frame->seg_map[map_offset] = mbmi->segment_id;
+      }
+    }
+    if (cyclic_refresh_segment_id(prev_segment_id) == CR_SEGMENT_ID_BOOST1)
+      x->actual_num_seg1_blocks -= xmis * ymis;
+    else if (cyclic_refresh_segment_id(prev_segment_id) == CR_SEGMENT_ID_BOOST2)
+      x->actual_num_seg2_blocks -= xmis * ymis;
+    if (cyclic_refresh_segment_id(mbmi->segment_id) == CR_SEGMENT_ID_BOOST1)
+      x->actual_num_seg1_blocks += xmis * ymis;
+    else if (cyclic_refresh_segment_id(mbmi->segment_id) ==
+             CR_SEGMENT_ID_BOOST2)
+      x->actual_num_seg2_blocks += xmis * ymis;
+  }
+}
+
 void av1_cyclic_refresh_update_segment(const AV1_COMP *cpi, MACROBLOCK *const x,
                                        int mi_row, int mi_col, BLOCK_SIZE bsize,
                                        int64_t rate, int64_t dist, int skip,
@@ -191,22 +228,21 @@
 
   // Update entries in the cyclic refresh map with new_map_value, and
   // copy mbmi->segment_id into global segmentation map.
-  // 8x8 is smallest coding block size for non-key frames.
-  const int sh = bw << 1;
-  for (int mi_y = 0; mi_y < ymis; mi_y += 2) {
-    for (int mi_x = 0; mi_x < xmis; mi_x += 2) {
-      int map_offset = block_index + mi_y * cm->mi_params.mi_cols + mi_x;
+  for (int mi_y = 0; mi_y < ymis; mi_y++) {
+    for (int mi_x = 0; mi_x < xmis; mi_x++) {
+      const int map_offset = block_index + mi_y * cm->mi_params.mi_cols + mi_x;
       cr->map[map_offset] = new_map_value;
       cpi->enc_seg.map[map_offset] = mbmi->segment_id;
+      cm->cur_frame->seg_map[map_offset] = mbmi->segment_id;
     }
-    // Accumulate cyclic refresh update counters.
-    if (!dry_run && !frame_is_intra_only(cm)) {
-      if (cyclic_refresh_segment_id(mbmi->segment_id) == CR_SEGMENT_ID_BOOST1)
-        x->actual_num_seg1_blocks += sh;
-      else if (cyclic_refresh_segment_id(mbmi->segment_id) ==
-               CR_SEGMENT_ID_BOOST2)
-        x->actual_num_seg2_blocks += sh;
-    }
+  }
+  // Accumulate cyclic refresh update counters.
+  if (!dry_run) {
+    if (cyclic_refresh_segment_id(mbmi->segment_id) == CR_SEGMENT_ID_BOOST1)
+      x->actual_num_seg1_blocks += xmis * ymis;
+    else if (cyclic_refresh_segment_id(mbmi->segment_id) ==
+             CR_SEGMENT_ID_BOOST2)
+      x->actual_num_seg2_blocks += xmis * ymis;
   }
 }
 
diff --git a/av1/encoder/aq_cyclicrefresh.h b/av1/encoder/aq_cyclicrefresh.h
index 97bd6f2..1c0d5cb 100644
--- a/av1/encoder/aq_cyclicrefresh.h
+++ b/av1/encoder/aq_cyclicrefresh.h
@@ -161,6 +161,30 @@
 int av1_cyclic_refresh_rc_bits_per_mb(const struct AV1_COMP *cpi, int i,
                                       double correction_factor);
 
+/*!\brief Update segment_id for blocks are skipped.
+ *
+ * After encoding a given prediction block, of size bsize at (mi_row, mi_col),
+ * check if we should reset the segment_id based on skip_txfm,
+ * and update the cyclic_refresh map and segmentation counters.
+ *
+ * \ingroup cyclic_refresh
+ * \callgraph
+ * \callergraph
+ *
+ * \param[in]   cpi       Top level encoder structure
+ * \param[in]   x         Pointer to MACROBLOCK structure
+ * \param[in]   mi_row    Row coordinate of the block in a step size of MI_SIZE
+ * \param[in]   mi_col    Col coordinate of the block in a step size of MI_SIZE
+ * \param[in]   bsize     Block size
+ *
+ * \return Update the \c mbmi->segment_id, the \c cpi->cyclic_refresh and
+ * the \c cm->cpi->enc_seg.map.
+ */
+
+void av1_cyclic_reset_segment_skip(const struct AV1_COMP *cpi,
+                                   MACROBLOCK *const x, int mi_row, int mi_col,
+                                   BLOCK_SIZE bsize);
+
 /*!\brief Update segment_id for block based on mode selected.
  *
  * Prior to coding a given prediction block, of size bsize at (mi_row, mi_col),
diff --git a/av1/encoder/partition_search.c b/av1/encoder/partition_search.c
index da46762..3265e76 100644
--- a/av1/encoder/partition_search.c
+++ b/av1/encoder/partition_search.c
@@ -1855,6 +1855,8 @@
     update_cb_offsets(x, bsize, subsampling_x, subsampling_y);
     if (tile_data->allow_update_cdf) update_stats(&cpi->common, td);
   }
+  if (cpi->oxcf.q_cfg.aq_mode == CYCLIC_REFRESH_AQ && mbmi->skip_txfm)
+    av1_cyclic_reset_segment_skip(cpi, x, mi_row, mi_col, bsize);
   // TODO(Ravi/Remya): Move this copy function to a better logical place
   // This function will copy the best mode information from block
   // level (x->mbmi_ext) to frame level (cpi->mbmi_ext_info.frame_base). This