diff --git a/av1/encoder/bitstream.c b/av1/encoder/bitstream.c
index d788276..7aa459e 100644
--- a/av1/encoder/bitstream.c
+++ b/av1/encoder/bitstream.c
@@ -783,7 +783,7 @@
                            aom_bit_depth_t bit_depth, const TX_SIZE tx_size,
                            TOKEN_STATS *token_stats) {
   const TOKENEXTRA *p = *tp;
-#if CONFIG_VAR_TX
+#if CONFIG_VAR_TX || CONFIG_PALETTE_THROUGHPUT
   int count = 0;
   const int seg_eob = tx_size_2d[tx_size];
 #endif
@@ -846,7 +846,7 @@
     }
     ++p;
 
-#if CONFIG_VAR_TX
+#if CONFIG_VAR_TX || CONFIG_PALETTE_THROUGHPUT
     ++count;
     if (token == EOB_TOKEN || count == seg_eob) break;
 #endif
@@ -860,7 +860,7 @@
                            aom_bit_depth_t bit_depth, const TX_SIZE tx_size,
                            TOKEN_STATS *token_stats) {
   const TOKENEXTRA *p = *tp;
-#if CONFIG_VAR_TX
+#if CONFIG_VAR_TX || CONFIG_PALETTE_THROUGHPUT
   int count = 0;
   const int seg_eob = tx_size_2d[tx_size];
 #endif
@@ -951,7 +951,7 @@
     }
     ++p;
 
-#if CONFIG_VAR_TX
+#if CONFIG_VAR_TX || CONFIG_PALETTE_THROUGHPUT
     ++count;
     if (token == EOB_TOKEN || count == seg_eob) break;
 #endif
@@ -2062,7 +2062,6 @@
 #else
   set_mi_row_col(xd, tile, mi_row, bh, mi_col, bw, cm->mi_rows, cm->mi_cols);
 #endif
-
 #if CONFIG_PVQ
   mbmi = &m->mbmi;
   bsize = mbmi->sb_type;
@@ -2070,18 +2069,23 @@
 #endif
 
 #if CONFIG_PALETTE
-  for (plane = 0; plane <= 1; ++plane) {
-    const uint8_t palette_size_plane =
-        m->mbmi.palette_mode_info.palette_size[plane];
-    if (palette_size_plane > 0) {
-      int rows, cols;
-      av1_get_block_dimensions(m->mbmi.sb_type, plane, xd, NULL, NULL, &rows,
-                               &cols);
-      assert(*tok < tok_end);
-      pack_palette_tokens(w, tok, palette_size_plane, rows * cols - 1);
-      assert(*tok < tok_end + m->mbmi.skip);
+#if CONFIG_PALETTE_THROUGHPUT
+  // when block is skipped, palette index is coded here
+  // since there is no coeff to be interleaved.
+  if (m->mbmi.skip)
+#endif  // CONFIG_PALETTE_THROUGHPUT
+    for (plane = 0; plane <= 1; ++plane) {
+      const uint8_t palette_size_plane =
+          m->mbmi.palette_mode_info.palette_size[plane];
+      if (palette_size_plane > 0) {
+        int rows, cols;
+        av1_get_block_dimensions(m->mbmi.sb_type, plane, xd, NULL, NULL, &rows,
+                                 &cols);
+        assert(*tok < tok_end);
+        pack_palette_tokens(w, tok, palette_size_plane, rows * cols - 1);
+        assert(*tok < tok_end + m->mbmi.skip);
+      }
     }
-  }
 #endif  // CONFIG_PALETTE
 
 #if !CONFIG_PVQ
@@ -2219,17 +2223,81 @@
                            : m->mbmi.tx_size;
         const int bkw = tx_size_wide_unit[tx];
         const int bkh = tx_size_high_unit[tx];
-
-        for (row = 0; row < num_4x4_h; row += bkh)
-          for (col = 0; col < num_4x4_w; col += bkw)
+#if CONFIG_PALETTE && CONFIG_PALETTE_THROUGHPUT
+        const uint8_t palette_size_plane =
+            m->mbmi.palette_mode_info.palette_size[plane > 0];
+        const int bkw_in_pixel = bkw << tx_size_wide_log2[0];
+        const int bkh_in_pixel = bkh << tx_size_wide_log2[0];
+        int rows, cols;
+        av1_get_block_dimensions(m->mbmi.sb_type, plane, xd, NULL, NULL, &rows,
+                                 &cols);
+#endif  // CONFIG_PALETTE && CONFIG_PALETTE_THROUGHPUT
+        for (row = 0; row < num_4x4_h; row += bkh) {
+          for (col = 0; col < num_4x4_w; col += bkw) {
+#if CONFIG_PALETTE && CONFIG_PALETTE_THROUGHPUT
+            if (palette_size_plane > 0 && plane <= 1) {
+              const int col_in_pixel = col << tx_size_wide_log2[0];
+              const int row_in_pixel = row << tx_size_high_log2[0];
+              const int txbkw = AOMMIN(cols - col_in_pixel, bkw_in_pixel);
+              const int txbkh = AOMMIN(rows - row_in_pixel, bkh_in_pixel);
+              // first palette index is not coded here but in header instead
+              const int num_palette_indexes =
+                  txbkw * txbkh - ((row == 0 && col == 0) ? 1 : 0);
+              pack_palette_tokens(w, tok, palette_size_plane,
+                                  num_palette_indexes);
+            }
+#endif  // CONFIG_PALETTE && CONFIG_PALETTE_THROUGHPUT
             pack_mb_tokens(w, tok, tok_end, cm->bit_depth, tx, &token_stats);
+          }
+        }
       }
 #else
       TX_SIZE tx =
           plane ? get_uv_tx_size(&m->mbmi, &xd->plane[plane]) : m->mbmi.tx_size;
       TOKEN_STATS token_stats;
+#if CONFIG_PALETTE && CONFIG_PALETTE_THROUGHPUT
+      const struct macroblockd_plane *const pd = &xd->plane[plane];
+      BLOCK_SIZE bsize = mbmi->sb_type;
+#if CONFIG_CB4X4
+      const BLOCK_SIZE plane_bsize = get_plane_block_size(bsize, pd);
+#else
+      const BLOCK_SIZE plane_bsize =
+          get_plane_block_size(AOMMAX(bsize, BLOCK_8X8), pd);
+#endif
+      const int num_4x4_w =
+          block_size_wide[plane_bsize] >> tx_size_wide_log2[0];
+      const int num_4x4_h =
+          block_size_high[plane_bsize] >> tx_size_wide_log2[0];
+      int row, col;
+      const int bkw = tx_size_wide_unit[tx];
+      const int bkh = tx_size_high_unit[tx];
+      const uint8_t palette_size_plane =
+          m->mbmi.palette_mode_info.palette_size[plane > 0];
+      const int bkw_in_pixel = bkw << tx_size_wide_log2[0];
+      const int bkh_in_pixel = bkh << tx_size_wide_log2[0];
+      int rows, cols;
+      av1_get_block_dimensions(m->mbmi.sb_type, plane, xd, NULL, NULL, &rows,
+                               &cols);
+      for (row = 0; row < num_4x4_h; row += bkh) {
+        for (col = 0; col < num_4x4_w; col += bkw) {
+          if (!is_inter_block(mbmi) && palette_size_plane > 0 && plane <= 1) {
+            const int col_in_pixel = col << tx_size_wide_log2[0];
+            const int row_in_pixel = row << tx_size_high_log2[0];
+            const int txbkw = AOMMIN(cols - col_in_pixel, bkw_in_pixel);
+            const int txbkh = AOMMIN(rows - row_in_pixel, bkh_in_pixel);
+            // first palette index is not coded here but in header instead
+            const int num_palette_indexes =
+                txbkw * txbkh - ((row == 0 && col == 0) ? 1 : 0);
+            pack_palette_tokens(w, tok, palette_size_plane,
+                                num_palette_indexes);
+          }
+          pack_mb_tokens(w, tok, tok_end, cm->bit_depth, tx, &token_stats);
+        }
+      }
+#else
       init_token_stats(&token_stats);
       pack_mb_tokens(w, tok, tok_end, cm->bit_depth, tx, &token_stats);
+#endif  // CONFIG_PALETTE && CONFIG_PALETTE_THROUGHPUT
 #if CONFIG_RD_DEBUG
       if (is_inter_block(mbmi) && mbmi->sb_type >= BLOCK_8X8 &&
           rd_token_stats_mismatch(&m->mbmi.rd_stats, &token_stats, plane)) {