diff --git a/pkg/sfu/downtrack.go b/pkg/sfu/downtrack.go
index f6838c2a6..034a6617b 100644
--- a/pkg/sfu/downtrack.go
+++ b/pkg/sfu/downtrack.go
@@ -541,10 +541,6 @@ func (d *DownTrack) switchSpatialLayer(targetLayer int32) error {
 	return nil
 }
 
-func (d *DownTrack) SwitchSpatialLayerDone(layer int32) {
-	d.currentSpatialLayer.set(layer)
-}
-
 func (d *DownTrack) UptrackLayersChange(availableLayers []uint16, layerAdded bool) (int32, error) {
 	if d.trackType == SimulcastDownTrack {
 		currentLayer := uint16(d.CurrentSpatialLayer())
@@ -944,13 +940,49 @@ func (d *DownTrack) writeSimpleRTP(extPkt *buffer.ExtPacket) error {
 }
 
 func (d *DownTrack) writeSimulcastRTP(extPkt *buffer.ExtPacket, layer int32) error {
-	// Check if packet SSRC is different from before
-	// if true, the video source changed
+	tsl := d.TargetSpatialLayer()
 	csl := d.CurrentSpatialLayer()
-	if csl != layer {
+	if tsl == layer && csl != tsl {
+		if extPkt.KeyFrame {
+			d.currentSpatialLayer.set(layer)
+			csl = layer
+		} else {
+			d.lastPli.set(time.Now().UnixNano())
+			d.receiver.SendPLI(layer)
+		}
+	}
+
+	if tsl < csl && tsl < d.MaxSpatialLayer() {
+		//
+		// If target layer is lower than both the current and
+		// maximum subscribed layer, it is due to bandwidth
+		// constraints that the target layer has been switched down.
+		// Continuing to send higher layer will only exacerbate the
+		// situation by putting more stress on the channel. So, drop it.
+		//
+		// In the other direction, it is okay to keep forwarding till
+		// switch point to get a smoother stream till the higher
+		// layer key frame arrives.
+		//
+		// Note that in the case of client subscription layer restriction
+		// coinciding with server restriction due to bandwidth limitation,
+		// this will take client subscription as the winning vote and
+		// continue to stream current spatial layer till switch point.
+		// That could lead to congesting the channel.
+		// LK-TODO: Improve the above case, i. e. distinguish server
+		// applied restriction from client requested restriction.
+		//
+		d.pktsDropped.add(1)
 		return nil
 	}
 
+	if csl != layer {
+		d.pktsDropped.add(1)
+		return nil
+	}
+
+	// Check if packet SSRC is different from before
+	// if true, the video source changed
 	lastSSRC := d.lastSSRC.get()
 	reSync := d.reSync.get()
 	if lastSSRC != extPkt.Packet.SSRC || reSync {
diff --git a/pkg/sfu/receiver.go b/pkg/sfu/receiver.go
index 70c1d25d0..69d6dcf85 100644
--- a/pkg/sfu/receiver.go
+++ b/pkg/sfu/receiver.go
@@ -37,6 +37,7 @@ type Receiver interface {
 	DeleteDownTrack(peerID string)
 	OnCloseHandler(fn func())
 	SendRTCP(p []rtcp.Packet)
+	SendPLI(layer int32)
 	SetRTCPCh(ch chan []rtcp.Packet)
 
 	GetSenderReportTime(layer int32) (rtpTS uint32, ntpTS uint64)
@@ -470,6 +471,14 @@ func (w *WebRTCReceiver) SendRTCP(p []rtcp.Packet) {
 	w.rtcpCh <- p
 }
 
+func (w *WebRTCReceiver) SendPLI(layer int32) {
+	pli := []rtcp.Packet{
+		&rtcp.PictureLossIndication{SenderSSRC: rand.Uint32(), MediaSSRC: w.SSRC(int(layer))},
+	}
+
+	w.SendRTCP(pli)
+}
+
 func (w *WebRTCReceiver) SetRTCPCh(ch chan []rtcp.Packet) {
 	w.rtcpCh = ch
 }
@@ -550,10 +559,6 @@ func (w *WebRTCReceiver) forwardRTP(layer int32) {
 		}
 	}()
 
-	pli := []rtcp.Packet{
-		&rtcp.PictureLossIndication{SenderSSRC: rand.Uint32(), MediaSSRC: w.SSRC(int(layer))},
-	}
-
 	for {
 		w.bufferMu.RLock()
 		pkt, err := w.buffers[layer].ReadExtended()
@@ -574,7 +579,7 @@ func (w *WebRTCReceiver) forwardRTP(layer int32) {
 			// serial - not enough down tracks for parallelization to outweigh overhead
 			for _, dt := range downTracks {
 				if dt != nil {
-					w.writeRTP(layer, dt, pkt, pli)
+					w.writeRTP(layer, dt, pkt)
 				}
 			}
 		} else {
@@ -599,7 +604,7 @@ func (w *WebRTCReceiver) forwardRTP(layer int32) {
 
 						for i := n - step; i < n && i < end; i++ {
 							if dt := downTracks[i]; dt != nil {
-								w.writeRTP(layer, dt, pkt, pli)
+								w.writeRTP(layer, dt, pkt)
 							}
 						}
 					}
@@ -610,40 +615,7 @@ func (w *WebRTCReceiver) forwardRTP(layer int32) {
 	}
 }
 
-func (w *WebRTCReceiver) writeRTP(layer int32, dt *DownTrack, pkt *buffer.ExtPacket, pli []rtcp.Packet) {
-	// LK-TODO-START
-	// Ideally this code should also be moved into the DownTrack
-	// structure to keep things modular. Let the down track code
-	// make decision on forwarding or not
-	// LK-TODO-END
-	if w.isSimulcast {
-		targetLayer := dt.TargetSpatialLayer()
-		currentLayer := dt.CurrentSpatialLayer()
-		if targetLayer == layer && currentLayer != targetLayer {
-			if pkt.KeyFrame {
-				dt.SwitchSpatialLayerDone(targetLayer)
-				currentLayer = targetLayer
-			} else {
-				dt.lastPli.set(time.Now().UnixNano())
-				w.SendRTCP(pli)
-			}
-		}
-		// LK-TODO-START
-		// Probably need a control here to stop forwarding current layer
-		// if the current layer is higher than target layer, i. e. target layer
-		// could have been switched down due to bandwidth constraints and
-		// continuing to forward higher layer is only going to exacerbate the issue.
-		// Note that the client might have also requested a lower layer. So, it
-		// would nice to distinguish between client requested downgrade vs bandwidth
-		// constrained downgrade and stop higher layer only in the bandwidth
-		// constrained case.
-		// LK-TODO-END
-		if currentLayer != layer {
-			dt.pktsDropped.add(1)
-			return
-		}
-	}
-
+func (w *WebRTCReceiver) writeRTP(layer int32, dt *DownTrack, pkt *buffer.ExtPacket) {
 	if err := dt.WriteRTP(pkt, layer); err != nil {
 		log.Error().Err(err).Str("id", dt.id).Msg("Error writing to down track")
 	}