diff --git a/drivers/dma/tegra20-apb-dma.c b/drivers/dma/tegra20-apb-dma.c
index 79e9593815f1..71473eda28ee 100644
--- a/drivers/dma/tegra20-apb-dma.c
+++ b/drivers/dma/tegra20-apb-dma.c
@@ -152,6 +152,7 @@ struct tegra_dma_sg_req {
 	bool				last_sg;
 	struct list_head		node;
 	struct tegra_dma_desc		*dma_desc;
+	unsigned int			words_xferred;
 };
 
 /*
@@ -496,6 +497,7 @@ static void tegra_dma_configure_for_next(struct tegra_dma_channel *tdc,
 	tdc_write(tdc, TEGRA_APBDMA_CHAN_CSR,
 				nsg_req->ch_regs.csr | TEGRA_APBDMA_CSR_ENB);
 	nsg_req->configured = true;
+	nsg_req->words_xferred = 0;
 
 	tegra_dma_resume(tdc);
 }
@@ -511,6 +513,7 @@ static void tdc_start_head_req(struct tegra_dma_channel *tdc)
 					typeof(*sg_req), node);
 	tegra_dma_start(tdc, sg_req);
 	sg_req->configured = true;
+	sg_req->words_xferred = 0;
 	tdc->busy = true;
 }
 
@@ -797,6 +800,61 @@ static int tegra_dma_terminate_all(struct dma_chan *dc)
 	return 0;
 }
 
+static unsigned int tegra_dma_sg_bytes_xferred(struct tegra_dma_channel *tdc,
+					       struct tegra_dma_sg_req *sg_req)
+{
+	unsigned long status, wcount = 0;
+
+	if (!list_is_first(&sg_req->node, &tdc->pending_sg_req))
+		return 0;
+
+	if (tdc->tdma->chip_data->support_separate_wcount_reg)
+		wcount = tdc_read(tdc, TEGRA_APBDMA_CHAN_WORD_TRANSFER);
+
+	status = tdc_read(tdc, TEGRA_APBDMA_CHAN_STATUS);
+
+	if (!tdc->tdma->chip_data->support_separate_wcount_reg)
+		wcount = status;
+
+	if (status & TEGRA_APBDMA_STATUS_ISE_EOC)
+		return sg_req->req_len;
+
+	wcount = get_current_xferred_count(tdc, sg_req, wcount);
+
+	if (!wcount) {
+		/*
+		 * If wcount wasn't ever polled for this SG before, then
+		 * simply assume that transfer hasn't started yet.
+		 *
+		 * Otherwise it's the end of the transfer.
+		 *
+		 * The alternative would be to poll the status register
+		 * until EOC bit is set or wcount goes UP. That's so
+		 * because EOC bit is getting set only after the last
+		 * burst's completion and counter is less than the actual
+		 * transfer size by 4 bytes. The counter value wraps around
+		 * in a cyclic mode before EOC is set(!), so we can't easily
+		 * distinguish start of transfer from its end.
+		 */
+		if (sg_req->words_xferred)
+			wcount = sg_req->req_len - 4;
+
+	} else if (wcount < sg_req->words_xferred) {
+		/*
+		 * This case shall not ever happen because EOC bit
+		 * must be set once next cyclic transfer is started.
+		 * Assume that hardware is malfunctioning or there is
+		 * a software bug.
+		 */
+		wcount = sg_req->req_len - 4;
+		WARN_ON_ONCE(1);
+	} else {
+		sg_req->words_xferred = wcount;
+	}
+
+	return wcount;
+}
+
 static enum dma_status tegra_dma_tx_status(struct dma_chan *dc,
 	dma_cookie_t cookie, struct dma_tx_state *txstate)
 {
@@ -806,6 +864,7 @@ static enum dma_status tegra_dma_tx_status(struct dma_chan *dc,
 	enum dma_status ret;
 	unsigned long flags;
 	unsigned int residual;
+	unsigned int bytes = 0;
 
 	ret = dma_cookie_status(dc, cookie, txstate);
 	if (ret == DMA_COMPLETE)
@@ -825,6 +884,7 @@ static enum dma_status tegra_dma_tx_status(struct dma_chan *dc,
 	list_for_each_entry(sg_req, &tdc->pending_sg_req, node) {
 		dma_desc = sg_req->dma_desc;
 		if (dma_desc->txd.cookie == cookie) {
+			bytes = tegra_dma_sg_bytes_xferred(tdc, sg_req);
 			ret = dma_desc->dma_status;
 			goto found;
 		}
@@ -836,7 +896,7 @@ static enum dma_status tegra_dma_tx_status(struct dma_chan *dc,
 found:
 	if (dma_desc && txstate) {
 		residual = dma_desc->bytes_requested -
-			   (dma_desc->bytes_transferred %
+			   ((dma_desc->bytes_transferred + bytes) %
 			    dma_desc->bytes_requested);
 		dma_set_residue(txstate, residual);
 	}
@@ -1441,12 +1501,7 @@ static int tegra_dma_probe(struct platform_device *pdev)
 		BIT(DMA_SLAVE_BUSWIDTH_4_BYTES) |
 		BIT(DMA_SLAVE_BUSWIDTH_8_BYTES);
 	tdma->dma_dev.directions = BIT(DMA_DEV_TO_MEM) | BIT(DMA_MEM_TO_DEV);
-	/*
-	 * XXX The hardware appears to support
-	 * DMA_RESIDUE_GRANULARITY_BURST-level reporting, but it's
-	 * only used by this driver during tegra_dma_terminate_all()
-	 */
-	tdma->dma_dev.residue_granularity = DMA_RESIDUE_GRANULARITY_SEGMENT;
+	tdma->dma_dev.residue_granularity = DMA_RESIDUE_GRANULARITY_BURST;
 	tdma->dma_dev.device_config = tegra_dma_slave_config;
 	tdma->dma_dev.device_terminate_all = tegra_dma_terminate_all;
 	tdma->dma_dev.device_tx_status = tegra_dma_tx_status;
