diff --git a/components/esp_lcd/spi/esp_lcd_panel_io_spi.c b/components/esp_lcd/spi/esp_lcd_panel_io_spi.c
index eae42c890de..b74b14710b3 100644
--- a/components/esp_lcd/spi/esp_lcd_panel_io_spi.c
+++ b/components/esp_lcd/spi/esp_lcd_panel_io_spi.c
@@ -1,5 +1,5 @@
 /*
- * SPDX-FileCopyrightText: 2021-2025 Espressif Systems (Shanghai) CO LTD
+ * SPDX-FileCopyrightText: 2021-2026 Espressif Systems (Shanghai) CO LTD
  *
  * SPDX-License-Identifier: Apache-2.0
  */
@@ -24,6 +24,7 @@
 #include "esp_log.h"
 #include "esp_check.h"
 #include "esp_lcd_common.h"
+#include "esp_memory_utils.h"
 #include "freertos/FreeRTOS.h"
 
 static const char *TAG = "lcd_panel.io.spi";
@@ -347,11 +348,14 @@ static esp_err_t panel_io_spi_tx_color(esp_lcd_panel_io_t *io, int lcd_cmd, cons
             // use 8 lines for transmitting command, address and data
             lcd_trans->base.flags |= (SPI_TRANS_MULTILINE_CMD | SPI_TRANS_MULTILINE_ADDR | SPI_TRANS_MODE_OCT);
         }
+
         // command is short, using polling mode
         ret = spi_device_polling_transmit(spi_panel_io->spi_dev, &lcd_trans->base);
         ESP_GOTO_ON_ERROR(ret, err, TAG, "spi transmit (polling) command failed");
     }
 
+    bool color_in_psram = color && color_size && esp_ptr_external_ram(color);
+
     // if the color buffer is big, we want to split it into chunks, and queue the chunks one by one
     do {
         size_t chunk_size = color_size;
@@ -367,6 +371,10 @@ static esp_err_t panel_io_spi_tx_color(esp_lcd_panel_io_t *io, int lcd_cmd, cons
             spi_panel_io->num_trans_inflight--;
         }
         memset(lcd_trans, 0, sizeof(lcd_spi_trans_descriptor_t));
+        if (color_in_psram) {
+            // When the color buffer resides in PSRAM, set the DMA PSRAM flag
+            lcd_trans->base.flags |= SPI_TRANS_DMA_USE_PSRAM;
+        }
 
         // SPI per-transfer size has its limitation, if the color buffer is too big, we need to split it into multiple chunks
         if (chunk_size > spi_panel_io->spi_trans_max_bytes) {
diff --git a/components/esp_lcd/test_apps/spi_lcd/main/test_spi_lcd_panel.c b/components/esp_lcd/test_apps/spi_lcd/main/test_spi_lcd_panel.c
index 6f41b800525..8094037e728 100644
--- a/components/esp_lcd/test_apps/spi_lcd/main/test_spi_lcd_panel.c
+++ b/components/esp_lcd/test_apps/spi_lcd/main/test_spi_lcd_panel.c
@@ -76,9 +76,9 @@ void test_spi_lcd_common_initialize(esp_lcd_panel_io_handle_t *io_handle, esp_lc
 
 #define TEST_IMG_SIZE (200 * 200 * sizeof(uint16_t))
 
-static void lcd_panel_test(esp_lcd_panel_io_handle_t io_handle, esp_lcd_panel_handle_t panel_handle)
+static void lcd_panel_test(esp_lcd_panel_io_handle_t io_handle, esp_lcd_panel_handle_t panel_handle, bool use_psram)
 {
-    uint8_t *img = heap_caps_malloc(TEST_IMG_SIZE, MALLOC_CAP_DMA | MALLOC_CAP_INTERNAL);
+    uint8_t *img = heap_caps_malloc(TEST_IMG_SIZE, MALLOC_CAP_DMA | (use_psram ? MALLOC_CAP_SPIRAM : MALLOC_CAP_INTERNAL));
     TEST_ASSERT_NOT_NULL(img);
 
     esp_lcd_panel_reset(panel_handle);
@@ -115,10 +115,6 @@ static void lcd_panel_test(esp_lcd_panel_io_handle_t io_handle, esp_lcd_panel_ha
 
     printf("turn off the panel\r\n");
     esp_lcd_panel_disp_on_off(panel_handle, false);
-    TEST_ESP_OK(esp_lcd_panel_del(panel_handle));
-    TEST_ESP_OK(esp_lcd_panel_io_del(io_handle));
-    TEST_ESP_OK(spi_bus_free(TEST_SPI_HOST_ID));
-    TEST_ESP_OK(gpio_reset_pin(TEST_LCD_BK_LIGHT_GPIO));
     free(img);
 }
 
@@ -176,7 +172,15 @@ TEST_CASE("lcd_panel_with_8-line_spi_interface_(st7789)", "[lcd]")
         .bits_per_pixel = 16,
     };
     TEST_ESP_OK(esp_lcd_new_panel_st7789(io_handle, &panel_config, &panel_handle));
-    lcd_panel_test(io_handle, panel_handle);
+    lcd_panel_test(io_handle, panel_handle, false);
+#if SOC_PSRAM_DMA_CAPABLE && CONFIG_PSRAM
+    printf("test with PSRAM\r\n");
+    lcd_panel_test(io_handle, panel_handle, true);
+#endif
+    TEST_ESP_OK(esp_lcd_panel_del(panel_handle));
+    TEST_ESP_OK(esp_lcd_panel_io_del(io_handle));
+    TEST_ESP_OK(spi_bus_free(TEST_SPI_HOST_ID));
+    TEST_ESP_OK(gpio_reset_pin(TEST_LCD_BK_LIGHT_GPIO));
 }
 
 TEST_CASE("lcd_panel_with_8-line_spi_interface_(nt35510)", "[lcd]")
@@ -190,7 +194,15 @@ TEST_CASE("lcd_panel_with_8-line_spi_interface_(nt35510)", "[lcd]")
         .bits_per_pixel = 16,
     };
     TEST_ESP_OK(esp_lcd_new_panel_nt35510(io_handle, &panel_config, &panel_handle));
-    lcd_panel_test(io_handle, panel_handle);
+    lcd_panel_test(io_handle, panel_handle, false);
+#if SOC_PSRAM_DMA_CAPABLE && CONFIG_PSRAM
+    printf("test with PSRAM\r\n");
+    lcd_panel_test(io_handle, panel_handle, true);
+#endif
+    TEST_ESP_OK(esp_lcd_panel_del(panel_handle));
+    TEST_ESP_OK(esp_lcd_panel_io_del(io_handle));
+    TEST_ESP_OK(spi_bus_free(TEST_SPI_HOST_ID));
+    TEST_ESP_OK(gpio_reset_pin(TEST_LCD_BK_LIGHT_GPIO));
 }
 #endif // SOC_SPI_SUPPORT_OCT
 
@@ -205,7 +217,15 @@ TEST_CASE("lcd_panel_with_1-line_spi_interface_(st7789)", "[lcd]")
         .bits_per_pixel = 16,
     };
     TEST_ESP_OK(esp_lcd_new_panel_st7789(io_handle, &panel_config, &panel_handle));
-    lcd_panel_test(io_handle, panel_handle);
+    lcd_panel_test(io_handle, panel_handle, false);
+#if SOC_PSRAM_DMA_CAPABLE && CONFIG_PSRAM
+    printf("test with PSRAM\r\n");
+    lcd_panel_test(io_handle, panel_handle, true);
+#endif
+    TEST_ESP_OK(esp_lcd_panel_del(panel_handle));
+    TEST_ESP_OK(esp_lcd_panel_io_del(io_handle));
+    TEST_ESP_OK(spi_bus_free(TEST_SPI_HOST_ID));
+    TEST_ESP_OK(gpio_reset_pin(TEST_LCD_BK_LIGHT_GPIO));
 }
 
 TEST_CASE("spi_lcd_send_colors_to_fixed_region", "[lcd]")
diff --git a/components/esp_lcd/test_apps/spi_lcd/sdkconfig.defaults.esp32p4 b/components/esp_lcd/test_apps/spi_lcd/sdkconfig.defaults.esp32p4
new file mode 100644
index 00000000000..702fac3342d
--- /dev/null
+++ b/components/esp_lcd/test_apps/spi_lcd/sdkconfig.defaults.esp32p4
@@ -0,0 +1,3 @@
+CONFIG_SPIRAM=y
+CONFIG_SPIRAM_MODE_HEX=y
+CONFIG_SPIRAM_SPEED_200M=y