diff --git a/src/cu.h b/src/cu.h
index cf2a4e9a..6b5bdf38 100644
--- a/src/cu.h
+++ b/src/cu.h
@@ -126,6 +126,13 @@ typedef struct
 
   uint16_t cbf;
 
+  /**
+   * \brief QP used for the CU.
+   *
+   * This is required for deblocking when per-LCU QPs are enabled.
+   */
+  uint8_t qp;
+
   union {
     struct {
       int8_t mode;
diff --git a/src/encoderstate.c b/src/encoderstate.c
index 967cfa8c..825a7373 100644
--- a/src/encoderstate.c
+++ b/src/encoderstate.c
@@ -196,7 +196,76 @@ static void encode_sao(encoder_state_t * const state,
 }
 
 
-static void encoder_state_worker_encode_lcu(void * opaque) {
+/**
+ * \brief Sets the QP for each CU in state->tile->frame->cu_array.
+ *
+ * The QPs are used in deblocking.
+ *
+ * The delta QP for an LCU is coded when the first CU with coded block flag
+ * set is encountered. Hence, for the purposes of deblocking, all CUs
+ * before the first one with cbf set use state->ref_qp and all CUs after
+ * that use state->qp.
+ *
+ * \param state           encoder state
+ * \param x               x-coordinate of the left edge of the root CU
+ * \param y               y-coordinate of the top edge of the root CU
+ * \param depth           depth in the CU quadtree
+ * \param coeffs_coded    Used for tracking whether a CU with a residual
+ *                        has been encountered. Should be set to false at
+ *                        the top level.
+ * \return Whether there were any CUs with residual or not.
+ */
+static bool set_cu_qps(encoder_state_t *state, int x, int y, int depth, bool coeffs_coded)
+{
+  if (state->qp == state->ref_qp) {
+    // If the QPs are equal there is no need to care about the residuals.
+    coeffs_coded = true;
+  }
+
+  cu_info_t *cu = kvz_cu_array_at(state->tile->frame->cu_array, x, y);
+  const int cu_width = LCU_WIDTH >> depth;
+  coeffs_coded = coeffs_coded || cbf_is_set_any(cu->cbf, cu->depth);
+
+  if (!coeffs_coded && cu->depth > depth) {
+    // Recursively process sub-CUs.
+    const int d = cu_width >> 1;
+    coeffs_coded = set_cu_qps(state, x,     y,     depth + 1, coeffs_coded);
+    coeffs_coded = set_cu_qps(state, x + d, y,     depth + 1, coeffs_coded);
+    coeffs_coded = set_cu_qps(state, x,     y + d, depth + 1, coeffs_coded);
+    coeffs_coded = set_cu_qps(state, x + d, y + d, depth + 1, coeffs_coded);
+
+  } else {
+    if (!coeffs_coded && cu->tr_depth > depth) {
+      // The CU is split into smaller transform units. Check whether coded
+      // block flag is set for any of the TUs.
+      const int tu_width = LCU_WIDTH >> cu->tr_depth;
+      for (int y_scu = y; y_scu < y + cu_width; y_scu += tu_width) {
+        for (int x_scu = x; x_scu < x + cu_width; x_scu += tu_width) {
+          cu_info_t *tu = kvz_cu_array_at(state->tile->frame->cu_array, x_scu, y_scu);
+          if (cbf_is_set_any(tu->cbf, cu->depth)) {
+            coeffs_coded = true;
+          }
+        }
+      }
+    }
+
+    // Set the correct QP for all state->tile->frame->cu_array elements in
+    // the area covered by the CU.
+    const int8_t qp = coeffs_coded ? state->qp : state->ref_qp;
+
+    for (int y_scu = y; y_scu < y + cu_width; y_scu += SCU_WIDTH) {
+      for (int x_scu = x; x_scu < x + cu_width; x_scu += SCU_WIDTH) {
+        kvz_cu_array_at(state->tile->frame->cu_array, x_scu, y_scu)->qp = qp;
+      }
+    }
+  }
+
+  return coeffs_coded;
+}
+
+
+static void encoder_state_worker_encode_lcu(void * opaque)
+{
   const lcu_order_element_t * const lcu = opaque;
   encoder_state_t *state = lcu->encoder_state;
   const encoder_control_t * const encoder = state->encoder_control;
@@ -211,6 +280,10 @@ static void encoder_state_worker_encode_lcu(void * opaque) {
   encoder_state_recdata_to_bufs(state, lcu, state->tile->hor_buf_search, state->tile->ver_buf_search);
 
   if (encoder->deblock_enable) {
+    if (encoder->cfg->target_bitrate > 0) {
+      set_cu_qps(state, lcu->position_px.x, lcu->position_px.y, 0, false);
+    }
+
     kvz_filter_deblock_lcu(state, lcu->position_px.x, lcu->position_px.y);
   }
 
diff --git a/src/filter.c b/src/filter.c
index dce73199..d96db710 100644
--- a/src/filter.c
+++ b/src/filter.c
@@ -247,6 +247,27 @@ static bool is_on_8x8_grid(int x, int y, edge_dir dir)
   }
 }
 
+static int8_t get_qp_y_pred(const encoder_state_t* state, int x, int y, edge_dir dir)
+{
+  if (state->encoder_control->cfg->target_bitrate <= 0) {
+    return state->qp;
+  }
+
+  int32_t qp_p;
+  if (dir == EDGE_HOR && y > 0) {
+    qp_p = kvz_cu_array_at_const(state->tile->frame->cu_array, x, y - 1)->qp;
+  } else if (dir == EDGE_VER && x > 0) {
+    qp_p = kvz_cu_array_at_const(state->tile->frame->cu_array, x - 1, y)->qp;
+  } else {
+    qp_p = state->frame->QP;
+  }
+
+  const int32_t qp_q =
+    kvz_cu_array_at_const(state->tile->frame->cu_array, x, y)->qp;
+
+  return (qp_p + qp_q + 1) >> 1;
+}
+
 /**
  * \brief Apply the deblocking filter to luma pixels on a single edge.
  *
@@ -290,8 +311,9 @@ static void filter_deblock_edge_luma(encoder_state_t * const state,
     kvz_pixel *orig_src = &frame->rec->y[x + y*stride];
     kvz_pixel *src = orig_src;
 
+    const int32_t qp = get_qp_y_pred(state, x, y, dir);
+
     int8_t strength = 0;
-    int32_t qp              = state->qp;
     int32_t bitdepth_scale  = 1 << (encoder->bitdepth - 8);
     int32_t b_index         = CLIP(0, 51, qp + (beta_offset_div2 << 1));
     int32_t beta            = kvz_g_beta_table_8x8[b_index] * bitdepth_scale;
@@ -490,7 +512,8 @@ static void filter_deblock_edge_chroma(encoder_state_t * const state,
     };
     int8_t strength = 2;
 
-    int32_t QP             = kvz_g_chroma_scale[state->qp];
+    const int32_t luma_qp  = get_qp_y_pred(state, x << 1, y << 1, dir);
+    int32_t QP             = kvz_g_chroma_scale[luma_qp];
     int32_t bitdepth_scale = 1 << (encoder->bitdepth-8);
     int32_t TC_index       = CLIP(0, 51+2, (int32_t)(QP + 2*(strength-1) + (tc_offset_div2 << 1)));
     int32_t Tc             = kvz_g_tc_table_8x8[TC_index]*bitdepth_scale;