diff --git a/src/amd/compiler/aco_optimizer.cpp b/src/amd/compiler/aco_optimizer.cpp
index 7109c2e4f7b..933ce834628 100644
--- a/src/amd/compiler/aco_optimizer.cpp
+++ b/src/amd/compiler/aco_optimizer.cpp
@@ -123,6 +123,7 @@ enum Label {
    label_dpp16 = 1ull << 35,
    label_dpp8 = 1ull << 36,
    label_f2f32 = 1ull << 37,
+   label_f2f16 = 1ull << 38,
 };
 
 static constexpr uint64_t instr_usedef_labels =
@@ -130,7 +131,7 @@ static constexpr uint64_t instr_usedef_labels =
    label_uniform_bitwise | label_minmax | label_vopc | label_usedef | label_extract | label_dpp16 |
    label_dpp8 | label_f2f32;
 static constexpr uint64_t instr_mod_labels =
-   label_omod2 | label_omod4 | label_omod5 | label_clamp | label_insert;
+   label_omod2 | label_omod4 | label_omod5 | label_clamp | label_insert | label_f2f16;
 
 static constexpr uint64_t instr_labels = instr_usedef_labels | instr_mod_labels;
 static constexpr uint64_t temp_labels = label_abs | label_neg | label_temp | label_vcc | label_b2f |
@@ -326,6 +327,14 @@ struct ssa_info {
 
    bool is_clamp() { return label & label_clamp; }
 
+   void set_f2f16(Instruction* conv)
+   {
+      add_label(label_f2f16);
+      instr = conv;
+   }
+
+   bool is_f2f16() { return label & label_f2f16; }
+
    void set_undefined() { add_label(label_undefined); }
 
    bool is_undefined() { return label & label_undefined; }
@@ -1889,6 +1898,11 @@ label_instruction(opt_ctx& ctx, aco_ptr<Instruction>& instr)
       ctx.info[instr->definitions[0].tempId()].set_usedef(instr.get());
       break;
    }
+   case aco_opcode::v_cvt_f16_f32: {
+      if (instr->operands[0].isTemp())
+         ctx.info[instr->operands[0].tempId()].set_f2f16(instr.get());
+      break;
+   }
    case aco_opcode::v_cvt_f32_f16: {
       if (instr->operands[0].isTemp())
          ctx.info[instr->definitions[0].tempId()].set_f2f32(instr.get());
@@ -3060,7 +3074,7 @@ apply_omod_clamp(opt_ctx& ctx, aco_ptr<Instruction>& instr)
    }
 
    instr->definitions[0].swapTemp(def_info.instr->definitions[0]);
-   ctx.info[instr->definitions[0].tempId()].label &= label_clamp | label_insert;
+   ctx.info[instr->definitions[0].tempId()].label &= label_clamp | label_insert | label_f2f16;
    ctx.uses[def_info.instr->definitions[0].tempId()]--;
 
    return true;
@@ -3499,11 +3513,41 @@ to_mad_mix(opt_ctx& ctx, aco_ptr<Instruction>& instr)
    vop3p->clamp = instr->isVOP3() && instr->vop3().clamp;
    instr = std::move(vop3p);
 
-   ctx.info[instr->definitions[0].tempId()].label &= label_clamp | label_mul;
+   ctx.info[instr->definitions[0].tempId()].label &= label_f2f16 | label_clamp | label_mul;
    if (ctx.info[instr->definitions[0].tempId()].label & label_mul)
       ctx.info[instr->definitions[0].tempId()].instr = instr.get();
 }
 
+bool
+combine_output_conversion(opt_ctx& ctx, aco_ptr<Instruction>& instr)
+{
+   ssa_info& def_info = ctx.info[instr->definitions[0].tempId()];
+   if (!def_info.is_f2f16())
+      return false;
+   Instruction* conv = def_info.instr;
+
+   if (!can_use_mad_mix(ctx, instr) || ctx.uses[instr->definitions[0].tempId()] != 1)
+      return false;
+
+   if (!ctx.uses[conv->definitions[0].tempId()])
+      return false;
+
+   if (conv->usesModifiers())
+      return false;
+
+   if (!instr->isVOP3P())
+      to_mad_mix(ctx, instr);
+
+   instr->opcode = aco_opcode::v_fma_mixlo_f16;
+   instr->definitions[0].swapTemp(conv->definitions[0]);
+   if (conv->definitions[0].isPrecise())
+      instr->definitions[0].setPrecise(true);
+   ctx.info[instr->definitions[0].tempId()].label &= label_clamp;
+   ctx.uses[conv->definitions[0].tempId()]--;
+
+   return true;
+}
+
 void
 combine_mad_mix(opt_ctx& ctx, aco_ptr<Instruction>& instr)
 {
@@ -3603,7 +3647,7 @@ combine_instruction(opt_ctx& ctx, aco_ptr<Instruction>& instr)
       if (can_apply_sgprs(ctx, instr))
          apply_sgprs(ctx, instr);
       combine_mad_mix(ctx, instr);
-      while (apply_omod_clamp(ctx, instr))
+      while (apply_omod_clamp(ctx, instr) | combine_output_conversion(ctx, instr))
          ;
       apply_insert(ctx, instr);
    }