diff --git a/src/asahi/compiler/agx_compile.c b/src/asahi/compiler/agx_compile.c
index a8d0b3bcd47..cb96a5f8058 100644
--- a/src/asahi/compiler/agx_compile.c
+++ b/src/asahi/compiler/agx_compile.c
@@ -2822,6 +2822,7 @@ agx_compile_function_nir(nir_shader *nir, nir_function_impl *impl,
 
       /* After DCE, use counts are right so we can run the optimizer. */
       agx_optimizer(ctx);
+      agx_opt_compact_constants(ctx);
 
       /* After inlining constants, promote what's left */
       if (key->promote_constants && !(agx_compiler_debug & AGX_DBG_NOPROMOTE)) {
diff --git a/src/asahi/compiler/agx_compiler.h b/src/asahi/compiler/agx_compiler.h
index 76d60e945ae..fc0efc3aacd 100644
--- a/src/asahi/compiler/agx_compiler.h
+++ b/src/asahi/compiler/agx_compiler.h
@@ -939,6 +939,7 @@ void agx_lower_pseudo(agx_context *ctx);
 void agx_lower_spill(agx_context *ctx);
 void agx_lower_uniform_sources(agx_context *ctx);
 void agx_opt_cse(agx_context *ctx);
+void agx_opt_compact_constants(agx_context *ctx);
 void agx_opt_promote_constants(agx_context *ctx);
 void agx_dce(agx_context *ctx, bool partial);
 void agx_pressure_schedule(agx_context *ctx);
diff --git a/src/asahi/compiler/agx_opt_compact_constants.c b/src/asahi/compiler/agx_opt_compact_constants.c
new file mode 100644
index 00000000000..6baad35e8f6
--- /dev/null
+++ b/src/asahi/compiler/agx_opt_compact_constants.c
@@ -0,0 +1,62 @@
+/*
+ * Copyright 2024 Alyssa Rosenzweig
+ * SPDX-License-Identifier: MIT
+ */
+
+#include "util/bitset.h"
+#include "util/half_float.h"
+#include "agx_builder.h"
+#include "agx_compiler.h"
+#include "agx_opcodes.h"
+
+/*
+ * AGX can convert 16-bit sources to 32-bit for free, so it's beneficial to
+ * compact 32-bit constants down to 16-bit when doing so is lossless. This
+ * reduces register pressure (GPR or uniform, depending on whether the constant
+ * is promoted).
+ */
+void
+agx_opt_compact_constants(agx_context *ctx)
+{
+   /* TODO: Handle ints too */
+   BITSET_WORD *src_float = calloc(ctx->alloc, sizeof(BITSET_WORD));
+   BITSET_WORD *src_other = calloc(ctx->alloc, sizeof(BITSET_WORD));
+   BITSET_WORD *replaced = calloc(ctx->alloc, sizeof(BITSET_WORD));
+
+   /* Analyze the types that we read constants as */
+   agx_foreach_instr_global(ctx, I) {
+      agx_foreach_ssa_src(I, s) {
+         if (agx_is_float_src(I, s))
+            BITSET_SET(src_float, I->src[s].value);
+         else
+            BITSET_SET(src_other, I->src[s].value);
+      }
+   }
+
+   agx_foreach_instr_global(ctx, I) {
+      if (I->op == AGX_OPCODE_MOV_IMM && I->dest[0].size == AGX_SIZE_32) {
+         unsigned v = I->dest[0].value;
+
+         if (BITSET_TEST(src_float, v) && !BITSET_TEST(src_other, v)) {
+            /* Try to compact to f16 */
+            uint16_t compact = _mesa_float_to_half(uif(I->imm));
+
+            if (I->imm == fui(_mesa_half_to_float(compact))) {
+               I->dest[0].size = AGX_SIZE_16;
+               I->imm = compact;
+               BITSET_SET(replaced, v);
+            }
+         }
+      } else {
+         agx_foreach_ssa_src(I, s) {
+            if (BITSET_TEST(replaced, I->src[s].value)) {
+               I->src[s].size = AGX_SIZE_16;
+            }
+         }
+      }
+   }
+
+   free(replaced);
+   free(src_float);
+   free(src_other);
+}
diff --git a/src/asahi/compiler/meson.build b/src/asahi/compiler/meson.build
index b83e4a4e682..b397756b0fe 100644
--- a/src/asahi/compiler/meson.build
+++ b/src/asahi/compiler/meson.build
@@ -33,6 +33,7 @@ libasahi_agx_files = files(
   'agx_opt_break_if.c',
   'agx_opt_empty_else.c',
   'agx_opt_jmp_none.c',
+  'agx_opt_compact_constants.c',
   'agx_opt_promote_constants.c',
   'agx_optimizer.c',
   'agx_repair_ssa.c',