diff --git a/src/core/fullscreenui_settings.cpp b/src/core/fullscreenui_settings.cpp
index 2f31ab557..6e2cedb17 100644
--- a/src/core/fullscreenui_settings.cpp
+++ b/src/core/fullscreenui_settings.cpp
@@ -4806,6 +4806,12 @@ void FullscreenUI::DrawGraphicsSettingsPage()
                                 "less noticeable. Usually safe to enable."),
                       "GPU", "ScaledInterlacing", true, resolution_scale > 1);
 
+    DrawToggleSetting(
+      bsi, FSUI_ICONVSTR(ICON_FA_IMAGE, "Disable Upscaled Direct Textures"),
+      FSUI_VSTR("Samples 16-bit direct-color textures at native resolution when upscaling. This can fix filtering of "
+                "FMVs/backgrounds in some games, but may reduce the quality of render-to-texture effects."),
+      "GPU", "DisableUpscaledDirectTextures", false, resolution_scale > 1);
+
     DrawToggleSetting(bsi, FSUI_ICONVSTR(ICON_FA_SWATCHBOOK, "Texture Modulation Cropping (\"Old/v0\" GPU)"),
                       FSUI_VSTR("Crops vertex colours to 5:5:5 before modulating with the texture colour, which "
                                 "typically results in more visible banding."),
diff --git a/src/core/fullscreenui_strings.h b/src/core/fullscreenui_strings.h
index 0c001801b..6ee457830 100644
--- a/src/core/fullscreenui_strings.h
+++ b/src/core/fullscreenui_strings.h
@@ -273,6 +273,7 @@ TRANSLATE_NOOP("FullscreenUI", "Disable Mailbox Presentation");
 TRANSLATE_NOOP("FullscreenUI", "Disable Speedup on MDEC");
 TRANSLATE_NOOP("FullscreenUI", "Disable Subdirectory Scanning");
 TRANSLATE_NOOP("FullscreenUI", "Disable Textures");
+TRANSLATE_NOOP("FullscreenUI", "Disable Upscaled Direct Textures");
 TRANSLATE_NOOP("FullscreenUI", "Disable Vertex Lighting");
 TRANSLATE_NOOP("FullscreenUI", "Disable Window Resizing");
 TRANSLATE_NOOP("FullscreenUI", "Disable on 2D Polygons");
@@ -678,6 +679,7 @@ TRANSLATE_NOOP("FullscreenUI", "Runs the software renderer in parallel for VRAM
 TRANSLATE_NOOP("FullscreenUI", "SDL DualSense Player LED");
 TRANSLATE_NOOP("FullscreenUI", "SDL DualShock 4 / DualSense Enhanced Mode");
 TRANSLATE_NOOP("FullscreenUI", "Safe Mode");
+TRANSLATE_NOOP("FullscreenUI", "Samples 16-bit direct-color textures at native resolution when upscaling. This can fix filtering of FMVs/backgrounds in some games, but may reduce the quality of render-to-texture effects.");
 TRANSLATE_NOOP("FullscreenUI", "Save");
 TRANSLATE_NOOP("FullscreenUI", "Save Controller Preset");
 TRANSLATE_NOOP("FullscreenUI", "Save Locations");
diff --git a/src/core/game_database.cpp b/src/core/game_database.cpp
index 5c5d7db8c..63d601378 100644
--- a/src/core/game_database.cpp
+++ b/src/core/game_database.cpp
@@ -151,6 +151,7 @@ static constexpr const std::array s_trait_names = {
   "ForceRecompilerICache",
   "ForceCDROMSubQSkew",
   "IsLibCryptProtected",
+  "DisableUpscaledDirectTextures",
 };
 static_assert(s_trait_names.size() == static_cast<size_t>(Trait::MaxCount));
 
@@ -189,6 +190,7 @@ static constexpr const std::array s_trait_display_names = {
   TRANSLATE_DISAMBIG_NOOP("GameDatabase", "Force Recompiler ICache", "GameDatabase::Trait"),
   TRANSLATE_DISAMBIG_NOOP("GameDatabase", "Force CD-ROM SubQ Skew", "GameDatabase::Trait"),
   TRANSLATE_DISAMBIG_NOOP("GameDatabase", "Is LibCrypt Protected", "GameDatabase::Trait"),
+  TRANSLATE_DISAMBIG_NOOP("GameDatabase", "Disable Upscaled Direct Textures", "GameDatabase::Trait"),
 };
 static_assert(s_trait_display_names.size() == static_cast<size_t>(Trait::MaxCount));
 
@@ -681,6 +683,11 @@ void GameDatabase::Entry::ApplySettings(Settings& settings, bool display_osd_mes
     settings.gpu_force_round_texcoords = true;
   }
 
+  if (HasTrait(Trait::DisableUpscaledDirectTextures))
+  {
+    settings.gpu_disable_upscaled_direct_textures = true;
+  }
+
   if (HasTrait(Trait::ForceDeinterlacing))
   {
     const DisplayDeinterlacingMode new_mode = display_deinterlacing_mode.value_or(
diff --git a/src/core/game_database.h b/src/core/game_database.h
index 333ec47e5..e280e7e81 100644
--- a/src/core/game_database.h
+++ b/src/core/game_database.h
@@ -68,6 +68,7 @@ enum class Trait : u32
   ForceRecompilerICache,
   ForceCDROMSubQSkew,
   IsLibCryptProtected,
+  DisableUpscaledDirectTextures,
 
   MaxCount
 };
diff --git a/src/core/gpu_hw.cpp b/src/core/gpu_hw.cpp
index 60c66bf06..bcfa7a87f 100644
--- a/src/core/gpu_hw.cpp
+++ b/src/core/gpu_hw.cpp
@@ -527,6 +527,8 @@ bool GPU_HW::UpdateSettings(const GPUSettings& old_settings, Error* error)
                                g_gpu_settings.gpu_scaled_interlacing != old_settings.gpu_scaled_interlacing)) ||
      (resolution_scale > 1 && g_gpu_settings.gpu_texture_filter == GPUTextureFilter::Nearest &&
       g_gpu_settings.gpu_force_round_texcoords != old_settings.gpu_force_round_texcoords) ||
+     (resolution_scale > 1 &&
+      g_gpu_settings.gpu_disable_upscaled_direct_textures != old_settings.gpu_disable_upscaled_direct_textures) ||
      g_gpu_settings.gpu_modulation_crop != old_settings.gpu_modulation_crop ||
      g_gpu_settings.IsUsingShaderBlending() != old_settings.IsUsingShaderBlending() ||
      m_texture_filtering != g_gpu_settings.gpu_texture_filter ||
@@ -915,6 +917,8 @@ void GPU_HW::PrintSettingsToLog()
            (m_resolution_scale > 1 && g_gpu_settings.gpu_scaled_interlacing) ? " (scaled)" : "");
   INFO_LOG("Force round texture coordinates: {}",
            (m_resolution_scale > 1 && g_gpu_settings.gpu_force_round_texcoords) ? "Enabled" : "Disabled");
+  INFO_LOG("Disable upscaled direct textures: {}",
+           (m_resolution_scale > 1 && g_gpu_settings.gpu_disable_upscaled_direct_textures) ? "Enabled" : "Disabled");
   INFO_LOG("Texture Filtering: {}/{}", Settings::GetTextureFilterDisplayName(m_texture_filtering),
            Settings::GetTextureFilterDisplayName(m_sprite_texture_filtering));
   INFO_LOG("Dual-source blending: {}", m_supports_dual_source_blend ? "Supported" : "Not supported");
@@ -1277,6 +1281,7 @@ bool GPU_HW::CompilePipelines(Error* error)
   const bool per_sample_shading = (msaa && g_gpu_settings.gpu_per_sample_shading && features.per_sample_shading);
   const bool force_round_texcoords =
     (upscaled && m_texture_filtering == GPUTextureFilter::Nearest && g_gpu_settings.gpu_force_round_texcoords);
+  const bool disable_upscaled_direct_textures = (upscaled && g_gpu_settings.gpu_disable_upscaled_direct_textures);
   const bool modulation_crop = g_gpu_settings.gpu_modulation_crop;
   const bool true_color = g_gpu_settings.IsUsingTrueColor();
   const bool scaled_dithering = (!m_true_color && upscaled && g_gpu_settings.IsUsingScaledDithering());
@@ -1380,6 +1385,7 @@ bool GPU_HW::CompilePipelines(Error* error)
   vssel.per_sample_shading = per_sample_shading;
   vssel.pgxp_depth = m_pgxp_depth_buffer;
   vssel.disable_color_perspective = disable_color_perspective;
+  vssel.disable_upscaled_direct_textures = disable_upscaled_direct_textures;
   for (u8 textured = 0; textured < 2; textured++)
   {
     vssel.textured = (textured != 0);
@@ -1430,6 +1436,7 @@ bool GPU_HW::CompilePipelines(Error* error)
   fssel.true_color = true_color;
   fssel.disable_color_perspective = disable_color_perspective;
   fssel.write_mask_as_depth = m_write_mask_as_depth;
+  fssel.disable_upscaled_direct_textures = disable_upscaled_direct_textures;
 
   for (u8 depth_test = 0; depth_test < 2; depth_test++)
   {
diff --git a/src/core/gpu_hw_shadergen.cpp b/src/core/gpu_hw_shadergen.cpp
index e15f9859a..38433ad11 100644
--- a/src/core/gpu_hw_shadergen.cpp
+++ b/src/core/gpu_hw_shadergen.cpp
@@ -81,6 +81,7 @@ std::string GPU_HW_ShaderGen::GenerateBatchVertexShader(const BatchVertexShaderS
   DefineMacro(ss, "PAGE_TEXTURE", sel.page_texture);
   DefineMacro(ss, "UV_LIMITS", sel.uv_limits);
   DefineMacro(ss, "FORCE_ROUND_TEXCOORDS", sel.force_round_texcoords);
+  DefineMacro(ss, "DISABLE_UPSCALED_DIRECT_TEXTURES", sel.disable_upscaled_direct_textures);
   DefineMacro(ss, "PGXP_DEPTH", sel.pgxp_depth);
   DefineMacro(ss, "UPSCALED", sel.upscaled);
 
@@ -159,7 +160,7 @@ std::string GPU_HW_ShaderGen::GenerateBatchVertexShader(const BatchVertexShaderS
   v_col0 = a_col0;
   #if TEXTURED
     v_tex0 = float2(uint2(a_texcoord & 0xFFFFu, a_texcoord >> 16));
-    #if !PALETTE && !PAGE_TEXTURE
+    #if !PALETTE && !PAGE_TEXTURE && !DISABLE_UPSCALED_DIRECT_TEXTURES
       v_tex0 *= u_resolution_scale;
     #endif
 
@@ -180,7 +181,7 @@ std::string GPU_HW_ShaderGen::GenerateBatchVertexShader(const BatchVertexShaderS
         // Add 0.5 to the upper bounds when upscaling, to work around interpolation differences.
         // Limited to force-round-texcoord hack, to avoid breaking other games.
         v_uv_limits.zw += 0.5;
-      #elif !PAGE_TEXTURE && !PALETTE
+      #elif !PAGE_TEXTURE && !PALETTE && !DISABLE_UPSCALED_DIRECT_TEXTURES
         // Treat coordinates as being in upscaled space, and extend the UV range to all "upscaled"
         // pixels. This means 1-pixel-high polygon-based framebuffer effects won't be downsampled.
         // (e.g. Mega Man Legends 2 haze effect)
@@ -2200,6 +2201,7 @@ std::string GPU_HW_ShaderGen::GenerateBatchFragmentShader(const BatchFragmentSha
   DefineMacro(ss, "USE_DUAL_SOURCE", use_dual_source);
   DefineMacro(ss, "WRITE_MASK_AS_DEPTH", sel.write_mask_as_depth);
   DefineMacro(ss, "FORCE_ROUND_TEXCOORDS", sel.force_round_texcoords);
+  DefineMacro(ss, "DISABLE_UPSCALED_DIRECT_TEXTURES", sel.disable_upscaled_direct_textures);
   DefineMacro(ss, "UPSCALED", sel.upscaled);
 
   // Used for converting to normalized coordinates for sampling.
@@ -2356,6 +2358,12 @@ float4 SampleFromVRAM(TEXPAGE_VALUE texpage, DECLARE_UV_LIMITS(float2 coords, fl
       uint2 icoord = ApplyTextureWindow(FloatToIntegerCoords(DECLARE_UV_LIMITS(coords, uv_limits)));
       uint2 vicoord = (texpage.xy + icoord) & uint2(1023, 511);
       return LOAD_TEXTURE(samp0, int2(vicoord), 0);
+    #elif DISABLE_UPSCALED_DIRECT_TEXTURES
+      // Treat direct textures as native resolution, so filtering offsets move to adjacent native texels instead of
+      // duplicated upscaled texels.
+      uint2 icoord = ApplyTextureWindow(FloatToIntegerCoords(DECLARE_UV_LIMITS(coords, uv_limits)));
+      uint2 vicoord = (texpage.xy + icoord) & uint2(1023, 511);
+      return SAMPLE_TEXTURE_LEVEL(samp0, float2(vicoord) * RCP_VRAM_SIZE, 0.0);
     #else
       // Coordinates are already upscaled, we need to downscale them to apply the texture
       // window, then re-upscale/offset. We can't round here, because it could result in
diff --git a/src/core/gpu_hw_shadergen.h b/src/core/gpu_hw_shadergen.h
index 02919adb5..41b640a3c 100644
--- a/src/core/gpu_hw_shadergen.h
+++ b/src/core/gpu_hw_shadergen.h
@@ -22,6 +22,7 @@ public:
     bool force_round_texcoords : 1;
     bool pgxp_depth : 1;
     bool disable_color_perspective : 1;
+    bool disable_upscaled_direct_textures : 1;
   };
 
   struct BatchFragmentShaderSelector
@@ -49,6 +50,7 @@ public:
     bool use_rov_depth : 1;
     bool rov_depth_test : 1;
     bool rov_depth_write : 1;
+    bool disable_upscaled_direct_textures : 1;
   };
 
 public:
diff --git a/src/core/settings.cpp b/src/core/settings.cpp
index cdf857da0..551735107 100644
--- a/src/core/settings.cpp
+++ b/src/core/settings.cpp
@@ -325,6 +325,7 @@ void Settings::Load(const SettingsInterface& si, const SettingsInterface& contro
   gpu_use_software_renderer_for_memory_states = si.GetBoolValue("GPU", "UseSoftwareRendererForMemoryStates", false);
   gpu_scaled_interlacing = si.GetBoolValue("GPU", "ScaledInterlacing", true);
   gpu_force_round_texcoords = si.GetBoolValue("GPU", "ForceRoundTextureCoordinates", false);
+  gpu_disable_upscaled_direct_textures = si.GetBoolValue("GPU", "DisableUpscaledDirectTextures", false);
   gpu_texture_filter = ParseTextureFilterName(si.GetStringViewValue("GPU", "TextureFilter",
                                                                     GetTextureFilterName(DEFAULT_GPU_TEXTURE_FILTER)))
                          .value_or(DEFAULT_GPU_TEXTURE_FILTER);
@@ -734,6 +735,7 @@ void Settings::Save(SettingsInterface& si, bool for_copy) const
   si.SetBoolValue("GPU", "UseSoftwareRendererForMemoryStates", gpu_use_software_renderer_for_memory_states);
   si.SetBoolValue("GPU", "ScaledInterlacing", gpu_scaled_interlacing);
   si.SetBoolValue("GPU", "ForceRoundTextureCoordinates", gpu_force_round_texcoords);
+  si.SetBoolValue("GPU", "DisableUpscaledDirectTextures", gpu_disable_upscaled_direct_textures);
   si.SetStringValue("GPU", "TextureFilter", GetTextureFilterName(gpu_texture_filter));
   si.SetStringValue("GPU", "SpriteTextureFilter", GetTextureFilterName(gpu_sprite_texture_filter));
   si.SetStringValue("GPU", "DitheringMode", GetGPUDitheringModeName(gpu_dithering_mode));
@@ -1148,6 +1150,7 @@ void Settings::ApplySettingRestrictions()
     gpu_per_sample_shading = false;
     gpu_scaled_interlacing = false;
     gpu_force_round_texcoords = false;
+    gpu_disable_upscaled_direct_textures = false;
     gpu_texture_filter = GPUTextureFilter::Nearest;
     gpu_sprite_texture_filter = GPUTextureFilter::Nearest;
     gpu_dithering_mode = GPUDitheringMode::Unscaled;
diff --git a/src/core/settings.h b/src/core/settings.h
index fd908ee9e..ce8e693f3 100644
--- a/src/core/settings.h
+++ b/src/core/settings.h
@@ -78,6 +78,7 @@ struct GPUSettings
   bool gpu_per_sample_shading : 1 = false;
   bool gpu_scaled_interlacing : 1 = true;
   bool gpu_force_round_texcoords : 1 = false;
+  bool gpu_disable_upscaled_direct_textures : 1 = false;
   bool gpu_widescreen_rendering : 1 = false;
   bool gpu_widescreen_hack : 1 = false;
   bool gpu_modulation_crop : 1 = false;
diff --git a/src/core/shader_cache_version.h b/src/core/shader_cache_version.h
index 8ce470fde..3566d8412 100644
--- a/src/core/shader_cache_version.h
+++ b/src/core/shader_cache_version.h
@@ -5,7 +5,7 @@
 
 #include "common/types.h"
 
-inline constexpr u32 SHADER_CACHE_VERSION = 39;
+inline constexpr u32 SHADER_CACHE_VERSION = 40;
 
 // Used to tag opaque keys.
 enum class ShaderCacheKeyType : u16
diff --git a/src/core/system.cpp b/src/core/system.cpp
index c365c6255..68d69b54c 100644
--- a/src/core/system.cpp
+++ b/src/core/system.cpp
@@ -4658,6 +4658,7 @@ void System::CheckForSettingsChanges(const Settings& old_settings)
                old_settings.gpu_use_software_renderer_for_memory_states ||
              g_settings.gpu_scaled_interlacing != old_settings.gpu_scaled_interlacing ||
              g_settings.gpu_force_round_texcoords != old_settings.gpu_force_round_texcoords ||
+             g_settings.gpu_disable_upscaled_direct_textures != old_settings.gpu_disable_upscaled_direct_textures ||
              g_settings.gpu_texture_filter != old_settings.gpu_texture_filter ||
              g_settings.gpu_sprite_texture_filter != old_settings.gpu_sprite_texture_filter ||
              g_settings.gpu_dithering_mode != old_settings.gpu_dithering_mode ||
diff --git a/src/duckstation-qt/graphicssettingswidget.cpp b/src/duckstation-qt/graphicssettingswidget.cpp
index 19f621502..f478eab12 100644
--- a/src/duckstation-qt/graphicssettingswidget.cpp
+++ b/src/duckstation-qt/graphicssettingswidget.cpp
@@ -178,6 +178,8 @@ GraphicsSettingsWidget::GraphicsSettingsWidget(SettingsWindow* dialog, QWidget*
                                               Settings::DEFAULT_GPU_MAX_QUEUED_FRAMES);
   SettingWidgetBinder::BindWidgetToBoolSetting(sif, m_ui.modulationCrop, "GPU", "EnableModulationCrop", false);
   SettingWidgetBinder::BindWidgetToBoolSetting(sif, m_ui.scaledInterlacing, "GPU", "ScaledInterlacing", true);
+  SettingWidgetBinder::BindWidgetToBoolSetting(sif, m_ui.disableUpscaledDirectTextures, "GPU",
+                                               "DisableUpscaledDirectTextures", false);
   SettingWidgetBinder::BindWidgetToBoolSetting(sif, m_ui.useSoftwareRendererForReadbacks, "GPU",
                                                "UseSoftwareRendererForReadbacks", false);
 
@@ -192,6 +194,8 @@ GraphicsSettingsWidget::GraphicsSettingsWidget(SettingsWindow* dialog, QWidget*
                                        m_dialog->hasGameTrait(GameDatabase::Trait::ForceSoftwareRendererForReadbacks));
   SettingWidgetBinder::SetForceEnabled(
     m_ui.forceRoundedTexcoords, m_dialog->hasGameTrait(GameDatabase::Trait::ForceRoundUpscaledTextureCoordinates));
+  SettingWidgetBinder::SetForceEnabled(m_ui.disableUpscaledDirectTextures,
+                                       m_dialog->hasGameTrait(GameDatabase::Trait::DisableUpscaledDirectTextures));
 
   // PGXP Tab
 
@@ -461,6 +465,10 @@ GraphicsSettingsWidget::GraphicsSettingsWidget(SettingsWindow* dialog, QWidget*
   dialog->registerWidgetHelp(m_ui.scaledInterlacing, tr("Scaled Interlacing"), tr("Checked"),
                              tr("Scales line skipping in interlaced rendering to the internal resolution. This makes "
                                 "the combing less obvious at higher resolutions. Usually safe to enable."));
+  dialog->registerWidgetHelp(
+    m_ui.disableUpscaledDirectTextures, tr("Disable Upscaled Direct Textures"), tr("Unchecked"),
+    tr("Samples 16-bit direct-color textures at native resolution when upscaling. This can fix filtering of "
+       "FMVs/backgrounds in some games, but may reduce the quality of render-to-texture effects."));
   dialog->registerWidgetHelp(
     m_ui.useSoftwareRendererForReadbacks, tr("Software Renderer Readbacks"), tr("Unchecked"),
     tr("Runs the software renderer in parallel for VRAM readbacks. On some systems, this may result in greater "
@@ -1022,6 +1030,8 @@ void GraphicsSettingsWidget::updateResolutionDependentOptions()
   m_ui.forceRoundedTexcoords->setEnabled(
     is_hardware && scale != 1 && texture_filtering == GPUTextureFilter::Nearest &&
     !m_dialog->hasGameTrait(GameDatabase::Trait::ForceRoundUpscaledTextureCoordinates));
+  m_ui.disableUpscaledDirectTextures->setEnabled(
+    is_hardware && scale != 1 && !m_dialog->hasGameTrait(GameDatabase::Trait::DisableUpscaledDirectTextures));
   m_ui.resolutionScaleWarningIcon->setVisible(scale != 1 && !pgxp_enabled);
 }
 
diff --git a/src/duckstation-qt/graphicssettingswidget.ui b/src/duckstation-qt/graphicssettingswidget.ui
index 009cefcb6..f2650abd8 100644
--- a/src/duckstation-qt/graphicssettingswidget.ui
+++ b/src/duckstation-qt/graphicssettingswidget.ui
@@ -607,6 +607,13 @@
               </property>
              </widget>
             </item>
+            <item row="2" column="1">
+             <widget class="QCheckBox" name="disableUpscaledDirectTextures">
+              <property name="text">
+               <string>Disable Upscaled Direct Textures</string>
+              </property>
+             </widget>
+            </item>
            </layout>
           </item>
          </layout>