diff --git a/case-lib/hijack.sh b/case-lib/hijack.sh
index 4a40ff36..3793a80e 100644
--- a/case-lib/hijack.sh
+++ b/case-lib/hijack.sh
@@ -16,6 +16,10 @@ function func_exit_handler()
 
     func_lib_check_and_disable_pipewire
 
+    if [ "$RUN_SOCWATCH" == true ]; then
+        unload_socwatch
+    fi
+
     # call trace
     if [ "$exit_status" -ne 0 ] ; then
         dloge "Starting ${FUNCNAME[0]}(), exit status=$exit_status, FUNCNAME stack:"
diff --git a/case-lib/lib.sh b/case-lib/lib.sh
index ef3d78f3..a5b763ca 100644
--- a/case-lib/lib.sh
+++ b/case-lib/lib.sh
@@ -83,6 +83,10 @@ minvalue() { printf '%d' $(( "$1" < "$2"  ? "$1" : "$2" )); }
 #
 start_test()
 {
+    if [ "$RUN_SOCWATCH" == true ]; then
+        load_socwatch
+    fi
+
     if is_subtest; then
         return 0
     fi
@@ -1701,3 +1705,45 @@ analyze_mixed_sound()
         return 1
     fi
 }
+
+# Generates s 2-channels .mp3 file for testing
+# Arguments:
+# 1 - output filename
+# 2 - duration of the soundfile in seconds
+# 3 - number of channels
+generate_mp3_file()
+{
+    mkdir -p "$HOME/Music"
+    ffmpeg -f lavfi -i "sine=frequency=1000:duration=$2" -ac "$3" "$1"
+}
+
+# Load socwatch and check if module was loaded correctly
+load_socwatch()
+{
+    sudo bash "$SOCWATCH_PATH"/drivers/insmod-socwatch || true
+    lsmod | grep -q socwatch || die "Socwatch is not loaded"
+}
+
+unload_socwatch()
+{
+    sudo bash "$SOCWATCH_PATH"/drivers/rmmod-socwatch
+}
+
+# Run any command with socwatch
+# Arguments: 
+# 1 - socwatch output report filename
+# 2 - command you want to run with socwatch (with arguments)
+run_with_socwatch()
+{
+    if [ -z "$SOCWATCH_PATH" ]; then
+        die "SOCWATCH_PATH not set"
+    fi
+
+    local output_file="$1"
+    shift 
+
+    ( set -x
+      sudo "$SOCWATCH_PATH"/socwatch -m -n 200 -f cpu-pkg-cstate-res \
+      -r json -o "$output_file" -p "$@") ||
+    die "socwatch returned $?"
+}
diff --git a/test-case/test-compressed-audio.sh b/test-case/test-compressed-audio.sh
new file mode 100755
index 00000000..45f5d770
--- /dev/null
+++ b/test-case/test-compressed-audio.sh
@@ -0,0 +1,104 @@
+#!/bin/bash
+
+##
+## Case Name: test-compressed-audio
+## Preconditions:
+##    - socwatch installed
+##    - cplay installed
+## Description:
+##    This test verifies if we enter PC10 state when playing MP3 with offload to DSP.
+## Case steps:
+##    1. Generate MP3 sound for testing.
+##    2. Start Socwatch measurement and play MP3 file.
+##    3. Analyze Socwatch results.
+## Expected results:
+##    - generated MP3 is played
+##    - dut stays in the PC10 state for the expected amount of time
+##
+
+# shellcheck source=case-lib/lib.sh
+source "$(dirname "${BASH_SOURCE[0]}")"/../case-lib/lib.sh
+
+OPT_NAME['p']='pcm_p'     	     OPT_DESC['p']='compression device for playback. Example: 50'
+OPT_HAS_ARG['p']=1          	 OPT_VAL['p']=''
+
+OPT_NAME['N']='channels_p'       OPT_DESC['N']='channel number for playback.'
+OPT_HAS_ARG['N']=1               OPT_VAL['N']='2'
+
+OPT_NAME['s']='sof-logger'       OPT_DESC['s']="Open sof-logger trace the data will store at $LOG_ROOT"
+OPT_HAS_ARG['s']=0               OPT_VAL['s']=1
+
+OPT_NAME['d']='duration'         OPT_DESC['d']='duration time for playing the test sound'
+OPT_HAS_ARG['d']=1               OPT_VAL['d']=10
+
+OPT_NAME['pc10_per']='pc10_per'  OPT_DESC['pc10_per']='pc10 state threshold - percentage of time that should be spent in pc10'
+OPT_HAS_ARG['pc10_per']=1        OPT_VAL['pc10_per']=80
+
+: "${SOCWATCH_PATH:=$HOME/socwatch}"
+
+func_opt_parse_option "$@"
+setup_kernel_check_point
+
+pcm_p=${OPT_VAL['p']}
+channels_p=${OPT_VAL['N']}
+duration=${OPT_VAL['d']}
+pc10_threshold=${OPT_VAL['pc10_per']}
+
+analyze_socwatch_results()
+{
+    pc_states_file="$LOG_ROOT/pc_states.csv"
+    touch "$pc_states_file"
+    results=$(grep "Platform Monitoring Technology CPU Package C-States Residency Summary: Residency" -A 10 < "$socwatch_output".csv)
+    echo "$results" | tee "$pc_states_file"
+
+    expected_results="{\"PC10.2\":$pc10_threshold}"
+
+    # Analyze if the % of the time spent in given PC state was as expected
+    if python3 "$SCRIPT_HOME"/tools/analyze-pc-states.py "$pc_states_file" "$expected_results"; then
+        dlogi "All Package Residency (%) values were as expected"
+    else
+        die "Some Package Residency (%) values different from expected!"
+    fi
+}
+
+# Checks for soundfile needed for test, generates missing ones
+prepare_test_soundfile()
+{
+    if [ ! -f "$audio_filename" ]; then
+        dlogi "Generating audio file for the test..."
+        generate_mp3_file "$audio_filename" "$duration" "$channels_p"
+    fi
+}
+
+check_cplay_command()
+{
+    dlogi "${play_command[@]}"
+    "${play_command[@]}" || die "cplay command returned error, socwatch analysis not performed"
+}
+
+run_test()
+{
+    audio_filename="$HOME/Music/$channels_p-ch-$duration-s.mp3"
+    prepare_test_soundfile
+
+    socwatch_output="$LOG_ROOT/socwatch-results/socwatch_report"
+
+    play_command=("cplay" "-c" "0" "-d" "$pcm_p" "-I" "MP3" "${audio_filename}" "-v")
+    check_cplay_command
+
+    run_with_socwatch "$socwatch_output" "${play_command[@]}"
+    
+    analyze_socwatch_results
+}
+
+main()
+{
+    export RUN_SOCWATCH=true
+    start_test
+    logger_disabled || func_lib_start_log_collect
+    run_test
+}
+
+{
+    main "$@"; exit "$?"
+}
diff --git a/tools/analyze-pc-states.py b/tools/analyze-pc-states.py
new file mode 100644
index 00000000..6febace4
--- /dev/null
+++ b/tools/analyze-pc-states.py
@@ -0,0 +1,52 @@
+import sys
+import json
+import re
+
+ACCEPTANCE_BUFFER = 8.0
+
+
+def compare_values(real, expected):
+    if abs(real-expected) <= ACCEPTANCE_BUFFER:
+        return True
+    return False
+
+
+def analyze_pc_states(pc_states_file, expected_results):
+    pattern = re.compile(r'^PC(\d+)\s*,\s*(\d+(?:\.\d+)?)\s*,\s*(\d+(?:\.\d+)?)\s*$')
+    # Example lines we want to catch:
+    # PC0    , 81.09                , 119.51
+    # PC2    , 18.91                , 27.87
+    failures = 0
+
+    with open(pc_states_file, encoding="utf-8") as file:
+        for line in file:
+            m = pattern.match(line)
+            if not m:
+                continue
+            
+            pc_state_nr = int(m.group(1))
+            pc_state = "PC"+str(pc_state_nr)
+            value = float(m.group(2))
+            expected_value = expected_results.get(pc_state)
+            if not expected_value:
+                continue
+            if not compare_values(value, float(expected_value)):
+                print(f"Incorrect value: {pc_state} time % was {value}, expected {expected_value}")
+                failures += 1
+
+    if failures:
+        return 1
+    return 0
+
+
+# This script analyzes if the % of the time spent in given PC state was as expected
+if __name__ == "__main__":
+    if len(sys.argv) != 3:
+        print("Incorrect number of args!")
+        sys.exit(1)
+
+    pc_states_results_file = sys.argv[1]
+    pc_states_thresholds = json.loads(sys.argv[2])
+    
+    result = analyze_pc_states(pc_states_results_file, pc_states_thresholds)
+    sys.exit(result)