diff --git a/modules/pubmaticBidAdapter.js b/modules/pubmaticBidAdapter.js
index b5514ab0344..5492b87ce4d 100644
--- a/modules/pubmaticBidAdapter.js
+++ b/modules/pubmaticBidAdapter.js
@@ -861,8 +861,8 @@ export const spec = {
             utils.logError(`${LOG_WARN_PREFIX}: no context specified in bid. Rejecting bid: `, bid);
             return false;
           }
-          if (bid.mediaTypes[VIDEO].context === 'outstream' && !utils.isStr(bid.params.outstreamAU)) {
-            utils.logError(`${LOG_WARN_PREFIX}: for "outstream" bids outstreamAU is required. Rejecting bid: `, bid);
+          if (bid.mediaTypes[VIDEO].context === 'outstream' && !utils.isStr(bid.params.outstreamAU) && !bid.hasOwnProperty('renderer')) {
+            utils.logError(`${LOG_WARN_PREFIX}: for "outstream" bids either outstreamAU parameter must be provided or ad unit supplied renderer is required. Rejecting bid: `, bid);
             return false;
           }
         } else {