diff --git a/core/rend/TexCache.h b/core/rend/TexCache.h
index cfda1fd84..b126b2c3d 100644
--- a/core/rend/TexCache.h
+++ b/core/rend/TexCache.h
@@ -608,10 +608,17 @@ template void texture_VQ<convBMP_TW<pp_565>, u16>(PixelBuffer<u16>* pb,u8* p_in,
 #define tex4444_VQ texture_VQ<conv4444_TW<pp_565>, u16>
 #define texYUV422_VQ texture_VQ<convYUV_TW<pp_8888>, u32>
 #define texBMP_VQ texture_VQ<convBMP_TW<pp_565>, u16>
+// According to the documentation, a texture cannot be compressed and use
+// a palette at the same time. However the hardware displays them
+// just fine.
+#define texPAL4_VQ texture_VQ<convPAL4_TW<pp_565, u16>, u16>
+#define texPAL8_VQ texture_VQ<convPAL8_TW<pp_565, u16>, u16>
 
 #define tex565_VQ32 texture_VQ<conv565_TW32<pp_8888>, u32>
 #define tex1555_VQ32 texture_VQ<conv1555_TW32<pp_8888>, u32>
 #define tex4444_VQ32 texture_VQ<conv4444_TW32<pp_8888>, u32>
+#define texPAL4_VQ32 texture_VQ<convPAL4_TW<pp_8888, u32>, u32>
+#define texPAL8_VQ32 texture_VQ<convPAL8_TW<pp_8888, u32>, u32>
 
 void DePosterize(u32* source, u32* dest, int width, int height);
 void UpscalexBRZ(int factor, u32* source, u32* dest, int width, int height, bool has_alpha);
diff --git a/core/rend/gles/gles.h b/core/rend/gles/gles.h
index 430734527..46fea628c 100755
--- a/core/rend/gles/gles.h
+++ b/core/rend/gles/gles.h
@@ -269,11 +269,10 @@ struct TextureCacheData
 	
 	u32 Updates;
 	
+	u32 palette_index;
 	//used for palette updates
 	u32 palette_hash;			// Palette hash at time of last update
-	u32  indirect_color_ptr;    //palette color table index for pal. tex
-	//VQ quantizers table for VQ tex
-	//a texture can't be both VQ and PAL at the same time
+	u32 vq_codebook;            // VQ quantizers table for compressed textures
 	u32 texture_hash;			// xxhash of texture data, used for custom textures
 	u32 old_texture_hash;		// legacy hash
 	u8* volatile custom_image_data;		// loaded custom image data
diff --git a/core/rend/gles/gltex.cpp b/core/rend/gles/gltex.cpp
index e83c6a882..8f6507830 100644
--- a/core/rend/gles/gltex.cpp
+++ b/core/rend/gles/gltex.cpp
@@ -53,8 +53,8 @@ PvrTexInfo format[8]=
 	{"4444", 	16, GL_UNSIGNED_SHORT_4_4_4_4, tex4444_PL,	tex4444_TW,  tex4444_VQ, 	tex4444_PL32,  tex4444_TW32,  tex4444_VQ32 },	//4444
 	{"yuv", 	16, GL_UNSIGNED_BYTE,          NULL, 		NULL, 		 NULL,			texYUV422_PL,  texYUV422_TW,  texYUV422_VQ },	//yuv
 	{"bumpmap", 16, GL_UNSIGNED_SHORT_4_4_4_4, texBMP_PL,	texBMP_TW,	 texBMP_VQ, 	NULL},											//bump map
-	{"pal4", 	4,	0,						   0,			texPAL4_TW,  0, 			NULL, 		   texPAL4_TW32,  NULL },			//pal4
-	{"pal8", 	8,	0,						   0,			texPAL8_TW,  0, 			NULL, 		   texPAL8_TW32,  NULL },			//pal8
+	{"pal4", 	4,	0,						   0,			texPAL4_TW,  texPAL4_VQ, 	NULL, 		   texPAL4_TW32,  texPAL4_VQ32 },	//pal4
+	{"pal8", 	8,	0,						   0,			texPAL8_TW,  texPAL8_VQ, 	NULL, 		   texPAL8_TW32,  texPAL8_VQ32 },	//pal8
 	{"ns/1555", 0},																														// Not supported (1555)
 };
 
@@ -168,14 +168,14 @@ void TextureCacheData::Create(bool isGL)
 	h=8<<tsp.TexV;                   //tex height
 
 	//PAL texture
-	if (tex->bpp==4)
-		indirect_color_ptr=tcw.PalSelect<<4;
-	else if (tex->bpp==8)
-		indirect_color_ptr=(tcw.PalSelect>>4)<<8;
+	if (tex->bpp == 4)
+		palette_index = tcw.PalSelect << 4;
+	else if (tex->bpp == 8)
+		palette_index = (tcw.PalSelect >> 4) << 8;
 
 	//VQ table (if VQ tex)
 	if (tcw.VQ_Comp)
-		indirect_color_ptr=sa;
+		vq_codebook = sa;
 
 	//Convert a pvr texture into OpenGL
 	switch (tcw.PixelFmt)
@@ -214,7 +214,7 @@ void TextureCacheData::Create(bool isGL)
 			if (tcw.VQ_Comp)
 			{
 				verify(tex->VQ != NULL || tex->VQ32 != NULL);
-				indirect_color_ptr=sa;
+				vq_codebook = sa;
 				if (tcw.MipMapped)
 					sa+=MipPoint[tsp.TexU];
 				texconv = tex->VQ;
@@ -271,8 +271,8 @@ void TextureCacheData::Update()
 			palette_hash = pal_hash_256[tcw.PalSelect >> 4];
 	}
 
-	palette_index=indirect_color_ptr; //might be used if pal. tex
-	vq_codebook=(u8*)&vram[indirect_color_ptr];  //might be used if VQ tex
+	::palette_index = this->palette_index; // might be used if pal. tex
+	::vq_codebook = &vram[vq_codebook];    // might be used if VQ tex
 
 	//texture conversion work
 	u32 stride=w;