diff --git a/modules/pubmaticBidAdapter.js b/modules/pubmaticBidAdapter.js
index b5514ab0344..c70ecb4af27 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') && !bid.mediaTypes[VIDEO].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 {
diff --git a/modules/pubmaticBidAdapter.md b/modules/pubmaticBidAdapter.md
index 0ef89a22cbd..a34df148630 100644
--- a/modules/pubmaticBidAdapter.md
+++ b/modules/pubmaticBidAdapter.md
@@ -25,7 +25,7 @@ var adUnits = [
       bidder: 'pubmatic',
       params: {
         publisherId: '156209',               // required, must be wrapped in quotes
-        oustreamAU: 'renderer_test_pubmatic',   // required if mediaTypes-> video-> context is 'outstream'. This value can be get by BlueBillyWig Team.
+        oustreamAU: 'renderer_test_pubmatic',   // required if mediaTypes-> video-> context is 'outstream' and optional if renderer is defined in adUnits or in mediaType video. This value can be get by BlueBillyWig Team.
         adSlot: 'pubmatic_test2',            // optional
         pmzoneid: 'zone1, zone11',           // optional
         lat: '40.712775',                    // optional