diff --git a/Core/Compatibility.cpp b/Core/Compatibility.cpp
index 984af5632b4a..593ae74720fd 100644
--- a/Core/Compatibility.cpp
+++ b/Core/Compatibility.cpp
@@ -96,6 +96,7 @@ void Compatibility::CheckSettings(IniFile &iniFile, const std::string &gameID) {
 	CheckSetting(iniFile, gameID, "MaliDepthStencilBugWorkaround", &flags_.MaliDepthStencilBugWorkaround);
 	CheckSetting(iniFile, gameID, "ZZT3SelectHack", &flags_.ZZT3SelectHack);
 	CheckSetting(iniFile, gameID, "AllowLargeFBTextureOffsets", &flags_.AllowLargeFBTextureOffsets);
+	CheckSetting(iniFile, gameID, "SmoothedRedDepal", &flags_.SmoothedRedDepal);
 }
 
 void Compatibility::CheckSetting(IniFile &iniFile, const std::string &gameID, const char *option, bool *flag) {
diff --git a/Core/Compatibility.h b/Core/Compatibility.h
index 43dc651a2315..409f1aa08837 100644
--- a/Core/Compatibility.h
+++ b/Core/Compatibility.h
@@ -86,6 +86,7 @@ struct CompatFlags {
 	bool MaliDepthStencilBugWorkaround;
 	bool ZZT3SelectHack;
 	bool AllowLargeFBTextureOffsets;
+	bool SmoothedRedDepal;
 };
 
 class IniFile;
diff --git a/GPU/Common/FragmentShaderGenerator.cpp b/GPU/Common/FragmentShaderGenerator.cpp
index df12e041d4d0..ad4adda47d31 100644
--- a/GPU/Common/FragmentShaderGenerator.cpp
+++ b/GPU/Common/FragmentShaderGenerator.cpp
@@ -23,8 +23,10 @@
 #include "Common/GPU/OpenGL/GLFeatures.h"
 #include "Common/GPU/ShaderWriter.h"
 #include "Common/GPU/thin3d.h"
+#include "Core/Compatibility.h"
 #include "Core/Reporting.h"
 #include "Core/Config.h"
+#include "Core/System.h"
 #include "GPU/Common/GPUStateUtils.h"
 #include "GPU/Common/ShaderId.h"
 #include "GPU/Common/ShaderUniforms.h"
@@ -83,6 +85,7 @@ bool GenerateFragmentShader(const FShaderID &id, char *buffer, const ShaderLangu
 
 	bool doFlatShading = id.Bit(FS_BIT_FLATSHADE) && !flatBug;
 	bool shaderDepal = id.Bit(FS_BIT_SHADER_DEPAL);
+	bool smoothedRedDepal = PSP_CoreParameter().compat.flags().SmoothedRedDepal;
 	bool bgraTexture = id.Bit(FS_BIT_BGRA_TEXTURE);
 	bool colorWriteMask = id.Bit(FS_BIT_COLOR_WRITEMASK) && compat.bitwiseOps;
 
@@ -564,6 +567,28 @@ bool GenerateFragmentShader(const FShaderID &id, char *buffer, const ShaderLangu
 						WRITE(p, "  vec4 t = %s(tex, %s.xy);\n", compat.texture, texcoord);
 					}
 				} 
+			} else if (shaderDepal && smoothedRedDepal) {
+				// Specific mode for Test Drive. Fixes the banding.
+				if (doTextureProjection) {
+					// We don't use textureProj because we need better control and it's probably not much of a savings anyway.
+					// However it is good for precision on older hardware like PowerVR.
+					WRITE(p, "  vec2 uv = %s.xy/%s.z;\n  vec2 uv_round;\n", texcoord, texcoord);
+				} else {
+					WRITE(p, "  vec2 uv = %s.xy;\n  vec2 uv_round;\n", texcoord);
+				}
+				WRITE(p, "  vec4 t = %s(tex, %s.xy);\n", compat.texture, texcoord);
+				WRITE(p, "  uint depalShift = (u_depal_mask_shift_off_fmt >> 8) & 0xFFU;\n");
+				WRITE(p, "  uint depalFmt = (u_depal_mask_shift_off_fmt >> 24) & 0x3U;\n");
+				WRITE(p, "  float index0 = t.r;\n");
+				WRITE(p, "  float mul = 32.0 / 256.0;\n");
+				WRITE(p, "  if (depalFmt == 0) {\n");  // yes, different versions of Test Drive use different formats. Could do compile time by adding more compat flags but meh.
+				WRITE(p, "    if (depalShift == 5) { index0 = t.g; mul = 64.0 / 256.0; }\n");
+				WRITE(p, "    else if (depalShift == 11) { index0 = t.b; }\n");
+				WRITE(p, "  } else {\n");
+				WRITE(p, "    if (depalShift == 5) { index0 = t.g; }\n");
+				WRITE(p, "    else if (depalShift == 10) { index0 = t.b; }\n");
+				WRITE(p, "  }\n");
+				WRITE(p, "  t = %s(pal, vec2(index0 * mul, 0.0));\n", compat.texture);
 			} else {
 				if (doTextureProjection) {
 					// We don't use textureProj because we need better control and it's probably not much of a savings anyway.
diff --git a/GPU/Vulkan/DrawEngineVulkan.cpp b/GPU/Vulkan/DrawEngineVulkan.cpp
index 0c464853e6d2..8479a4181e68 100644
--- a/GPU/Vulkan/DrawEngineVulkan.cpp
+++ b/GPU/Vulkan/DrawEngineVulkan.cpp
@@ -185,8 +185,8 @@ void DrawEngineVulkan::InitDeviceObjects() {
 	samp.addressModeW = VK_SAMPLER_ADDRESS_MODE_CLAMP_TO_EDGE;
 	samp.mipmapMode = VK_SAMPLER_MIPMAP_MODE_NEAREST;
 	samp.flags = 0;
-	samp.magFilter = VK_FILTER_NEAREST;
-	samp.minFilter = VK_FILTER_NEAREST;
+	samp.magFilter = VK_FILTER_LINEAR;
+	samp.minFilter = VK_FILTER_LINEAR;
 	res = vkCreateSampler(device, &samp, nullptr, &samplerSecondary_);
 	_dbg_assert_(VK_SUCCESS == res);
 	res = vkCreateSampler(device, &samp, nullptr, &nullSampler_);
diff --git a/GPU/Vulkan/DrawEngineVulkan.h b/GPU/Vulkan/DrawEngineVulkan.h
index 48b8369fd7ef..9114820b6e2b 100644
--- a/GPU/Vulkan/DrawEngineVulkan.h
+++ b/GPU/Vulkan/DrawEngineVulkan.h
@@ -218,7 +218,7 @@ class DrawEngineVulkan : public DrawEngineCommon {
 	// Secondary texture for shader blending
 	VkImageView boundSecondary_ = VK_NULL_HANDLE;
 	VkImageView boundDepal_ = VK_NULL_HANDLE;
-	VkSampler samplerSecondary_ = VK_NULL_HANDLE;  // This one is actually never used since we use fetch.
+	VkSampler samplerSecondary_ = VK_NULL_HANDLE;  // This one is actually never used since we use fetch (except in SmoothedRedDepal mode for Test Drive).
 
 	PrehashMap<VertexArrayInfoVulkan *, nullptr> vai_;
 	VulkanPushBuffer *vertexCache_;
diff --git a/assets/compat.ini b/assets/compat.ini
index 5562d4feb03a..a22f69cb92c6 100644
--- a/assets/compat.ini
+++ b/assets/compat.ini
@@ -1258,3 +1258,10 @@ LBSW10345 = true  # Some modded version found in our report logs
 ULES00928 = true
 ULUS10312 = true
 ULKS46154 = true
+
+[SmoothedRedDepal]
+# Test Drive Unlimited smoothed CLUT lookups. See comments in #13355
+ULET00386 = true
+ULES00637 = true
+ULKS46126 = true
+ULUS10249 = true