diff --git a/lib/mayaUsd/base/tokens.h b/lib/mayaUsd/base/tokens.h
index fec3533fc9..fc29a91258 100644
--- a/lib/mayaUsd/base/tokens.h
+++ b/lib/mayaUsd/base/tokens.h
@@ -68,7 +68,9 @@ PXR_NAMESPACE_OPEN_SCOPE
     /* Notice that only newly opened USD stage would be affected.   */ \
     ((DisableAsyncTextureLoading, "mayaUsd_DisableAsyncTextureLoading")) \
     /* option var to remember if the stage in the layer editor is pinned. */ \
-    ((PinLayerEditorStage, "mayaUsd_PinLayerEditorStage"))
+    ((PinLayerEditorStage, "mayaUsd_PinLayerEditorStage")) \
+    /* option var to remember if use display color when texture mode off */ \
+    ((ShowDisplayColorTextureOff, "mayaUsd_ShowDisplayColorTextureOff"))
 // clang-format on
 
 TF_DECLARE_PUBLIC_TOKENS(MayaUsdOptionVars, MAYAUSD_CORE_PUBLIC, MAYA_USD_OPTIONVAR_TOKENS);
diff --git a/lib/mayaUsd/render/vp2RenderDelegate/mesh.cpp b/lib/mayaUsd/render/vp2RenderDelegate/mesh.cpp
index d0168280cf..1d6b78340d 100644
--- a/lib/mayaUsd/render/vp2RenderDelegate/mesh.cpp
+++ b/lib/mayaUsd/render/vp2RenderDelegate/mesh.cpp
@@ -22,6 +22,7 @@
 #include "render_delegate.h"
 #include "tokens.h"
 
+#include <mayaUsd/base/tokens.h>
 #include <mayaUsd/render/vp2RenderDelegate/proxyRenderDelegate.h>
 #include <mayaUsd/utils/colorSpace.h>
 
@@ -891,7 +892,13 @@ void HdVP2Mesh::Sync(
 
         auto addRequiredPrimvars = [&](const SdfPath& materialId) {
             TfTokenVector requiredPrimvars;
-            if (!_GetMaterialPrimvars(renderIndex, materialId, requiredPrimvars)) {
+            if (!_GetMaterialPrimvars(renderIndex, materialId, requiredPrimvars)
+                || ((reprToken == HdVP2ReprTokens->smoothHullUntextured)
+                    && (MGlobal::optionVarIntValue(
+                            MayaUsdOptionVars->ShowDisplayColorTextureOff.GetText())
+                        != 0))) {
+                // if user selected present display color in untextured mode, use fallback shader as
+                // well
                 requiredPrimvars = sFallbackShaderPrimvars;
             }
 
@@ -1746,16 +1753,27 @@ void HdVP2Mesh::_UpdateDrawItem(
                 renderIndex.GetSprim(HdPrimTypeTokens->material, materialId));
 
             if (material) {
-                const HdCullStyle           cullStyle = GetCullStyle(sceneDelegate);
-                MHWRender::MShaderInstance* shader = material->GetSurfaceShader(
-                    _GetMaterialNetworkToken(reprToken), cullStyle == HdCullStyleBack);
-                if (shader != nullptr
-                    && (shader != drawItemData._shader || shader != stateToCommit._shader)) {
-                    drawItemData._shader = shader;
-                    drawItemData._shaderIsFallback = false;
-                    stateToCommit._shader = shader;
-                    stateToCommit._isTransparent
-                        = shader->isTransparent() || renderItemData._transparent;
+                const MString optionVarName(
+                    MayaUsdOptionVars->ShowDisplayColorTextureOff.GetText());
+
+                // if untextured mode with show display color specified, use fallback shader
+                if ((reprToken == HdVP2ReprTokens->smoothHullUntextured)
+                    && (MGlobal::optionVarIntValue(
+                            MayaUsdOptionVars->ShowDisplayColorTextureOff.GetText())
+                        != 0)) {
+                    drawItemData._shaderIsFallback = true;
+                } else {
+                    const HdCullStyle           cullStyle = GetCullStyle(sceneDelegate);
+                    MHWRender::MShaderInstance* shader = material->GetSurfaceShader(
+                        _GetMaterialNetworkToken(reprToken), cullStyle == HdCullStyleBack);
+                    if (shader != nullptr
+                        && (shader != drawItemData._shader || shader != stateToCommit._shader)) {
+                        drawItemData._shader = shader;
+                        drawItemData._shaderIsFallback = false;
+                        stateToCommit._shader = shader;
+                        stateToCommit._isTransparent
+                            = shader->isTransparent() || renderItemData._transparent;
+                    }
                 }
             } else {
                 drawItemData._shaderIsFallback = true;
diff --git a/lib/mayaUsd/render/vp2RenderDelegate/proxyRenderDelegate.cpp b/lib/mayaUsd/render/vp2RenderDelegate/proxyRenderDelegate.cpp
index 13bce8d29b..e3571d9e3b 100644
--- a/lib/mayaUsd/render/vp2RenderDelegate/proxyRenderDelegate.cpp
+++ b/lib/mayaUsd/render/vp2RenderDelegate/proxyRenderDelegate.cpp
@@ -661,6 +661,13 @@ void ProxyRenderDelegate::_InitRenderDelegate()
 {
     TF_VERIFY(_proxyShapeData->ProxyShape());
 
+    // Initialize the optionVar ShowDisplayColorTextureOff, which will decide if display color will
+    // be used when untextured mode is selected
+    const MString optionVarName(MayaUsdOptionVars->ShowDisplayColorTextureOff.GetText());
+    if (!MGlobal::optionVarExists(optionVarName)) {
+        MGlobal::setOptionVarValue(optionVarName, 0);
+    }
+
     // No need to run all the checks if we got till the end
     if (_isInitialized())
         return;