diff --git a/modules/ixBidAdapter.js b/modules/ixBidAdapter.js
index 916e5c42ee95..af981a226c08 100644
--- a/modules/ixBidAdapter.js
+++ b/modules/ixBidAdapter.js
@@ -84,6 +84,14 @@ const LOCAL_STORAGE_KEY = 'ixdiag';
 let hasRegisteredHandler = false;
 export const storage = getStorageManager(GLOBAL_VENDOR_ID, BIDDER_CODE);
 
+// Possible values for bidResponse.seatBid[].bid[].mtype which indicates the type of the creative markup so that it can properly be associated with the right sub-object of the BidRequest.Imp.
+const MEDIA_TYPES = {
+  Banner: 1,
+  Video: 2,
+  Audio: 3,
+  Native: 4
+}
+
 /**
  * Transform valid bid request config object to banner impression object that will be sent to ad server.
  *
@@ -275,9 +283,14 @@ function parseBid(rawBid, currency, bidRequest) {
   bid.currency = currency;
   bid.creativeId = rawBid.hasOwnProperty('crid') ? rawBid.crid : '-';
 
-  // in the event of a video
-  if (deepAccess(rawBid, 'ext.vasturl')) {
+  if (rawBid.mtype == MEDIA_TYPES.Video) {
+    bid.vastXml = rawBid.adm
+  } else if (rawBid.ext && rawBid.ext.vasturl) {
     bid.vastUrl = rawBid.ext.vasturl
+  }
+
+  // in the event of a video
+  if ((rawBid.ext && rawBid.ext.vasturl) || rawBid.mtype == MEDIA_TYPES.Video) {
     bid.width = bidRequest.video.w;
     bid.height = bidRequest.video.h;
     bid.mediaType = VIDEO;
@@ -1066,7 +1079,13 @@ function outstreamRenderer(bid) {
       timeout: 3000
     };
 
-    window.IXOutstreamPlayer(bid.vastUrl, bid.adUnitCode, config);
+    // IXOutstreamPlayer supports both vastUrl and vastXml, so we can pass either.
+    // Since vastUrl is going to be deprecated from exchange response, vastXml takes priority.
+    if (bid.vastXml) {
+      window.IXOutstreamPlayer(bid.vastXml, bid.adUnitCode, config);
+    } else {
+      window.IXOutstreamPlayer(bid.vastUrl, bid.adUnitCode, config);
+    }
   });
 }
 
diff --git a/test/spec/modules/ixBidAdapter_spec.js b/test/spec/modules/ixBidAdapter_spec.js
index 4345aae83548..32ce40f25cb9 100644
--- a/test/spec/modules/ixBidAdapter_spec.js
+++ b/test/spec/modules/ixBidAdapter_spec.js
@@ -353,6 +353,37 @@ describe('IndexexchangeAdapter', function () {
     ]
   };
 
+  const DEFAULT_VIDEO_BID_RESPONSE_WITH_MTYPE_SET = {
+    cur: 'USD',
+    id: '1aa2bb3cc4de',
+    seatbid: [
+      {
+        bid: [
+          {
+            crid: '12346',
+            adomain: ['www.abcd.com'],
+            adid: '14851456',
+            impid: '1a2b3c4e',
+            cid: '3051267',
+            price: 110,
+            id: '2',
+            mtype: 2,
+            adm: '<?xml version=\"1.0\" encoding=\"UTF-8\"?><VAST xmlns:xsi=\"http://www.w3.org/2001/XMLSchema-instance\" xsi:noNamespaceSchemaLocation=\"vast.xsd\" version=\"3.0\"> <Ad id=\"488427365\">  <InLine>   <AdSystem>Test</AdSystem>   <AdTitle>In-Stream Video</AdTitle> </InLine> </Ad></VAST',
+            ext: {
+              vasturl: 'www.abcd.com/vast',
+              errorurl: 'www.abcd.com/error',
+              dspid: 51,
+              pricelevel: '_110',
+              advbrandid: 303326,
+              advbrand: 'OECTB'
+            }
+          }
+        ],
+        seat: '3971'
+      }
+    ]
+  };
+
   const DEFAULT_OPTION = {
     gdprConsent: {
       gdprApplies: true,
@@ -2343,6 +2374,45 @@ describe('IndexexchangeAdapter', function () {
       expect(result[0]).to.deep.equal(expectedParse[0]);
     });
 
+    it('should get correct bid response for video ad and set bid.vastXml when mtype is 2 (video)', function () {
+      const expectedParse = [
+        {
+          requestId: '1a2b3c4e',
+          cpm: 1.1,
+          creativeId: '12346',
+          mediaType: 'video',
+          mediaTypes: {
+            video: {
+              context: 'instream',
+              playerSize: [
+                [
+                  400,
+                  100
+                ]
+              ]
+            }
+          },
+          width: 640,
+          height: 480,
+          currency: 'USD',
+          ttl: 3600,
+          netRevenue: true,
+          vastXml: '<?xml version=\"1.0\" encoding=\"UTF-8\"?><VAST xmlns:xsi=\"http://www.w3.org/2001/XMLSchema-instance\" xsi:noNamespaceSchemaLocation=\"vast.xsd\" version=\"3.0\"> <Ad id=\"488427365\">  <InLine>   <AdSystem>Test</AdSystem>   <AdTitle>In-Stream Video</AdTitle> </InLine> </Ad></VAST',
+          meta: {
+            networkId: 51,
+            brandId: 303326,
+            brandName: 'OECTB',
+            advertiserDomains: ['www.abcd.com']
+          }
+        }
+      ];
+      const result = spec.interpretResponse({ body: DEFAULT_VIDEO_BID_RESPONSE_WITH_MTYPE_SET }, {
+        data: DEFAULT_BIDDER_REQUEST_DATA, validBidRequests: ONE_VIDEO
+      });
+
+      expect(result[0]).to.deep.equal(expectedParse[0]);
+    });
+
     it('bidrequest should not have page if options is undefined', function () {
       const options = {};
       const validBidWithoutreferInfo = spec.buildRequests(DEFAULT_BANNER_VALID_BID, options);