diff --git a/0004-tpm2-use-first-pcr-algorithm-bank-supported-by.patch b/0004-tpm2-use-first-pcr-algorithm-bank-supported-by.patch
new file mode 100644
index 0000000..5b0df2b
--- /dev/null
+++ b/0004-tpm2-use-first-pcr-algorithm-bank-supported-by.patch
@@ -0,0 +1,65 @@
+--- clevis-21.old/src/pins/tpm2/clevis-encrypt-tpm2	2024-09-24 10:27:06.000000000 +0200
++++ clevis-21/src/pins/tpm2/clevis-encrypt-tpm2	2024-11-05 15:54:16.209993587 +0100
+@@ -58,7 +58,7 @@
+     echo
+     echo "  key: <string>   Algorithm type for the generated key (default: ecc)"
+     echo
+-    echo "  pcr_bank: <string>   PCR algorithm bank to use for policy (default: sha1)"
++    echo "  pcr_bank: <string>   PCR algorithm bank to use for policy (default: first supported by TPM)"
+     echo
+     echo "  pcr_ids: <string>   PCR list used for policy. If not present, no policy is used"
+     echo
+@@ -130,7 +130,15 @@
+ 
+ key="$(jose fmt -j- -Og key -u- <<< "$cfg")" || key="ecc"
+ 
+-pcr_bank="$(jose fmt -j- -Og pcr_bank -u- <<< "$cfg")" || pcr_bank="sha1"
++pcr_bank="$(jose fmt -j- -Og pcr_bank -u- <<< "$cfg")" || {
++    if ! pcr_bank=$(tpm2_getcap pcrs |
++            awk '/^[[:space:]]*-[[:space:]]*([^:]+):[[:space:]]*\[[[:space:]]*[^][:space:]]/ \
++                     {found=1; split($0, m, /[-:[:space:]]+/); print m[2]; exit}
++                 END {exit !found}'); then
++        echo "Unable to find non-empty PCR algorithm bank, please check output of tpm2_getcap pcrs" >&2
++        exit 1
++    fi
++}
+ 
+ # Trim the spaces from the config, so that we will not have issues parsing
+ # the PCR IDs.
+--- clevis-21.old/src/pins/tpm2/clevis-encrypt-tpm2.1.adoc	2024-09-24 10:27:06.000000000 +0200
++++ clevis-21/src/pins/tpm2/clevis-encrypt-tpm2.1.adoc	2024-11-05 15:54:16.209993587 +0100
+@@ -91,13 +91,17 @@
+   - *symcipher*
+ 
+ * *pcr_bank*  (string) :
+-  PCR algorithm bank to use for policy (default: sha1)
++  PCR algorithm bank to use for policy (default: first supported by TPM)
+ 
+-  It must be one of the following:
++  Examples of PCR algorithm banks, support depends on TPM chip:
+ 
+   - *sha1*
+   - *sha256*
+ 
++  For the full list of algorithms supported by the TPM chip check output of
++  `tpm2_getcap pcrs` and use the algorithm which shows non-empty list of PCR
++  numbers.
++
+ * *pcr_ids*  (string) :
+   Comma separated list of PCR used for policy. If not present, no policy is used
+ 
+--- clevis-21.old/src/pins/tpm2/pin-tpm2	2024-09-24 10:27:06.000000000 +0200
++++ clevis-21/src/pins/tpm2/pin-tpm2	2024-11-05 15:54:16.209993587 +0100
+@@ -142,8 +142,10 @@
+ # arrays and check if we get the expected pcr_ids.
+ 
+ # Let's first make sure this would be a valid configuration.
+-_default_pcr_bank="sha1"
+-if validate_pcrs "${_default_pcr_bank}" "4,16"; then
++_default_pcr_bank=$(tpm2_getcap pcrs |
++    awk '/^[[:space:]]*-[[:space:]]*([^:]+):[[:space:]]*\[[[:space:]]*[^][:space:]]/ \
++             {split($0, m, /[-:[:space:]]+/); print m[2]; exit}')
++if [ -n "$_default_pcr_bank" ] && validate_pcrs "${_default_pcr_bank}" "4,16"; then
+     test_pcr_ids "${orig}" '{"pcr_ids": "16"}' "16" || exit 1
+     test_pcr_ids "${orig}" '{"pcr_ids": ["16"]}' "16"  || exit 1
+     test_pcr_ids "${orig}" '{"pcr_ids": "4,  16"}' "4,16" || exit 1
diff --git a/clevis.spec b/clevis.spec
index 407e4a0..32d7b7a 100644
--- a/clevis.spec
+++ b/clevis.spec
@@ -1,6 +1,6 @@
 Name:           clevis
 Version:        21
-Release:        205%{?dist}
+Release:        206%{?dist}
 Summary:        Automated decryption framework
 
 License:        GPLv3+
@@ -11,6 +11,7 @@ Source1:        clevis.sysusers
 Patch0:         0001-PKCS-11-pin-fix-dracut-for-unconfigured-device.patch
 Patch1:         0002-Fix-potential-race-condition.patch
 Patch2:         0003-Fix-to-start-pcscd-appropriately.patch
+Patch3:         0004-tpm2-use-first-pcr-algorithm-bank-supported-by.patch
 
 BuildRequires:  git-core
 BuildRequires:  gcc
@@ -218,6 +219,10 @@ systemctl preset %{name}-luks-askpass.path >/dev/null 2>&1 || :
 
 %changelog
 
+* Tue Nov 5 2024 Sergio Arroutbi <sarroutb@redhat.com> - 21-206
+- TPM2: use first PCR algorithm bank supported by TPM as default
+  Resolves: #RHEL-65468
+
 * Thu Oct 31 2024 Sergio Arroutbi <sarroutb@redhat.com> - 21-205
 - Groom clevis.spec
   Resolves: #RHEL-65458