diff --git a/src/audio_core/CMakeLists.txt b/src/audio_core/CMakeLists.txt
index 81121167d6..05a61b5cd4 100644
--- a/src/audio_core/CMakeLists.txt
+++ b/src/audio_core/CMakeLists.txt
@@ -4,6 +4,8 @@ add_library(audio_core STATIC
     buffer.h
     cubeb_sink.cpp
     cubeb_sink.h
+    codec.cpp
+    codec.h
     null_sink.h
     stream.cpp
     stream.h
diff --git a/src/audio_core/codec.cpp b/src/audio_core/codec.cpp
new file mode 100644
index 0000000000..c3021403f5
--- /dev/null
+++ b/src/audio_core/codec.cpp
@@ -0,0 +1,77 @@
+// Copyright 2018 yuzu Emulator Project
+// Licensed under GPLv2 or any later version
+// Refer to the license.txt file included.
+
+#include <algorithm>
+
+#include "audio_core/codec.h"
+
+namespace AudioCore::Codec {
+
+std::vector<s16> DecodeADPCM(const u8* const data, size_t size, const ADPCM_Coeff& coeff,
+                             ADPCMState& state) {
+    // GC-ADPCM with scale factor and variable coefficients.
+    // Frames are 8 bytes long containing 14 samples each.
+    // Samples are 4 bits (one nibble) long.
+
+    constexpr size_t FRAME_LEN = 8;
+    constexpr size_t SAMPLES_PER_FRAME = 14;
+    constexpr std::array<int, 16> SIGNED_NIBBLES = {
+        {0, 1, 2, 3, 4, 5, 6, 7, -8, -7, -6, -5, -4, -3, -2, -1}};
+
+    const size_t sample_count = (size / FRAME_LEN) * SAMPLES_PER_FRAME;
+    const size_t ret_size =
+        sample_count % 2 == 0 ? sample_count : sample_count + 1; // Ensure multiple of two.
+    std::vector<s16> ret(ret_size);
+
+    int yn1 = state.yn1, yn2 = state.yn2;
+
+    const size_t NUM_FRAMES =
+        (sample_count + (SAMPLES_PER_FRAME - 1)) / SAMPLES_PER_FRAME; // Round up.
+    for (size_t framei = 0; framei < NUM_FRAMES; framei++) {
+        const int frame_header = data[framei * FRAME_LEN];
+        const int scale = 1 << (frame_header & 0xF);
+        const int idx = (frame_header >> 4) & 0x7;
+
+        // Coefficients are fixed point with 11 bits fractional part.
+        const int coef1 = coeff[idx * 2 + 0];
+        const int coef2 = coeff[idx * 2 + 1];
+
+        // Decodes an audio sample. One nibble produces one sample.
+        const auto decode_sample = [&](const int nibble) -> s16 {
+            const int xn = nibble * scale;
+            // We first transform everything into 11 bit fixed point, perform the second order
+            // digital filter, then transform back.
+            // 0x400 == 0.5 in 11 bit fixed point.
+            // Filter: y[n] = x[n] + 0.5 + c1 * y[n-1] + c2 * y[n-2]
+            int val = ((xn << 11) + 0x400 + coef1 * yn1 + coef2 * yn2) >> 11;
+            // Clamp to output range.
+            val = std::clamp<s32>(val, -32768, 32767);
+            // Advance output feedback.
+            yn2 = yn1;
+            yn1 = val;
+            return static_cast<s16>(val);
+        };
+
+        size_t outputi = framei * SAMPLES_PER_FRAME;
+        size_t datai = framei * FRAME_LEN + 1;
+        for (size_t i = 0; i < SAMPLES_PER_FRAME && outputi < sample_count; i += 2) {
+            const s16 sample1 = decode_sample(SIGNED_NIBBLES[data[datai] >> 4]);
+            ret[outputi] = sample1;
+            outputi++;
+
+            const s16 sample2 = decode_sample(SIGNED_NIBBLES[data[datai] & 0xF]);
+            ret[outputi] = sample2;
+            outputi++;
+
+            datai++;
+        }
+    }
+
+    state.yn1 = yn1;
+    state.yn2 = yn2;
+
+    return ret;
+}
+
+} // namespace AudioCore::Codec
diff --git a/src/audio_core/codec.h b/src/audio_core/codec.h
new file mode 100644
index 0000000000..3f845c42c3
--- /dev/null
+++ b/src/audio_core/codec.h
@@ -0,0 +1,44 @@
+// Copyright 2018 yuzu Emulator Project
+// Licensed under GPLv2 or any later version
+// Refer to the license.txt file included.
+
+#pragma once
+
+#include <array>
+#include <vector>
+
+#include "common/common_types.h"
+
+namespace AudioCore::Codec {
+
+enum class PcmFormat : u32 {
+    Invalid = 0,
+    Int8 = 1,
+    Int16 = 2,
+    Int24 = 3,
+    Int32 = 4,
+    PcmFloat = 5,
+    Adpcm = 6,
+};
+
+/// See: Codec::DecodeADPCM
+struct ADPCMState {
+    // Two historical samples from previous processed buffer,
+    // required for ADPCM decoding
+    s16 yn1; ///< y[n-1]
+    s16 yn2; ///< y[n-2]
+};
+
+using ADPCM_Coeff = std::array<s16, 16>;
+
+/**
+ * @param data Pointer to buffer that contains ADPCM data to decode
+ * @param size Size of buffer in bytes
+ * @param coeff ADPCM coefficients
+ * @param state ADPCM state, this is updated with new state
+ * @return Decoded stereo signed PCM16 data, sample_count in length
+ */
+std::vector<s16> DecodeADPCM(const u8* const data, size_t size, const ADPCM_Coeff& coeff,
+                             ADPCMState& state);
+
+}; // namespace AudioCore::Codec
diff --git a/src/core/hle/service/audio/audout_u.cpp b/src/core/hle/service/audio/audout_u.cpp
index 9f4c7855a5..f4a5576343 100644
--- a/src/core/hle/service/audio/audout_u.cpp
+++ b/src/core/hle/service/audio/audout_u.cpp
@@ -4,6 +4,8 @@
 
 #include <array>
 #include <vector>
+
+#include "audio_core/codec.h"
 #include "common/logging/log.h"
 #include "core/core.h"
 #include "core/hle/ipc_helpers.h"
@@ -200,7 +202,7 @@ void AudOutU::OpenAudioOutImpl(Kernel::HLERequestContext& ctx) {
     rb.Push(RESULT_SUCCESS);
     rb.Push<u32>(DefaultSampleRate);
     rb.Push<u32>(params.channel_count);
-    rb.Push<u32>(static_cast<u32>(PcmFormat::Int16));
+    rb.Push<u32>(static_cast<u32>(AudioCore::Codec::PcmFormat::Int16));
     rb.Push<u32>(static_cast<u32>(AudioState::Stopped));
     rb.PushIpcInterface<Audio::IAudioOut>(audio_out_interface);
 }
diff --git a/src/core/hle/service/audio/audout_u.h b/src/core/hle/service/audio/audout_u.h
index e5c2184d58..fd491f65d7 100644
--- a/src/core/hle/service/audio/audout_u.h
+++ b/src/core/hle/service/audio/audout_u.h
@@ -38,16 +38,6 @@ private:
 
     void ListAudioOutsImpl(Kernel::HLERequestContext& ctx);
     void OpenAudioOutImpl(Kernel::HLERequestContext& ctx);
-
-    enum class PcmFormat : u32 {
-        Invalid = 0,
-        Int8 = 1,
-        Int16 = 2,
-        Int24 = 3,
-        Int32 = 4,
-        PcmFloat = 5,
-        Adpcm = 6,
-    };
 };
 
 } // namespace Service::Audio