A method and apparatus for dynamic clock and power gating and decentralized wakeups is disclosed. In one embodiment, an integrated circuit (IC) includes power-manageable functional units and a power management unit. Each of the power manageable functional units is configured to convey a request to enter a low power state to the power management unit. The power management unit may respond by causing a requesting functional unit to enter the low power state. Should another functional unit initiate a request to communicate with a functional unit currently in the low power state, it may send a request to that functional unit. The receiving functional unit may respond to the request by exiting the low power state and resuming operation in the active state.