Deep learning has led to remarkable strides in scene understanding with panoptic segmentation emerging as a key holistic scene interpretation task. However, the performance of panoptic segmentation is severely impacted in the presence of out-of-distribution (OOD) objects i.e. categories of objects that deviate from the training distribution. To overcome this limitation, we propose Panoptic Out-of Distribution Segmentation for joint pixel-level semantic in-distribution and out-of-distribution classification with instance prediction. We extend two established panoptic segmentation benchmarks, Cityscapes and BDD100K, with out-of-distribution instance segmentation annotations, propose suitable evaluation metrics, and present multiple strong baselines. Importantly, we propose the novel PoDS architecture with a shared backbone, an OOD contextual module for learning global and local OOD object cues, and dual symmetrical decoders with task-specific heads that employ our alignment-mismatch strategy for better OOD generalization. Combined with our data augmentation strategy, this approach facilitates progressive learning of out-of-distribution objects while maintaining in-distribution performance. We perform extensive evaluations that demonstrate that our proposed PoDS network effectively addresses the main challenges and substantially outperforms the baselines. We make the dataset, code, and trained models publicly available at http://pods.cs.uni-freiburg.de.

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