diff --git a/test_lora_hpu.py b/test_lora_hpu.py
new file mode 100644
index 0000000000000..b4d9009789197
--- /dev/null
+++ b/test_lora_hpu.py
@@ -0,0 +1,225 @@
+import pytest
+import torch
+
+from vllm.lora.layers import _apply_lora, _apply_lora_packed_nslice
+
+from .utils import DummyLoRAManager
+
+TENSOR_SIZES = [128, 1024, 2048, 4096, 8192, 11008, 11008 // 2, 11008 // 4]
+QKV_TENSOR_SIZES = [
+    (8192, 1024, 1024),
+    (8192 // 8, 1024 // 8, 1024 // 8),
+    (4096, 4096, 4096),
+    (4096 // 2, 4096 // 2, 4096 // 2),
+]
+BATCH_SIZES = [8, 32, 256]
+RANKS = [8]
+DTYPES = [torch.float16]
+TOLERANCES = {
+    torch.float16: (5e-3, 5e-3),
+    torch.bfloat16: (3e-2, 2e-2),
+}
+
+
+@pytest.mark.parametrize("m", TENSOR_SIZES)
+@pytest.mark.parametrize("n", TENSOR_SIZES)
+@pytest.mark.parametrize("k", BATCH_SIZES)
+@pytest.mark.parametrize("rank", RANKS)
+@pytest.mark.parametrize("dtype", DTYPES)
+def test_apply_lora(m, n, k, rank, dtype) -> None:
+    manager = DummyLoRAManager()
+
+    module_name = "module"
+    weight = torch.rand([m, n], device="hpu", dtype=dtype)
+
+    manager.init_random_lora(module_name, weight, rank=rank)
+    lora = manager.get_module_lora(module_name)
+
+    input = torch.rand(k, n, device="hpu", dtype=dtype)
+    expected = input @ lora.lora_a @ lora.lora_b * lora.scaling
+
+    lora_a_stack = torch.zeros(8,
+                               1,
+                               lora.lora_a.shape[1],
+                               lora.lora_a.shape[0],
+                               device="hpu",
+                               dtype=dtype)
+    lora_b_stack = torch.zeros(8,
+                               1,
+                               lora.lora_b.shape[1],
+                               lora.lora_b.shape[0],
+                               device="hpu",
+                               dtype=dtype)
+    for i in range(lora_a_stack.shape[0]):
+        lora_a_stack[i][0] = lora.lora_a.T
+        lora_b_stack[i][0] = (lora.lora_b * lora.scaling).T
+
+    output = torch.zeros(k, m, device="hpu", dtype=dtype)
+    _apply_lora(
+        input, lora_a_stack, lora_b_stack,
+        torch.randint(0, lora_a_stack.shape[0], (len(input), ), device="hpu"),
+        output)
+
+    rtol, atol = TOLERANCES[dtype]
+    assert torch.allclose(expected, output, rtol=rtol, atol=atol)
+
+    output[:] = 0
+    _apply_lora(input, lora_a_stack, lora_b_stack,
+                torch.full((len(input), ), -1, device="hpu"), output)
+    assert torch.allclose(torch.zeros_like(output), output)
+
+    manager.reset_lora()
+
+
+@pytest.mark.parametrize("m", TENSOR_SIZES)
+@pytest.mark.parametrize("n", TENSOR_SIZES)
+@pytest.mark.parametrize("k", BATCH_SIZES)
+@pytest.mark.parametrize("rank", RANKS)
+@pytest.mark.parametrize("dtype", DTYPES)
+def test_apply_lora_packed_2slice(m, n, k, rank, dtype) -> None:
+    if m % 2 != 0:
+        pytest.skip("m must be divisible by 2")
+    if m // 2 not in TENSOR_SIZES:
+        pytest.skip("m//2 must be in TENSOR_SIZES")
+
+    manager = DummyLoRAManager()
+
+    module_name = "module"
+    weight = torch.rand([m // 2, n], device="hpu", dtype=dtype)
+
+    manager.init_random_lora(module_name + "1", weight, rank=rank)
+    lora_1 = manager.get_module_lora(module_name + "1")
+    manager.init_random_lora(module_name + "2", weight, rank=rank)
+    lora_2 = manager.get_module_lora(module_name + "2")
+
+    input = torch.rand(k, n, device="hpu", dtype=dtype)
+    expected = torch.cat([
+        input @ lora_1.lora_a @ lora_1.lora_b * lora_1.scaling,
+        input @ lora_2.lora_a @ lora_2.lora_b * lora_2.scaling
+    ],
+                         dim=1)
+
+    lora_a_stacks = [
+        torch.zeros(8,
+                    1,
+                    lora_1.lora_a.shape[1],
+                    lora_1.lora_a.shape[0],
+                    device="hpu",
+                    dtype=dtype) for i in range(2)
+    ]
+    lora_b_stacks = [
+        torch.zeros(8,
+                    1,
+                    lora_1.lora_b.shape[1],
+                    lora_1.lora_b.shape[0],
+                    device="hpu",
+                    dtype=dtype) for i in range(2)
+    ]
+    for i in range(lora_a_stacks[0].shape[0]):
+        lora_a_stacks[0][i][0] = lora_1.lora_a.T
+        lora_b_stacks[0][i][0] = (lora_1.lora_b * lora_1.scaling).T
+        lora_a_stacks[1][i][0] = lora_2.lora_a.T
+        lora_b_stacks[1][i][0] = (lora_2.lora_b * lora_2.scaling).T
+
+    output = torch.zeros(k, m, device="hpu", dtype=dtype)
+    _apply_lora_packed_nslice(
+        input, lora_a_stacks, lora_b_stacks,
+        torch.randint(0,
+                      lora_a_stacks[0].shape[0], (len(input), ),
+                      device="hpu"), output, (m // 2, m // 2))
+
+    rtol, atol = TOLERANCES[dtype]
+    assert torch.allclose(expected, output, rtol=rtol, atol=atol)
+
+    output[:] = 0
+    _apply_lora_packed_nslice(input, lora_a_stacks, lora_b_stacks,
+                              torch.full((len(input), ), -1, device="hpu"),
+                              output, (m // 2, m // 2))
+    assert torch.allclose(torch.zeros_like(output), output)
+
+    manager.reset_lora()
+
+
+@pytest.mark.parametrize("qkv", QKV_TENSOR_SIZES)
+@pytest.mark.parametrize("n", TENSOR_SIZES)
+@pytest.mark.parametrize("k", BATCH_SIZES)
+@pytest.mark.parametrize("rank", RANKS)
+@pytest.mark.parametrize("dtype", DTYPES)
+def test_apply_lora_packed_3slice(qkv, n, k, rank, dtype) -> None:
+    manager = DummyLoRAManager()
+
+    module_name = "module"
+    weight_q = torch.empty(qkv[0], n, device="hpu", dtype=dtype)
+    weight_kv = torch.empty(qkv[1], n, device="hpu", dtype=dtype)
+
+    manager.init_random_lora(module_name + "q", weight_q, rank=rank)
+    lora_q = manager.get_module_lora(module_name + "q")
+    manager.init_random_lora(module_name + "k", weight_kv, rank=rank)
+    lora_k = manager.get_module_lora(module_name + "k")
+    manager.init_random_lora(module_name + "v", weight_kv, rank=rank)
+    lora_v = manager.get_module_lora(module_name + "v")
+
+    input = torch.rand(k, n, device="hpu", dtype=dtype)
+    expected = torch.cat([
+        input @ lora_q.lora_a @ lora_q.lora_b * lora_q.scaling,
+        input @ lora_k.lora_a @ lora_k.lora_b * lora_k.scaling,
+        input @ lora_v.lora_a @ lora_v.lora_b * lora_v.scaling
+    ],
+                         dim=1)
+
+    lora_a_stacks = [
+        torch.zeros(8,
+                    1,
+                    lora_q.lora_a.shape[1],
+                    lora_q.lora_a.shape[0],
+                    device="hpu",
+                    dtype=dtype)
+    ] + [
+        torch.zeros(8,
+                    1,
+                    lora_k.lora_a.shape[1],
+                    lora_k.lora_a.shape[0],
+                    device="hpu",
+                    dtype=dtype) for i in range(2)
+    ]
+    lora_b_stacks = [
+        torch.zeros(8,
+                    1,
+                    lora_q.lora_b.shape[1],
+                    lora_q.lora_b.shape[0],
+                    device="hpu",
+                    dtype=dtype)
+    ] + [
+        torch.zeros(8,
+                    1,
+                    lora_k.lora_b.shape[1],
+                    lora_k.lora_b.shape[0],
+                    device="hpu",
+                    dtype=dtype) for i in range(2)
+    ]
+    for i in range(lora_a_stacks[0].shape[0]):
+        lora_a_stacks[0][i][0] = lora_q.lora_a.T
+        lora_b_stacks[0][i][0] = (lora_q.lora_b * lora_q.scaling).T
+        lora_a_stacks[1][i][0] = lora_k.lora_a.T
+        lora_b_stacks[1][i][0] = (lora_k.lora_b * lora_k.scaling).T
+        lora_a_stacks[2][i][0] = lora_v.lora_a.T
+        lora_b_stacks[2][i][0] = (lora_v.lora_b * lora_v.scaling).T
+
+    output = torch.zeros(k, sum(qkv), device="hpu", dtype=dtype)
+    _apply_lora_packed_nslice(
+        input, lora_a_stacks, lora_b_stacks,
+        torch.randint(0,
+                      lora_a_stacks[0].shape[0], (len(input), ),
+                      device="hpu"), output, (qkv[0], qkv[1], qkv[2]))
+
+    rtol, atol = TOLERANCES[dtype]
+    # import pdb; pdb.set_trace()
+    assert torch.allclose(expected, output, rtol=rtol, atol=atol)
+
+    output[:] = 0
+    _apply_lora_packed_nslice(input, lora_a_stacks, lora_b_stacks,
+                              torch.full((len(input), ), -1, device="hpu"),
+                              output, (qkv[0], qkv[1], qkv[2]))
+    assert torch.allclose(torch.zeros_like(output), output)
+
+    manager.reset_lora()