diff --git a/inference-engine/src/transformations/include/transformations/convert_opset1_to_legacy/convert_mul_or_add_finally.hpp b/inference-engine/src/transformations/include/transformations/convert_opset1_to_legacy/convert_mul_or_add_finally.hpp
index d4ff43c469d1f9..9f213d4110b6a6 100755
--- a/inference-engine/src/transformations/include/transformations/convert_opset1_to_legacy/convert_mul_or_add_finally.hpp
+++ b/inference-engine/src/transformations/include/transformations/convert_opset1_to_legacy/convert_mul_or_add_finally.hpp
@@ -153,14 +153,14 @@ ngraph::graph_rewrite_callback get_callback() {
 
         auto res = check_constant(const_node, data_node.get_partial_shape());
 
-        if (res == CONVERSION_RESULT::NONE || (res == CONVERSION_RESULT::SCALE_SHIFT && output_shape_rank < 4)) {
+        bool is_dequantization = lin_op->get_rt_info().count("DEQUANTIZATION") != 0;
+
+        if (!is_dequantization && (res == CONVERSION_RESULT::NONE || (res == CONVERSION_RESULT::SCALE_SHIFT && output_shape_rank < 4))) {
             return convert_to_eltwise<T>(lin_op,
                                          lin_op->input(0).get_source_output(),
                                          lin_op->input(1).get_source_output());
         }
 
-        bool is_dequantization = lin_op->get_rt_info().count("DEQUANTIZATION") != 0;
-
         // TODO: if all values in Constant are equal the best way is to convert this Eltwise to Power
         if (res == CONVERSION_RESULT::SCALE_SHIFT || is_dequantization) {
             auto weights_et = const_node->get_element_type();
diff --git a/inference-engine/src/transformations/src/transformations/convert_opset1_to_legacy/convert_mul_add_to_scaleshift_or_power.cpp b/inference-engine/src/transformations/src/transformations/convert_opset1_to_legacy/convert_mul_add_to_scaleshift_or_power.cpp
index 9f649ecbb6430d..39cecb1f1b778e 100644
--- a/inference-engine/src/transformations/src/transformations/convert_opset1_to_legacy/convert_mul_add_to_scaleshift_or_power.cpp
+++ b/inference-engine/src/transformations/src/transformations/convert_opset1_to_legacy/convert_mul_add_to_scaleshift_or_power.cpp
@@ -137,15 +137,14 @@ void ngraph::pass::ConvertMulAddToScaleShiftOrPower::convert_mul_add_to_scaleshi
         const auto output_shape = add_node->get_output_partial_shape(0);
         const auto output_shape_rank = output_shape.rank().get_length();
 
+        bool is_dequantization =
+                (add_node->get_rt_info().count("DEQUANTIZATION") != 0 || mul_node->get_rt_info().count("DEQUANTIZATION") != 0);
+
         if (res1 == CONVERSION_RESULT::NONE || res2 == CONVERSION_RESULT::NONE ||
-            ((res1 == CONVERSION_RESULT::SCALE_SHIFT || res2 == CONVERSION_RESULT::SCALE_SHIFT) &&
-            (output_shape_rank == 1 || output_shape_rank > 4))) {
+            ((res1 == CONVERSION_RESULT::SCALE_SHIFT || res2 == CONVERSION_RESULT::SCALE_SHIFT) && !is_dequantization && output_shape_rank < 4)) {
             return false;
         }
 
-        bool is_dequantization =
-            (add_node->get_rt_info().count("DEQUANTIZATION") != 0 || mul_node->get_rt_info().count("DEQUANTIZATION") != 0);
-
         // TODO: in case if scale and shift constants has equal values the best way is to convert them to Power
         if (res1 == CONVERSION_RESULT::SCALE_SHIFT || res2 == CONVERSION_RESULT::SCALE_SHIFT || is_dequantization) {
             NodeVector new_ops;
@@ -176,7 +175,7 @@ void ngraph::pass::ConvertMulAddToScaleShiftOrPower::convert_mul_add_to_scaleshi
                 new_ops.push_back(biases_in);
             }
 
-            auto scaleshift = std::make_shared<ngraph::op::ScaleShiftIE>(data_node, weights_in, biases_in);
+            auto scaleshift = std::make_shared<ngraph::op::ScaleShiftIE>(data_node, weights_in, biases_in, weights_in->get_element_type());
             new_ops.push_back(scaleshift);
 
             scaleshift->set_friendly_name(add_node->get_friendly_name());
diff --git a/inference-engine/src/transformations/src/transformations/convert_opset1_to_legacy/reshape_fully_connected.cpp b/inference-engine/src/transformations/src/transformations/convert_opset1_to_legacy/reshape_fully_connected.cpp
index 0cc2be96e2d304..11430431f43ec4 100644
--- a/inference-engine/src/transformations/src/transformations/convert_opset1_to_legacy/reshape_fully_connected.cpp
+++ b/inference-engine/src/transformations/src/transformations/convert_opset1_to_legacy/reshape_fully_connected.cpp
@@ -52,7 +52,8 @@ ngraph::pass::ReshapeFullyConnected::ReshapeFullyConnected() {
         auto fc_new = std::make_shared<op::FullyConnected>(reshape,
                                                            fc->input_value(1),
                                                            fc->input_value(2),
-                                                           output_shape_new);
+                                                           output_shape_new,
+                                                           fc->get_output_type());
         new_ops.push_back(fc_new);
 
         if (output_shape != output_shape_new) {
@@ -73,4 +74,4 @@ ngraph::pass::ReshapeFullyConnected::ReshapeFullyConnected() {
 
     auto m = std::make_shared<ngraph::pattern::Matcher>(fc, "ReshapeFullyConnected");
     this->register_matcher(m, callback);
-}
\ No newline at end of file
+}
diff --git a/inference-engine/tests/functional/inference_engine/lp_transformations/convert_mul_or_add_finally_transformation_with_dequantization.cpp b/inference-engine/tests/functional/inference_engine/lp_transformations/convert_mul_or_add_finally_transformation_with_dequantization.cpp
new file mode 100644
index 00000000000000..e2f96b75975771
--- /dev/null
+++ b/inference-engine/tests/functional/inference_engine/lp_transformations/convert_mul_or_add_finally_transformation_with_dequantization.cpp
@@ -0,0 +1,117 @@
+// Copyright (C) 2020 Intel Corporation
+// SPDX-License-Identifier: Apache-2.0
+//
+
+#include "layer_transformation.hpp"
+
+#include <string>
+#include <sstream>
+#include <memory>
+
+#include <gtest/gtest.h>
+
+#include <transformations/utils/utils.hpp>
+#include <transformations/init_node_info.hpp>
+#include <transformations/convert_opset1_to_legacy/convert_mul_or_add_finally.hpp>
+#include <ngraph/pass/constant_folding.hpp>
+
+#include "common_test_utils/ngraph_test_utils.hpp"
+
+#include "ngraph_functions/low_precision_transformations/convert_mul_or_add_finally_with_dequantization_function.hpp"
+
+using namespace testing;
+using namespace ngraph::pass;
+
+namespace {
+
+inline std::ostream& operator<<(std::ostream& os, const std::vector<float>& values) {
+    os << "{ ";
+    for (size_t i = 0; i < values.size(); ++i) {
+        os << values[i];
+        if (i != (values.size() - 1ul)) {
+            os << ", ";
+        }
+    }
+    os << " }";
+    return os;
+}
+
+class ConvertMulOrAddFinallyTransformationWithDequantizationTestValues {
+public:
+    std::vector<float> multiplyConstValues;
+    ngraph::Shape inputShape;
+    ngraph::element::Type inputPrecision;
+    ngraph::pass::low_precision::LayerTransformation::Params params;
+};
+
+using TestValuesType = ConvertMulOrAddFinallyTransformationWithDequantizationTestValues;
+
+class ConvertMulOrAddFinallyTransformationWithDequantization : public LayerTransformation, public testing::WithParamInterface<TestValuesType> {
+public:
+    void SetUp() override {
+        using namespace ngraph::builder::subgraph;
+        const ConvertMulOrAddFinallyTransformationWithDequantizationTestValues testValues = GetParam();
+
+        actualFunction = ConvertMulOrAddWithDequantizationFunction::getOriginal(testValues.inputShape,
+                                                                                testValues.inputPrecision,
+                                                                                testValues.multiplyConstValues);
+
+        ngraph::pass::Manager manager;
+        manager.register_pass<ngraph::pass::ConvertMulOrAddFinally>();
+        manager.register_pass<ngraph::pass::ConstantFolding>();
+
+        manager.run_passes(actualFunction);
+
+        referenceFunction = ConvertMulOrAddWithDequantizationFunction::getReference(testValues.inputShape,
+                                                                                    testValues.inputPrecision,
+                                                                                    testValues.multiplyConstValues);
+    }
+
+    static std::string getTestCaseName(testing::TestParamInfo<ConvertMulOrAddFinallyTransformationWithDequantizationTestValues> obj) {
+        const ConvertMulOrAddFinallyTransformationWithDequantizationTestValues testValues = obj.param;
+        std::ostringstream result;
+        result << LayerTransformation::getTestCaseNameByParams(testValues.inputPrecision, testValues.inputShape, testValues.params) << "_" <<
+            testValues.multiplyConstValues;
+        return result.str();
+    }
+};
+
+TEST_P(ConvertMulOrAddFinallyTransformationWithDequantization, CompareFunctions) {
+    actualFunction->validate_nodes_and_infer_types();
+    auto res = compare_functions(referenceFunction, actualFunction, true, true, true);
+    ASSERT_TRUE(res.first) << res.second;
+}
+
+std::vector<ConvertMulOrAddFinallyTransformationWithDequantizationTestValues> testValues = {
+    {
+        { -1.0 },
+        { 1, 1000 },
+        ngraph::element::f32,
+        LayerTransformation::createParamsU8I8()
+    },
+    {
+        { 128.0 },
+        { 1, 10 },
+        ngraph::element::f32,
+        LayerTransformation::createParamsU8I8()
+    },
+    {
+        { -64.5 },
+        { 1, 10 },
+        ngraph::element::i8,
+        LayerTransformation::createParamsU8I8()
+    },
+    {
+        { 1.2 },
+        { 1, 100 },
+        ngraph::element::u8,
+        LayerTransformation::createParamsI8I8()
+    }
+};
+
+INSTANTIATE_TEST_CASE_P(
+    LPT,
+    ConvertMulOrAddFinallyTransformationWithDequantization,
+    ::testing::ValuesIn(testValues),
+    ConvertMulOrAddFinallyTransformationWithDequantization::getTestCaseName);
+} // namespace
\ No newline at end of file
diff --git a/inference-engine/tests/ngraph_functions/include/ngraph_functions/low_precision_transformations/convert_mul_or_add_finally_with_dequantization_function.hpp b/inference-engine/tests/ngraph_functions/include/ngraph_functions/low_precision_transformations/convert_mul_or_add_finally_with_dequantization_function.hpp
new file mode 100644
index 00000000000000..b5a191a8a9d7fd
--- /dev/null
+++ b/inference-engine/tests/ngraph_functions/include/ngraph_functions/low_precision_transformations/convert_mul_or_add_finally_with_dequantization_function.hpp
@@ -0,0 +1,31 @@
+// Copyright (C) 2020 Intel Corporation
+// SPDX-License-Identifier: Apache-2.0
+//
+
+#pragma once
+
+#include <sstream>
+#include <vector>
+#include <ngraph/ngraph.hpp>
+#include "ngraph_functions/low_precision_transformations/common/fake_quantize_on_data.hpp"
+#include "ngraph_functions/low_precision_transformations/common/dequantization_operations.hpp"
+
+namespace ngraph {
+namespace builder {
+namespace subgraph {
+
+class ConvertMulOrAddWithDequantizationFunction {
+public:
+    static std::shared_ptr<ngraph::Function> getOriginal(
+        const ngraph::Shape& inputShape,
+        const ngraph::element::Type inputPrecision,
+        const std::vector<float>& multiplyConst);
+
+    static std::shared_ptr<ngraph::Function> getReference(
+        const ngraph::Shape& inputShape,
+        const ngraph::element::Type inputPrecision,
+        const std::vector<float>& multiplyConst);
+};
+}  // namespace subgraph
+}  // namespace builder
+}  // namespace ngraph
diff --git a/inference-engine/tests/ngraph_functions/src/low_precision_transformations/convert_mul_or_add_finally_with_dequantization_function.cpp b/inference-engine/tests/ngraph_functions/src/low_precision_transformations/convert_mul_or_add_finally_with_dequantization_function.cpp
new file mode 100644
index 00000000000000..4402518bbd317d
--- /dev/null
+++ b/inference-engine/tests/ngraph_functions/src/low_precision_transformations/convert_mul_or_add_finally_with_dequantization_function.cpp
@@ -0,0 +1,75 @@
+// Copyright (C) 2020 Intel Corporation
+// SPDX-License-Identifier: Apache-2.0
+//
+
+#include "ngraph_functions/low_precision_transformations/convert_mul_or_add_finally_with_dequantization_function.hpp"
+
+#include <memory>
+#include <vector>
+#include <ngraph/ngraph.hpp>
+
+
+#include <ngraph/opsets/opset1.hpp>
+#include <ngraph_ops/fully_connected.hpp>
+#include "ngraph_functions/subgraph_builders.hpp"
+#include "ngraph_functions/low_precision_transformations/common/builders.hpp"
+#include "transformations/low_precision/network_helper.hpp"
+#include "ngraph_ops/scaleshift.hpp"
+#include "transformations/low_precision/common/dequantization_op.hpp"
+
+namespace ngraph {
+namespace builder {
+namespace subgraph {
+
+using namespace ngraph::pass;
+
+std::shared_ptr<ngraph::Function> ConvertMulOrAddWithDequantizationFunction::getOriginal(
+    const ngraph::Shape& inputShape,
+    const ngraph::element::Type inputPrecision,
+    const std::vector<float>& multiplyConst) {
+    const auto input = std::make_shared<ngraph::opset1::Parameter>(inputPrecision, inputShape);
+    const auto reluOriginal = ngraph::opset1::Relu(
+        ngraph::op::TemporaryReplaceOutputType(input, element::f32).get());
+
+    std::shared_ptr<ngraph::opset1::Relu> relu = std::make_shared<ngraph::op::TypeRelaxed<ngraph::opset1::Relu>>(
+        reluOriginal,
+        std::vector<element::Type>{ element::f32, element::f32 },
+        std::vector<element::Type>{});
+
+
+    const auto multiply = std::make_shared<ngraph::pass::low_precision::DequantizationMultiply>(relu,
+                                                            std::make_shared<opset1::Constant>(element::f32, inputShape, multiplyConst));
+
+    multiply->set_friendly_name("output");
+
+    ngraph::ResultVector results{ std::make_shared<ngraph::opset1::Result>(multiply) };
+    return std::make_shared<ngraph::Function>(results, ngraph::ParameterVector{ input },
+                                              "ConvertMulOrAddTransformationWithDequantization");
+}
+
+std::shared_ptr<ngraph::Function> ConvertMulOrAddWithDequantizationFunction::getReference(
+    const ngraph::Shape& inputShape,
+    const ngraph::element::Type inputPrecision,
+    const std::vector<float>& multiplyConst) {
+    const auto input = std::make_shared<ngraph::opset1::Parameter>(inputPrecision, inputShape);
+    const auto reluOriginal = ngraph::opset1::Relu(
+        ngraph::op::TemporaryReplaceOutputType(input, element::f32).get());
+
+    std::shared_ptr<ngraph::opset1::Relu> relu = std::make_shared<ngraph::op::TypeRelaxed<ngraph::opset1::Relu>>(
+        reluOriginal,
+        std::vector<element::Type>{ element::f32, element::f32 },
+        std::vector<element::Type>{});
+
+    const auto weights = std::make_shared<opset1::Constant>(element::f32, inputShape, multiplyConst);
+    const auto bias = std::make_shared<opset1::Constant>(element::f32, inputShape, 0.0);
+    const auto scaleShift = std::make_shared<ngraph::op::ScaleShiftIE>(relu, weights, bias);
+
+    scaleShift->set_friendly_name("output");
+
+    ngraph::ResultVector results{ std::make_shared<ngraph::opset1::Result>(scaleShift) };
+    return std::make_shared<ngraph::Function>(results, ngraph::ParameterVector{ input }, "ConvertMulOrAddTransformationWithDequantization");
+}
+
+}  // namespace subgraph
+}  // namespace builder
+}  // namespace ngraph