diff --git a/shared/source/command_container/command_encoder_xehp_and_later.inl b/shared/source/command_container/command_encoder_xehp_and_later.inl
index a0ef1f498b..81a6d6cd85 100644
--- a/shared/source/command_container/command_encoder_xehp_and_later.inl
+++ b/shared/source/command_container/command_encoder_xehp_and_later.inl
@@ -653,8 +653,15 @@ void EncodeDispatchKernel<Family>::encodeThreadData(WalkerType &walkerCmd,
     // so whenever local ids are driver or hw generated, reserve space by setting right values for emitLocalIds
     // 2) Auto-generation of local ids should be possible, when in fact local ids are used
     if (!localIdsGenerationByRuntime && localIdDimensions > 0) {
-        UNRECOVERABLE_IF(localIdDimensions != 3);
-        uint32_t emitLocalIdsForDim = (1 << 0) | (1 << 1) | (1 << 2);
+        UNRECOVERABLE_IF(localIdDimensions > 3);
+        uint32_t emitLocalIdsForDim = (1 << 0);
+
+        if (localIdDimensions > 1) {
+            emitLocalIdsForDim |= (1 << 1);
+        }
+        if (localIdDimensions > 2) {
+            emitLocalIdsForDim |= (1 << 2);
+        }
         walkerCmd.setEmitLocalId(emitLocalIdsForDim);
 
         walkerCmd.setLocalXMaximum(static_cast<uint32_t>(workGroupSizes[0] - 1));
diff --git a/shared/test/unit_test/encoders/test_encode_dispatch_kernel_xehp_and_later.cpp b/shared/test/unit_test/encoders/test_encode_dispatch_kernel_xehp_and_later.cpp
index cbfdbe82c9..1fa5ad9478 100644
--- a/shared/test/unit_test/encoders/test_encode_dispatch_kernel_xehp_and_later.cpp
+++ b/shared/test/unit_test/encoders/test_encode_dispatch_kernel_xehp_and_later.cpp
@@ -673,6 +673,9 @@ HWCMDTEST_F(IGFX_XE_HP_CORE, CommandEncodeStatesTest, givenInlineDataRequiredAnd
     dispatchInterface->requiredWalkGroupOrder = 2u;
     dispatchInterface->kernelDescriptor.kernelAttributes.flags.passInlineData = true;
     dispatchInterface->kernelDescriptor.kernelAttributes.numLocalIdChannels = 3u;
+    dispatchInterface->kernelDescriptor.kernelAttributes.localId[0] = 1;
+    dispatchInterface->kernelDescriptor.kernelAttributes.localId[1] = 1;
+    dispatchInterface->kernelDescriptor.kernelAttributes.localId[2] = 1;
     dispatchInterface->kernelDescriptor.kernelAttributes.simdSize = 32u;
     dispatchInterface->getCrossThreadDataSizeResult = 32u;
 
@@ -943,7 +946,57 @@ HWCMDTEST_F(IGFX_XE_HP_CORE, WalkerThreadTestXeHPAndLater, givenLocalIdGeneratio
     workGroupSizes[1] = workGroupSizes[2] = 2u;
     MockExecutionEnvironment executionEnvironment{};
     auto &rootDeviceEnvironment = *executionEnvironment.rootDeviceEnvironments[0];
-    EncodeDispatchKernel<FamilyType>::encodeThreadData(walkerCmd, nullptr, numWorkGroups, workGroupSizes, simd, localIdDimensions,
+
+    uint8_t localIdDims[3] = {2,
+                              1,
+                              3};
+
+    uint32_t expectedEmitLocalIds[3] = {(1 << 0) | (1 << 1),
+                                        (1 << 0),
+                                        (1 << 0) | (1 << 1) | (1 << 2)};
+
+    for (int i = 0; i < 3; i++) {
+        EncodeDispatchKernel<FamilyType>::encodeThreadData(walkerCmd, nullptr, numWorkGroups, workGroupSizes, simd, localIdDims[i],
+                                                           0, 0, false, false, false, requiredWorkGroupOrder, rootDeviceEnvironment);
+        EXPECT_FALSE(walkerCmd.getIndirectParameterEnable());
+        EXPECT_EQ(1u, walkerCmd.getThreadGroupIdXDimension());
+        EXPECT_EQ(1u, walkerCmd.getThreadGroupIdYDimension());
+        EXPECT_EQ(1u, walkerCmd.getThreadGroupIdZDimension());
+
+        EXPECT_EQ(0u, walkerCmd.getThreadGroupIdStartingX());
+        EXPECT_EQ(0u, walkerCmd.getThreadGroupIdStartingY());
+        EXPECT_EQ(0u, walkerCmd.getThreadGroupIdStartingZ());
+
+        auto expectedSimd = getSimdConfig<DefaultWalkerType>(simd);
+        EXPECT_EQ(expectedSimd, walkerCmd.getSimdSize());
+        EXPECT_EQ(expectedSimd, walkerCmd.getMessageSimd());
+
+        EXPECT_EQ(0xffffffffu, walkerCmd.getExecutionMask());
+
+        EXPECT_EQ(expectedEmitLocalIds[i], walkerCmd.getEmitLocalId());
+        EXPECT_EQ(31u, walkerCmd.getLocalXMaximum());
+        EXPECT_EQ(1u, walkerCmd.getLocalYMaximum());
+        EXPECT_EQ(1u, walkerCmd.getLocalZMaximum());
+        EXPECT_EQ(2u, walkerCmd.getWalkOrder());
+
+        EXPECT_TRUE(walkerCmd.getGenerateLocalId());
+        EXPECT_FALSE(walkerCmd.getEmitInlineParameter());
+    }
+}
+
+HWCMDTEST_F(IGFX_XE_HP_CORE, WalkerThreadTestXeHPAndLater, givenLocalIdGenerationByHwWhenLocalIdsNotPresentThenEmitLocalIdsIsNotSet) {
+    using DefaultWalkerType = typename FamilyType::DefaultWalkerType;
+
+    DefaultWalkerType walkerCmd = FamilyType::template getInitGpuWalker<DefaultWalkerType>();
+    requiredWorkGroupOrder = 2u;
+    workGroupSizes[1] = workGroupSizes[2] = 2u;
+    MockExecutionEnvironment executionEnvironment{};
+    auto &rootDeviceEnvironment = *executionEnvironment.rootDeviceEnvironments[0];
+
+    uint8_t localIdDims = 0;
+    uint32_t expectedEmitLocalIds = 0;
+
+    EncodeDispatchKernel<FamilyType>::encodeThreadData(walkerCmd, nullptr, numWorkGroups, workGroupSizes, simd, localIdDims,
                                                        0, 0, false, false, false, requiredWorkGroupOrder, rootDeviceEnvironment);
     EXPECT_FALSE(walkerCmd.getIndirectParameterEnable());
     EXPECT_EQ(1u, walkerCmd.getThreadGroupIdXDimension());
@@ -960,14 +1013,12 @@ HWCMDTEST_F(IGFX_XE_HP_CORE, WalkerThreadTestXeHPAndLater, givenLocalIdGeneratio
 
     EXPECT_EQ(0xffffffffu, walkerCmd.getExecutionMask());
 
-    uint32_t expectedEmitLocalIds = (1 << 0) | (1 << 1) | (1 << 2);
     EXPECT_EQ(expectedEmitLocalIds, walkerCmd.getEmitLocalId());
-    EXPECT_EQ(31u, walkerCmd.getLocalXMaximum());
-    EXPECT_EQ(1u, walkerCmd.getLocalYMaximum());
-    EXPECT_EQ(1u, walkerCmd.getLocalZMaximum());
-    EXPECT_EQ(2u, walkerCmd.getWalkOrder());
-
-    EXPECT_TRUE(walkerCmd.getGenerateLocalId());
+    EXPECT_EQ(0u, walkerCmd.getLocalXMaximum());
+    EXPECT_EQ(0u, walkerCmd.getLocalYMaximum());
+    EXPECT_EQ(0u, walkerCmd.getLocalZMaximum());
+    EXPECT_EQ(0u, walkerCmd.getWalkOrder());
+    EXPECT_FALSE(walkerCmd.getGenerateLocalId());
     EXPECT_FALSE(walkerCmd.getEmitInlineParameter());
 }