diff --git a/level_zero/core/source/driver/driver.cpp b/level_zero/core/source/driver/driver.cpp
index 6a983702e8..b28f55451d 100644
--- a/level_zero/core/source/driver/driver.cpp
+++ b/level_zero/core/source/driver/driver.cpp
@@ -9,6 +9,7 @@
 
 #include "shared/source/device/device.h"
 #include "shared/source/execution_environment/execution_environment.h"
+#include "shared/source/helpers/gfx_core_helper.h"
 #include "shared/source/os_interface/debug_env_reader.h"
 #include "shared/source/os_interface/device_factory.h"
 #include "shared/source/pin/pin.h"
@@ -47,7 +48,7 @@ void DriverImp::initialize(ze_result_t *result) {
     envVariables.fp64Emulation =
         envReader.getSetting("NEO_FP64_EMULATION", false);
     envVariables.deviceHierarchyMode =
-        envReader.getSetting("ZE_FLAT_DEVICE_HIERARCHY", std::string("COMPOSITE"));
+        envReader.getSetting("ZE_FLAT_DEVICE_HIERARCHY", std::string(NEO::deviceHierarchyUnk));
 
     auto executionEnvironment = new NEO::ExecutionEnvironment();
     UNRECOVERABLE_IF(nullptr == executionEnvironment);
diff --git a/level_zero/core/source/driver/driver_handle_imp.cpp b/level_zero/core/source/driver/driver_handle_imp.cpp
index 42806a72e6..ebd2d6885e 100644
--- a/level_zero/core/source/driver/driver_handle_imp.cpp
+++ b/level_zero/core/source/driver/driver_handle_imp.cpp
@@ -12,6 +12,7 @@
 #include "shared/source/device/device.h"
 #include "shared/source/execution_environment/execution_environment.h"
 #include "shared/source/execution_environment/root_device_environment.h"
+#include "shared/source/helpers/gfx_core_helper.h"
 #include "shared/source/helpers/hw_info.h"
 #include "shared/source/helpers/string.h"
 #include "shared/source/helpers/string_helpers.h"
@@ -270,11 +271,15 @@ DriverHandle *DriverHandle::create(std::vector<std::unique_ptr<NEO::Device>> dev
     driverHandle->enableProgramDebugging = static_cast<NEO::DebuggingMode>(envVariables.programDebugging);
     driverHandle->enableSysman = envVariables.sysman;
     driverHandle->enablePciIdDeviceOrder = envVariables.pciIdDeviceOrder;
-    if (strcmp(envVariables.deviceHierarchyMode.c_str(), "COMPOSITE") == 0) {
+    char const *preferredDeviceHierarchy = envVariables.deviceHierarchyMode.c_str();
+    if (strcmp(preferredDeviceHierarchy, NEO::deviceHierarchyUnk) == 0) {
+        preferredDeviceHierarchy = devices[0]->getGfxCoreHelper().getDefaultDeviceHierarchy();
+    }
+    if (strcmp(preferredDeviceHierarchy, "COMPOSITE") == 0) {
         driverHandle->deviceHierarchyMode = L0::L0DeviceHierarchyMode::L0_DEVICE_HIERARCHY_COMPOSITE;
-    } else if (strcmp(envVariables.deviceHierarchyMode.c_str(), "FLAT") == 0) {
+    } else if (strcmp(preferredDeviceHierarchy, "FLAT") == 0) {
         driverHandle->deviceHierarchyMode = L0::L0DeviceHierarchyMode::L0_DEVICE_HIERARCHY_FLAT;
-    } else if (strcmp(envVariables.deviceHierarchyMode.c_str(), "COMBINED") == 0) {
+    } else if (strcmp(preferredDeviceHierarchy, "COMBINED") == 0) {
         driverHandle->deviceHierarchyMode = L0::L0DeviceHierarchyMode::L0_DEVICE_HIERARCHY_COMBINED;
     }
     ze_result_t res = driverHandle->initialize(std::move(devices));
diff --git a/level_zero/core/test/unit_tests/sources/driver/test_driver.cpp b/level_zero/core/test/unit_tests/sources/driver/test_driver.cpp
index b7dd2e0a66..6829d06b58 100644
--- a/level_zero/core/test/unit_tests/sources/driver/test_driver.cpp
+++ b/level_zero/core/test/unit_tests/sources/driver/test_driver.cpp
@@ -7,6 +7,7 @@
 
 #include "shared/source/built_ins/sip.h"
 #include "shared/source/gmm_helper/gmm.h"
+#include "shared/source/helpers/gfx_core_helper.h"
 #include "shared/source/helpers/string.h"
 #include "shared/source/memory_manager/allocation_properties.h"
 #include "shared/source/memory_manager/os_agnostic_memory_manager.h"
@@ -473,7 +474,7 @@ TEST(DriverImpTest, givenEnabledProgramDebuggingWhenCreatingExecutionEnvironment
     L0::GlobalDriver = nullptr;
 }
 
-TEST(DriverImpTest, givenDefaultFlatDeviceHierarchyWhenCreatingExecutionEnvironmentThenCompositeHierarchyIsEnabled) {
+TEST(DriverImpTest, whenCreatingExecutionEnvironmentThenDefaultHierarchyIsEnabled) {
 
     NEO::HardwareInfo hwInfo = *NEO::defaultHwInfo.get();
     hwInfo.capabilityTable.levelZeroSupported = true;
@@ -482,7 +483,12 @@ TEST(DriverImpTest, givenDefaultFlatDeviceHierarchyWhenCreatingExecutionEnvironm
     DriverImp driverImp;
     driverImp.initialize(&result);
     L0::DriverHandleImp *driverHandleImp = reinterpret_cast<L0::DriverHandleImp *>(L0::GlobalDriverHandle);
-    EXPECT_EQ(driverHandleImp->deviceHierarchyMode, L0::L0DeviceHierarchyMode::L0_DEVICE_HIERARCHY_COMPOSITE);
+    auto &gfxCoreHelper = driverHandleImp->memoryManager->peekExecutionEnvironment().rootDeviceEnvironments[0]->getHelper<NEO::GfxCoreHelper>();
+    if (strcmp(gfxCoreHelper.getDefaultDeviceHierarchy(), "COMPOSITE") == 0) {
+        EXPECT_EQ(driverHandleImp->deviceHierarchyMode, L0::L0DeviceHierarchyMode::L0_DEVICE_HIERARCHY_COMPOSITE);
+    } else {
+        EXPECT_EQ(driverHandleImp->deviceHierarchyMode, L0::L0DeviceHierarchyMode::L0_DEVICE_HIERARCHY_FLAT);
+    }
     ASSERT_NE(nullptr, L0::GlobalDriver);
     ASSERT_NE(0u, L0::GlobalDriver->numDevices);
 
@@ -513,6 +519,28 @@ TEST(DriverImpTest, givenFlatDeviceHierarchyWhenCreatingExecutionEnvironmentThen
     L0::GlobalDriver = nullptr;
 }
 
+TEST(DriverImpTest, givenCompositeDeviceHierarchyWhenCreatingExecutionEnvironmentThenCompositeHierarchyIsEnabled) {
+
+    NEO::HardwareInfo hwInfo = *NEO::defaultHwInfo.get();
+    hwInfo.capabilityTable.levelZeroSupported = true;
+
+    VariableBackup<uint32_t> mockGetenvCalledBackup(&IoFunctions::mockGetenvCalled, 0);
+    std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
+
+    ze_result_t result = ZE_RESULT_ERROR_UNINITIALIZED;
+    DriverImp driverImp;
+    driverImp.initialize(&result);
+    L0::DriverHandleImp *driverHandleImp = reinterpret_cast<L0::DriverHandleImp *>(L0::GlobalDriverHandle);
+    EXPECT_EQ(driverHandleImp->deviceHierarchyMode, L0::L0DeviceHierarchyMode::L0_DEVICE_HIERARCHY_COMPOSITE);
+    ASSERT_NE(nullptr, L0::GlobalDriver);
+    ASSERT_NE(0u, L0::GlobalDriver->numDevices);
+
+    delete L0::GlobalDriver;
+    L0::GlobalDriverHandle = nullptr;
+    L0::GlobalDriver = nullptr;
+}
+
 TEST(DriverImpTest, givenCombinedDeviceHierarchyWhenCreatingExecutionEnvironmentThenCombinedHierarchyIsEnabled) {
 
     NEO::HardwareInfo hwInfo = *NEO::defaultHwInfo.get();
diff --git a/opencl/test/unit_test/api/cl_create_sub_devices_tests.inl b/opencl/test/unit_test/api/cl_create_sub_devices_tests.inl
index 7d1c7037fe..e8fdf0b2ca 100644
--- a/opencl/test/unit_test/api/cl_create_sub_devices_tests.inl
+++ b/opencl/test/unit_test/api/cl_create_sub_devices_tests.inl
@@ -7,6 +7,7 @@
 
 #include "shared/test/common/helpers/debug_manager_state_restore.h"
 #include "shared/test/common/helpers/variable_backup.h"
+#include "shared/test/common/mocks/mock_io_functions.h"
 #include "shared/test/common/test_macros/test.h"
 
 #include "opencl/source/api/api.h"
@@ -114,6 +115,8 @@ TEST_F(ClCreateSubDevicesTests, GivenValidInputWhenCreatingSubDevicesThenSubDevi
 }
 
 TEST_F(ClCreateSubDevicesTests, GivenValidInputWhenCreatingSubDevicesThenDeviceApiReferenceCountIsIncreasedEveryTime) {
+    std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
     setup(2);
 
     EXPECT_EQ(0, device->getSubDevice(0)->getRefApiCount());
@@ -131,6 +134,8 @@ TEST_F(ClCreateSubDevicesTests, GivenValidInputWhenCreatingSubDevicesThenDeviceA
 }
 
 TEST_F(ClCreateSubDevicesTests, GivenValidInputAndReturnSubDevicesAsApiDevicesIsSetWhenCreatingSubDevicesThenDeviceApiReferenceCountIsNotIncreased) {
+    std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
     DebugManager.flags.ReturnSubDevicesAsApiDevices.set(1);
     setup(2);
 
diff --git a/opencl/test/unit_test/device/sub_device_tests.cpp b/opencl/test/unit_test/device/sub_device_tests.cpp
index 1d75d1bab5..0f811b4c49 100644
--- a/opencl/test/unit_test/device/sub_device_tests.cpp
+++ b/opencl/test/unit_test/device/sub_device_tests.cpp
@@ -14,6 +14,7 @@
 #include "shared/test/common/helpers/ult_hw_config.h"
 #include "shared/test/common/helpers/variable_backup.h"
 #include "shared/test/common/mocks/mock_graphics_allocation.h"
+#include "shared/test/common/mocks/mock_io_functions.h"
 #include "shared/test/common/mocks/mock_memory_manager.h"
 #include "shared/test/common/mocks/ult_device_factory.h"
 #include "shared/test/common/test_macros/hw_test.h"
@@ -67,6 +68,8 @@ TEST(SubDevicesTest, givenCreateMultipleSubDevicesFlagSetWhenCreateRootDeviceThe
 
 TEST(SubDevicesTest, givenDeviceWithSubDevicesWhenSubDeviceApiRefCountsAreChangedThenChangeIsPropagatedToRootDevice) {
     DebugManagerStateRestore restorer;
+    std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
     DebugManager.flags.CreateMultipleSubDevices.set(2);
     VariableBackup<bool> mockDeviceFlagBackup(&MockDevice::createSingleDevice, false);
     initPlatform();
diff --git a/opencl/test/unit_test/os_interface/device_factory_tests.cpp b/opencl/test/unit_test/os_interface/device_factory_tests.cpp
index fb3e9916e4..f27082f709 100644
--- a/opencl/test/unit_test/os_interface/device_factory_tests.cpp
+++ b/opencl/test/unit_test/os_interface/device_factory_tests.cpp
@@ -18,6 +18,7 @@
 #include "shared/test/common/helpers/ult_hw_config.h"
 #include "shared/test/common/helpers/variable_backup.h"
 #include "shared/test/common/mocks/mock_execution_environment.h"
+#include "shared/test/common/mocks/mock_io_functions.h"
 #include "shared/test/common/mocks/mock_memory_manager.h"
 #include "shared/test/common/mocks/ult_device_factory.h"
 #include "shared/test/common/test_macros/hw_test.h"
@@ -126,6 +127,9 @@ TEST_F(DeviceFactoryTest, givenDebugFlagSetWhenCreatingDevicesThenForceImagesSup
 }
 
 TEST_F(DeviceFactoryTest, givenZeAffinityMaskSetWhenCreateDevicesThenProperNumberOfDevicesIsReturned) {
+    std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
+
     DebugManagerStateRestore restorer;
     DebugManager.flags.CreateMultipleRootDevices.set(5);
     DebugManager.flags.CreateMultipleSubDevices.set(4);
@@ -143,6 +147,9 @@ TEST_F(DeviceFactoryTest, givenZeAffinityMaskSetWhenCreateDevicesThenProperNumbe
 }
 
 TEST_F(DeviceFactoryTest, givenZeAffinityMaskSetToGreaterRootDeviceThanAvailableWhenCreateDevicesThenProperNumberOfDevicesIsReturned) {
+    std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
+
     DebugManagerStateRestore restorer;
     DebugManager.flags.CreateMultipleRootDevices.set(2);
     DebugManager.flags.CreateMultipleSubDevices.set(4);
@@ -159,6 +166,9 @@ TEST_F(DeviceFactoryTest, givenZeAffinityMaskSetToGreaterRootDeviceThanAvailable
 }
 
 TEST_F(DeviceFactoryTest, givenZeAffinityMaskSetToGreaterSubDeviceThanAvailableWhenCreateDevicesThenProperNumberOfDevicesIsReturned) {
+    std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
+
     DebugManagerStateRestore restorer;
     DebugManager.flags.CreateMultipleRootDevices.set(2);
     DebugManager.flags.CreateMultipleSubDevices.set(4);
@@ -173,6 +183,9 @@ TEST_F(DeviceFactoryTest, givenZeAffinityMaskSetToGreaterSubDeviceThanAvailableW
 }
 
 TEST_F(DeviceFactoryTest, givenZeAffinityMaskSetToRootDevicesOnlyWhenCreateDevicesThenProperNumberOfDevicesIsReturned) {
+    std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
+
     DebugManagerStateRestore restorer;
     DebugManager.flags.CreateMultipleRootDevices.set(2);
     DebugManager.flags.CreateMultipleSubDevices.set(4);
diff --git a/shared/source/debug_settings/debug_variables_base.inl b/shared/source/debug_settings/debug_variables_base.inl
index d67e7673c6..1be62002f9 100644
--- a/shared/source/debug_settings/debug_variables_base.inl
+++ b/shared/source/debug_settings/debug_variables_base.inl
@@ -398,7 +398,7 @@ DECLARE_DEBUG_VARIABLE(bool, EngineInstancedSubDevices, false, "Create subdevice
 DECLARE_DEBUG_VARIABLE(bool, AllowSingleTileEngineInstancedSubDevices, false, "Create subdevices assigned to specific engine on single tile config")
 DECLARE_DEBUG_VARIABLE(bool, EnablePrivateBO, false, "Enable PRELIM_I915_GEM_CREATE_EXT_VM_PRIVATE extension creating VM_PRIVATE BOs")
 DECLARE_DEBUG_VARIABLE(bool, UseDeprecatedClDeviceIpVersion, false, "When enabled, the deprecated ip version scheme distinguishing between families and integrated devices will be queried in OCL")
-DECLARE_DEBUG_VARIABLE(int32_t, ReturnSubDevicesAsApiDevices, -1, "Expose each subdevice as a separate device during clGetDeviceIDs or zeDeviceGet API call")
+DECLARE_DEBUG_VARIABLE(int32_t, ReturnSubDevicesAsApiDevices, -1, "Expose each subdevice as a separate device during clGetDeviceIDs or zeDeviceGet API call, -1:default, 0:disable, 1:enable")
 DECLARE_DEBUG_VARIABLE(int32_t, ForceRunAloneContext, -1, "Control creation of run-alone HW context, -1:default, 0:disable, 1:enable")
 DECLARE_DEBUG_VARIABLE(int32_t, AddClGlSharing, -1, "Add cl-gl extension")
 DECLARE_DEBUG_VARIABLE(int32_t, EnableKernelTunning, -1, "Perform a tunning of enqueue kernel, -1:default(disabled), 0:disable, 1:enable simple kernel tunning, 2:enable full kernel tunning")
diff --git a/shared/source/execution_environment/execution_environment.cpp b/shared/source/execution_environment/execution_environment.cpp
index c96bf1202e..32ea052615 100644
--- a/shared/source/execution_environment/execution_environment.cpp
+++ b/shared/source/execution_environment/execution_environment.cpp
@@ -287,6 +287,24 @@ void ExecutionEnvironment::sortNeoDevices() {
     std::sort(rootDeviceEnvironments.begin(), rootDeviceEnvironments.end(), comparePciIdBusNumber);
 }
 
+void ExecutionEnvironment::setDeviceHierarchy(const GfxCoreHelper &gfxCoreHelper) {
+    NEO::EnvironmentVariableReader envReader;
+    std::string hierarchyModel = envReader.getSetting("ZE_FLAT_DEVICE_HIERARCHY", std::string(gfxCoreHelper.getDefaultDeviceHierarchy()));
+    if (strcmp(hierarchyModel.c_str(), "COMPOSITE") == 0) {
+        setExposeSubDevicesAsDevices(false);
+    }
+    if (strcmp(hierarchyModel.c_str(), "FLAT") == 0) {
+        setExposeSubDevicesAsDevices(true);
+    }
+    if (strcmp(hierarchyModel.c_str(), "COMBINED") == 0) {
+        setCombinedDeviceHierarchy(true);
+    }
+
+    if (NEO::DebugManager.flags.ReturnSubDevicesAsApiDevices.get() != -1) {
+        setExposeSubDevicesAsDevices(NEO::DebugManager.flags.ReturnSubDevicesAsApiDevices.get());
+    }
+}
+
 void ExecutionEnvironment::adjustCcsCountImpl(RootDeviceEnvironment *rootDeviceEnvironment) const {
     auto hwInfo = rootDeviceEnvironment->getMutableHardwareInfo();
     auto &productHelper = rootDeviceEnvironment->getHelper<ProductHelper>();
@@ -346,21 +364,6 @@ void ExecutionEnvironment::configureNeoEnvironment() {
         DebugManager.flags.UseKmdMigration.setIfDefault(0);
         DebugManager.flags.SplitBcsSize.setIfDefault(256);
     }
-    NEO::EnvironmentVariableReader envReader;
-    std::string hierarchyModel = envReader.getSetting("ZE_FLAT_DEVICE_HIERARCHY", std::string("COMPOSITE"));
-    if (strcmp(hierarchyModel.c_str(), "COMPOSITE") == 0) {
-        setExposeSubDevicesAsDevices(false);
-    }
-    if (strcmp(hierarchyModel.c_str(), "FLAT") == 0) {
-        setExposeSubDevicesAsDevices(true);
-    }
-    if (strcmp(hierarchyModel.c_str(), "COMBINED") == 0) {
-        setCombinedDeviceHierarchy(true);
-    }
-
-    if (NEO::DebugManager.flags.ReturnSubDevicesAsApiDevices.get() == 1) {
-        setExposeSubDevicesAsDevices(true);
-    }
 }
 
 bool ExecutionEnvironment::comparePciIdBusNumber(std::unique_ptr<RootDeviceEnvironment> &rootDeviceEnvironment1, std::unique_ptr<RootDeviceEnvironment> &rootDeviceEnvironment2) {
diff --git a/shared/source/execution_environment/execution_environment.h b/shared/source/execution_environment/execution_environment.h
index 7f4eb3a842..0f10719984 100644
--- a/shared/source/execution_environment/execution_environment.h
+++ b/shared/source/execution_environment/execution_environment.h
@@ -15,6 +15,7 @@
 
 namespace NEO {
 class DirectSubmissionController;
+class GfxCoreHelper;
 class MemoryManager;
 struct OsEnvironment;
 struct RootDeviceEnvironment;
@@ -33,6 +34,7 @@ class ExecutionEnvironment : public ReferenceTrackedObject<ExecutionEnvironment>
     void adjustCcsCount();
     void adjustCcsCount(const uint32_t rootDeviceIndex) const;
     void sortNeoDevices();
+    void setDeviceHierarchy(const GfxCoreHelper &gfxCoreHelper);
     void adjustRootDeviceEnvironments();
     void prepareForCleanup() const;
     void setDebuggingMode(DebuggingMode debuggingMode) {
diff --git a/shared/source/helpers/gfx_core_helper.cpp b/shared/source/helpers/gfx_core_helper.cpp
index 9057a291e7..e7869f78d7 100644
--- a/shared/source/helpers/gfx_core_helper.cpp
+++ b/shared/source/helpers/gfx_core_helper.cpp
@@ -18,6 +18,10 @@ namespace NEO {
 
 GfxCoreHelperCreateFunctionType gfxCoreHelperFactory[IGFX_MAX_CORE] = {};
 
+const char *deviceHierarchyComposite = "COMPOSITE";
+const char *deviceHierarchyFlat = "FLAT";
+const char *deviceHierarchyUnk = "UNK";
+
 std::unique_ptr<GfxCoreHelper> GfxCoreHelper::create(const GFXCORE_FAMILY gfxCoreFamily) {
 
     auto createFunction = gfxCoreHelperFactory[gfxCoreFamily];
diff --git a/shared/source/helpers/gfx_core_helper.h b/shared/source/helpers/gfx_core_helper.h
index fc765dbc16..ad03a311f1 100644
--- a/shared/source/helpers/gfx_core_helper.h
+++ b/shared/source/helpers/gfx_core_helper.h
@@ -48,6 +48,10 @@ class GfxCoreHelper;
 using EngineInstancesContainer = StackVec<EngineTypeUsage, 32>;
 using GfxCoreHelperCreateFunctionType = std::unique_ptr<GfxCoreHelper> (*)();
 
+extern const char *deviceHierarchyComposite;
+extern const char *deviceHierarchyFlat;
+extern const char *deviceHierarchyUnk;
+
 class GfxCoreHelper {
   public:
     static std::unique_ptr<GfxCoreHelper> create(const GFXCORE_FAMILY gfxCoreFamily);
@@ -168,6 +172,7 @@ class GfxCoreHelper {
     virtual bool isRelaxedOrderingSupported() const = 0;
     virtual uint32_t calculateNumThreadsPerThreadGroup(uint32_t simd, uint32_t totalWorkItems, uint32_t grfSize, bool isHwLocalIdGeneration) const = 0;
     virtual uint32_t overrideMaxWorkGroupSize(uint32_t maxWG) const = 0;
+    virtual char const *getDefaultDeviceHierarchy() const = 0;
     static bool isWorkaroundRequired(uint32_t lowestSteppingWithBug, uint32_t steppingWithFix, const HardwareInfo &hwInfo, const ProductHelper &productHelper);
     virtual ~GfxCoreHelper() = default;
 
@@ -380,6 +385,7 @@ class GfxCoreHelperHw : public GfxCoreHelper {
     bool isRelaxedOrderingSupported() const override;
     uint32_t calculateNumThreadsPerThreadGroup(uint32_t simd, uint32_t totalWorkItems, uint32_t grfSize, bool isHwLocalIdGeneration) const override;
     uint32_t overrideMaxWorkGroupSize(uint32_t maxWG) const override;
+    char const *getDefaultDeviceHierarchy() const override;
     ~GfxCoreHelperHw() override = default;
 
   protected:
diff --git a/shared/source/helpers/gfx_core_helper_base.inl b/shared/source/helpers/gfx_core_helper_base.inl
index 4234dba068..1309bdd19c 100644
--- a/shared/source/helpers/gfx_core_helper_base.inl
+++ b/shared/source/helpers/gfx_core_helper_base.inl
@@ -709,4 +709,10 @@ template <typename GfxFamily>
 uint32_t GfxCoreHelperHw<GfxFamily>::calculateNumThreadsPerThreadGroup(uint32_t simd, uint32_t totalWorkItems, uint32_t grfSize, bool isHwLocalIdGeneration) const {
     return getThreadsPerWG(simd, totalWorkItems);
 }
+
+template <typename GfxFamily>
+char const *GfxCoreHelperHw<GfxFamily>::getDefaultDeviceHierarchy() const {
+    return deviceHierarchyComposite;
+}
+
 } // namespace NEO
diff --git a/shared/source/os_interface/device_factory.cpp b/shared/source/os_interface/device_factory.cpp
index 051dff28f1..187bc48552 100644
--- a/shared/source/os_interface/device_factory.cpp
+++ b/shared/source/os_interface/device_factory.cpp
@@ -116,6 +116,7 @@ bool DeviceFactory::prepareDeviceEnvironmentsForProductFamilyOverride(ExecutionE
         }
     }
 
+    executionEnvironment.setDeviceHierarchy(executionEnvironment.rootDeviceEnvironments[0]->getHelper<GfxCoreHelper>());
     executionEnvironment.parseAffinityMask();
     executionEnvironment.adjustCcsCount();
     executionEnvironment.calculateMaxOsContextCount();
@@ -175,6 +176,7 @@ bool DeviceFactory::prepareDeviceEnvironments(ExecutionEnvironment &executionEnv
         rootDeviceIndex++;
     }
 
+    executionEnvironment.setDeviceHierarchy(executionEnvironment.rootDeviceEnvironments[0]->getHelper<GfxCoreHelper>());
     executionEnvironment.sortNeoDevices();
     executionEnvironment.parseAffinityMask();
     executionEnvironment.adjustRootDeviceEnvironments();
diff --git a/shared/test/common/mocks/mock_device.cpp b/shared/test/common/mocks/mock_device.cpp
index cdd1a28508..286572021a 100644
--- a/shared/test/common/mocks/mock_device.cpp
+++ b/shared/test/common/mocks/mock_device.cpp
@@ -111,6 +111,7 @@ ExecutionEnvironment *MockDevice::prepareExecutionEnvironment(const HardwareInfo
         executionEnvironment->rootDeviceEnvironments[i]->setHwInfoAndInitHelpers(pHwInfo);
         executionEnvironment->rootDeviceEnvironments[i]->initGmm();
     }
+    executionEnvironment->setDeviceHierarchy(executionEnvironment->rootDeviceEnvironments[0]->getHelper<GfxCoreHelper>());
     executionEnvironment->calculateMaxOsContextCount();
     return executionEnvironment;
 }
@@ -146,6 +147,7 @@ ExecutionEnvironment *MockDevice::prepareExecutionEnvironment(const HardwareInfo
     auto hwInfo = pHwInfo ? pHwInfo : defaultHwInfo.get();
 
     executionEnvironment->rootDeviceEnvironments[0]->setHwInfoAndInitHelpers(hwInfo);
+    executionEnvironment->setDeviceHierarchy(executionEnvironment->rootDeviceEnvironments[0]->getHelper<GfxCoreHelper>());
 
     MockAubCenterFixture::setMockAubCenter(*executionEnvironment->rootDeviceEnvironments[0]);
     executionEnvironment->initializeMemoryManager();
diff --git a/shared/test/unit_test/device/neo_device_tests.cpp b/shared/test/unit_test/device/neo_device_tests.cpp
index 2333f506f4..ca22d303f4 100644
--- a/shared/test/unit_test/device/neo_device_tests.cpp
+++ b/shared/test/unit_test/device/neo_device_tests.cpp
@@ -23,6 +23,7 @@
 #include "shared/test/common/mocks/mock_compiler_interface.h"
 #include "shared/test/common/mocks/mock_compilers.h"
 #include "shared/test/common/mocks/mock_device.h"
+#include "shared/test/common/mocks/mock_io_functions.h"
 #include "shared/test/common/mocks/mock_memory_manager.h"
 #include "shared/test/common/mocks/mock_product_helper.h"
 #include "shared/test/common/mocks/ult_device_factory.h"
@@ -757,7 +758,10 @@ HWCMDTEST_F(IGFX_XE_HP_CORE, DeviceTests, givenZeAffinityMaskSetAndTilesAsDevice
     }
 }
 
-HWCMDTEST_F(IGFX_XE_HP_CORE, DeviceTests, givenZeAffinityMaskSetThenProperSubDeviceHierarchyMapisSet) {
+HWCMDTEST_F(IGFX_XE_HP_CORE, DeviceTests, givenZeAffinityMaskSetThenProperSubDeviceHierarchyMapIsSet) {
+    std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
+
     VariableBackup<UltHwConfig> backup(&ultHwConfig);
     ultHwConfig.useMockedPrepareDeviceEnvironmentsFunc = false;
     DebugManagerStateRestore restorer;
@@ -795,6 +799,9 @@ HWCMDTEST_F(IGFX_XE_HP_CORE, DeviceTests, givenZeAffinityMaskSetThenProperSubDev
 }
 
 HWCMDTEST_F(IGFX_XE_HP_CORE, DeviceTests, givenZeAffinityMaskSetWithoutTilesThenProperSubDeviceHierarchyMapisUnset) {
+    std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
+
     VariableBackup<UltHwConfig> backup(&ultHwConfig);
     ultHwConfig.useMockedPrepareDeviceEnvironmentsFunc = false;
     DebugManagerStateRestore restorer;
diff --git a/shared/test/unit_test/execution_environment/execution_environment_tests.cpp b/shared/test/unit_test/execution_environment/execution_environment_tests.cpp
index 0c4f06d0b9..dbaff6b128 100644
--- a/shared/test/unit_test/execution_environment/execution_environment_tests.cpp
+++ b/shared/test/unit_test/execution_environment/execution_environment_tests.cpp
@@ -41,18 +41,24 @@ TEST(ExecutionEnvironment, givenDefaultConstructorWhenItIsCalledThenExecutionEnv
     EXPECT_EQ(0, environment.getRefApiCount());
 }
 
-TEST(ExecutionEnvironment, givenDefaultConstructorWhenItIsCalledThenSubDevicesAsDevicesIsFalse) {
-    ExecutionEnvironment environment;
-    EXPECT_FALSE(environment.isExposingSubDevicesAsDevices());
-}
-
-TEST(ExecutionEnvironment, givenDefaultConstructoWhenItIsCalledAndReturnSubDevicesAsApiDevicesIsSetThenSubDevicesAsDevicesIsTrue) {
+TEST(ExecutionEnvironment, givenDefaultConstructoWhenItIsCalledAndReturnSubDevicesAsApiDevicesIsSetTrueThenSubDevicesAsDevicesIsTrue) {
     DebugManagerStateRestore dbgRestore;
     DebugManager.flags.ReturnSubDevicesAsApiDevices.set(1);
-    ExecutionEnvironment environment;
+    MockExecutionEnvironment environment;
+    environment.rootDeviceEnvironments[0]->setHwInfoAndInitHelpers(defaultHwInfo.get());
+    environment.setDeviceHierarchy(environment.rootDeviceEnvironments[0]->getHelper<GfxCoreHelper>());
     EXPECT_TRUE(environment.isExposingSubDevicesAsDevices());
 }
 
+TEST(ExecutionEnvironment, givenDefaultConstructoWhenItIsCalledAndReturnSubDevicesAsApiDevicesIsSetFalseThenSubDevicesAsDevicesIsFalse) {
+    DebugManagerStateRestore dbgRestore;
+    DebugManager.flags.ReturnSubDevicesAsApiDevices.set(0);
+    MockExecutionEnvironment environment;
+    environment.rootDeviceEnvironments[0]->setHwInfoAndInitHelpers(defaultHwInfo.get());
+    environment.setDeviceHierarchy(environment.rootDeviceEnvironments[0]->getHelper<GfxCoreHelper>());
+    EXPECT_FALSE(environment.isExposingSubDevicesAsDevices());
+}
+
 TEST(ExecutionEnvironment, WhenCreatingDevicesThenThoseDevicesAddRefcountsToExecutionEnvironment) {
     auto executionEnvironment = new ExecutionEnvironment();
 
@@ -488,11 +494,23 @@ TEST(ExecutionEnvironment, givenExecutionEnvironmentWhenSettingFP64EmulationEnab
     EXPECT_TRUE(executionEnvironment.isFP64EmulationEnabled());
 }
 
+TEST(ExecutionEnvironmentDeviceHierarchy, givenExecutionEnvironmentWithDefaultDeviceHierarchyThenExecutionEnvironmentIsInitializedCorrectly) {
+    VariableBackup<uint32_t> mockGetenvCalledBackup(&IoFunctions::mockGetenvCalled, 0);
+    MockExecutionEnvironment executionEnvironment;
+    executionEnvironment.rootDeviceEnvironments[0]->setHwInfoAndInitHelpers(defaultHwInfo.get());
+    auto &gfxCoreHelper = executionEnvironment.rootDeviceEnvironments[0]->getHelper<GfxCoreHelper>();
+    executionEnvironment.setDeviceHierarchy(gfxCoreHelper);
+    EXPECT_EQ((strcmp(gfxCoreHelper.getDefaultDeviceHierarchy(), "COMPOSITE") != 0),
+              executionEnvironment.isExposingSubDevicesAsDevices());
+}
+
 TEST(ExecutionEnvironmentDeviceHierarchy, givenExecutionEnvironmentWithCompositeDeviceHierarchyThenExposeSubDevicesAsDevicesIsFalse) {
     VariableBackup<uint32_t> mockGetenvCalledBackup(&IoFunctions::mockGetenvCalled, 0);
     std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
     VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
-    ExecutionEnvironment executionEnvironment{};
+    MockExecutionEnvironment executionEnvironment;
+    executionEnvironment.rootDeviceEnvironments[0]->setHwInfoAndInitHelpers(defaultHwInfo.get());
+    executionEnvironment.setDeviceHierarchy(executionEnvironment.rootDeviceEnvironments[0]->getHelper<GfxCoreHelper>());
     EXPECT_FALSE(executionEnvironment.isExposingSubDevicesAsDevices());
 }
 
@@ -500,7 +518,9 @@ TEST(ExecutionEnvironmentDeviceHierarchy, givenExecutionEnvironmentWithFlatDevic
     VariableBackup<uint32_t> mockGetenvCalledBackup(&IoFunctions::mockGetenvCalled, 0);
     std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "FLAT"}};
     VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
-    ExecutionEnvironment executionEnvironment{};
+    MockExecutionEnvironment executionEnvironment;
+    executionEnvironment.rootDeviceEnvironments[0]->setHwInfoAndInitHelpers(defaultHwInfo.get());
+    executionEnvironment.setDeviceHierarchy(executionEnvironment.rootDeviceEnvironments[0]->getHelper<GfxCoreHelper>());
     EXPECT_TRUE(executionEnvironment.isExposingSubDevicesAsDevices());
 }
 
@@ -508,7 +528,9 @@ TEST(ExecutionEnvironmentDeviceHierarchy, givenExecutionEnvironmentWithCombinedD
     VariableBackup<uint32_t> mockGetenvCalledBackup(&IoFunctions::mockGetenvCalled, 0);
     std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMBINED"}};
     VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
-    ExecutionEnvironment executionEnvironment{};
+    MockExecutionEnvironment executionEnvironment;
+    executionEnvironment.rootDeviceEnvironments[0]->setHwInfoAndInitHelpers(defaultHwInfo.get());
+    executionEnvironment.setDeviceHierarchy(executionEnvironment.rootDeviceEnvironments[0]->getHelper<GfxCoreHelper>());
     EXPECT_FALSE(executionEnvironment.isExposingSubDevicesAsDevices());
 }
 
diff --git a/shared/test/unit_test/os_interface/device_uuid_tests.cpp b/shared/test/unit_test/os_interface/device_uuid_tests.cpp
index c50f84df7d..242929ea52 100644
--- a/shared/test/unit_test/os_interface/device_uuid_tests.cpp
+++ b/shared/test/unit_test/os_interface/device_uuid_tests.cpp
@@ -15,6 +15,7 @@
 #include "shared/test/common/mocks/mock_device.h"
 #include "shared/test/common/mocks/mock_driver_model.h"
 #include "shared/test/common/mocks/mock_execution_environment.h"
+#include "shared/test/common/mocks/mock_io_functions.h"
 #include "shared/test/common/mocks/mock_memory_manager.h"
 #include "shared/test/common/mocks/ult_device_factory.h"
 #include "shared/test/common/test_macros/hw_test.h"
@@ -37,6 +38,9 @@ struct MultipleDeviceBdfUuidTest : public ::testing::Test {
 
 HWTEST2_F(MultipleDeviceBdfUuidTest, GivenValidBdfWithCombinationOfAffinityMaskThenUuidIsCorrectForRootAndSubDevices, MatchAny) {
 
+    std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
+
     std::unique_ptr<UltDeviceFactory> deviceFactory;
     auto mockExecutionEnvironment = std::make_unique<MockExecutionEnvironment>(defaultHwInfo.get(), false, 1);
     RAIIProductHelperFactory<MockProductHelperHw<productFamily>> raii(*mockExecutionEnvironment->rootDeviceEnvironments[0]);
@@ -238,6 +242,9 @@ HWTEST2_F(MultipleDeviceBdfUuidTest, GivenValidBdfWithOneBitEnabledInAffinityMas
 
 HWTEST2_F(MultipleDeviceBdfUuidTest, GivenValidBdfWithOneBitEnabledInAffinityMaskSetToSubDeviceThenUuidOfRootDeviceIsBasedOnAffinityMask, MatchAny) {
 
+    std::unordered_map<std::string, std::string> mockableEnvs = {{"ZE_FLAT_DEVICE_HIERARCHY", "COMPOSITE"}};
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&IoFunctions::mockableEnvValues, &mockableEnvs);
+
     std::unique_ptr<UltDeviceFactory> deviceFactory;
     auto mockExecutionEnvironment = std::make_unique<MockExecutionEnvironment>(defaultHwInfo.get(), false, 1);
     RAIIProductHelperFactory<MockProductHelperHw<productFamily>> raii(*mockExecutionEnvironment->rootDeviceEnvironments[0]);